Latest Chrysler News

[MoparDan]

From the AllPar Site

http://www.allpar.com/news/index.php...r-march-sales/
Rays of sunshine in Chrysler March Sales

April 1st, 2009
by Bill Cawthon
Top news for Chrysler fans: GM has out-slumped Chrysler and now has the worst sales record of the Big Six automakers. Chrysler sales were down 39.3 percent in March compared to a 40.8 deficit at Ford and a 44.7 percent plunge at GM. In year-to-date [[YTD) sales, Chrysler’s shortfall is 45.5 percent, trailing Ford’s 43.3 percent but ahead of GM’s 48.8 percent dive compared to March 2008. Incidentally, Chrysler’s estimated average incentive was just $91 more than GM’s new record.
Chrysler’s shortfall was the smallest since last October.
The Caravan and Town & Country were nos. 1 and 2 in the minivan segment and now lead the Odyssey and Sienna in both monthly and YTD sales.
The Jeep Wrangler, with 10,000 sales, not only outsold every traditional body-on-frame SUV, it outsold every light GM truck except the Chevy Silverado.
Chrysler LLC [[Chrysler, Dodge & Jeep) sold more light trucks than Ford Motor Company [[Ford, Mercury, Lincoln and Volvo).
================================================== =====

http://www.allpar.com/news/index.php...es-break-100k/
Chrysler’s March U.S. sales break 100K [[down 39%)

April 1st, 2009
by Bill Cawthon
Chrysler today reported March U.S. total sales of 101,001 units, which is the first time since Sept. 2008 that the Company has surpassed 100,000 units, albeit at a a 39% decrease versus 2008. Retail market share stayed steady, at an estimated 10.0% versus 9.9% in March 2008. Total March sales include a fleet reduction of 44% year-over-year for the same period.
“The market is starting to show small signs of life which need to be nourished like seedlings,� said Jim Press, Vice Chairman and President, Chrysler LLC. “The fact that we exceeded 100,000 units for the first time since last fall is encouraging, and evidence that our improved quality, improved mileage as well as value represented in Employee Pricing Plus Plus are just what the doctor ordered for recession-wary customers who are reluctant to make long-term purchases. It’s too early to see a trend, but spring shows signs of hope.
“It’s business as usual as we stay focused on our customers and dealers, listening to what they have to say and building their confidence and trust,� Press added. “The U.S. government provided a critical vote of confidence in the Company’s alliance with Fiat SpA. The Administration’s announcement gave Chrysler a clear path to finalize plans for the future. Moving forward, our goal is to translate the confidence to our customers through our continued focus on quality, reliability and service.�
According to Press, “Our internal warranty data shows that we have achieved the lowest claim rate in our Company’s history, with a 30 percent improvement in the last 12 months. And reinforcing the Company’s improved quality and customer satisfaction initiatives, as reported by the National Highway and Traffic Safety Administration, Chrysler had the industry’s lowest number of recalls in 2008. We attribute this to a focus on designing and building in quality during previous years.�
The Company finished the month with 349,612 units of inventory, or an 87-day supply. Inventory is down 17 percent compared with March 2008, when it totaled 423,607 units.
Chrysler LLC will extend through April 30 the Employee Pricing Plus Plus program, which offers the employee price to all customers purchasing or leasing a new Chrysler, Jeep or Dodge vehicle. With feedback from our dealers, they brought back 0% for 48 months through Chrysler Financial on select products to provide qualified customers with more financing options [[or flexibility). In addition, customers are eligible for cash discounts of up to $3,500 for 2009 model year vehicles.
To celebrate the 25th anniversary of the Company’s minivans, customers can add at no change a DVD player on Chrysler Town & Country or Dodge Grand Caravan.
================================================== =====
Note: There was a summary table for sales but it wouldn't format properly on this post.

[ccbatson]

All automakers are tanking for sales right now, these reports are a spin to reduce anxiety and its' effect on the markets.

[MoparDan]

Well friggin' hell! Can't format that table without it going whacked in a heartbeat. Here are sales figures from CNBC that are probably going to wind up looking like gobbledygook!
http://www.cnbc.com/id/29995742

TABLE-Chrysler March U.S. vehicle sales off adj. 36.9 pct



By: AFX | 01 Apr 2009 | 02:38 PM ET


April 1 [[Reuters) - Following are Chrysler LLC U.S. sales of cars and light trucks in March 2009 versus the same year-earlier month and for the year to date. March 2009 March 2008 % Change All Vehicles 101,001 166,386 -36.9% Domestic Car 23,618 48,149 -49.0% Domestic Truck 77,333 118,047 -31.9% Import Car 50 190 -72.6% Import Truck 0 0 N.A. Dom+Imp Cars 23,668 48,339 -49.1% Dom+Imp Trucks 77,333 118,047 -31.9% Domestic Vehicles 100,951 166,196 -36.8% Imported Vehicles 50 190 -72.6% Yr-to-Date Prev Year % Change All Vehicles 247,208 453,871 -44.8% Domestic Car 58,056 145,139 -59.5% Domestic Truck 189,007 308,270 -37.9% Import Car 145 462 -68.2% Import Truck 0 0 N.A. Dom+Imp Cars 58,201 145,601 -59.5% Dom+Imp Trucks 189,007 308,270 -37.9% Domestic Vehicles 247,063 453,409 -44.8% Imported Vehicles 145 462 -68.2% ------------------------------------------------------------- Percent changes are based on the daily sales rate, and reflect 25 selling days this month vs. 26 in the month last year, and 75 this year to date vs. 76 last year to date Includes Chrysler, Dodge and Jeep brands [[[[--Chicago Newsroom, 312-408-8720) .

[ccbatson]

Short term strategies for surviving as an independent/non governmental automaker:

1. Downsize to ride out the sales slump.
2. Play hardball and break the unions.
3. Play hardball and reverse nonsensical punitive legislation aimed at the agenda of the green movement.
4. Get back to the business of making the products customers want to buy at the lowest price possible.

[MoparDan]

http://www.allpar.com/news/index.php...-sales-rise-4/

Chrysler Canada sales rise 4%
April 2nd, 2009
by DaveAdmin
Chrysler Canada today announced sales of 15,937 units, an increase of 33% compared with the February 2009 total of 12,015 units, and 4% over March 2008 sales.
General Motors saw car sales plummet by 39%, but truck sales rose by 2%, resulting in an overall 17% net loss - enough for General Motors to stay Canada’s top seller.
Toyota, which continues to make gains against GM and Ford, saw sales drop by 23%; a Toyota-brand drop of 26% was countered by higher Lexus sales. Ford sales fell by 15%, with trucks taking a heavier hit, but market share increased; the new Fusion sales increased. Honda brand sales fell by 20%, Acura by 42%, and Nissan by 9%.
The Dodge Grand Caravan, Chrysler’s best selling vehicle in Canada, experienced its best March ever, with sales of 3,775 units, a year to year increase of 4% and a 35% gain from last month. In March, the 2006 Dodge Caravan/Grand Caravan captured the top spot in the van segment in the J.D. Power and Associates 2009 Vehicle Dependability Study. The Caravan posted perfect scores in the study in three categories: overall, body and interior and features and accessories.
The Dodge Journey remains the top-selling crossover in Canada, with sales of 1,349 units. Dodge Ram recovered from February sales with a 51% February-to-March hike.
The “Canada’s Choice� event has been enhanced by an additional $500 on most vehicles. This incentive program provides as much as $2,000 in added value on Mopar® accessories, extended service plan, no-charge options or bonus cash rebate. Sales have also been spurred by cash discounts of up to $12,500, with a substantial increase on some models from February, made possible by favorable exchange rates.
Discounts on the AJAC Pickup Truck of the Year, the 2009 Dodge Ram 1500, have been increased by $2,000 for the month of April. This vehicle has the 390 horsepower HEMI® V-8, exclusive rear link coil suspension, and optional RamBox™. The Chrysler Sebring sedan and Dodge Avenger discounts have been increased by up to $2,000, and the 2009 Jeep Grand Cherokee incentive has increased by up to $6,750 this month.
Chrysler Canada also continues to provide zero percent purchase financing up to 60 months in addition to cash discounts up to $5,750 plus Canada’s Choice Discounts up to $2,000.

[MoparDan]

http://www.allpar.com/news/index.php...ork-auto-show/

Jeep unveiling set for New York Auto Show

April 3rd, 2009
by DaveAdmin
Chrysler is expected to unveil the 2010 Jeep Grand Cherokee at the 2009 New York Auto Show on April 8 at 10 am; the company will be broadcasting the unveiling by satellite. Also rumored is the launch of the 2010 Chrysler 300C.

The show will be open to the public from April 10th through April 19, 2009. For details, see our 2009 New York Auto Show page.

[ccbatson]

I heard a media report refer to this deal as "Fiat buying the valuable parts of Chrysler"...true? Meaning that Cerebrus did indeed do what they are designed to do and chop up and sell the assets of their temporary ward [[Chrysler)?

[MoparDan]

I heard a media report refer to this deal as "Fiat buying the valuable parts of Chrysler"...true? Meaning that Cerebrus did indeed do what they are designed to do and chop up and sell the assets of their temporary ward [[Chrysler)?

This is what I found on the AllPar site about Cerberus:
Though the Cerberus people portrayed themselves as patriots rescuing a great American automaker, Steve Feinberg did not invest his own money to rescue the company from bankruptcy, and tried to link up with numerous Chinese companies. They appear to have been willing to break up Chrysler despite statements that they were keeping the company whole. Tom LaSorda, in his court statements, wrote:

Chrysler sent letters to parties, primarily in China, whom we thought would be potentially interested in purchasing our assets. Over the next two months, several companies, including Beijing Automotive Industry Holding Co., Tempo International Group, Hawtai Automobiles, and Chery Automotive Co., expressed interest in purchasing specific vehicles, powertrains, intellectual property rights, distribution channels and automotive brands.

Rumors surrounding an attempted sale to GM, which would have been disastrous for employees at both companies but would have kept assets in the United States, were true; Bob Nardelli called Rick Wagoner in January 2009 to try to restart the merger. GM was not interested.

LaSorda said that Chrysler tried to form alliances with Nissan, GM, Volkswagen, Tata Motors, Magna, GAZ, Hyundai, Honda, and Toyota. The alliance with Toyota suggested by LaSorda and Jim Press would have had Toyota using Chrysler factories to build new products. Toyota quickly rejected the proposal, as did Honda. Both companies have built their factories on farmland rather than re-using industrial land.

Talks with Nissan started in 2007, as rumored. In 2008, Nissan and Chrysler exchanged term sheets, but Nissan could not get the needed financing. They tried again later in 2008, with executives from both companies, but were unable to nail down financing; in January 2009, Nissan was no longer interested.

Talks with Fiat apparently began in March 2008, and were more fruitful.

[ccbatson]

Will not own a majority....but the largest share? And the only large stockholder in the business of making and selling automobiles...semantics....like "a merger of equals"

VEBA is a intermediary/holding company for UAW assets [[in particular the medical benefits of the UAW)...how is that not the same as the UAW owning that 55%?

[ccbatson]

Nope....designed and manufactured while their still was an American automaker behind the wheel.

Besides that...the major determinant for me is the features/performance/utility/value and cost. If the vehicle has an optimum mix, then I am interested.

[otter]

FWIW, the Cherokee was created by AMC, not Chrysler.

O.

[ccbatson]

The name was...this generation is the third [[or fourth) after the death of AMC.

[MoparDan]

A nugget of good news.

Chrysler Could Exit Bankruptcy by Next Week
http://www.cnbc.com/id/30948933/site...t%7C&par=yahoo

[otter]

Bats,

The current and previous-genertion Libertys are sold as Cherokees in most of the rest fo the world, but in the US, the Cherokee that was discontinued in the early 2000s or so was the same Cherokee that AMC/Jeep introduced in 1983. DCX did a refresh in the early 90s or so with a new fascia/lights/bumpers, wider tailgate opening and new interior, but this was just a mild facelift. The Cherokee really is a classic design. I brought it up b/c your use of the word 'still' suggested that you thought it was originally developed by Chrysler, before the Daimler takeover. The Cherokee came out in 1983 but Chrysler didn't buy AMC until 1987. OK, that is my anorak moment for today.

O.

[ccbatson]

Already old news as investors rebel against the terms of bankruptcy.

[MoparDan]

http://finance.yahoo.com/news/Chrysl...5384.html?.v=6

"The three funds bought Chrysler debt last year and hold a combined $42.5 million of the company's total $6.9 billion in secured debt."

Less than 1%; I doubt the judge is going to hold up progress over these guys.

[oladub]

I told my wife about this article and her comment was that its probably just that more Republicans own car dealerships than Democrats. Something to watch anyway.

Furor grows over partisan car dealer closings

"Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans."

However, even one person quoted in the article agrees with my wife. "My hypothesis is that Chrysler dealers, being small businessmen, are more likely to donate to Republicans than Democrats, for predictable reasons. Like any small businessmen, car dealers want lower taxes, a lower minimum wage, fewer regulations, etc."

[MoparDan]

I told my wife about this article and her comment was that its probably just that more Republicans own car dealerships than Democrats. Something to watch anyway.

Furor grows over partisan car dealer closings

"Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans."

However, even one person quoted in the article agrees with my wife. "My hypothesis is that Chrysler dealers, being small businessmen, are more likely to donate to Republicans than Democrats, for predictable reasons. Like any small businessmen, car dealers want lower taxes, a lower minimum wage, fewer regulations, etc."

She was spot on. In addition, here is an article from AllPar with some interesting statistics.
http://www.allpar.com/news/index.php...ues-to-spread/

"The 25% of dealers being dropped accounted for 14% of Chrysler’s overall sales; but sales are not the entire story, because many of the dealers are competing directly with other Chrysler [[e.g. a Dodge dealer literally across the street from a Chrysler dealer). Much of this is a legacy of the days when Chrysler-Plymouth, Dodge, and, in particular, AMC/Jeep sold largely unique product lines."

[ccbatson]

Don't be so sure...if they are standing on solid legal grounds, the process could easily be derailed. Fortunately, the system does not allow for criminal seizure of someone's property as spelled out in contractual agreements...no matter if it is 1%, or 99%.

[MoparDan]

If it happens, it happens, but I wouldn't hold my breath. Even if they bring the whole shooting match down, they'd be lucky to recoup a fraction even after a liquidation. I realize it's the "principle"...I can't recall how many times I've seen that stance fail against what's practical or feasible.
We'll just have to see how this plays out.

[mjs]

Don't be so sure...if they are standing on solid legal grounds, the process could easily be derailed. Fortunately, the system does not allow for criminal seizure of someone's property as spelled out in contractual agreements...no matter if it is 1%, or 99%.

Which criminal statute are you referring to? You do know that violating a contract is not a criminal activity and that bankruptcy courts routinely cancel contracts. If everyone got what was in their contract, bankruptcy wouldn't be very effective, now would it?

[jiminnm]

Which criminal statute are you referring to? You do know that violating a contract is not a criminal activity and that bankruptcy courts routinely cancel contracts. If everyone got what was in their contract, bankruptcy wouldn't be very effective, now would it?

Bankruptcy courts do cancel and modify contracts, but well established law gives properly recorded security liens precedence over unsecured debt in bankruptcy [[and much of chrysler's debt is secured). That frequently means secured creditors in bankruptcy get the property that secures their debt. If this court decides otherwise, I expect those secured creditors to appeal and delay finalization.

[MoparDan]

http://www.allpar.com/news/index.php...ning-imminent/

Windsor, Brampton re-opening imminent

June 2nd, 2009
by DaveAdmin
The Windsor Star reported that the minivan plant could be open within two weeks, with Brampton opening later, to refresh the stock of minivans in Canada. CAW Local 444 leader Rick Laporte said management is considering a three-shift operation due to supply constraints, which would avoid a Saturday shift premium and postpone payments to laid-off employees.

Laporte also said that Fiat officials were taking advantage of the break in production to inspect and measure plant equipment.

Leon Rideout, leader of CAW Local 1285, said that supplier issues, including the bankruptcy of the floor pan supplier, could hold up re-opening of the plant, which makes the Challenger, Charger, and 300.

[MoparDan]

http://www.allpar.com/news/index.php...y-by-thursday/

Update: Chrysler to exit bankruptcy on Friday

June 2nd, 2009
by Bill Cawthon
Chrysler has asked Judge Arthur Gonzalez to waive an automatic ten-day waiting period to allow the sale of its assets to NewCarCo Acquistions to proceed as quickly as possible and allow the new Fiat-led Chrysler Group LLC to commence operations.

“We are filing a request this afternoon to close the sale as early as Thursday afternoon,� said Chrysler spokeswoman Shawn Morgan. She added the company hopes to get a hearing “between now and Wednesday.�

Judge Gonzalez approved the sale on Sunday and there would normally be a statutory ten-day period between the approval and the actual sale. The waiver was granted on June 2 and Chrysler will exit bankruptcy on Friday.

[MoparDan]

http://news.yahoo.com/s/ap/us_chrysler_bankruptcy

Judge: Chrysler has good case for franchise cuts