Chryslers New Ram Plan Poses Brand Jam

Chrysler is potentially headed for a brand problem that will rival the pickle that GM is trying to extricate itself from.

Here is the deal. Chrysler has three main brands at the moment: Chrysler, Dodge and Jeep. But it has made it clear to the ad agencies pitching its ad account that it is splitting off its pickup truck and commercial vehicle business off to a new brand?Ram.

That?s right. Going forward, and as soon as Chrysler has the idea to run with, the pickup it sells now won?t be sold as Dodge Ram, but rather?.Ram. Other vehicles that will come from the Fiat-Chrysler tie up in the commercial segment will also be called Ram.

So, now we are up to four brands to support. Now, add the Fiat 500, which will be sold as a Fiat when it arrives in Chrysler showrooms in 2011. And, don?t forget Alfa Romeo, which Fiat will sell through Chrysler distribution in key markets that make sense for the Italian sport car maker.

This seems like a lot of brand differentiation to manage and support by a company that has been poor at both.

As I look at auto sales numbers through August, I see a 9.2% market share for Chrysler spread among the three brands it has. That share is inevitably going to go down as the company pares models. Indeed, Merrill Lynch projects that Chrysler loses a whopping five to six points of share in the next four years unless it comes up with some product surprises from the Fiat alliance.---...More

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GM: Fleet airbags required

General Motors Co. will not allow fleet purchasers to skip buying side airbags on 2010 models, the company said Friday.---More

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GM plant restarts production in Venezuela

CARACAS, Venezuela -- General Motors Co.'s Venezuela affiliate says it has restarted an auto assembly plant that was idled for two and a half months.--More

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Old Chrysler defaults on loan payment

The portion of Chrysler LLC that remains in bankruptcy had costs of $10.2 billion in June, which is more money than the company was left with to cover the costs of liquidation.--< a href="http://www.detnews.com/article/20090905/AUTO01/909050313/1148/rss25">More

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Old Chrysler's costs outstrip assets

The portion of Chrysler LLC that remains in bankruptcy had costs of $10.2 billion in June, which is more than the amount the company was left with to cover the costs of liquidation.
The June operating report for Old Carco LLC, the name for the bankrupt pieces of the automaker, was filed with the New York bankruptcy court Friday. Chrysler LLC filed for bankruptcy April 30, and the choice assets were sold to a new entity, Chrysler Group LLC, which was formed in partnership with Fiat SpA on June 10.

Former Chief Financial Officer Ron Kolka was put in charge of winding down the assets of Old Carco, which contain seven assembly plants, almost 3,000 vehicles valued at $51 million and contracts with dealers and suppliers that were not transferred to the new Chrysler.--...More

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Big Three get image boost

An overwhelming percentage of new-car buyers said they would consider a vehicle made by Detroits Big Three, according to a survey released Wednesday by the Consumer Reports National Research Center.--...More

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GM to pay another $50 million for Delphi benefits

Washington -- General Motors Co. has agreed to pay another $50 million to fund health benefits to nearly 50,000 Delphi Corp. hourly retirees and their dependents, union officials said Tuesday.href="http://www.detnews.com/article/20090902/AUTO01/909020331/1148/rss25">...More

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Car sales rebound during Cash For Clunkers

The federal "cash for clunkers" program lifted U.S. auto sales in August to the first monthly, year-over-year gain since October 2007, raising hopes the market is beginning to rebound.Analysts and auto executives expect demand to fall in September, in part because some buyers pulled ahead purchases to take advantage of as much as $4,500 in government rebates. But recent signs that the economy may be improving could prevent sales from dropping to new lows.

Still, the outlook is uncertain. "People are feeling the uptick, but how long will it really last, no one can say for sure," said Laurie Harbour-Felax, president of Harbour Results Inc.
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RHJ ups cash in Opel bid

RHJ International SA increased its offer for General Motors Co.'s Opel unit, agreeing to inject more cash into the unprofitable division and seek less in loan guarantees from the German government.

Under the revised bid, RHJ would contribute 300 million euros ($426 million) instead of 275 million euros, Arnaud Denis, a spokesman for the Brussels-based investor, said in an interview. The offer foresees loan guarantees of 3.2 billion euros instead of 3.8 billion euros, with repayment planned by 2013, one year earlier.

The German government, which has provided 1.5 billion euros in short-term loans to keep Opel afloat, is pushing GM to accept a bid by a group led by Canadian parts supplier Magna International Inc.

Germany has said it would provide 4.5 billion euros in guarantees for Aurora, Ontario-based Magna's offer.....More

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Idle GM plants spark interest from automakers

Prospective buyers eyeing sites considered difficult to unload

Foreign and domestic automakers have expressed interest in buying factories being sold by the former General Motors Corp. as part of its bankruptcy case.

Al Koch, chief restructuring officer of the old GM, would not disclose the prospective buyers or sites in a recent interview with The Detroit News. But the nibbles illustrate a surprising level of interest in properties -- including a $25 million proposal for 220 acres of land in Flint -- previously thought to be too large, too old and, in some cases, too polluted to sell.

Any completed deals could generate revenue for GM creditors who lost billions when GM filed for bankruptcy, and for communities that are losing tax revenue and jobs as the properties sit idle.

Koch's push to sell the assets left behind when the new General Motors Co. emerged from bankruptcy in July will intensify in mid-September when he plans to meet with members of the Obama administration's auto task force, which is overseeing GM's restructuring.

Koch will talk to the task force about possible uses for the properties and shuttered facilities and about environmental remediation at sites controlled by the old GM -- now known as Motors Liquidation Co.

While Koch would not identify the automakers or the plants being considered, experts say the most logical sites are four GM assembly plants, including Pontiac Assembly, where the factory's 2,800 workers make the Chevrolet Silverado and the GMC Sierra. The plant is supposed to close in October.

The others are located in Wilmington, Del., Shreveport, La., and Moraine, Ohio. The old GM also has five stamping and six powertrain plants.

Industry analysts said any of the assembly plants would give a foreign automaker, perhaps a Chinese or Indian company, entry into the U.S. market or might interest Chrysler Group LLC, which will produce cars made in conjunction with its new partner, Italy's Fiat SpA...More

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Chrysler Group LLC-Several models sell out in August

Chrysler Group LLC today reported a 5 percent sales increase compared with July 2009 despite low inventory levels on a number of popular nameplates.

Dealership traffic continued at a high level during the month of August, in part due to the U.S. government’s Car Allowance Rebate System (CARS), more commonly known as “cash for clunkers.”

“Chrysler Group had another strong sales month in August with the majority of Chrysler Group nameplates posting year-over-year or month-over-month sales improvements,” Peter Fong, President and Chief Executive Officer–Chrysler Brand and Lead Executive for the Sales Organization, said. “The CARS program gave a boost to the industry in August, and as a result, we’ve increased production by more than 50,000 units, our factories are full-steam ahead building Chrysler, Jeep® and Dodge vehicles for customers and replenishing dealer inventories.”
The Chrysler Group reported total U.S. sales for August of 93,222 units, an increase of 5 percent compared with July and a decrease of 15 percent compared with the same time period in 2008. Retail sales for August were 68,958 units. The company finished the month with 100,238 units in inventory, representing a 28-day supply. Inventory is down 74 percent versus August 2008 when it totaled 380,560 units. Overall industry figures for August are projected to come in at an estimated 14.4 million annual sales rate.

“Chrysler Group’s large car, minivan, crossover and truck segments all posted increases in retail sales in August,” Steven Beahm, Vice President–Sales Operations, said. “The Dodge Avenger, Dodge Grand Caravan and Chrysler PT Cruiser were very popular with consumers looking for high-quality, fuel-efficient vehicles.”...More

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Dodge Ram pickup is only new Chrysler for '10

Chrysler has only one all-new vehicle for 2010 but is adding fuel-efficient versions of existing products and making more features standard in a lineup that must carry it through next year.

Competes with: Ford F-Series, Chevy Silverado
Looks like: A bigger version of the redesigned Ram 1500
Drivetrain: 383-hp, 6.7-liter diesel

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