Latest Chrysler News

[ccbatson]

Heck yes it could be worse. Better dead than red as they say. Worse is undermining the free market and watching quality decline across the board as costs go up and up.

I am a Jeep guy?? Actually, I like, and own/have owned many autos, almost all American. However, i fear for the future of this attraction based on the handwriting turning up on the wall.

[MoparDan]

I am a Jeep guy?? Actually, I like, and own/have owned many autos, almost all American. However, i fear for the future of this attraction based on the handwriting turning up on the wall.

I got that impression a few weeks back when you brought up something about Jeep & the Hemi option; we were discussing HP numbers & other fun stuff like that.
As for the situation, just gotta try to weather this storm & hope they can come out of it in a position to compete better. Fiat can't be worse than Daimler.

[ccbatson]

It isn't Fiat that is the problem...it is Obama and socialized automaking.

Sure, I admire many good products...one of which is the Jeep SRT8.

[MoparDan]

http://www.allpar.com/news/index.php/2009/05/chrysler-to-make-dealer-cuts-by-may-14/

Chrysler to make dealer cuts by May 14

May 9th, 2009
by Bill Cawthon
Chrysler, Dodge and Jeep will learn whether they will be a part of the new Chrysler on Thursday, May 14.
As part of its efforts to slim down, Chrysler will cut about 800 of its 3,600 dealers, a process that will be simplified by Chrysler’s bankruptcy case. Dealers are normally protected by state automotive franchise laws but those do not apply in case of bankruptcy.

[MoparDan]

More stuff from AllPar including GM info.
http://www.allpar.com/news/

Mopar’s Hübinette at Road Atlanta

May 12th, 2009 by DaveAdmin
Dodge Viper SRT10® Formula Drift [[FD) driver Samuel Hübinette suffered an earlier-than-desired exit today at Road Atlanta, earning one round win before losing to eventual event winner Chris Forsberg in the Top 16 round of tandem eliminations.
Hübinette qualified his Mopar-powered Dodge Viper No. 5 on Friday, then dispatched of rookie Jeff Jones in the first round of eliminations on Saturday. The second round was very close; the judges saw things even after the first two runs, calling for a One More Time [[OMT) battle. Hübinette closely shadowed Forsberg and posted one of the highest entry speeds [[87.8 mph) of the event. The judges once again deemed the match to close to call, asking for a second and final OMT. During the second OMT Hübinette remained glued to Forsberg’s tail and made contact. The judges advanced Forsberg, handing Hübinette a rare Top 16 loss.
Hübinette said, “The Mopar Dodge Viper has been running solid. We have had no problems whatsoever, which says a lot about our Mopar-powered engine. We had the right set up to get good usage out of our BFGoodrich KDWs, and we did. We had one of the fastest initiation speeds of anybody this weekend.�
The next event will be at Wall Speedway in Wall, N.J., June 5–6.


market share
May 12th, 2009 by DaveAdmin
Chrysler Mexico reported a 36% drop in sales in a market that was down 39%, bringing market share to 11%, its best since March 2008. The Dodge Journey remains Mexico’ best selling crossover, outselling its closest competitor by nearly two to one; Chrysler is the largest SUV seller in Mexico with a 20% market share, with the Patriot remaining Mexico’s #2 SUV. Dodge trucks had a 26% market share for the month. Nissan and General Motors, the top two Mexican automakers, were down 47% and 52% respectively.



Utilities demand deposits

May 12th, 2009 by Bill Cawthon
Citing past-due bills measured in the millions, Commonwealth Edison, DTE Energy, MichCon and other utilities are asking federal bankruptcy Judge Arthur Gonzalez to require Chrysler to put up more than $25 million in deposits.
Chrysler attorneys had sought to have the judge issue a restraining order preventing the utilities from shutting off the power is Chrysler established a $6 million escrow account, but the utilities claim the amount is insufficient. DTE says Chrysler has owed $6.5 million since April 30, the day before the company filed for reorganization.
The company says its average monthly utility bills while it is in the bankruptcy process should total about $16.1 million.
Judge Gonzalez set a hearing for this Thursday to consider the petitions.
day before the automaker filed for Chapter 11 bankruptcy protection.



Task force chops Chrysler ad budget

May 12th, 2009 by Bill Cawthon
President Obama’s auto task force flexed its muscle by cutting in half the $134 million Chrysler wanted to spend on advertising during its bankruptcy proceedings.
While they did chop the budget, the task force understood the need for advertising, which put them ahead of Judge Arthur Gonzalez who said: “Idle plants; why market?�
Robert Manzo, executive director of Capstone Advisory Group, who was testifying in the case, responded, “Advertising and marketing dollars are critical to make sure the right message is out there about Chrysler, what’s happening to Chrysler during this interim period and why Chrysler will be a brand going forward that is one that a consumer should continue to look at as one of their purchase opportunities.�
There’s also the matter of thousands of unsold Chrysler, Dodge and Jeep vehicles on dealer lots and in Chrysler’s inventory. The automaker is hoping the two-month plant furlough will bring those numbers down.


Bob Lutz, Gary Cowger and other GM execs unload stock

May 12th, 2009 by Bill Cawthon
General Motors’ former Vice Chairman and product chief Bob Lutz, his successor, Thomas Stephens, manufacturing chief Gary Cowger, GM North America President Troy Clarke and Chief Information Offices Ralph Szygenda have sold all their GM stock.
The five disclosed the sales, which took place last Friday and yesterday, in filings with the SEC. The senior GM executives netted about $315, 000.
Lutz sold 81,360 shares at $1.61 each for a total of $130,989.
The five obeyed all laws regarding insider trading and sales, but the transactions could be taken as a sign GM is headed for bankruptcy, which could have rendered the shares worthless. Even if GM avoids bankruptcy, the existing shares could be worth as little as two cents after GM completes a 60 billion share issuance in accordance with its plans for reorganization.


Chrysler lawyers want to be first in line for payment

May 12th, 2009 by Bill Cawthon
Lawyers for Jones Day, the firm representing Chrysler in its bankruptcy case, and financial advisors Capstone Advisory Group have asked a judge to give their fees “superpriority� when determining the order of payment.
In support of their petition, the two firms said they would be extending significant amounts of credit to Chrysler because of their large fees. Other lawyers take this to mean there won’t be much left after Chrysler sells selected assets to Fiat, the UAW’s VEBA and the U.S. and Canadian governments. The remaining assets would be be liquidated through the bankruptcy process and the proceeds would be used to pay creditors.
One legal expert said he had never heard of attorneys asking for such special treatment, saying its uncommon for lawyers to go unpaid because they generally won’t take cases where their remuneration could be at risk. However, another attorney said this could be a tactic to bring pressure on secured creditors to accept the sales to Fiat.


GM to export Chinese cars to U.S.

May 12th, 2009 by Bill Cawthon
General Motors, as part of its plan to increase its use of offshore manufacturing by 98 percent, will be exporting a car it build in China to the United States in 2011.
The company believes it will sell 17,335 of the cars in the first year and almost three times that many, 51,546, by 2014. By comparison, GM sold 55,360 Chevrolet Aveos in 2008.
GM would be the first automaker to bring Chinese-built cars to the U.S. and says they would amount to just 1.6 percent of the company’s total expected 3.1 million sales in 2014. In 2008, GM sold 2,954,819 vehicles with eight brands. According to current plans, the company will have only four brands in 2014 but expects sales to surge 50 percent.
The plan is subject to change because of pending negotiations with the UAW. UAW legislative director Alan Reuther has already criticized GM’s plan to shutter U.S. factories and step up the importation of vehicles assembled in Asia and Mexico.
GM says sales of U.S.-built vehicles would remain constant at approximately two-thirds of GM’s total production.

[Lorax]

Looks like CCBatty's in deep with the hate for Obama.

You need to turn off the FUX NOISE channel of fascist Repugnican Taliban propaganda, and stop kissing Limbaugh's ample ass, it can't taste very good.

If you accept government loans, there is oversight, whether banks or auto companies.

If they can't compete with 8 years of open season under Tush & Cheney, where there were literally no consequences to screwing the American economy, and were allowed to run roughshod over the middle class, then they can go under as far as I'm concerned- or they can take out a loan from the taxpayer, and repay it over time, as was done in the early 80's with Chrysler.

Never forget who put us here, it was Repugnican fascist policies of the last 8 years, and now we're faced with cleaning up the mess.

We don't need or welcome any input from right wing fringe fascists, like the socially retarded Gingrich, Cantor, Steele, or Limbaughs of the world.

Most foreign car makers are socialized/subsidized by their respective governments, and there is nothing wrong with that.

Socialism in the best sense is a good thing, as Martha Stewart would say.

Most progressive nations of the world are socialized democracies, which is what we were set up to be under the constitution, which I might add, you need to read again, Batty.

[ccbatson]

I don't hate the man [[Obama) at all. I strongly oppose the ideology of collectivism that he is pushing. More to the point, I believe that individual liberty is the highest ideal and the highest priority.

[MoparDan]

http://www.allpar.com/news/

Jalopnik’s Jeep J8 jaunt

May 12th, 2009 by Bill Cawthon
The folks over at Jalopnik recently sampled the capabilities of a civilian version of the military-sales-only Jeep J8 pickup at Island Lake State Park near Brighton, Michigan. Check out Ben Wojdyla’s review at AEV J8 Milspec: Offroading Jeep’s Forbidden Fruit

Cruise Nights return to Chrysler Museum

May 12th, 2009 by Bill Cawthon
Cruise Nights are returning to the Walter P. Chrysler Museum, in Auburn Hills, for a fourth season beginning Thursday, June 11. The summer series runs every other Thursday - June 25, July 9 and 23 and Aug. 6 and 20 - from 6 - 9 p.m. on the Museum’s spacious grounds. The summer series is sponsored by Chrysler, Jeep® and Dodge.
Cruise Nights welcomes vehicles of all makes and models - rain or > shine - with “best of� awards, music, food concessions and after
hour tours of the Museum. Cruise Nights will also feature a changing lineup of Chrysler’s newest production each evening along with specialists to demonstrate the features of each model.
New for Cruise Nights 2009 - Enthusiast Avenue, a collection of Detroit area businesses showcasing vehicle maintenance and restoration products and services, as well as entertainment options for auto enthusiasts.
The Walter P. Chrysler Museum will welcome guest donations each Cruise Night to support the Museum’s ongoing heritage programs and exhibitions.
The Museum is located at the corner of Featherstone and Squirrel Rds., in Auburn Hills, at the southeast corner of the Chrysler complex, located at exit 78 off I-75.
For additional information, visit the Museum’s new Web site at www.wpchryslermuseum.org or call 248-944-0001


CEMA show set for June 13

May 12th, 2009 by Bill Cawthon
The 20th Annual Chrysler Employee Motorsport Association [[CEMA) show is June 13th. Pre-registration is still open.
Tom and Jeff Gale will be making a “Then & Now� Chrysler Design
presentation We are honoring the crew members of the “Mopar/Motown Missile� this year.
Visit www.cemaclub.org for details.

[MoparDan]

http://finance.yahoo.com/news/AP-Sou...4&asset=&ccode=

AP Source: Chrysler to cut 800 dealers on Thursday

[MoparDan]

http://www.reuters.com/article/BROKE...31053920090512

UPDATE 2-GMAC to provide financing for Chrysler dealers

[Lorax]

I don't hate the man [[Obama) at all. I strongly oppose the ideology of collectivism that he is pushing. More to the point, I believe that individual liberty is the highest ideal and the highest priority.

Like an abusive husband, you have a funny way of showing it.

What do you think being part of nation of people who consider themselves patriots is?

What is the military?

What is working for a large repugnican run corporation?

What is being part of a community?

What is invlovement in politics?

All of it is collectivism. You talk about it as if it's a bad thing. It's not. Soical Security, Medicare, Medicaid, which are among the most successful government run [[especially with democrats in charge) bureaucracies in history, and all represent collectivism.

Hell, being part of a much repugnican-loved HMO or other so called health care entity can exist only through collective efforts.

You REALLY need to turn off Limbo Boy and the rest of the Fox Fascists you're getting your propaganda from and wake up.

[MoparDan]

http://online.wsj.com/article/SB1242....html?ru=yahoo

Chrysler Looks to Exit From Unexpired Leases on 10 U.S. Properties

By MAURA WEBBER SADOVI

While much of Chrysler LLC's bankruptcy restructuring remains to be hammered out, the auto maker wasted no time seeking to cut ties to a handful of small U.S. property owners.
On the same day last month that the 84-year-old company filed for Chapter 11 protection, Chrysler asked the court to allow it to reject 10 unexpired leases with a total of more than $30 million in rent remaining to be paid on them. The properties are mostly shuttered dealerships and some vacant land in California, Hawaii, Indiana, Louisiana, New York, Texas and Michigan.
The move couldn't have come at a worse time for the property owners. Weak demand for new cars has led to the closure of many dealerships across the U.S. For landlords, this has meant falling rents or, even worse, being left with vacant lots for which there aren't many other uses.
Chrysler, which is working to restructure itself by shrinking its dealer network and merging with Italian auto maker Fiat SpA, in general is believed to have leased few dealership properties on the corporate level. The leases it rejected were less desirable because most of them were vacant. They also were probably among the few such dealership leases on its books because dealers more typically own their own real estate, says James Mitchell, director of the national automotive group for Marcus & Millichap Real Estate Investment Services in Bethesda, Md.
In court documents, Chrysler said a review of its unexpired leases led the company to request the lease cancellations. "The debtors have determined the leases identified ... will not be assumed and assigned in the Fiat Transaction and are neither necessary nor valuable to their estates." A spokesman for Chrysler declined to comment further.
The news angered some landlords who said they will struggle to handle their financial obligations without Chrysler. Ronnie Lamarque, a 63-year-old New Orleans native who favors brightly colored ties in commercials for a New Orleans-area dealership that he still operates, says Chrysler had been negotiating to buy itself out of a lease that was to run through 2013 on a former dealership property in Metairie, La., just outside New Orleans.
Mr. Lamarque says he needs the $56,000 monthly rent to cover the property's $60,000 monthly mortgage and worries the cloud of bankruptcy will make it harder to find a new tenant willing to pay a reasonable rent. "Now people are just really going to be thinking this is a fire sale," says Mr. Lamarque, who notes that his bank called him Monday to notify him that Chrysler's $56,000 May rent check for property Mr. Lamarque owns in Metairie had bounced.
Moreover, the challenges some of the landlords may have replacing Chrysler's relatively rich rental stream soon will likely get even harder. Both General Motors Corp. and Chrysler are expected to announce details on their plans to prune their dealership networks this week.
More closed dealerships also could spell trouble for major retail strips in many communities. Bernard Haddigan, managing director of national retail for Marcus & Millichap Real Estate Investment Services in Atlanta, says a string of retail bankruptcies outside the automotive industry has already sent store vacancies skyward.
In addition, Mr. Haddigan says car dealerships, though often well located, aren't easy to redevelop to another use like larger so-called big-box stores. New users would typically be looking to demolish and reuse dealership properties, an approach made difficult by the dry credit markets. "Most of these sites are going to languish," he says.
Marchus & Millichap estimates that there are roughly 20,000 car dealerships nationally and that thousands are likely to be vacated in the next 12 months. Values also have fallen sharply. An average vacant dealership, which might be located on four acres with a 15,000-square-foot showroom, would fetch about $5 million, well below the $10 million an operating dealership might have sold for several years ago, Mr. Mitchell says.
Part of the struggle for some landlords was that Chrysler was paying more for empty space than other companies were willing to pay to occupy or buy it. Take the case of Frederick Nagher, who owns a former dealership site in the Dallas suburb of Mesquite, Texas, where Chrysler wants to cancel a lease. Chrysler is paying $35,000 a month in rent as well as the taxes on the property, Mr. Nagher says. The former dealership has been empty since 2003, in part because Mr. Nagher says he couldn't afford to sell to interested buyers that included a tractor dealership. "The lease was worth more than the building," Mr. Nagher says. "It was unlucky for me."
Write to Maura Webber Sadovi at maura.sadovi@wsj.com

[MoparDan]

http://www.allpar.com/news/

UAW agrees not to strike until 2015

May 13th, 2009 by DaveAdmin
Bloomberg [[as reported in Automotive News) has discovered that the UAW has agreed not to strike against Chrysler until September 2015, instead relying on binding arbitration. The contract finalized on April 29, 2009, will expire in September 2011; changes can be negotiated but any unresolved differences will be arbitrated. The contract cuts health care benefits, imposes stricter attendance rules, and combines job classes. Job classifications had, as an ongoing matter, been combined at individual factories as Chrysler modernized them and moved them to more flexible and empowered-group manufacturing processes.



Chrysler retirees and dealers hire lawyers

May 13th, 2009 by Bill Cawthon
Retired salaried Chrysler employees and franchised dealers are hiring attorneys to protect their interests.
The retirees, who have banded together as the National Chrysler Retirement Organizaion [[NCRO) have hired Stahl Cowen Crowley Addis of Chicago to help in their struggle to keep their health benefits. More than 19,000 former employees, along with their spouses and dependents, are at risk of losing the benefits they were promised because those obligations would not be transferred to the “new� Chrysler but left with the “bad� assets to be disposed of by the court..
Chuck Austin, president of the NCRO, met with the auto task force but was told Chrysler has only a moral obligation to continue benefits for salaried employees while it has a legal obligation to fund them for union members. Austin, who retired after 40 years with Chrysler, noted the company had made severe cuts to salaried retirees’ health benefits two years ago.
Chrysler, Dodge and Jeep dealers who are considered likely to retain their franchises have decided to employ Arnold & Porter LLP of Washington, DC. Dealers who believe they are likely to be cut have brought in Squire Sanders & Dempsey of Cleveland. Tomorrow, Chrysler will post of list of about 800 dealers it intends to terminate. Chrysler currently has about 3,200 dealers.
Both groups are hoping Judge Arthur Gonzalez will grant them status to work with the committees overseeing the disposition of Chrysler assets.


Chrysler sees more buyouts after alliance

May 13th, 2009 by Bill Cawthon
Although Chrysler’s U.S. employee levels are the lowest they have been in 74 years, the company will be looking at more buyouts for hourly employees after the Detroit automaker emerges from bankruptcy and its alliance with Fiat is finalized.
In a letter to UAW Vice President General Holiefield, Chrysler said special attrition programs to be designed with union cooperation should help achieve 3,500 voluntary separations. New hires brought in to replace those workers would be classified as lower-tier employees, making a reduced hourly wage and receiving few benefits.
The company also plans to eliminate 318 union-appointed representatives and compel the union to submit to arbitration if the two sides can not reach a settlement otherwise. Future wages and benefits will be governed by Chrysler maintaining a competitive labor cost structure compared to other automakers, including transplants.
Some of the terms were imposed by the government as a condition for receiving low-cost, government-backed loans. There has been no official response from the United Auto Workers’ leadership.
Chrysler reportedly has found a way to circumvent the $500,000 cap on executive pay that was also a condition of the federal loan program. According to court documents, managers would be considered Fiat employees on loan to Chrysler, making them exempt from the limits. Compensation beyond the cap would be paid by Fiat.


Cops & Rodders Show set for June 7

May 12th, 2009 by Bill Cawthon
The Verona, Policeman’s Benevolent Association Local 72 will present its second annual Cops & Rodders Classic Car Show show on Sunday, June 7, 2009, at the Verona Civic Center, 600 Bloomfield Ave., Verona, New Jersey.
The show features classic cars and trucks in 16 classes and four classes for police vehicles. There will also be awards for the police car driven furthest to the show, P.B.A. President’s Pick Police Car, Best-in-Show Police Car and Best-in-Show Classic Car.
The show will run from 9 AM to 3 PM with registration from 9 AM to Noon. There will be more than 45 trophies awarded with presentations at 2:30 PM.
The show will have door prizes, goodie bags, kids’ activities, as well as police displays and vendors. Music will be provided by Legendary Entertainment.
The show is one of many fund raisers the Verona P.B.A. hosts to raise funds to contribute to our local D.A.R.E. program, the Verona High School Scholarship Fund and our Annual Holiday Costume Trip to local special needs schools.
Registration is $15.00 at the show, but interested exhibitors can pre-register for $10.00. Pre-registration deadline is May 31, 2009. Registration is free for police cars.

[MoparDan]

http://www.allpar.com/weblogs/2009/0...star-buy-jeep/

Opinion: Will Navistar buy Jeep?

[ccbatson]

Not to strike? Against themselves?

[Stosh]

Not to strike? Against themselves?

The UAW does not run the company, even if you say they do. 55% of stock to be sold ASAP.

[ccbatson]

Stock given to them for what? Bought by whom? Seriously concerning questions.

[otter]

Bats' posts are often rather like sort of inane haikus!

Bats, it is VEBA that has a share of Chrysler, not the UAW. They are not the same thing, and saying something like 'well, VEBA was created for the UAW' does not make it so, either.

O.

[MoparDan]

http://www.cnbc.com/id/30742243/site...t%7C&par=yahoo

Chrysler Cuts Show End For Small Dealer

[MoparDan]

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

Chrysler moves to eliminate 789 of 3,200 dealers

[MoparDan]

http://www.allpar.com/news/index.php...f_dealerships/

List of Chrysler Dealers being cut. You'll need Adobe to read it.

[ccbatson]

Fine...refer to it as organized labor...same concept...does that make you happy [[as we watch the left flush the American auto industry down the toilet)?

[otter]

Bats,

Not sure if you're responding to my post or another one, but sounds like maybe it's mine.

No, VEBA is not "organized labor" either. Do you know what VEBA is and what its function is? Do you know what the nature of the UAW's representation in GM's managament is? What is the basis of an objection to labor having a voice on the board of corporations anyway?

Ano no, internet message board posts do not "make [[me) happy"

I get the impression that you would blame "the left" and "liberals" for your dog getting run over! You seem to have a remarkably binary and oppositional view of the world.

O.

[MoparDan]

Excellent commentary with insightful comments.
http://www.allpar.com/weblogs/2009/0...omaker-antics/

Automaker Antics

Some excerpts:
"All Chrysler had to do to get out from under the government’s conditions was repay the loans. But even that’s too much: It’s fairly well accepted now that Chrysler won’t be repaying the initial loan it received from the Bush Administration and probably won’t be repaying the money it’s getting from the Obama Administration to fund its trip through bankruptcy. The plan now is for the company to repay the next pile of money the feds will give it when it emerges from bankruptcy as a new company. [[In other words, the company is going to walk on two loans, but it promises to repay the third. You probably shouldn’t try this at your bank.)"
"So Chrysler has a nifty scheme to get around those pesky limits: it’s going to pretend senior Chrysler executives are really Fiat employees “on loan� to Chrysler. Fiat will pay the salaries [[nudge, nudge, wink, wink) and the Chrysler brass won’t even have to learn Italian."

"General Motors, on the other hand, is warning of the dangers of government involvement in its business. This is the company that has already received $15.4 billion in government loans and wants another $11.6 billion real soon. And maybe some more later. In return for our national generosity, GM’s own reorganization plan calls for giving the government a large stake in the “reformed� company in lieu of paying off the loans with actual money."
"In a recent government filing, GM said that, as a majority owner, the U.S. government could make it difficult to compete and have a negative effect on its stock price."

"In its report to the SEC, GM said it may 'become subject to new and additional government regulations regarding various aspects of our business as a result of the U.S. government’s ownership in [[and financing of) our business. These regulations could make it more difficult for us to compete with other companies that are not subject to similar regulations.'�
"While I know the government doesn’t exactly have a sterling record in the business world, it’s a bit hard to imagine it doing much worse than the gang currently occupying the Renaissance Center."

[mjs]

Once again, commenting on the folks being quoted, not the ones quoting them. The whole GM comment of government interference made me shake my head. Try competing and keeping the stock high when they're liquidating you without the government handout. Its like a bum complaining that when you gave him a $100 dollar bill, you demanded he take time away from pan handling to pick up some trash.

I also have a fear that the opposite will happen. The government now has a vested interest in a more profitable GM so I'm worried about what they'll allow GM to do in search of those higher profits.