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Thursday, May 31, 2007
Wednesday, May 23, 2007
Gas Prices Worse than 1981 Spike
NEW YORK –- Gasoline prices have risen to levels never seen before at the pump as even the inflation-adjusted price for a gallon of unleaded topped the 1981 record price that had stood for 26 years.
And experts warn that higher prices could be coming as Americans prepare to hit the road for the Memorial Day holiday and the start of the summer driving season.
The Lundberg Survey, a bi-weekly gas price tracking service, showed the price of a gallon of unleaded at $3.18 in its latest reading released on Sunday. That's up more than 11-cents from its reading of two weeks ago.
The Energy Information Administration's latest pump price, when adjusted for inflation, also reached a new record high. The EIA said yesterday that the average price for regular unleaded gas soared 11.5 cents over the past week to a new record of $3.22 a gallon. That's the same all-time high fuel cost reached in March 1981.
Confirming those findings, the motorist group AAA said its daily survey of up to 85,000 gas stations nationwide has been showing a series of record high prices in current dollars since May 13, and Monday the average price for a gallon of self-serve unleaded hit $3.196. The AAA said that's the ninth straight record high and up from Sunday's record of $3.178.
Before this recent run of record-high gas prices, the highest price ever recorded in current dollars was $3.057 in the AAA survey, and that was set Sept. 4 and Sept. 5, 2005 in the wake of Hurricane Katrina. That storm disrupted refinery operations and pipelines and caused a temporary spike in prices above the $3 mark for eight days.
Experts agree the current price increases are due to problems in gasoline supplies and refinery output. The average gas price went above $3 a gallon on May 4 and has continued to climb since.
The AAA said that unless prices fall suddenly, Wednesday will mark the longest stretch of $3 gas in its survey's history.
Nationwide, few states showed an average gas price below $3. California had the highest average price, with a gallon of self-serve unleaded coasting $3.457, up a bit from Sunday's $3.453.
New Jersey continued to have the least expensive gas price — the average price on Monday was $2.938 a gallon.
Four more states — Alabama, Mississippi, Tennessee and Virginia — became the latest states to cross the $3 a gallon mark.
Cerberus must guard the personal data
 | Edward Lapham is the executive editor of Automotive News. He writes commentaries for Automotive News online every business day. His commentaries also can be found here. |
Automotive News
May 22, 2007 - 3:31 pm
My biggest concern is what could happen after Chrysler Financial is tucked into the Cerberus portfolio.
The issue isn't really the specter of a hookup between Chrysler Financial and GMAC Financial Services. GMAC and Chrysler are in the same business but they don't directly compete because, mostly, GMAC finances GM products and Chrysler Financial finances Chrysler products.
Call me paranoid, but what makes me nervous is the massive consolidation of personal financial information that will be in the possession of companies controlled by Cerberus, and therefore in the possession of Cerberus itself.
And it's not just GMAC and Chrysler Financial.
Cerberus also has investments in the department store Mervyns, Houston-based Aegis Mortgage and Green Tree, a consumer loan company in St. Paul, Minn.
And that's just in the United States. Aozora Bank, based in Tokyo, and Bank Leumi, which is headquartered in Tel-Aviv, also are in the Cerberus portfolio.
I'm sure that each of those financial institutions complies with all applicable regulations and uses the utmost care to safeguard its customers from identity theft and other abuses of their personal information and data.
The powers that be at Cerberus undoubtedly are mindful of the awesome responsibility they have and almost certainly have installed firewalls and other protections to keep the data separate and prevent anyone from co-mingling them.
But in this era of rampant identity theft, when a stolen laptop can be a treasure trove of personal information with the potential to wreak havoc in thousands of lives, anything is possible.
Is it so tough to imagine someone -- a disgruntled employee, determined terrorist, cunning mobster or even a hormone-deranged teenage hacker -- defeating the security system and violating millions of us?
Yes, I know, I know. That stuff only happens in the movies or on TV.
Call me paranoid, but I'd just as soon not risk it.
Chery says deal with Chrysler not halted
Reuters |
May 23, 2007 - 9:00 am
SHANGHAI (Reuters) -- China's Chery Automobile Co. said today a framework deal with DaimlerChrysler AG to build Chrysler-branded cars was still proceeding, denying a German paper report it had been halted.
Chery, which reached an initial agreement with Chrysler last year, wants to re-examine the deal, Handelsblatt said this week, citing a senior Chery executive.
The decision, the paper said, came after DaimlerChrysler agreed last week to sell its money-losing Chrysler group to private equity firm Cerberus Capital Management LP in a $7.41 billion deal.
But a Chery spokesman told Reuters today that the newspaper had misquoted his colleague and that the earlier deal with Chrysler was progressing.
Under the agreement unveiled in late December, Chery would build small cars under the Chrysler badge for sale in Europe and the United States, paving the way for the ambitious Chinese automaker to sell its own-brand vehicles in mature markets eventually.
The Chery spokesman declined to elaborate on the status of that deal, which still needs Chinese government approval, or confirm whether Chery wants to renegotiate the terms with Chrysler's new owner.
"I don't think the deal will be called off," said George Magliano, director of North American auto industry research at Global Insight.
"There's a lot riding for both Chery and Chrysler in this," he said, noting that this would be the quickest and safest way for the Chinese automaker to tap the U.S. market, while Chrysler needed a small car.
Chery, a mid-sized but fast-growing player in east China, had made some inroads in emerging markets in Southeast Asia, Africa and the Middle East, where pricing remains a critical factor to push sales.
However, it has had little success so far in breaking into mature markets in the United States or Europe.
Some in industry favor California CO2 rules
Harry Stoffer
Automotive News
May 22, 2007 - 8:55 am
UPDATED: 5/22/07 1:48 P.M.
|  |
Dealer Adam Lee, who heads a 12-franchise group in Maine, testified at a U.S. EPA hearing today in favor of a waiver for California to implement its own rules.
Lee, who describes his Lee Auto Malls as Maine's biggest seller of hybrid vehicles, told a panel of EPA officials that automakers "need a not-so-gentle nudge" to produce more environmentally friendly vehicles.
Also testifying for the waiver was Joseph Kubsh, representing companies that make components to cut vehicle pollution. He is executive director of the Manufacturers of Emission Controls Association.
That left an official of the Alliance of Automobile Manufacturers as the only industry witness against granting a waiver under the Clean Air Act.
But Doug Greenhaus of the National Automobile Dealers Association, observing from the audience, told Automotive News that NADA will be submitting written comments against the waiver. He is NADA's director of environment, health and safety.
At today's hearing Steven Douglas of the alliance testified that California has failed to prove that its "regulations would help address the issue of climate change or global warming in a concrete manner" or improve air quality.
He is director of environmental affairs for the alliance, representing the Detroit 3, Toyota and five other automakers.
Numerous witnesses from states and environmental groups lined up to testify in favor of allowing California to implement vehicle emissions different from those of the federal government.
A second hearing is set for May 30 in Sacramento.
EPA Administrator Stephen Johnson has promised to move expeditiously but responsibly on the explosive issue, which could force automakers to make fundamental changes in cars and trucks.
Eleven other states have adopted the California-style rules, which require an estimated 30 percent reduction in greenhouse gases from cars and trucks by 2016. Together with California, those states have nearly 40 percent of the U.S. new-vehicle market.
Automakers and dealers have challenged the rules in federal courts as an illegal attempt to regulate fuel economy, a power reserved by the federal government. The main greenhouse gas is carbon dioxide, a byproduct of burning fuel but also a natural part of the atmosphere.
California Gov. Arnold Schwarzenegger and Connecticut Gov. Jodi Rell, both Republicans, said Monday, May 21, that "it borders on malfeasance" for the federal government to block efforts by states to protect public health and welfare from the effects of climate change. The remarks were in a joint column published by the Washington Post.
California submitted its waiver request 16 months ago.
The EPA has granted frequent waivers over the years to California to have air pollution rules different from those of the federal government.
But the Bush administration held the position that the EPA could not regulate -- and could not authorize states to regulate -- carbon dioxide under the Clean Air Act. The law is aimed primarily at toxic pollution and tailpipe emissions that cause lung-damaging smog.
But the U.S. Supreme Court ruled on April 2 that the EPA must determine if greenhouse gases pose a threat to public health and, if so, to regulate them, using the Clean Air Act.
Meanwhile, Congress is considering a range of measures to cut petroleum consumption and greenhouse gas emissions.
Douglas, in his testimony for automakers today, said industry support for a comprehensive national solution makes a patchwork of state rules "not just unnecessary but actually counterproductive."
Friday, May 18, 2007
Magnitude 5.5 - HOKKAIDO, JAPAN REGION
| Magnitude | 5.5 |
|---|---|
| Date-Time | = Coordinated Universal Time = local time at epicenter |
| Location | 41.617°N, 141.982°E |
| Depth | 55.6 km (34.5 miles) |
| Region | HOKKAIDO, JAPAN REGION |
| Distances | 105 km (65 miles) E of Hakodate, Hokkaido, Japan 130 km (80 miles) NNE of Hachinohe, Honshu, Japan 135 km (85 miles) NE of Aomori, Honshu, Japan 690 km (430 miles) NNE of TOKYO, Japan |
| Location Uncertainty | horizontal +/- 7.2 km (4.5 miles); depth +/- 9.2 km (5.7 miles) |
| Parameters | Nst=141, Nph=141, Dmin=107.2 km, Rmss=0.88 sec, Gp=104°, M-type=body magnitude (Mb), Version=6 |
| Source |
|
| Event ID | us2007cmbe |
Tuesday, May 15, 2007
We are now moving to the new blogsite....farewell to the old masters.
http://chryslercorporationllc.blogspot.com/
CHRYSLER SOLD FOR $7.4B
CHRYSLER SOLD FOR $7.4B
Toledo Jeep employees fret over job security, benefits
New owner Cerberus is tight-lipped about plans
 See AP video ( ASSOCIATED PRESS ) |
After nine years of ownership by a German-based firm, the Toledo Jeep Assembly Plant and its parent company are entering a new era.
DaimlerChrysler AG said yesterday it will sell 80.1 percent of the sputtering Chrysler Group to Cerberus Capital Management LP for $7.4 billion, marking the first time that a private equity group has owned a Big Three auto manufacturer.
The acquisition of the Chrysler Group, which lost $1.5 billion last year, will end the 1998 merger of Daimler-Benz and Chrysler Corp.
| ( THE BLADE/JEREMY WADSWORTH ) |
Tim Steele, an employee for 22 years, said the United Auto Workers likely will be asked to accept concessions when the union begins contract talks with the automaker this summer.
“I’m hoping that it is good for everybody,” Jeff Ferris, a 44-year-old production worker, said of the deal.
But employee Randi Downes expressed reservations about the buyer.
| |
The Jeep Liberty, Dodge Nitro, and redesigned Jeep Wrangler are made at the multifactory complex off Stickney Avenue.
The system of supplier factories at the assembly complex that is used to build the Wrangler is a new concept in the production of vehicles in the United States. The complex has more than 4,500 employees.
Chrysler also operates a machining plant in Perrysburg Township and has a joint-venture engine plant in Dundee, Mich.
Under the deal, DaimlerChrysler AG will retain 19.9 percent of Chrysler. After the sale is complete, the German firm will be known as Daimler AG.
The sale of Chrysler to the New York firm was announced yesterday in Stuttgart by DaimlerChrysler’s Chief Executive Dieter Zetsche, who put the company on the block three months ago at the urging of board members and investors.
Cerberus Chairman John Snow, a Toledo native, was at the news conference in Germany.
“We think at this particular point in Chrysler’s history, there may be opportunities in the private world, the world of private investment, that create more room for growth and expansion, that allow management to focus with greater intensity on the day-to-day business of producing better cars,” Mr. Snow said.
The new company, which will be called Chrysler Holding LLC, will take over about $18 billion in existing employee health and pension obligations. The sale is expected to be completed by Sept. 30.
|
Ron Gettelfinger, UAW president, expressed support for the deal yesterday after earlier objecting to a possible sale to a private equity group.
“It’s going to happen,” Mr. Gettelfinger said, “and we’re going to make it happen in the best interests of our membership.
“There will be an infusion of cash put into this company, and a lot of things are going to happen that are in the best interests of moving forward,” the union president said.
Cerberus is buying Chrysler at a bargain price, said Ron Harbour, president of Harbour Consulting in Troy, Mich. And getting the Toledo-born Jeep brand in the deal was a coup for Cerberus, Mr. Harbour said.
|
With two plants built in the last few years, including one where suppliers share the financial burden and work for the hot-selling Jeep Wrangler, the Toledo Jeep complex is one of the deal’s strongest assets, he said.
“For Toledo, this is a good thing,” Mr. Harbour said. Cerberus appears to be building up its auto industry interests, Mr. Harbour said. Having Chrysler provides an anchor and it is unlikely Cerberus will want to sell the automaker or the Jeep brand in the next few years, he said.
No more plant closures or other manufacturing changes are likely to be announced before negotiations with the United Auto Workers this summer, Mr. Harbour added.
The buyer intends to take the company private, and it will no longer have publicly traded stock. Private-equity firms, which are investment pools financed by large pension funds, wealthy investors, and others, typically buy struggling companies, improve profitability, and later re-sell them.
Jeep, Dodge, and Chrysler are likely to stay together for now, but negotiations with the UAW will play a major part in determining their futures, said Tina Jantzi, manager of North American forecasting for J.D. Power and Associates.
| HEADQUARTERS: • Auburn Hills, Mich. CHIEF EXECUTIVE: • Tom LaSorda (will remain) |
J.D. Power, meanwhile, is raising its sales expectations this year for the Wrangler. The other two Toledo-made products, the Jeep Liberty and Dodge Nitro, also are doing well, Ms. Jantzi said.
‘We’re pretty optimistic’
“We’re pretty optimistic for all three of them,” she said.
Representatives of Cerberus visited Toledo and toured the Jeep Assembly complex during the last month, according to employees.
The upcoming negotiations between the Big Three automakers and the UAW will be pivotal in shaping the future of Chrysler, said David Cole, chairman of the Center for Automotive Research in Ann Arbor.
“It is not survivable without doing some major things,” he said. “If they don’t come with an agreement that allows them to be more competitive over the long term, it is going to be horrible over the next few years.”
| • New York CHIEF EXECUTIVE: • Stephen Feinberg AUTOMOTIVE HOLDINGS: • CTA Acoustics, Madison Heights, Mich., makes acoustical and thermal insulation products • GDX Automotive Inc., Farmington Hills, Mich., makes and supplies vehicle seating and parts • GMAC LLC, Detroit, financial services company that offers auto loans, other products • Guilford Mills, Wilmington, N.C., auto seat supplier • Peguform Group, Germany, makes interior/exterior plastic parts |
“We feel pretty comfortable they will see our northwest Ohio facility as one of — if not the — centerpiece of the acquisition,” Mr. Finkbeiner said.
Staff writers Julie M. McKinnon and Tom Troy contributed to this report. Information from the Associated Press also was used.
Thursday, May 10, 2007
Magna's Stronach sees deal on Chrysler over next few weeks
05.10.07, 2:23 PM ETOTTAWA (AFX) - Canadian auto parts firm Magna International is hoping 'over the next few weeks' to announce an agreement to buy Chrysler, the loss-making US unit of DaimlerChrysler AG, Magna chairman Frank Stronach said.
Magna, which has teamed up with Toronto-based investment giant Onex Corp, has been reported to be readying a 5 bln usd offer for 80 pct of Chrysler. The Canadian firm also today obtained a big investment from a Russian group.
Under the plan believed to be in the works, DaimlerChrysler (nyse: DCX - news - people ) would retain a 20 pct stake in the Detroit-based carmaker.
'Well, of course we have an interest in Chrysler for the simple reason we have thousands of jobs involved,' the Austrian-born Stronach told public broadcaster CBC.
'Over the next few weeks, we hope that we can play a constructive involvement in the future of Chrysler,' he said. 'We do not like to compete with our customers, so we would not have a majority in there.'
DaimlerChrysler is one of Magna's largest customer, purchasing almost 25 pct of its annual sales, while unit Chrysler accounts for 15 pct of Magna's sales.
'We have teamed up with Onex. We have a financial partner and financially we have a very viable concept. We have major banks which are lined up,' Stronach told the Globe and Mail.
But Chrysler, which is in the midst of chopping 13,000 jobs and closing plants in North America as part of a restructuring move, could expect more cost-cutting measures under Magna's stewardship, Stronach said.
'Sometimes when you're sick, you've got to take some drastic measures and that's unfortunate,' Stronach said of Chrysler. 'What do we have to do to create a healthy patient?'
Earlier today, Russian metals firm Basic Element, owned by oligarch Oleg Deripaska, announced it will buy a stake in Magna for 1.54 bln usd (1.13 bln eur).
Separately, Magna reported a first-quarter profit of 218 mln usd, up 2.8 pct from a year ago, on revenues of 6.4 bln usd.
PSA: Carjacking Rule #213 - Pick A Subtle Target
WINDING ROADS
We’re not up on proper carjacking tips and etiquette, but we’re guessing that selecting the most conspicuous car on the street for a target is probably a recipe for disaster.
So it is for a pair of men in Tampa, who have been charged with armed carjacking after they lifted a lime-green 2006 Dodge Charger. The suspects also didn’t count on the plucky owner hanging on to his car as the driver attempted to get away, aiming the Charger at parked cars in an attempt to get him off the car. The episode has also cost one of the carjackers an attempted murder charge.
How were they caught? Why, the Dodge’s beacon-like Sublime paint was spotted behind a fence where the car was being stripped for parts.
Brilliant.
+ St Petersburg Times: Lime-green car points men in blue to suspects
Divorse of Equals
| Edward Lapham is the executive editor of Automotive News. He writes commentaries for Automotive News online every business day. His commentaries also can be found here. |
Edward Lapham | Automotive News
May 10, 2007 - 11:37 am
|  |
Every market has its ups and downs, and so does every automaker, although the downs never seem to be as deep or as long for some companies.
For some time, there has been bad stuff coming around for the Detroit 3 -- especially in North America, where sales have been sluggish and where from time to time they've used incentives to sell cars and trucks.
But General Motors, Ford and Chrysler aren't the only automakers having problems in their home markets.
The Mercedes-Benz car group -- which seems eager to jettison the struggling Chrysler group -- is itself battling a dramatic sales decline in Germany. Some of it is due to sluggishness. Some of it may be residual damage from the recent days of lousy quality. Some of it is due to marketing blunders.
Our German-language sister publication, Automobilwoche, reports that Mercedes has told its dealers to work harder at selling dealer demos, to push vehicles already in inventory and to take advantage of the factory's marketing promotions.
Dealers say the problem is that Mercedes has screwed up the market for its cars by buying too much business with rebates.
That sounds a lot like the issues facing Chrysler in the United States.
It has been three months since DaimlerChrysler CEO Dieter Zetsche declared that Chrysler is for sale, and a deal seems imminent. But if a deal isn't consummated soon, it may be time for plan B.
Given the problems facing Mercedes in Germany, wouldn't it make sense for Chrysler to dump Mercedes?
In a marriage, either partner can file for divorce. So why not, in what the prenuptial agreement billed as a merger of equals?
After all, in the global car biz, was umhergeht, kommt herum.
What goes around, comes around.
DaimlerChrysler Trademark Update
Team Mopar Drifters Hübinette, Cook and Hogan Present a Triple Threat at Road Atlanta
| by Darren Jacobs, Team Mopar Racing CENTER LINE, Mich. -- Team Mopar drifter and two-time Road Atlanta event winner Samuel Hübinette will have some company this weekend as he looks to notch his third win at the track. When Hübinette gazes out the window of his Mopar Dodge Charger SRT8 drift machine, he’ll see Snake eyes — the Dodge Viper SRT10s of fellow Team Mopar drifters Chris Cook and Nick Hogan. |  |
Magna, Onex after Chrysler
May 10, 2007 04:30 AM
Magna International Inc. chair Frank Stronach says Chrysler faces job cuts if his company and Onex Corp. take control of the ailing auto maker.
In confirming a formal bid with Onex for the first time, Stronach told reporters yesterday money-losing Chrysler Group will need changes to become profitable again and that will mean fewer jobs and an overhaul in labour relations.
"I think that will be unavoidable," he said about job cuts, speaking after the annual shareholders meeting of Magna Entertainment Corp. "Sometimes, when you are sick, you've got to take some drastic measures. And that's unfortunate."
Chrysler, an arm of DaimlerChrysler AG, employs more than 81,000 workers in Canada, the U.S. and Mexico.
Earlier this year, the company announced it would cut 13,000 production and office jobs before the end of 2009, including 2,100 in Canada.
Stronach, who controls Aurora-based Magna, did not reveal how much employment levels would need to drop or whether Chrysler would close more plants. Chrysler has 11,000 employees in Canada.
At the same time, Stronach noted Chrysler could eventually grow again and create jobs.
Buzz Hargrove, president of the Canadian Auto Workers union, said he didn't anticipate any further cuts here because Chrysler's operations are efficient and productive.
The CAW and the United Auto Workers have said they want German-based DaimlerChrysler to keep Chrysler but if it sells the company, a group including Magna would be a preferable suitor.
The unions fear major U.S.-based equity firms that are considering bids for Chrysler would "strip and flip" the auto maker for a quick profit at the expense of thousands of jobs.
Stronach also said if his company and Onex succeed in a bid he would insist on profit sharing, a hallmark of Magna's culture, and other changes to boost innovation and productivity.
"That would be automatic," Stronach said of profit sharing. "You must create an attitude, you must create an environment. We want them to be part-owners and we want them to be competitive."
He stressed that improvement in labour relations "will determine" if Chrysler survives.
Stronach also repeated the need for a "framework of fairness" between management and labour at Chrysler. Magna and its unions are currently working on such an arrangement at the company's Canadian and U.S. plants.
As part of that deal, the CAW and the UAW would get easier access to Magna plants by eliminating divisive organizing drives. Instead, the company would allow workers to vote immediately on first contracts that foster co-operation for more innovation and efficiencies.
Regarding the bid for Chrysler, Stronach would not disclose the size of Magna's stake under a new ownership structure but said it would not increase the company's debt.
"Keep in mind, we've got $2 billion (U.S.) in cash in the bank," he said. "I will not gamble Magna away for Chrysler."
He described the bid as "financially, a very viable concept" with backing from major banks in addition to Toronto-based Onex.
"Everyone knows how averse I am to debt," he said, reflecting on Magna's brush with bankruptcy in the early 1990s.
Stronach noted Magna would not need to be in control of Chrysler "as long as the framework for corporate governance is solid."
Magna and Onex would also welcome other partners in the buyout group, he said.
Reports have suggested that suitors would start bidding at $4.5 billion to $5 billion while DaimlerChrysler values the North American arm of the company at between $8 billion and $9 billion.
Stronach said Magna, the world's third-largest auto parts maker, does not want to compete against its customers. But there are many joint ventures between major auto makers now, he added. "I think as the world evolves, it's more crucial to have strategic partners."
Magna already operates a paint shop for a Chrysler assembly plant in the U.S. The company also assembles models at a plant in Austria for some auto makers in the European market.
It has sought a deal with an auto maker to build complete vehicles in North America for several years.
An overview of Chrysler Group's suitors, options
DaimlerChrysler AG is not talking about the companies supposedly interested in buying the Chrysler Group. But here is the state of industry thinking:
Potential investors
• Magna International Inc. and Onex Corp.: The Canadian team of auto-parts supplier and investment company is considered the front-runner by a KeyBanc Capital Markets analyst, and a German industry newspaper has said the group is the lone serious bidder. The Canadian Auto Workers union prefers this tandem over the other bidders.
• Cerberus Capital Management: A private equity firm that might hold an edge with some Chrysler workers, having hired former Chrysler Chief Operating Officer Wolfgang Bernhard, who helped orchestrate the automaker's previous turnaround along with current DaimlerChrysler Chairman Dieter Zetsche. Bernhard has been seen recently at Chrysler headquarters in Auburn Hills.
• Blackstone Group: A private equity firm with experience in the auto industry. Some experts say Blackstone's offer might be helped by the fact that because so little is known of its bid, plans or leadership team, no one has anything to criticize.
• Kirk Kerkorian: The billionaire's investment company Tracinda Corp. has made its $4.5-billion bid public. but it supposedly was not looked upon favorably, in part because of Kerkorian's contentious history with DaimlerChrysler. In the 1990s, he attempted to buy Chrysler but failed. Some experts have praised Tracinda's idea of giving the UAW an ownership stake in Chrysler in exchange for health-care concessions, an idea they expect others to follow.
• Employee Ownership Committee: The group of hourly workers from Toledo appears to be a long shot. It says its offer is not taken seriously.
• General Motors Corp.: The Detroit automaker was one of the first names to emerge as an interested party. The crosstown rival had talks with DaimlerChrysler about a potential deal that effectively would have GM taking Chrysler off Daimler's hands. Talks fell to the side when DaimlerChrysler sought a better deal on the open market.
Wild cards
• The UAW: Union President Ron Gettelfinger has made his position clear: DaimlerChrysler should stay together. Whenever he speaks publicly about the issue, that's what Gettelfinger says. His office, meanwhile, has received numerous telephone calls from prospective buyers seeking support.
• Long-term liabilities: Analysts estimate the long-term value of promised health-care and pension benefits to Chrysler employees at $16.5 billion to $19.2 billion. Who pays for these and how?
• Option to keep: Zetsche and other DaimlerChrysler officials have said repeatedly that "all options are on the table." By definition, that would include the option not to sell Chrysler.
Queries about Chrysler likely at Magna meeting
TOEDOBLADE.COM | DETROIT — Executives of Magna International Inc. are likely to face questions at today’s annual shareholder meeting about Chairman Frank Stronach’s pursuit of a stake in DaimlerChrysler AG’s Chrysler Group, according to some analysts who follow the company.
But if Mr. Stronach decides to buy into the struggling automaker, no shareholder will be able to stop him. Mr. Stronach controls a vast majority of the company’s Class B shares that carry 500 votes each.
Magna has confirmed its interest in buying Chrysler, and many U.S. analysts have named the Canadian company the front-runner in the bidding, along with partner Onex Corp., a Canadian investment conglomerate.
Workers say their DCX bid rebuffed
Toledo group eyes a shot at Chrysler
May 10, 2007
All options may not be on the table for the Chrysler Group after all.
Chrysler hourly workers trying to put together an employee-led buyout of the U.S. unit of DaimlerChrysler AG say they're not being taken seriously -- "hitting a wall" -- even though they have assembled a team of advisers and investment bankers.
A representative from the group said Wednesday it has been in contact with JPMorgan, DaimlerChrysler's investment bank, only to be told that talks with other bidders are far along."They said they are instructed by Germany not to hand out any information to anyone," Richard Caires, a Connecticut investor retained by the Chrysler Employee Ownership Committee to help put together a deal, told the Free Press. "He also said they're far along in the process and what you read in the papers is not far off from the mark -- meaning Magna."
A person familiar with the matter confirmed that the employee group's representatives have had contact with DaimlerChrysler's representatives.
An offer by Canadian auto supplier Magna International Inc. and its investment partner Onex Corp. has been generating the most buzz lately as a likely front-runner among bids to buy the Chrysler Group. Other bidders are believed to be private equity firms Blackstone Group and Cerberus Capital Management.
Magna Chairman Frank Stronach is sure to receive questions about the Chrysler bid during Magna's annual meeting today in Toronto.
The Chrysler Group's future was thrown into uncertainty in February when DaimlerChrysler AG Chief Executive Dieter Zetsche indicated the U.S. division might be sold.
While several interested groups have emerged publicly, DaimlerChrysler officials seem to be taking the Magna-Onex, Cerberus and Blackstone groups the most seriously.
The employee group emerged during the DaimlerChrysler annual meeting in Berlin in April, when a shareholder, wearing an orange T-shirt that read: "You are leaving the American sector" out of what she called solidarity for the UAW, read a letter from the Toledo-based group asking for consideration.
Since then, Michele Mauder, the head of the employee group, has worked to put something together.
The group formed a limited-liability corporation and signed up Morpheus Capital Advisors of New York City. The group is trying to make the case that it is the best choice for the future of the employees.
"We've been asking for the financial books. Now that we have committed ourselves to an investor and got our financial banking from New York banks, Daimler and JPMorgan will not let us see the books. We are hitting a wall," said Mauder, a UAW member who works at the Chrysler Jeep plant in Toledo. "There are a few they are letting in. Doctor Z has said numerous times that all options are on the table, but if that is true, we need to know what's going on behind the scenes."
DaimlerChrysler's practice has been not to comment on prospective bidders.
UAW President Ron Gettelfinger has said repeatedly that the union's goal is to keep DaimlerChrysler together. He has referred to the Toledo group's proposal as sketchy.
Mauder's group, which she says has about 50 people on the committee, has met with officials from Kirk Kerkorian's Tracinda Corp., she said.
Kerkorian, who tried a Chrysler takeover in the 1900s, has offered $4.5 billion to buy Chrysler, but the offer apparently has been pushed to the sidelines because of his contentious history with the company.
KeyBanc Capital Markets has said the Magna-Onex offer is about $5 billion, but its true value could be much more to DaimlerChrysler if the buyer took on its pension and health-care liabilities, which have been estimated to be worth as much as nearly $20 billion.
Kerkorian has proposed that the UAW be given an ownership stake in Chrysler in exchange for union concessions on health care.
"Whatever the unions are going to negotiate for givebacks ... has to be voted on by the rank and file. Well, the rank and file are sitting here saying we are interested in pursuing this," said Caires.
He said the group will be able to put together financing. "We are confident that we can raise the necessary capital," he said. "What Michele's group is going to need is getting Daimler to say, 'OK, let's see what you got.' That's it, that's all she needs. What she has been getting is polite lip service from the union and from Daimler. They don't want this to happen."
He added: "They are hoping this goes away."
Report: Magna boss sees 'drastic' steps at Chrysler
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 | Magna Chairman Frank Stronach expects a decision regarding the potential purchase to be made during the next few weeks. |
Reuters |
May 10, 2007 - 5:00 am
UPDATED: 5/10/07 8:47 A.M.
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"Sometimes when you're sick, you've got to take some drastic measures and that's unfortunate," said Stronach, chairman and founder of the Canadian auto parts maker, about Chrysler, according to the Globe and Mail.
"What do we have to do to create a healthy patient?" he added.
Stronach said Magna wants to acquire Chrysler, with backing from financial partner Onex Corp. Magna also would like DaimlerChrysler to retain a stake in Chrysler, he said.
Today, Magna said a company controlled by Russian billionaire Oleg Deripaska would invest some $1.54 billion in Magna to help the Canadian company's growth prospects in Russian and other markets.
Ex-DCX engine unit, bought by private-equity firm, is still standing
Photos from MTU Detroit Diesel
MTU Detroit Diesel President and CEO Ulrich Kemnitz says its owner, EQT Partners, a Swedish private-equity firm, is continuing to invest in its business.
Christine Tierney / The Detroit New
In the year since DaimlerChrysler AG sold its off-highway engine unit, the operation has increased its sales and headcount, belying the notion businesses sold to private equity firms inevitably get savaged.
EQT Partners, the Swedish private-equity firm that bought the unit and renamed it Tognum Group, announced last month it was acquiring a generator-set maker in Minnesota.
"It's a testament of our owner wanting to further invest in our business," said Ulrich Kemnitz, CEO of MTU Detroit Diesel, a Detroit-based off-highway manufacturer formerly owned by DaimlerChrysler and now part of Germany-based Tognum.
MTU Detroit Diesel is also doubling its salaried work force in Detroit, where it builds big engines for power generators, mining trucks, boats and other large vehicles, to more than 200.
DaimlerChrysler officials point to Tognum and other successful private-equity deals as the company studies offers for Auburn Hills-based Chrysler Group, which the German automaker put up for sale earlier this year.
"In deals we've done in the past with private-equity groups, the main criteria were, 'What does the investor want to do with the company? What is the strategy?' " said a DaimlerChrysler official, speaking on condition of anonymity.
Among the leading candidates bidding for Chrysler are private-equity firms Blackstone Group and Cerberus Capital Management and Canadian supplier Magna International Inc. Top General Motors Corp. officials also have spoken with DaimlerChrysler about a deal.
DaimlerChrysler's labor representatives, including United Auto Workers President Ron Gettelfinger, who sits on the automaker's supervisory board, are wary of private-equity bidders. They view them as inclined to break firms apart for a quick profit, a perception hardened by the UAW's difficult wage negotiations with Cerberus, a possible buyer of bankrupt supplier Delphi Corp.
But Joe Phillippi, president of AutoTrends Consulting Inc., said private-equity firms are not usually harsher owners. "For the most part, it's not necessarily more brutal. The worst scenario is GM buys Chrysler -- there, you'd see a veritable bloodbath over time."
Although DaimlerChrysler does not have equity in Tognum, it retains close ties. "It's a very amicable relationship," said Bryan Mangum, marketing manager at MTU Detroit Diesel.
MTU Detroit Diesel's 100 or so hourly workers are employed by DaimlerChrysler and represented by UAW Local 163 under the terms agreed to when the automaker sold the off-highway activities in March 2006. "We reimburse Detroit Diesel," the engine business still owned by DaimlerChrysler, "for their expense," Kemnitz said.
MTU Detroit Diesel leases space in a 3 million-square-foot DaimlerChrysler site that straddles Detroit and Redford.
Tognum has about $3.3 billion in annual sales, and business is growing worldwide. In the United States, it has won contracts to supply engines to the U.S. Coast Guard, which is renewing its fleet.
EQT is contemplating an initial public offering for Tognum but hasn't disclosed the timing.
Chrysler exceeds buyout projections
Josee Valcourt / The Detroit News - - DaimlerChrysler AG's Chrysler Group -- amid a turnaround effort that calls for shedding 9,000 U.S. hourly positions over three years -- received more buyout applications than it needed at affected plants. "Corporate wide, we have exceeded our original projections," said Chrysler spokeswoman Michele Tinson. She declined to elaborate. Workers in Detroit had until April 16 to determine if they wanted to take the automaker up on the buyout offer. Deadlines varied at other sites, with the latest on April 23 for St. Louis North and South employees. Chrysler, which posted a $680 million loss in 2006, offered U.S. blue-collar workers at certain plants a retirement package that includes a $70,000 lump sum plus health care and pension benefits. Workers with less seniority were also offered buyout packages worth $100,000 and six months of limited health benefits. Both programs were made available in early March after Chrysler revealed its comeback strategy on Feb. 14. Chrysler isn't providing an update on the number of applications it received to date from workers ready to leave the company. But by early April, Chrysler was well on its way to reaching its target of 5,875 reduced hourly positions for the year. Some 4,312 hourly employees represented by the United Auto Workers in the U.S. and in Canada -- where Chrysler hopes to shave 2,000 blue-collar jobs -- submitted paperwork to accept the buyouts. Among them are 1,600 Michigan workers. In total, the automaker wants to eliminate 11,000 union-represented positions by 2009 in the U.S. and Canada as it also moves to cut 400,000 units of production as part of its restructuring. Some 2,000 salaried jobs also will be trimmed. In addition, Chrysler plans to cut third shifts from Warren Truck plant and its St. Louis factory, and idle its Newark, Del. factory. Blue-collar workers will learn when they will be let go between April 30 and June 30. "Our manufacturing facilities will determine when the accepted programs will be activated," said Tinson, based upon the manpower needs of each targeted factory.
This Day in Auto History: 10 MAY
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 | Source: Automobile History Day By Day, by Douglas A. Wick |
Deposits Placed for 12,600 Smart Cars
© 2007 The Associated Press DETROIT — United Auto Group Inc., the nation's second largest auto retailer, Wednesday said that in just over five weeks it has received $99 deposits from 12,600 people eager to be among the first buyers of DaimlerChrysler AG's two-seat Smart mini car when it hits U.S. showrooms in 2008.
United Auto Group, which owns the Smart USA division of DaimlerChrysler's Smart unit, kicked off a program in March that offers people the opportunity to be a Smart "insider" and get on a waiting list in return for a refundable $99 deposit. United Auto Group Vice President Tony Pordon said the company has seen considerable interest in the product due to a growing demand for fuel-efficient cars and a continued interest in unique cars.
"With fuel prices escalating and this car promising 40 miles per gallon, they're looking at it as an economical way to be able to adapt to changes in the marketplace," Pordon said. Smart vehicles are slated to have a base price below $12,000.
Smart cars are about the size of golf carts but more technologically advanced than many of the cars already on U.S. roads. While Smart products are dwarfed by most vehicles, they are certified with four-star crash worthiness.
Edmunds.com auto analyst Michelle Krebs noted that DaimlerChrysler was going to put Smart cars on sale earlier in the decade, but that effort stalled due to financial problems DaimlerChrysler had at the Smart division. Now, "with gas prices looking at $4 a gallon this summer, this is perfect timing," said Krebs.
Pordon said the company does not know how many people who have given deposits will follow through and actually buy a Smart two-seater, but he expects the retention rate to be high. The company only plans to sell 16,000 Smarts next year in three configurations _ the base "Pure" model, the upgraded "Passion" model and the "Passion" cabriolet.
While consumers are given a shot at getting in line for what might be a hot product, United Auto Group sees the $99 deposit scheme as an ideal way to do consumer research. Essentially, the company is getting a fairly accurate snapshot of what kind of models its buyer-base is interested in, so it can order pools of cars from DaimlerChrysler that they can actually sell in North America. Pordon said the most popular Smart model has proven to be the Passion edition.
Pordon said that the company could conceivably sell out of the first year's expected volume before the vehicle goes on sale. United Auto Group, which primarily sells luxury models and import brands in the United States, in addition to operations in Europe, is kicking off a 50-city road show this month in order to drum up more demand.
United Auto Group is currently weeding out 50 to 60 dealers from an initial field of more than 1,000 interested dealers that will be selected as exclusive outlets for the vehicles starting in 2008. Pordon said the company has seen considerable consumer interest in California, New York, Washington, D.C., and even in Michigan, where the Big Three Detroit auto makers dominate.
The initial popularity of Smart comes at a time when mini cars are not even on sale in the United States. The so-called sub-compact, or B-segment, currently represents the smallest vehicle class in the United States and most major manufacturers have a product in the sub-compact class or plans to enter it by decade's end. BMW AG sells a line of Mini Cooper vehicles in the United States, but those vehicles are much larger than DaimlerChrysler's Smart cars.
Mini cars have taken off in other established markets, including Western Europe, as high energy prices have driven popularity of smaller models. Domestic U.S. auto makers have long stayed away from investing too heavily in manufacturing smaller cars because they offer little or no profit potential and Americans continue to prefer larger cars.
General Motors Corp., however, is eyeing the embryonic U.S. mini car segment as a potential frontier worthy of exploration. At the New York auto show, GM showed off three mini cars built and designed by the company's Korean unit.
Cruise Nights and Concept Vehicles Drive the Fun at the Walter P. Chrysler Museum this Summer
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AUBURN HILLS, Mich., May 10 /PRNewswire-FirstCall/ -- The fun will be at full throttle this summer as Cruise Nights return to the Walter P. Chrysler Museum in Auburn Hills, from 6 - 9 p.m. Thursdays, June 14 and 28, July 12 and 26 and Aug. 9 and 23.
Cruisers with vehicles of all makes and models -- and enthusiasts who simply enjoy the chrome and steel landscape -- can feast on the automotive eye-candy that will adorn the Museum's spacious grounds, including a must-see array of spectacular Chrysler Group concept vehicles.
Cruise Nights at the Walter P. Chrysler Museum will celebrate car culture -- rain or shine -- with music, free Museum tours and food concessions. A variety of Chrysler Group's most popular concept vehicles will be thematically displayed in the Museum's front circular drive each evening:
-- Dodge Challenger Night, June 14: Dodge Challenger, ACR Viper, Mopar SS Drag and Chrysler Nassau -- Classic Cruiser Night, June 28: Chrysler 300 Hemi(R) C, Chrysler Imperial, Chrysler Phaeton, Dodge Super Hemi -- Extreme Performance Night, July 12: Dodge Demon, Chrysler Firepower, Chrysler ME Four-Twelve and Dodge Tomahawk -- Radical Night, July 26: Akino, Expresso, Slingshot and Trio -- Jeep(R) Night, Aug. 9: Jeep(R) Gladiator, Jeep Hurricane, Jeep Jeepster, Jeep Rescue and Jeep Trailhawk -- Hot Truck Night, Aug. 23: Jeep Gladiator, Dodge M80, Dodge Power Wagon and Dodge Rampage
Product specialists will be on hand to answer questions about each Chrysler Group concept.
The Walter P. Chrysler Museum will award plaques each Cruise Night to participants with outstanding vehicles in three categories:
-- Museum Choice; -- Best Wheels for Wooing; and -- Best Challenger, Best Classic Cruiser, Best Performance Vehicle, Most Radical Ride, Best Jeep(R) and Hottest Truck, in keeping with Cruise Night themes. Revving up Cruise Nights fun will be: -- Cruis'news, on June 14, to individually photograph owners with their vehicles. Owners can pick-up their complimentary framed photo from the Museum during subsequent Cruise Nights. -- 94.7 WCSX, on June 28, with the Classic Rock Cruisers. Weekend jock KT will be on-hand to emcee and Focus Hope will sell raffle tickets for this year's WCSX Stone Soup project -- a 1968 Dodge Charger. -- 101 WRIF, on July 12 and 26, with the WRIF Muscle Car Club. A WRIF air ace will host the party both evenings, complete with station giveaways.
The Walter P. Chrysler Museum is located at the corner of Featherstone and Squirrel Rds. on the DaimlerChrysler complex in Auburn Hills. From I-75, take exit 78 (Chrysler Dr.) and follow the Museum signs.
Buyer Backs Out Of $10 M Bid For General Lee
May 9, 2007 03:09 PM Dukes of Hazzard fans upset that the most famous car in the world was up for sale can rest at ease - the General Lee is still owned by Bo Duke. John Schneider, the actor who played Bo Duke, put up his own 1969 orange Dodge Charger up for sale on eBay. Schneider had owned the vehicle since before the TV series began in 1979. The "General" was made famous by Bo and Luke Duke's several high-speed escapes from Sheriff Roscoe P. Coltrane. Now it seems an eBay buyer has pulled a fast one on Schneider. The Ventura County Star reported that William Fisher of Laguna Hills, Calif., made the winning bid of $9,900,500 for the General Lee. Fisher has reportedly failed to make a deposit for the car. The paper reported that Schneider's estate manager said the actor would pursue legal action against Fisher. Schneider had already left negative feedback for Fisher on his eBay account. "This is the guy that for fun, decided to bid on the General Lee. Thanks....," it reads. Prospective buyers had to register through eBay before placing bids so the online auction could verify the winner's ability to pay. Fisher's bid was only $100 more than the second-highest bid, according to the VenturaCountyStar.com. Schneider was selling the General Lee to finance an upcoming film. For now, the famous car sits in the garage of its longtime owner. Fisher's bid was only $100 more than the second-highest bid, according to the VenturaCountyStar.com. Schneider was selling the General Lee to finance an upcoming film. For now, the famous car sits in the garage of its longtime owner. 
Bo Duke's General Lee For Sale On eBay
Bo Duke, General Lee Visit Nashville
Wednesday, May 09, 2007
Chrysler Patent Updates
DaimlerChrysler Trademark Updates
Chrysler to make 5,000 Mercs/yr in India
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| REUTERS |
| Posted online: Wednesday, May 09, 2007 at 1536 hours IST |
The 2.75 billion rupee ($67 million) plant will begin production in 2009, Joachim Schmidt, chairman of the board of DaimlerChrysler India, said at a foundation-laying ceremony for the plant in the Western state of Maharashtra.
S&P: Chrysler Rating Would Resemble GM
Associated Press 05.08.07, 3:03 PM ET - - A separate Chrysler Group spun off or sold by DaimlerChrysler AG would likely have a credit rating similar to that of U.S. peers General Motors Corp. and Ford Motor Co., Standard & Poor's Ratings Services said Tuesday.
"It's quite comparable ... but Chrysler is less diversified than GM and Ford," S&P's credit analyst Maria Bissinger told reporters in Frankfurt, without commenting further.
S&P currently gives both GM and Ford a long-term rating of B, with a negative outlook. Their short-term ratings are both at B-3. It gives DaimlerChrysler a better rating, BBB for the long term with a stable outlook, and a short-term rating of A-2.
As for the parent company excluding Chrysler, Bissinger said that the "business profile would likely improve if the weakest link is removed."
She noted that it remains to be seen how a split-up of the group's financial services division - a key contributor to earnings, and a sector to which Chrysler contributes - would be achieved.
DaimlerChrysler Chairman Dieter Zetsche announced in February that the company was considering all options for the struggling Chrysler unit and has been holding talks with likely bidders.
Chrysler lost $1.5 billion in 2006 and is undergoing a recovery plan that will cut 13,000 jobs in Canada and the U.S. and pare back production.
Several industry analysts view Canadian auto parts supplier Magna International Inc. as the front-runner in bidding to grab at least a significant stake in Chrysler. Aurora, Ontario-based Magna has acknowledged its interest.
Among other companies reportedly interested in Chrysler are private equity firms Cerberus Capital Management LLC and a consortium of investors led by Blackstone Group, although neither has confirmed its interest.
Billionaire investor Kirk Kerkorian, who tried to take control of Chrysler in the 1990s, has made a $4.5 billion bid.
Shares of DaimlerChrysler fell 0.8 percent at 59.77 euros ($81.38).
Chrysler buyouts are idled
Early-retirement packages too popular
May 9, 2007
The Chrysler Group has put on hold the buyout and early retirement packages for Detroit-area hourly workers after it was flooded with more interested people than it expected, the Free Press has learned.
Buyouts still are expected to go through, but the company is deciding on a plant-by-plant basis when workers can leave. Many expected to be out by early this month.
The hold-up is causing frustration for some who had expected to be done working at Chrysler -- but now can't move forward with plans, workers said. Amid all of the uncertainty about the Chrysler Group, morale has turned low and many thought it time to leave, workers said on the condition of anonymity."The company has informed the union that the amount of applications in the Detroit Labor Market Area (LMA) have exceeded their expectations," UAW Local 51 told workers in a recent notice. "As of May 2, 2007, all movement relative to the" buyout and retirement "packages is now on hold in the Detroit LMA."
In April, Chrysler reported that more than 1,600 Chrysler hourly workers in Michigan had signed up for the packages. A person familiar with the process said that 57% of the people eligible for the packages in Detroit accepted them.
The packages are part of the company's turnaround plan to reduce 13,000 employees, including a total of about 5,300 in Michigan, over the next three years.
The April announcement said that 4,312 hourly workers in Canada and the United States have accepted the packages -- about 1,500 shy of the company's goal for 2007.
On Monday, the company declined to give an updated number. "We did exceed our original projections," Chrysler spokeswoman Michele Tinson said. "We are still in the middle of the process. Each manufacturing location will determine when the accepted programs can be activated."
A spokesman for the UAW declined comment.
"The International Union and the company are in negotiations concerning how and/or when the members in the Detroit LMA will be released and backfilled," the notice to workers at the Mack Engine plant said.
The company had set an internal goal of May for people to leave the company but each facility has the discretion to decide when workers can be let go.
The company is shooting to get people out in a window that stretches from April 30 to June 30, but it could be longer if market demands warrant it, the Free Press learned.
Concerns about job cuts first emerged last fall when it became clear Chrysler was not doing so well.
The company, struggling with a truck-heavy lineup, posted a $1.5-billion operating loss in 2006, a figure that was revised to $680 million recently because of accounting changes.
On Feb. 14, Chrysler CEO Tom LaSorda announced the company's second turnaround plan in a decade but it was overshadowed by the indication that the division was up for sale.
In April, DaimlerChrysler chief executive Dieter Zetsche announced that the company was in talks with interested parties about Chrysler's future.
Several interested parties have emerged, most notably: two private equity firms, Blackstone Group and Cerberus Capital Management, and Canadian auto supplier Magna International Inc.
Experts have warned that a private equity firm would likely cut more jobs.
Not everyone was eligible for the buyout and early retirement packages. The company has set goals for each facility to reduce headcount.
The early retirement package includes a single payment of $70,000 and the buyout package includes a $100,000 lump sum.
When Ford Motor Co. offered UAW buyouts nationwide related to its turnaround plan, the take rate was about 45%. Among salaried employees, in some departments too many workers accepted buyouts but those conditional offers were rescinded.
Toledo Jeep has future, expert says
Toledo Jeep has future, expert says
Ohio complex expected to survive Chrysler sale
From Beacon Journal wire services
TOLEDO - If Chrysler is purchased by a Canadian auto parts manufacturer, the impact on the Toledo Jeep Assembly complex and other local DaimlerChrysler AG operations won't be felt immediately, an auto industry analyst said.Chrysler's Summit County operations consist of a stamping plant in Twinsburg.
Magna International Inc. has emerged as a top contender in the possible separation of the struggling Chrysler Group from Daimler. Magna is vying with private equity firms and others to take over or obtain a large stake in Chrysler.
David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., said Toledo Jeep likely would have a significant role in a restructured company.
There is a high level of uncertainty as to the future of local Chrysler operations, but the Jeep plant will be part of it, he said.
George Magliano, an auto analyst at consulting company Global Insight, said Magna is the ``suitor du jour'' in the bids for Chrysler.
``They are obviously very serious,'' he said. ``They seem to have the inside track.''
The United Auto Workers, who have opposed the sale of Chrysler, are thought by some to favor Magna over the private equity groups that have expressed interest in the automaker.
Magna operates the shop that paints Jeep Wranglers at Toledo Jeep, and it operates a Chrysler plant making Jeeps and other vehicles in Austria.
Its workers at Toledo Jeep are expected to be represented by the UAW. Magna has about 50,000 production workers in the United States, Canada and Mexico.
The Toledo complex makes Jeep Libertys and Dodge Nitros as well as Wranglers. Chrysler also operates a machining plant in Perrysburg Township and has a joint-venture engine plant in Dundee, Mich.
Magna was founded in 1957 by Frank Stronach and is a major parts supplier to Daimler and other global automakers.
Daimler officials said this year that Chrysler was for sale, after the U.S. unit lost nearly $1.5 billion last year. But a suitor such as Magna might invest money but not have a majority interest in the firm.
Daimler is reported to be talking with some suitors. Onex Corp., a Canadian investment firm, is working with Magna on the deal, published reports have said.
Other bidders include the Blackstone Group and Cerberus Capital Management, private equity firms that the UAW fears may sharply cut costs and possibly break up Chrysler.
The secrecy of the sale talks and Daimler's interests make it difficult to speculate on the outlook for Chrysler's current operations, analysts said.
By itself, Chrysler likely cannot survive and prosper globally and needs an alliance outside North America, Cole said.
``Until this actually comes down, there is not much that anybody will know about what could happen,'' he said.
Magnitude 5.2 - OFFSHORE NORTHERN CALIFORNIA
Earthquake Details
| Magnitude | 5.2 |
|---|---|
| Date-Time | = Coordinated Universal Time = local time at epicenter |
| Location | 40.376°N, 125.014°W |
| Depth | 9 km (5.6 miles) |
| Region | OFFSHORE NORTHERN CALIFORNIA |
| Distances | |
| Location Uncertainty | horizontal +/- 0.7 km (0.4 miles); depth +/- 1.7 km (1.1 miles) |
| Parameters | Nst=250, Nph=250, Dmin=58 km, Rmss=0.19 sec, Gp=245°, M-type=regional moment magnitude (Mw), Version=3 |
| Source | |
| Event ID | nc51181705 |
Big Three can't play defense anymore
DETROIT NEWS - - Sen. Barack Obama's finger-wagging lecture this week to Detroit's automakers shouldn't come as a surprise to anyone who's paying attention. It's the future if maligned Motown doesn't start playing aggressive offense. Doesn't matter that an Illinois Democrat from the industrial Midwest, a man who would be president, shows scant understanding of the technology, market realities and human limitations of his remedies -- and then jumps on the campaign plane. It's the formula: Whack Detroit, ignore details and draw praise from most any corner outside of, say, three Great Lakes cities, meaning Obama understands very well the times in which he's running for the nomination. Judging by the climatic grandstanding so common now in Washington, he's not alone. Be it Republican or Democrat, be it a vote in Congress or a position on the campaign trail, the times are ripe for policies purported to slow climate change and improve national energy security. Play offense, not defense And if they undermine companies struggling to survive? That's our problem. The path of least resistance runs right through Detroit's weakened automakers and over the United Auto Workers, presumed to back Democrats no matter how inimical their proposed policies may be to the union's future. Doesn't matter that the union and its members are stalwarts of the Democrats. Doesn't matter that Rep. John Dingell, D-Dearborn, remains the industry's protector on Capitol Hill. Doesn't matter how communities could be impacted, most of them Midwest backwaters to party elites. None of it much matters because big, bad Detroit isn't so big or bad anymore. General Motors Co., Ford Motor Corp., Chrysler Group and even Toyota Motor Corp. cannot play defense in Washington on fuel economy, climate change and energy security. It won't work. Viewed from the crumbling ruins of industrial America, Washington has reached an inflection point: There will be political movement on climate change and fuel economy, as the Senate Commerce Committee votes Tuesday on tougher federal fuel economy rules showed. Step on the gas Change will come quickly, too, even if some of it makes little sense. Take Obama's suggestion to pick up 10 percent of Detroit's crushing retiree health care costs, provided that fully half of the annual federal spending goes into improving fuel efficiency. For DaimlerChrysler AG's Chrysler Group, which spends $1.56 billion on retiree health care, the federal help would amount to $78 million a year or $29 per vehicle, according to company calculations. Yippee. Put aside the political risk of using taxpayer money to bail out GM, Ford and Chrysler, never a popular play in the "Detroit-is-for-losers" zeitgeist. The dough is piddling, proving how poorly politicians understand the enormity of the burden Detroit is shouldering. It's past time for Detroit to step on the gas in Washington. Tired of Toyota getting all the props for being so fuel-efficient when its V-8 trucks are anything but? Then help drive the debate on fuel-efficiency, or it will drive you. Worried that Democrats in Congress will stall a comprehensive environmental package to wait for a Democrat in the White House? Push for a broad deal now, as some of Detroit's automakers are doing, while Dingell is active, Detroit's balance sheets are iffy and you've got a decent technology story to tell. Convinced that a 4 percent annual improvement in fuel economy starting in 2011 cannot be achieved? Start lining up your bankruptcy counsel; write the surrender-and-blame speeches; and remind the Pension Benefit Guaranty Corp. (and their friends in Congress) just how massive your pension obligations are -- and how heavily they'd weigh on American taxpayers. Doesn't need to end that way, or Obama's way. But doing nothing and hoping is not an option.
This Day in Auto Histroy: 09 MAY
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| Source: Automobile History Day By Day, by Douglas A. Wick |
Dodge Dashboard Report
he report featured Lucy Perez, who is one of many P.T. Cruiser owners claiming they have defective dashboards."My concern is that we are driving and something happens and this whole thing goes and collapses and we have an accident," Perez said.
The P.T. Cruiser is made by Daimler Chrysler -- the same manufacturer of the Dodge Ram.
In an earlier report, Cooper spoke with a driver who said she lost all power to her headlights when her Dodge Ram dash collapsed while driving at night.
Another man said his dashboard fell apart and pieces fell inside and jammed the gas pedal while he was driving.
Cooper said the dashboard reports have circulated across the country.
The latest dashboard complaints have come from Texas, Missouri, South Carolina, Ohio, Georgia, North Carolina, Illinois, New York, New Jersey and Utah."As for Daimler Chrysler, the company has not been consistent in its dialogue with us," Cooper said. "Some days they respond to our inquiries and some days they do not. And it seems the consumers are having the same experience."Cooper said he is looking into how Daimler Chrysler is handling the complaints.
The National Highway Traffic Safety Administration will not comment on the record, except to say it is monitoring the situation.Anyone with a P.T. Crusier, Dodge Ram or another Daimler Chrysler with dashboard problems should call 800-992-1997 and file a complaint with government regulators at safercar.gov.Watch Local 6 News for more on this story.
http://www.local6.com/news/13282447/detail.html
Dodge Debuts One-of-a Kind Fantasticar in Summer Blockbuster 'Fantastic Four: Rise of the Silver Surfer,' and Reveals Movie-Inspired Paint Scheme on N
-- New Dodge spot airs on May 12 in theaters across the countrySOURCE Chrysler Group
-- No. 19 Dodge Charger of Elliott Sadler to carry special paint scheme at
Coca-Cola 600
AUBURN HILLS, Mich., May 8 /PRNewswire-FirstCall/ -- The newest Dodge
brand vehicle will debut on the silver screen this summer in an action
adventure movie with four superheroes who pilot this one-of-a-kind vehicle.
Starting May 12, movie goers across the country will be among the first to
see this vehicle on the silver screen when Dodge debuts its new ad in
cinemas.
The Fantastic Four meet their greatest challenge yet, as the enigmatic
intergalactic herald, the Silver Surfer, comes to Earth to prepare it for
destruction in "Fantastic Four: Rise of the Silver Surfer." Twentieth
Century Fox releases the film on June 15.
The vehicle of choice for the Fantastic Four is the one-of-a-kind
Fantasticar, which can reach speeds of up to 550 mph and an altitude of
30,000 ft. The Fantasticar also can separate into three sections. Each one
has deployable wings and can maintain the same speed and performance as the
entire craft. And yes, it has a HEMI(R).
Among the Dodge cues on the Fantasticar are the brand's signature
crosshair grille with ram's head logo and the Dodge name on the front and
rear fascias. A red ram's head logo also appears on the seat headrests.
"Opportunities to be involved with the cultural icon like the
Fantasticar don't come around very often, so we jumped at the chance to
work with Marvel Comics and 20th Century Fox," said Michael Curmi, Senior
Manager - Entertainment Marketing, Chrysler Group. "Dodge is a great
American car brand teaming up with a great American superhero team. We both
have great heritage that appeal to people around the world, so it was only
natural for us to partner on this new Fantastic Four movie with the debut
of the ultimate superheroes vehicle."
Another limited edition Dodge vehicle making its debut on May 27 is the
No. 19 "Fantasticar" Dodge Charger of Elliott Sadler at the NASCAR Nextel
Cup Series' Coca-Cola 600 at Lowe's Motor Speedway. The No. 19 car will
feature a stunning paint scheme that showcases the ghost-like Silver Surfer
shooting across the hood, while flames explode over the nose and up the
fenders of the Fantasticar. The familiar Fantastic Four logo will also
adorn both rear quarter panels.
"The No. 19 "Fantasticar" Dodge Charger is a great new look for
Elliott's car, and we expect his race car's performance will rival that of
the Fantasticar in the movie," said Mike Accavitti, Director, Dodge Brand
and SRT Marketing and Communications. "Our motorsports program is an
integral part of Dodge's overall marketing strategy, and with the
Fantasticar Dodge Charger, we're able to generate further awareness and
interest with both general consumers and NASCAR fans."
Other elements of the Dodge partnership with 20th Century Fox and its
partners are a toy Dodge Fantasticar by Hasbro; Dodge Fantasticar inclusion
in the Fantastic Four: Rise of the Silver Surfer video game; and in-theater
and national television promotions.
In addition to the Fantasticar, the other Dodge vehicles getting screen
time in the "Fantastic Four: Rise of the Silver Surfer" are the Dodge Ram
Mega Cab(R) and Durango.
"The Dodge brand is always looking forward to new bold design
directions, so it is inspiring to see the Fantasticar with the Dodge
brand's signature crosshair grille and Ram's head logo in a completely
futuristic vehicle," said Mark Spencer, Senior Manager - Dodge Brand
Communications, Chrysler Group. "We hope people around the world have as
much fun watching the Fantasticar as Dodge Marketing is having promoting
the out-of-this-world vehicle."
Dodger Charger gaining favor with police
EDMUNDS STRAIGHTLINE - - I don't know about you, but I've been seeing more and more Dodge Chargers being used as police cars. It seems that many police departments around the country are phasing them in, and phasing out the old Crown Vics.
The Idaho State Police is one of those switching to the Charger. Lieutenant Eric Dayley states that the Charger has a "muscle-car engine," and that it's better able to deal with speeders going 100+ mph.
Full story here.
Chrysler to highlight fuel economy in new round of dealer ads
Chrysler has created three new ads for their dealers to use that promote their more fuel-efficient vehicles such as the PT Cruiser, Dodge Caliber and Avenger. Chrysler, Jeep and Dodge each get their own ads and all of the vehicles that achieve at least 30 mpg on the EPA ratings is featured. Chrysler is also providing hints to drivers on how to maximize their fuel economy with all the usual stuff like checking tire pressures, replacing air filters, avoiding jack rabbit starts and driving a little slower. In addition, they recommend getting rid of extra weight removing unused items from roof racks and removing empty bike racks and other carriers. The press release and the Jeep commercial are available after the jump.
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Chrysler Group Highlights Fuel Economy in New Dealer Advertising Campaign
Just in time for the summer travel season, Chrysler Group is launching a new dealer advertising campaign highlighting the fuel efficiency of its new cars and small SUVs.
Called “Maximize Your Miles,” the ads from the Chrysler, Jeep(R) and Dodge brands feature vehicles that achieve around 30 mpg, including the Chrysler Sebring, PT Cruiser and 300; Jeep Compass and Patriot; and Dodge Charger, Caliber and Avenger. The Jeep spot was available on May 1 for dealers to air. The Dodge and Chrysler versions will start running on May 7 and May 8, respectively.
“We created this campaign because consumers were looking for more information about our fuel economy ratings,” said George Murphy, Senior Vice President - Global Marketing, Chrysler Group. “As people spend more time traveling in theirs cars during the summer, it made perfect sense to remind them that with Chrysler, Jeep and Dodge products, you don’t need to sacrifice design, style or features to get a good fuel economy.”
In addition to the television spots, Chrysler Group’s fuel economy message will be supported by print and radio advertising, as well as point of purchase and targeted direct mail pieces.
The Spots
The Chrysler brand ad, called “Import,” opens with a voiceover that says, “Chrysler proves you don’t need an import to get great mileage.” The spot then cuts to beautiful, romantic footage of the Chrysler Sebring, PT Cruiser and 300, with supers highlighting the fuel economy rating for each vehicle. The voiceover returns with, “Fuel efficiency never looked so good.”
In the Jeep brand spot, called “Self Serve,” a group of friends are on a road-trip in a Compass and Patriot. After several hours of driving, they stop at a gas station and one of the drivers heads inside to the “squishee” machine. His friends take a few minutes to stretch and play around as they wait. After what seems like a very long time, we see that the driver has filled a 5-gallon gas can from the “squishee” machine. As the vehicles drive off, the voiceover says, “With gas mileage this good, they’ll change the way you think about filling up.”
“Drive Responsibly,” the Dodge brand spot, opens on what appears to be alcohol sloshing into a glass. But as the camera pulls back, a gas pump is revealed and the liquid is gasoline, not alcohol. The voiceover says, “It’s highly refined. It’s imported by the barrel. It’s something you shouldn’t guzzle while driving. Now Dodge goes the distance with our most fuel-efficient line-up ever.” Footage of the Dodge Charger, Caliber and Avenger is interspersed with images of the features available on these cars, including the Boston Acoustics Sound System, ChillZone[TM] beverage cooler and the MyGIG[TM] Infotainment System.
The Jeep brand spot will be available soon. The Dodge ad will be available for viewing on May 4 and the Chrysler version will be posted on May 7.
Get the Most Out of Every Tank
While Chrysler Group is continuing to work to improve the fuel economy of its vehicles through technologies such as Multi-displacement System, more efficient engines and diesel technology, there are additional measures customers can take to enhance their fuel economy.
- Slow down - every 5 mph over 65 mph can decrease fuel economy by as much as 7 percent
- Use modest acceleration when possible, minimizing “jack rabbit” starts
- Moderate use of air conditioning and other accessories such as fog lamps and heated seats
- Use cruise control to help maintain a steady speed
- Limit idle and warm up periods - don’t leave vehicles idle while running in for the cup of coffee in the morning
- Ensure proper vehicle maintenance
- Replace dirty air filters - a clogged air filter can reduce fuel economy as much as 10 percent
- Check tire pressures - tires under inflated by just 2 psi can reduce fuel economy as much as 1 percent
- Remove extra weight from vehicles - an extra 100 pounds in the trunk or pickup box can lower fuel economy 1 to 2 percent
- Reduce aerodynamic drag on vehicle by taking empty cargo carriers, bike racks, ski racks, etc. off - at highway speed, 50 percent of the engine power is used to overcome aerodynamic drag
- Remove unused items from roof racks as a loaded roof rack can reduce fuel economy at highway speeds by as much as 5 percent
- Keep vehicle engine tuned up as a noticeably out of tune engine can reduce fuel economy as much as 4 percent
- If vehicle engine light is on, have the vehicle serviced - faulty components such as an oxygen sensor can reduce fuel economy as much as 40 percent
Will Jeep build the Wrangler JT pickup?
DaimlerChrysler organized a concept car drive today that included some of its most notable cars and trucks from this year's auto show circuit. Sliding behind the wheel of cars like the Chrysler Nassau and Dodge Demon concepts had its moments, but the vehicle that really got our attention was the Jeep Wrangler JT.
This is the Jeep pickup we've all been waiting for, but don't get your hopes up just yet. The Wrangler JT is a one-off concept built by the engineers at DaimlerChrysler's special projects group. It started life as a leaf sprung, military spec Wrangler, but the engineering team swapped in a standard coil spring setup from the latest Wrangler Unlimited. The coils themselves are a part of a 3-inch lift that clears the way for a set of 35-inch mud tires.
It has a 116-inch wheelbase like the Unlimited, but instead of rear seats the JT gets a five-foot pickup bed. Major modifications include a rear bulkhead between the bed and the cab and a new back window. According to Jeep designer Aaron Pizzuti, very little fabrication was needed to build the JT. "The idea was to build a Wrangler pickup that required minimal changes to the standard configuration," he told us.
Behind the wheel, the JT drove like any other Wrangler. A stock 3.8-liter six-cylinder engine provided the power so acceleration was leisurely. Numb steering was no surprise either given this Jeep's nearly three foot tall mud tires. Compared to the other concepts we drove, however, the JT was clearly a more complete vehicle. In fact, Pizutti said the JT made its public debut in Moab, Utah about a month ago and made its way through some of the toughest trails in the park.
Clearly, Jeep is trying to figure out a way to build a Wrangler pickup and the JT is the closest vehicle yet to making it happen. Of course, there's still that issue of actually making money on a Jeep pickup and so far it doesn't appear as though DaimlerChrysler has quite figured that one out yet.--Ed Hellwig, Lead Senior Editor
Tuesday, May 08, 2007
Mopar Obscura: The Dodge Superlight!
JALOPNICK.COM | DETROIT - - Hearkening back to the boundless optimism of the American space-age is the Dodge Superlight. Available as an option on the absolute biggest of the Dodge fleet, the Superlight was an early version of now fairly commonplace HID automobile lighting. The option was dropped in 1970 after various legal challenges on the state level and cold war resource allotment eating into Superlight R&D. The Superlight is further proof that the ultimate weapon against communism was the full-size American station wagon.
Related:
Sunday 6 May 2007 | MOTORAUTHORITY.COM
Mercedes-Benz is well on its way to becoming one of the most diverse automotive brands on the market, not an easy task given its need to remain as a premium and exclusive marque. Already in the pipeline are the next generation A and B-class line of cars, and now, Germany?s Auto Zeitung is reporting that there could be a new small roadster based on the same platform earmarked for the next A-class.
Mercedes will be bowing to public criticism surrounding its entry level A and B-class models, which have been labeled as too down-market and not in fitting with the profile of the types of vehicle that usually wear the three-pointed star. For the latest versions, developers will likely exploit economies of scale by possibly utilizing the same underpinnings as the recently revealed C-class saloon.
This would mean a sportier chassis with a rear-wheel drivetrain and higher performance engines. Also, the design of the current A and B-class restricts the size of possible engines because of its east-west engine layout and high floor plan. Moving to the C-class architecture would enable a longitudinal engine configuration, which would mean Mercedes could expand the range with more powerful models. The new cars would also sit lower than the current models, improving handling and dynamics, but will resemble their predecessors by retaining a high roof line.
However, pricing issues may rule out the C-class option. Instead, Mercedes could possibly share just the engines and transmissions between the next A, B and current C-class models, saving development costs while still keeping the production cost of the A-class low.
There are also suggestions that Mercedes might share components across the entire DaimlerChrysler Group, with the likely suspects being the next-gen Chrysler PT Cruiser and Dodge Caliber. Unfortunately, any spin-off of the Chrysler Group could jeopardize the possibility of parts sharing between the German and American sides and could end up pushing back release dates.
As for the roadster, Mercedes hinted at the possibility of such a model with its Vision SLA concept car (pictured) that was unveiled at the Detroit Auto Show back in 2000. Based on the first generation A-class, the concept car featured a similar design to the flagship SLR and was powered by the same 1.9L engine from the A190. The Vision SLA also featured extensive use of aluminum and plastic in its construction as well as premium accessories such as the carbon seats and xenon headlights.
Development work for the new A and B-class is still far from complete and the decision to go with the C-class? rear-drive platform is yet to be finalized. But given the increased competition from its rivals and the bad light of previous quality and safety issues surrounding the first A-class, adopting the same running gear as used by the C-class would be a smart move.
http://www.motorauthority.com/cars/m...-sla-roadster/
Mercedes-Benz is well on its way to becoming one of the most diverse automotive brands on the market, not an easy task given its need to remain as a premium and exclusive marque. Already in the pipeline are the next generation A and B-class line of cars, and now, Germany?s Auto Zeitung is reporting that there could be a new small roadster based on the same platform earmarked for the next A-class.
Mercedes will be bowing to public criticism surrounding its entry level A and B-class models, which have been labeled as too down-market and not in fitting with the profile of the types of vehicle that usually wear the three-pointed star. For the latest versions, developers will likely exploit economies of scale by possibly utilizing the same underpinnings as the recently revealed C-class saloon.
This would mean a sportier chassis with a rear-wheel drivetrain and higher performance engines. Also, the design of the current A and B-class restricts the size of possible engines because of its east-west engine layout and high floor plan. Moving to the C-class architecture would enable a longitudinal engine configuration, which would mean Mercedes could expand the range with more powerful models. The new cars would also sit lower than the current models, improving handling and dynamics, but will resemble their predecessors by retaining a high roof line.
However, pricing issues may rule out the C-class option. Instead, Mercedes could possibly share just the engines and transmissions between the next A, B and current C-class models, saving development costs while still keeping the production cost of the A-class low.
There are also suggestions that Mercedes might share components across the entire DaimlerChrysler Group, with the likely suspects being the next-gen Chrysler PT Cruiser and Dodge Caliber. Unfortunately, any spin-off of the Chrysler Group could jeopardize the possibility of parts sharing between the German and American sides and could end up pushing back release dates.
As for the roadster, Mercedes hinted at the possibility of such a model with its Vision SLA concept car (pictured) that was unveiled at the Detroit Auto Show back in 2000. Based on the first generation A-class, the concept car featured a similar design to the flagship SLR and was powered by the same 1.9L engine from the A190. The Vision SLA also featured extensive use of aluminum and plastic in its construction as well as premium accessories such as the carbon seats and xenon headlights.
Development work for the new A and B-class is still far from complete and the decision to go with the C-class? rear-drive platform is yet to be finalized. But given the increased competition from its rivals and the bad light of previous quality and safety issues surrounding the first A-class, adopting the same running gear as used by the C-class would be a smart move.
http://www.motorauthority.com/cars/m...-sla-roadster/
Dodge highlights the "La Femme" at Chrysler museum for mom's da
Over the years, a number of cars have come to be known as "Chick Cars", often to the consternation of their manufacturers who have sometimes found it difficult to sell the same cars to male customers. Generally these were not designed specifically to appeal to women, it just turned out that way. In fact, usually when carmakers try to create a car aimed at women, they fail miserably.
One of the early attempts at creating a car for women came from Chrysler. In 1955, it introduced a version of the Dodge Custom Royal Lancer that the marketing mavens felt women would crave. Over two years of production, roughly 2,500 Dodge La Femmes were built before it disappeared into the annals of automotive history. The Walter P Chrysler Museum has now resurrected one 1955 La Femme and will be displaying it this weekend in honor of Mother's day along with 65 other historic Chrysler vehicles. The Chrysler museum is in Auburn Hills at the DaimlerChrysler headquarters complex.
If you're got a mom that's into autos, you can find out more information about in Chrysler's press release after the jump.
[Source: Chrysler]
PRESS RELEASE:
Take Mom on a Nostalgic Trip with the '55 Dodge La Femme at the Walter P. Chrysler Museum
Auburn Hills, Mich., May 7, 2007 - For moms who prefer metal that moves over metal that adorns, stop by the Walter P. Chrysler Museum on Mother's Day weekend for a treat that'll get her motor running. The Museum, in Auburn Hills, will exhibit a newly restored 1955 Dodge La Femme in its original feminine Sapphire White and Heather Rose color scheme Friday through Sunday, May 11 - 13.
Chrysler Corporation introduced the La Femme, a customized Dodge Custom Royal Lancer, as a marketing strategy to appeal to females as the women's automobile market continued to grow.
Museum visitors will find the La Femme's feminine exterior not only featured a spectacular paint palette, but also a special gold-colored "La Femme" script on the fenders. The vehicle's interior was graced with special tapestry upholstery bearing pink rosebuds on a pale pink background and pale pink vinyl trim.
A rectangular purse matching the car's interior was a standard La Femme feature, stowed while driving in a special compartment built into the back of the passenger seat. Each purse came complete with matching compact lipstick and cigarette cases, a lighter and change purse. Also standard was a raincoat, rain bonnet and umbrella in the rosebud pattern that was stored in a compartment behind the driver's seat.
Approximately 2,500 Dodge La Femmes were produced during the 1955 and 1956 model years.
The Walter P. Chrysler Museum highlights more than 65 antique, custom and concept vehicles spanning a century. The Museum's three floors of vehicles, interspersed with interactive displays and exhibits, tells the story of the Chrysler Corporation and its contributions to automotive design, technology and innovation, as well as the automobile's impact on American culture. A theater featuring three continuously running short movies and a Museum Store, stocked with exclusive and hard-to-find collectibles, rounds out the Museum's offerings.
The Museum is open for self-guided tours from 10 a.m. to 6 p.m. Tuesday through Saturday and from noon to 6 p.m. Sunday. Museum admission is $6 for adults and $3 for juniors (ages 6-12) and seniors (62 and older). Children 5 years old and younger are free.
The Walter P. Chrysler Museum is located at the corner of Featherstone and Squirrel Rds. on the DaimlerChrysler complex in Auburn Hills. From I-75, take exit 78 (Chrysler Dr.) and follow the Museum signs.
y Design: 2007 Dodge Demon Concept
By Robert Cumberford | Automobile magazine
1. The cross-bar grille, picked up from the exotic Pegaso cars of the 1950's, has worked well for Dodge for decades and looks great here.
2. Roadsters always look better when the windshield frame is visually separated from the body, even when it doesn't lift off for racing.
3. The headlamp assembly is neat and complete, and we're spared nasty round lamps in the bumper.
4. One of many tidy trapezoids scattered all over the Demon, the brake scoop looks tough and might even conduct some air.
5. This classic fender profile from the days of the Jaguar XK120 and the Triumph TR2 is perfectly executed here, ending in another trapezoidal scoop that neatly finishes the side treatment.
6. Even the center-high mounted stoplight picks up the trapezoid theme, neatly inset on the rear deck to balance the depression on the hood at the front of the car.
7. These nineteen-inch wheels would ruin the ride. If Dodge kept the outside tire diameter and ran the car on seventeens, it would be both comfortable and stuck down.
8. This diagonal line sets up the entire rear, neatly terminated by trapezoidal exhaust outlets that close the composition.
9. Apart from the badge, these are the only metallic-look elements on the back. The whole car is quite artfully done - a nice change from recent Chrysler work.
10. The taillights give a slightly droopy look to the rear, but from standing height they look a lot better, with clever sculpting giving character without high cost.
11. Freestanding roll bars seem a little short for true rollover protection, but at least the idea is there.
12. This looks simple, inexpensive, and made of existing elements. And we like it for just those reasons. Simplicity is a true virtue.
13. The seats blessedly have a tough fabric covering instead of the dreaded leather. Cloth is much, much better in roadsters. Really.
14. The whole of the cockpit is subdued, straightforward, honest, and worthy of a serious car.
One naturally thinks of sports cars in springtime. After a long winter closed up in houses, offices, and practical cars, there's magic in the idea of an easy, aimless top-down promenade in a roadster. The car needn't be excessively fast, since wafting and wandering is more the order of the day than blasting quickly through cold, late-winter air.
The Geneva show did us proud this year, with a pair of distinctive two-seat concept exercises: the Fiat-based roadster created by Carrozzeria Bertone for its ninety-fifth anniversary and this Dodge Demon, which looks like a preproduction teaser, not a vague concept. Chrysler claims it's just an idea, but it certainly could be built, and it would come into a sweet spot in the market, priced somewhere close to the original Mazda Miata, a favorite that has become too expensive for what it's meant to be.
After a distressing series of disastrously styled cars recently, Chrysler stylists have redeemed themselves with this one. It is at once cute and tough looking, easily recognizable as a Dodge, and quite clearly American, with its big grille and its overdone surfaces. Moreover, even if all stylistic originality were to be expunged, they got the overall size and proportions right. The stock Pontiac Solstice may have a four-cylinder engine, but it can--and in some aftermarket versions, does--accommodate a small-block V-8. That's a highly unlikely outcome for this tidy little machine, which is all the better for it.
The Demon uses Chrysler's 2.4-liter four, a slightly stronger engine than the Mazda's, but it weighs only five percent more than the Japanese car--and almost 400 pounds less than the Solstice. It ought to be a good performer, even if that has never been vitally important for entry-level sports cars. The T-series MGs, Morgan Four Fours, and Singer SM1500 roadsters of the 1950s were great fun to drive, but they just barely got out of their own way, and no one really minded very much.
Ultimate missiles such as the Dodge Viper and the Chevy Corvette Z06 are great to have around, but it's always good to see more accessible sports cars that are intended for broader and more regular use, where the fun factor outweighs the fear factor. For seventeen years, we at Automobile Magazine have enjoyed the unpretentious Miata and the driving pleasure it has given us through three generations. It's wonderful to think that a similarly lightweight, simple sports car could become available from, if not an American company, at least a Detroit-based one.
After a host of product letdowns, Chrysler deserves a reprieve, and this funky little car is perfectly placed to give the company a psychological--and financial--boost that would work wonders. As Dodge tries to establish a place in Europe, what could be better than an inexpensive, strong, stylish, and truly desirable roadster? |
Daimler-Chrysler AG Patent Updates
Penske takes his Smarts on the road
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| Motorized microcar marketing makes multiple marks |
AutoWeek | Published 05/07/07, 3:39 pm et |
Traditional car dealer Roger Penske is pulling out all the stops to introduce consumers to the smaller-than-expected and larger-than-life Smart microcar.
Not only must Penske create a distribution company from scratch and establish an automotive brand in a crowded arena, but he must convince sport/utility-vehicle-driving, truck-loving America that these cars are not a safety hazard. Oh, and he has to sell more than a few boatloads to turn a profit.
Few observers believe the Smart will be anything but a success.
To help establish Smart USA, a 56-city national tour of trailers stuffed with the cute, fuel-efficient German minicars—they’re less than 9 feet long and only 5 feet tall—will canvass America. Each trailer
carries two cars for test drives, plus a cutaway Smart skeleton to emphasize its safety capabilities. The tour kicks off this month on the West Coast and concludes in November in Miami, visiting each city where Smart will have a dealership. The company expects the Smart tour will put some 70,000 people behind the wheel.
Overseeing Smart’s launch are Dave Schembri and Russell Hill, two auto industry veterans with decades of import factory and retail experience. They have devised plans to make Smart a household name.
“It’s ‘discovery marketing,’” says Schembri, Smart USA president. “People like to discover things and take ownership. It happens when you are on the highway and people wave at you to slow down and so they can take a picture. They’ve ‘discovered’ the car.”
Four groups have shown interest: first-time car owners, urban dwelling “metro-cools,” commuters and empty-nesters. The Smart website also has helped identify strong geographic areas of interest, which will help channel product to the right markets as well as prepare for service support down the road.
Three models will be sold in the United States: Smart Fortwo Pure, an entry-level coupe starting at less than $12,000; Smart Fortwo Passion, a coupe with comfort and style items (such as a panoramic roof and paddle shifters) for $14,000; and Smart Fortwo Passion Cabrio for less than $17,000. Each has antilock brakes, electronic stability control and four airbags. Each is powered by a 1.0-liter engine that delivers 84 hp, an estimated 40-plus mpg in the city and more than 60 mpg on highway. Top speed is near 90 mph.
Is America ready for microcar ownership? Absolutely, say Schembri and Hill, and they have the data and advance orders to show it. “If we get credit for inventing the microcar in America, then we become the Coke and everyone else is Pepsi,” says Schembri. “We can live with that.”
Consumers interested in test drives can find the tour itinerary at www.smartusa.com. Buyers can plop down $99 to make a reservation to order a car, with the first deliveries starting in January 2008.
Not only must Penske create a distribution company from scratch and establish an automotive brand in a crowded arena, but he must convince sport/utility-vehicle-driving, truck-loving America that these cars are not a safety hazard. Oh, and he has to sell more than a few boatloads to turn a profit.
Few observers believe the Smart will be anything but a success.
To help establish Smart USA, a 56-city national tour of trailers stuffed with the cute, fuel-efficient German minicars—they’re less than 9 feet long and only 5 feet tall—will canvass America. Each trailer
carries two cars for test drives, plus a cutaway Smart skeleton to emphasize its safety capabilities. The tour kicks off this month on the West Coast and concludes in November in Miami, visiting each city where Smart will have a dealership. The company expects the Smart tour will put some 70,000 people behind the wheel.
Overseeing Smart’s launch are Dave Schembri and Russell Hill, two auto industry veterans with decades of import factory and retail experience. They have devised plans to make Smart a household name.
“It’s ‘discovery marketing,’” says Schembri, Smart USA president. “People like to discover things and take ownership. It happens when you are on the highway and people wave at you to slow down and so they can take a picture. They’ve ‘discovered’ the car.”
Four groups have shown interest: first-time car owners, urban dwelling “metro-cools,” commuters and empty-nesters. The Smart website also has helped identify strong geographic areas of interest, which will help channel product to the right markets as well as prepare for service support down the road.
Three models will be sold in the United States: Smart Fortwo Pure, an entry-level coupe starting at less than $12,000; Smart Fortwo Passion, a coupe with comfort and style items (such as a panoramic roof and paddle shifters) for $14,000; and Smart Fortwo Passion Cabrio for less than $17,000. Each has antilock brakes, electronic stability control and four airbags. Each is powered by a 1.0-liter engine that delivers 84 hp, an estimated 40-plus mpg in the city and more than 60 mpg on highway. Top speed is near 90 mph.
Is America ready for microcar ownership? Absolutely, say Schembri and Hill, and they have the data and advance orders to show it. “If we get credit for inventing the microcar in America, then we become the Coke and everyone else is Pepsi,” says Schembri. “We can live with that.”
Consumers interested in test drives can find the tour itinerary at www.smartusa.com. Buyers can plop down $99 to make a reservation to order a car, with the first deliveries starting in January 2008.
This Day in Auto History: 08 MAY
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| Source: Automobile History Day By Day, by Douglas A. Wick |
Chrysler Group Announces April 2007 Certified Pre-Owned Vehicle (CPOV) Sales
AUBURN HILLS, Mich., May 7 /PRNewswire-FirstCall/ -- The Chrysler Group reported that its Five Star(R) dealers sold 10,393 Certified Pre-Owned Vehicles (CPOV) in April 2007, a 2 percent decline from the same month last year (2006: 10,586). On a positive note, year-to-date sales were up 6 percent to 42,623 units (2006: 40,357).
For the month, Chrysler brand sales declined 7 percent to 3,580 units. Jeep(R) brand sales increased 8 percent to 2,500 units and Dodge brand sales dipped 2 percent to 4,313 units. Vehicle sales highlights for the month include the Chrysler 300/300C up 45 percent; the Chrysler Pacifica up 7 percent and the Jeep Liberty up 17 percent. Dodge Magnum sales also increased 29 percent year-to-date.
"April was a soft month industrywide for used vehicle sales," said Peter Grady, Director -- DaimlerChrysler Motors Remarketing. "Our dealers took a breather from their record-setting pace, but still delivered excellent sales results."
The Chrysler Group offers one of the most comprehensive Certified Pre- Owned Vehicle programs in the industry. For a vehicle to be certified under the Chrysler Group's used-vehicle program, it must be a 2002 through 2007 model preowned vehicle with less than 65,000 miles and pass a stringent 125- point inspection. The Chrysler Group's CPO vehicles are backed by an eight- year/80,000-mile powertrain limited warranty, 24-hour, 365-day full roadside assistance with a $35 per day rental car allowance and a three-month or 3,000- mile Maximum Care warranty, in addition to a Carfax Vehicle History Report and buyback guarantee.
Marketed as "Brand Spankin' Used(R)," the Chrysler Group's CPO vehicles are sold only through Chrysler, Jeep and Dodge dealerships that have earned the automaker's Five Star certification. Five Star certification is a comprehensive validation of the dealership's facilities, operational processes, salesperson and technician training accreditation as well as customer satisfaction survey ratings. Approximately 2,100 Chrysler Group dealerships in the United States are certified Five Star dealers.
Chrysler Group
