GM dealers face tough standards, sales goals

GM executives met with 430 dealers from around the Midwest at the Rock Financial Showplace as part of a nine-city tour to discuss the future of the automaker's four core brands: Chevrolet, Cadillac, Buick and GMC.
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United Way to get $525,000 from Chrysler PAC

Money in Chrysler's dormant political action committee fund totaling $525,000 will be donated to the United Way, The Detroit News has learned.


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Why does GAZ want Opel?

General Motors is still trying to find a solution for its Opel division after the automaker’s board apparently balked at a deal for Magna and Russian bank to acquire control.
One of the winners in a deal for Magna and Russian state-owned bank Sberbank to acquire Opel would be Russian automaker GAZ, which has close ties to both the Canadian supplier and Russian bank....More

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Chrysler to accept more liability claims

Chrysler Group LLC will accept liability for injuries or deaths occurring after its June 10 exit from bankruptcy that were caused by faulty vehicles produced before that date, the company said today....More

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Chrysler may be ending partnership in Dundee

Hyundai, Mitsubishi logos are removed from engine plant

Chrysler Group LLC has removed logos of Hyundai and Mitsubishi from the entrance of the Global Engine Manufacturing Alliance plant in Dundee, in an apparent move to end the four-year-old partnership and take full control of the factory.

Chrysler spokesmen declined to confirm that the partners' logos were removed or that the partnership is being dissolved. Hyundai and Mitsubishi also had no comment. But employees at the plant, who asked not to be named, said Chrysler executives have communicated their intent to end the alliance....More

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Big 3 sales fade as 'clunkers' wraps up

Low inventories cited in sinking U.S. share of incentive program

David Shepardson / Detroit News Washington Bureau

Washington -- The Detroit Three automakers' share of "cash for clunkers" sales fell sharply, compared to foreign nameplates, in the final week of the $3 billion incentive program.

General Motors Co., Ford Motor Co. and Chrysler Group LLC sold 38.6 percent, or about 266,000 of the nearly 700,000 clunker replacements. That's far below their combined 45.3 percent share of 2009 auto sales.

The U.S.-based companies said they were hampered by a comparative shortage of small, fuel-efficient vehicles that buyers were seeking and that the Asian automakers provided....Freep--More

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Chrysler Said to Consider Keeping Plant Open for Mid-Size Cars - Bloomberg.com

(Bloomberg) -- Chrysler Group LLC, the U.S. automaker Fiat SpA controls, may delay closing the plant that makes its mid-size sedans for at least a year until the company creates new models, people familiar with the situation said.

The factory in Sterling Heights, Michigan, may be leased from Old Carco LLC, Chrysler’s predecessor now in bankruptcy, to keep making the Dodge Avenger and Chrysler Sebring after a production accord ends next year, said three people, who declined to be named because the matter isn’t final.

The potential delay reflects the difficulty the combined company faces in retooling existing factories and making new models. The plant is the only Chrysler site that manufactures - mid-size sedans, and the company hasn’t said whether it will shift production or phase out Avenger and Sebring.
Chrysler Said to Consider Keeping Plant Open for Mid-Size Cars - Bloomberg.com

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Fiat takes aim at waste in Chrysler plant overhauls | detnews.com | The Detroit News

In the days after Chrysler came out of bankruptcy, workers returned to factories that wore fresh paint and black-and-white banners that read: "World Class Manufacturing. Welcome Back Chrysler Group LLC employees."

The message crystallized the goal of Chrysler's new Italian management team: to perfect a new, more flexible, cost-effective way of building cars and trucks and remake Chrysler to be competitive and profitable.

"World Class Manufacturing" is a detail-driven production process honed by Fiat SpA to improve quality and efficiency. It is being adopted at Chrysler as part of a complete overhaul of the new company that emerged from Chapter 11 bankruptcy in partnership with the Italian automaker.

Fiat takes aim at waste in Chrysler plant overhauls | detnews.com | The Detroit News

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Fiat 500 to test Chrysler

Chrysler Canada Inc. plans to begin selling the Fiat 500 subcompact in early 2011, providing an early test of how the alliance between the two auto makers will address the most glaring problem at the No. 3 Detroit company: the collapse in sales of its passenger cars.

The Fiat 500 is crucial for Chrysler Canada because of the particularly deep slide in passenger car sales that has afflicted all three of the Detroit auto makers here. As of the end of July, Chrysler, Ford Motor Co. and General Motors of Canada Ltd. delivered just 25 per cent of the passenger cars sold in Canada, a staggering drop from the 50-per-cent market share they held in 2000.
Fiat 500 to test Chrysler - The Globe and Mail

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Jim Press To Leave Chrysler

DETROIT -- Chrysler Group LLC Deputy Chief Executive Jim Press is planning to leave the auto maker before the end of the year, according to three people who have been informed of the plan.

Mr. Press, a former star at Toyota Motor Corp., was the sole member of Chrysler's top executive ranks to be retained after the company emerged from a federally funded bankruptcy in June. He was kept on as a special adviser to Sergio Marchionne, who now serves as CEO of both Chrysler and its partner, Fiat SpA.

.Mr. Press, 62 years old, is expected to leave Chrysler by the end of November, according to one of the people informed of the plan.

Chrysler spokesman Gualberto Ranieri declined to comment. A spokeswoman for the U.S. Treasury, which brokered the Fiat alliance as part of the government's bailout of Chrysler, also declined comment.

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Chrysler's Creditors Sue Daimler Over Transfers Before 2007 Sale

David McLaughlin

Chrysler's creditors say German auto maker Daimler AG intentionally defrauded them through a restructuring of Chrysler on the eve of its 2007 sale.

In a new lawsuit filed against Daimler, the creditors offer new details about their claims that Daimler stripped Chrysler of billions of dollars in assets for its own benefit before unloading the struggling U.S. auto maker.


"These exchanges enriched Daimler at the expense of the many Chrysler creditors who now are unable to look to these assets to satisfy their claims," the creditors said in the complaint.

The lawsuit, filed with the U.S. Bankruptcy Court in Manhattan Monday, comes after a judge ruled last Thursday that committee representing Chrysler's unsecured creditors could sue Daimler in an effort to increase their recovery from Chrysler's bankruptcy case.

A Daimler spokeswoman, Julia Engelhardt, said the claims in the lawsuit "are without merit."

"We will vigorously defend ourselves against these claims, which we believe are completely baseless," she said.

Creditors say that in early 2007, as Chrysler struggled under a heavy debt load and falling auto sales, Daimler faced the risk that it could be on the hook for billions of dollars in Chrysler obligations, including $17.5 billion for retiree health benefits and $5 billion in unfunded pension costs.

To avoid this risk, Daimler decided to unload Chrysler, which it bought in 1998. But before doing that, creditors say, it orchestrated the restructuring plan in the spring of 2007.

Under the plan, Daimler transferred valuable Chrysler assets to other Daimler-controlled entities. It also left assets in the group of Chrysler companies but separated them so they were no longer subject to claims from creditors, making them more valuable.

The lawsuit says the "most egregious" of these steps came when Daimler transferred Chrysler's most valuable business - its U.S. and Canadian financing subsidiaries - to a new Chrysler holding company.

By becoming a sister company of Chrysler rather than a subsidiary, the finance arm escaped potential creditor claims, according to the lawsuit. As a result, Daimler got a "substantially better price" for Chrysler when it sold an 80% stake to Cerberus Capital Management in 2007 for $7.4 billion.

After filing for bankruptcy in April, the bulk of Chrysler assets were sold to a new company owned by Fiat SpA, the U.S. and Canadian governments and the United Auto Workers union.

Besides Daimler, the lawsuit names four former members of Chrysler's board of directors. The complaint seeks unspecified damages.

Lawyers for the creditors committee say any proceeds from the lawsuit would go to paying off creditors, a group that includes the U.S. government and secured lenders that received $2 billion from the bankruptcy sale, giving them a recovery of about 29 cents on the dollar.

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Chrysler to make Fiat in Mexico: report

NEW YORK (Reuters) - Chrysler Group is planning to produce Fiat SpA's (FIA.MI) Fiat 500 subcompact at a Chrysler plant in Mexico, the Wall Street Journal reported, citing people familiar with the matter.
Chrysler is also considering what other Fiat models to introduce to the U.S. market, under directions from its Italian partner, the paper reported on its website on Sunday.

Plans also include making a small Fiat engine for the 500 at a Chrysler plant in Trenton, Michigan, and building a Fiat-derived compact car slightly larger than the 500 in the United States, a source told the paper.

The Toluca, Mexico plant, which currently makes the Dodge Journey crossover and PT Cruiser, is an attractive home for the 500 because cars could be exported to South and Central America where the Fiat brand is popular, the Journal reported.

Fiat acquired a 20 percent stake in Chrysler and entered into agreements to give it access to Fiat technology and platforms. Chrysler filed for bankruptcy in April.

Chrysler representatives were not immediately available for comment

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$1B in battery grants may recharge Michigan's talent base | detnews.com | The Detroit News

$1B in battery grants may recharge Michigan's talent base | detnews.com | The Detroit News

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Chrysler To Boost Dodge Ram Pickup Production

DETROIT -(Dow Jones)- Chrysler Group LLC is intensifying its production boost as demand from the federal government's "Cash for Clunkers" program continues to reduce the number of available vehicles on dealer lots.

The auto maker notified employees at the Warren Truck assembly plant that they will work overtime Saturday shifts on Aug. 29, Sept. 19 and Sept. 26, according to two United Auto Worker sources. Additional overtime may also be scheduled in October. The plant produces the Dodge Ram 1500 and Dodge Dakota.

Chrysler spokesman Max Gates had no comment.

Chrysler, along with General Motors Co. and Ford Motor Co. (F) are attempting to respond to new demand without relapsing into its traditional habit of producing too much product and then relying on incentives to reduce the inventory.

The auto industry was hit with a surge in buying from the unexpected success spawned by the "Cash for Clunkers" program. The program gave a discount of up to $4,500 to those who traded-in their gas guzzlers for a more fuel-efficient vehicle.

Consumers overwhelmed the program which further reduced already low dealer inventories. Auto makers, for the past six months, had cut most of their production in response to a slowdown in U.S. sales amid the recession.

Last week, the government granted another $2 billion to continue funding the program.

Chrysler has been the most aggressive in increasing output. The auto maker returned its Windsor, Ontario minivan plant to three shifts Monday and ran its Toldeo plant on overtime last week. The Toledo plant produces the Jeep Wrangler while the Windsor factory assembles the Dodge Grand Caravan, Chrysler Town & Country and Volkswagen Routan.

Chrysler also idled all of its plants for almost two months during its bankruptcy process in May and June. The company has since merged the majority of its assets with Fiat SpA (FIATY)

General Motors and Ford are also considering production increases although both have yet to confirm such a move.

www.Dodge.com---Ram Truck, Challenger, Caliber, Charger, Grand Caravan, Journey, Dakota, Avenger, Viper, Nitro, Durango

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GM, eBay set to start car-selling trial Tuesday

SAN FRANCISCO — Hundreds of General Motors’ California dealers will let consumers haggle over the prices of new cars and trucks through the eBay online marketplace under a trial that begins Tuesday.

About 225 of California’s 250 GM dealers are set to take part in the program. They will be selling Buick, Chevrolet, GMC and Pontiac vehicles on cobranded Web sites through eBay Inc.’s online auto marketplace, eBay Motors, until Sept. 8. The cars will also be searchable through eBay Motors and eBay’s main site.
Although the companies previously said such a trial was in the works, details weren’t released until today....More

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Ford, Chrysler low on small cars

Chrysler Group LLC and Ford Motor Co. are running low on their hottest-selling models under the cash for clunkers program, even as President Barack Obama signed authorization Friday of an additional $2 billion to extend the program.

Some Chrysler dealers are out of the Dodge Caliber, Dodge Avenger, Jeep Compass and Jeep Patriot.


“We sold out a week ago,” said Steve Demers, general manager of Cueter Chrysler Jeep Dodge in Ypsilanti. “While I am happy that the additional money was approved, I, along with others, will not be able to take advantage of the demand.”


Chrysler’s Belvidere, Ill., assembly plant, which makes the Caliber, Compass and Patriot, is trying to catch up.


“It may take some dealers a couple of weeks to get more small cars,” Chrysler spokeswoman Kathy Graham said.


Ford’s stock of the Focus and Escape, its two hottest-selling clunker replacements, is low, according to WardsAuto.com, which tracks inventory.


The lack of popular Fords and Chryslers could drive buyers to foreign-brand cars that are selling well under the program. Even with more money available, the popular program is expected to end this month....More

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Chrysler To Make Electric Dodge Ram Trucks

The U.S. Department of Energy has announced the recipients of $2.4 billion in advanced battery and electric-drive funding under the American Recovery and Reinvestment Act, including $70 million for Chrysler to build 220 plug-in hybrid pickup trucks and minivans.

More than 250 companies applied to join the program, seeking about $9.6 billion total in research aid, before the final winners and funding amounts were announced. The projects are expected to accelerate the design, development and production of electric batteries and drive components to help the U.S. become a leader in next-generation vehicles.

"If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future," said President Barack Obama.

GM, Chrysler and Ford will receive a total of more than $400 million to manufacture thousands of advanced hybrid and electric vehicles to demonstrate and validate their use across a variety of applications.

The 220 trucks Chrysler is expected to build will be distributed among 11 fleets nationwide, at a research cost of about $318,000 per vehicle.

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Chrysler, Fiat May Replace Engineering on Snoop’s Car

Chrysler Group LLC may retire the engineering used to make its iconic 300C sedan in favor of more modern architecture jointly developed with Fiat SpA, said two people familiar with the situation.

The so-called “LX” platform, which was used to produce more than 210,000 cars last year, would be replaced by a new structure that could also underpin a full-sized sedan for Fiat’s Alfa Romeo brand, said the people, who declined to be identified because a final decision hasn’t been made.

The project would be the first joint product by Chrysler and Fiat and would be the basis for the U.S. carmaker’s highest- volume vehicles as well as Alfa Romeo’s largest sedan. Sergio Marchionne, chief executive officer of both automakers, has said a company needs to build at least one million vehicles on a single platform to be profitable.

“It would be a major change to the platform, rather than an all-new platform.” said Stephanie Brinley, an analyst at AutoPacific in Troy, Michigan. Chrysler would likely start using the platform on all its new cars and Turin, Italy-based Fiat on its Alfa Romeos in 2012, while production of the Chrysler 300, Dodge Charger and Challenger would probably be switched over in 2014 or 2015, Brinley said.

“We’re in the process of defining the brands, defining the product portfolio,” said Rick Deneau, a Chrysler spokesman, declining to comment on the platform. A Fiat spokesman declined to comment.

The 300C is Chrysler’s flagship passenger sedan. Los Angeles rapper Snoop Dogg in 2004 left a voice mail for then- Chrysler CEO Dieter Zetsche asking how he could get the car. The singer later made a television commercial playing golf with former Chrysler Chairman Lee Iacocca that featured the jingle, “If the ride is more fly, then you must buy.” Chrysler sold 62,352 of the cars in the U.S. last year and is introducing a revamped model in 2010.

Building a new platform can cost $1 billion or more, making it more cost-effective to assemble as many vehicles as possible off a single design because it lowers engineering and purchasing costs. The new platform, which would be with rear-wheel-drive, could be lighter and be made more flexible to accommodate difference sizes of vehicles, said John Buckland, an auto analyst with MF Global Securities in London.

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