July 31st, 2009
July 31, 12:55 PM Print Production of The Chrysler PT Cruiser will continue in Mexico. Long rumored to be reaching the end of its life cycle, Chrysler’s PT Cruiser will live on for at least another year. Chrysler Group LLC has announced that production of the retro-styled compact will continue at the Toluca, Mexico, assembly plant. Peter Fong, Chrysler Brand president and chief executive officer, said, The heritage-styled Chrysler PT Cruiser continues to be a global success story. With more than 1.3 million PT Cruisers sold in more than 60 countries since 2000, we re excited to announce we re re-energizing the iconic and award-winning PT Cruiser. With the look of a 1930s sedan and a surprisingly roomy and flexible interior, the PT Cruiser was an immediate hit when it first rolled off the assembly line. To keep the Cruiser fresh, Chrysler has released 14 customized versions of the small car over the years. Press the Subscribe button, below, enter e-mail and get all of Nick Yost’s articles for free.
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July 31st, 2009
Chrysler May Change Incentive Plan more in Auto Industry News By KATE LINEBAUGH Chrysler Group LLC is considering changing its incentive plan offering a $4,500 rebate for the purchase of a vehicle in addition to any cash from the government’s cash-for-clunkers plan, sources say.
The automaker came out with its "double your cash for your old car" campaign as a way to lure consumers seeking to tap the government program to its showrooms. Now, the company is considering changing the focus more to product-specific messages and clearing out inventory from the previous model year, sources said. A Chrysler spokeswoman said the company would make an announcement on its incentive program Monday. After the government’s $1 billion initially allocated for the car purchase program ran out in its first week, the House of Representatives Friday approved moving $2 billion in stimulus spending into the "cash for clunkers" program.
The program spawned a frenzy of activity in dealerships that had been moribund for the better part of the last year causing dealers to increase their car and truck orders from manufacturers. Chrysler said its dealers saw a two-year-high in traffic last weekend, as its incentive program drew many buyers whose vehicles didn’t qualify. The company said only one-third of those who came in for the clunkers program had vehicles that qualified for the government rebate. As Chrysler slipped into bankruptcy, its sales have suffered more than its competitors. In June, Italian automaker Fiat SpA took control of Chrysler’s management as part of a federally funded bail-out. Fiat Chief Executive Officer Sergio Marchionne, who has the same title at Chrysler, said earlier this month that he seeks to wean the company from using incentives to grab market share at the expense of margins.
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July 31st, 2009
So, what does this recall have to do with Chrysler ? Well, this article points out the flaw in the bankruptcy court’s decision to absolve Fiat and Chrysler of any liability for injuries or deaths resulting from defective Chryslers which were bought before the bankruptcy.
This would have been the case in all 440,000 Hondas which have been recalled. Couldn’t the bankruptcy court have been more thoughtful about the decision? Most times, bankruptcy courts require the debtor to purchase insurance in order to cover such liabilities. Why didn’t Fiat or Chrysler purchase insurance so that the consumer doesn’t suffer? Families who purchased Chryslers before the bankruptcy will suffer an undue hardship if a loved one is seriously injured or killed as a result of a defect in the car, truck or SUV.
Shouldn’t that cost be shifted to the new entity through insurance?
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July 31st, 2009
Last Update: 2:32 am Related Links Zimmer Chrysler Jeep In Florence On List To Close First Dealers Lose Franchise, Then Cars Zimmer Chrysler Jeep In Florence Fights Closure 7 Area Auto Dealers Begin Life Without Chrysler Dealerships’ Closing Means Jobs Lost Sen.
Sherrod Brown Disagrees With Chrysler Plan Chrysler Says It Will Close 7 Local Dealers Communities Brace For Chrysler Cuts A local Chrysler dealership in Florence that should be on the ragged edge, is still hanging on.
In fact, there’s a great deal of optimism about the future at Zimmer Motors. This dealership has an 80-year history, nearly 30 years in their current location. On June 9, Chrysler told the people there it was severing all ties with them. But far from giving up, this dealership is forging ahead. It’s hard to believe that just over a month ago, Zimmer Motors faced an uncertain future. It’s showroom floor is still full, its salesmen still beating the bushes for every possible opportunity. But, Zimmer is operating without its long-standing affiliation with Chrysler and the bad news June 9 hit everybody hard. “I’ve literally had customers call me sobbing,which is touching,” said Cathy Zimmer. “They’re like, вЂSorry for what’s going on at your dealership, and what can we do?’ What customers like Jim and Sheryl Gronefeld did was give Chrysler a piece of their minds. Cathy Zimmer said the Gronefelds and others flooded Chrysler with complaints about its decision. “They sent us a letter. We mailed it back to them.We were very upset they done what they did,” said Jim Gronefeld, a Zimmer customer. The customers are doing something else, too. They’re keeping the service department humming. Technician Larry Miller says he briefly wondered what losing Chrysler would mean for his wife and two children, but says that concern is gone. “It seems like we re actually busier now than we were when we actually had the franchise,” said Miller. “I guess that’s customer loyalty – stuff like that. And there may be other reasons for optimism. For one thing, Cathy Zimmer says all her departments have turned a profit. Also, Chrysler has yet to take down its signs at Zimmer. And, she says, “We did have an official from Chrysler in here not long ago, who expressed interest in talking to us again. So, we’re hopeful that something will happen. And if Jim Gronefeld could talk to that Chrysler official? “Put Chrysler back here on Route 18 in Florence,” said Gronefeld. The loss of the Chrysler franchise did not lead to mass layoffs. In fact, all but six of the original 58 employees are still on the job.
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July 31st, 2009
Bailout Watch 575: Canadians Demand GM and Chrysler Disclose BOD Members Pay and Perks Her neighbors to the south may not recognize the fact (even parenthetically), but Canada kicked-in as-yet-uncounted billions in federal funds to keep the Chrysler and GM zombies in a vertical position.
Whatever the final tally, the Motown subsidy was the largest bailout in Canadian history. In exchange, they received a seat on both automakers Board of Directors.В Ottawa and Toronto chose CarolВ Stephenson, dean of the Richard Ivey School of Business at the University of Western Ontario, to bop on down to RenCen to see what s shaking.
Auburn Hills hosts George Gosbee of Tristone Capital. OK, so how much are they getting paid for their time? They ain t saying, exactly. And Canadians are not happy. Specifically, the Edmonton Journal : Chrysler and GM refuse to disclose their compensation along with all other board members is an outrage and insult to citizens on both sides of the border. To be precise, GM admits with comical simplicity only that board members are paid a minimum of $200,000 a year plus a free car, which we assume is not a loaded Aveo. Chrysler, incredibly, still declines to reveal any financial information about board remuneration, citing privacy issues.
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July 31st, 2009
July 31, 2009 Related Stories U.S. to Sell GM Stake in Stages Cash for Clunkers Attracts Car Buyers Column: How Different It Was a Year Ago ‘Cash for Clunkers’ Program Takes Effect: What You Need to Know Ford Surprises with $2.3B Q2 Profit AUBURN HILLS, Mich.
(UPI ) — Chrysler workers are facing an ethical dilemma with an offer from Michigan to file for unemployment that union officials say is prohibited in their contract. The summer production break, scheduled for July 13-24 this year, has traditionally allowed United Auto Worker members to file for unemployment and collect a supplemental check provided by the company.
But, the contract that emerged from Chrysler’s bankruptcy proceeding includes a clause that says, "employees will be required to utilize two weeks of their vacation entitlement for a mandatory shutdown," the Detroit Free Press reported Thursday.
Unable to distinguish between a vacation and a temporary shutdown, Michigan’s Unemployment Insurance Agency sent thousands of letters to union workers informing them they were eligible for benefits, a redundancy that could cost the state $10 million, the newspaper said.
Chrysler Group LLC, the company that emerged from the bankruptcy, said it was working with the state to resolve the issue. "The period in question isn’t payable," the company said in a statement. Workers collected vacation pay for the break in May, the Free Press reported.
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July 31st, 2009
Blogger: Chrysler rumored to be splitting off Ram trucks from Dodge, making a new brand by Aaron Foley | MLive.com Friday July 31, 2009, 1:36 PM Chrysler LLC Dodge Ram Peter De Lorenzo, author of AutoExtremist.com and former automotive advertising executive, is hearing an interesting rumor out of Auburn Hills.
The blogger writes that Chrysler could expand to four brands: Chrysler, Dodge, Jeep and Ram, making the trucks under the Dodge brand into a separate entity. From De Lorenzo’s blog: "What part of this seemed to be a good idea? The ‘not selling’ part or the ‘more’ part? As we like to say around here at AE, you just can’t make this (expletive) up."
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July 31st, 2009
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July 31st, 2009
Survey: Favorable Views of Ford, Not GM or Chrysler A recent survey from Rasmussen Reports found that as the only automaker to not ask for government assistance, Ford earned a highly favorable view from the public.
Predictably, GM and Chrysler are not thought of with as much affection. Of the 66% of people who viewed Ford somewhat favorably, 22% thought of it very favorably. Compare this with 38% who think favorably of GM and just 9% who think of it very favorably. Chrysler had similar numbers, with 34% viewing it somewhat favorably. Both GM and Chrysler’s numbers are down since the same poll was conducted in May, while Ford has stayed the same. How could this affect sales? Of those polled, 46% said they were more likely to buy a Ford because it didn’t ask for government help, while just 17% said they are more likely to buy a car from GM post-bankruptcy and 22% said they are less likely.
Polls like this should always be taken with a big grain of salt, though, because they often include contradictory feelings within people. For instance, 60% of those polled thought the auto bailouts were a bad idea, yet a whopping 82% said the domestic auto industry was important to the economy, and 40% said it was very important.
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July 31st, 2009
Friday, 31 July 2009 Home / Business The spirit was willing, but in the end, forces beyond his control forced Leesburg auto dealer Ray O’Bryhim to close the doors of the former Pohanka Chrysler dealership on Catoctin Circle after 41 years in business, effective July 31.
O Bryhim s dealership was one of about 800 of Chrysler s 3,200 dealerships that lost their franchises when the automaker filed for bankruptcy protection. He learned in May that his franchise would be terminated effective June 9, 2009, and his first challenge was liquidating his inventory of 130 new Chrysler cars and trucks by the deadline. By June 10, we had moved all but ten, which were sold to dealers in the surrounding area, he recalled. O Bryhim then went to Plan B, where he would make good his commitment to stay in the market as Pohanka of Leesburg Sales and Service, selling used cars and trucks and taking care of his customers service needs.
Pohanka Chrysler Closes after 41 years. Although no longer a Chrysler dealer, O Bryhim had hoped that Chrysler now out of bankruptcy after being acquired by Italian auto manufacturer Fiat might be interested in an open point, affiliation with Pohanka, since he believed that Fiat/Chrysler would not want to abandon the market.
There is going to be a player in Leesburg, he said at the time. While that question has not been officially answered, it has become clear to O Bryhim that it won t be his dealership that is left standing. In the beginning of the transition, O Bryhim who has been with the Pohanka group for 28 years, and at the Leesburg facility for about the last four years vowed to keep his staff together, and make it on used car sales and service.
But with new car sales slow and so few trade-ins, we ve had to buy our used car inventory for resale, and that s very expensive, he noted. And service work could not make up the difference. Finally, it was decided to close the business which has been in Leesburg since 1968 at the end of July.
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