Chrysler News

Company chairman and managing director, Mark Reuss, said the yesterday local operation was one of three "vital subsidiaries in the Asia-Pacific" and a key part of the "new GM" empire.GM-Holden is bolstered by its close association with GM-Daewoo and Shanghai GM in China, two areas of GM's old empire that continue to grow.After months of speculation over its local operations, a clearly relieved Reuss, was upbeat about the future as GM filed for chapter 11 bankruptcy protection yesterday.“We are safe, we are part of the new GM," he said.Reuss said no more jobs would be lost in Australia ‘right now’."This is an opportunity for the parent company to restructuring and create the `new GM', of which Holden is a vital part of."Reuss said GM-Holden was cashflow positive and "we're on the verge of turning a profit here this last month, even in a down business".He said Holden had been operating as a "stand-alone" business here and created its own luck.As part of the "new GM" the company will now more aggressively seek new export markets for its cars after the axeing of the Commodore-based Pontiac G8 export program to North America and downturn in Middle East business.Reuss said GM-Holden had a viable, sustainable business here in the long term despite continuing concern by some analysts of how a smaller, leaner General Motors would impact the local company when it traded out of bankruptcy protection.GM expects to move out of bankruptcy protection in 60 to 90 days.Reuss said 50 per cent of GM-Holden's business was export.Of that percent 85 per cent were cars shipped to the United States.With GM-Holden confirmed as one of the ‘good GM’ corporate entities, Reuss reaffirmed the move to actively seeking new markets for locally built Holdens, including possibly the Commodore and Statesman.An export hatch version of Holden's new Cruze four-cylinder could also be on the cards when local manufacturing starts in Adelaide early next year.Reuss was reluctant to talk about specific markets but confirmed the company is "going to recoup our export losses with new programs". GM-Holden had expected to export 30,000 Pontiac G8s to the US when the deal was announced in 2007.However, sales fell well short of forecasts. At the end of last year only half of the 24,000 exported cars were sold. Over the past 18 months Holden has reduced its workforce and production capacity in response to the downturn in car sales.GM-Holden current builds 310 cars a day at its Elizabeth plant in Adelaide, about 66,000 vehicles a year, which will increase when the new small car comes on line. The factory has a capacity of about 100,000 vehicles a year. Apart from that there are another 2500 V6 engines out of Melbourne that will be allocated to Mexico to go in the Cadillac SRX.

GM needed the support of 90 per cent of the bondholders to swing the deal – which would have given them 10 per cent of the auto giant — but reports overnight suggested acceptance was in the ‘single digit’ region.The failure was a serious setback for the carmaker, after United Automobile Workers union leaders recommended their members agree to a deal that would slash GM’s debt to a retiree health care trust fund.Under that arrangement, GM would have given the UAW 17.5 per cent equity in a restructured company, later rising to 20 per cent if the share price improved, with the addition of another US$6.5 billion worth of preferred stock and a US$2.5 billion note.It is expected that GM will make a move before the June 1 deadline for restructuring.         

Actually, it's not a toy because it's an exact scale replica of one of the most memorable cars of my childhood.It's the Ford 'Super Falcon' raced by Ian 'Pete' Geoghegan in the early 1970s.The original raced towards the end of a golden era in the Australian touring car championship, running up against Allan Moffat's Coca-Cola Mustang, Norm Beechey's Monaro and Bob Jane's brutal Chevrolet Camaro.I have 1:18th scale replicas of those cars as part of my car collection.The difference in the Super Falcon is the amount of detail in the latest product from Classic Carlectables which, together with Biante, is tapping a rich vein of Australian motoring history. Both brands do a lot of work on current V8 Supercars, but more and more people are turning to everything from Classic's replica of Allan Moffat's 1978 Bathurst Falcon to the 1971 Valiant Charger.The cars look great, and more as I remember them than the way they look in 2009, and the detail work is incredible on everything from dashboards and seats to engines and suspensions. They are way, way, way down the road from anything in the Hot Wheels lineup.A model from Classic Carlectables is not cheap, and you have to go to their website or a specialist shop, but they are well worth the investment.

The smallest of the 'Big Three' automakers in the USA will go to court early next week to begin the next stage in its life after a small group of shareholders rejected a GM-style restructuring plan to ensure American government support to get it through the global economic crisis. The move will have minimal impact in Australia, as Chrysler Group is profitable and actually growing its market share despite the local showroom downturn. Further into the future there is likely to be a liaison of some sort with the Fiat distributor, Ateco Automotive. "For today, it's definitely Chrysler going forward," says the head of Chrysler Group Australia, Gerry Jenkins. "Our customers have to know we're here and solid." Jenkins was briefed this morning on the new situation during a global conference with Chrysler headquarters in Auburn Hills, a suburb of Detroit, and says he is pumped. "Today it is clear what strategy we're going to embark on and who our partners will be and what the company is going to look like. We're focussed on what the future of Chrysler will look like," he says. The Chapter 11 move comes after months of speculation about the total collapse of Chrysler. It also comes as the latest development for a company which has bounced from drama to drama over more than 25 years, including a variety of alliances and links with everyone from AMC to Mitsubishi and Daimler. The German deal promised the most, and was promoted as a 'merger of equals' including the DaimlerChrysler name, but could not survive deep cultural differences between the companies and the financial difficulties of Chrysler's operations in the USA. Jenkins says Chapter 11 is the best way for Chrysler to move forward and that the company is taking an accelerated form of the American financial protection, which could allow it to re-emerge within 30-60 days under a new structure. "Effectively we hit the ground running," he says. Fiat has welcomed the new development and, like Chrysler, can see the synergies going forward. "This transaction represents a constructive and important solution to the problems that have plagued not just Chrysler in recent years, but the global automotive industry as a whole," says the CEO of Fiat Group, Sergio Marchionne. "Our goal since we first entered discussions with Chrysler nearly a year ago was to leverage the strengths of both companies to yield the scale, efficiencies and cost savings necessary to create two stronger automakers able to compete more effectively on a global scale. This transaction is an important step toward achieving this objective."

Chrysler announced it had filed for Chapter 11 bankruptcy, and will form a new global company with Italian carmaker Fiat. Chrysler’s Australian and other international operations are not part of the bankruptcy filing.Chrysler Australia spokesman Jerry Stamoulis says that for the moment it is "business as usual" for the local arm of the company."We will have a close look at the details of the arrangements throughout the day, but we are not part of the bankruptcy filing and for now there is no change to our business," Stamoulis says. His comments echo those of the carmaker’s chief executive officer Bob Nardelli. "We want to personally assure everyone that the new company will produce and support quality vehicles under the Jeep, Dodge and Chrysler brands as well as parts under the Mopar brand," Nardelli said in a statement."Chrysler employees will become employees of the new company. Chrysler dealerships remain open for business serving our customers. All vehicle warranties will be honored without interruption and consumers can continue to purchase our vehicles with complete confidence."Chrysler says it has reached an agreement in principle to establish a global strategic alliance with Fiat will allow both to optimise their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.When the deal is finalised, the auto workers union will own 55 percent of the new company and the US and Canadian governments will own 10 per cent between them.Fiat will initially own 20 per cent of Chrysler and will have the right to increase its stake to 25 percent in three increments as it meets the following criteria: 5 per cent for bringing a 40mp/g (5.8l/100km) vehicle platform to Chrysler to be produced in the US; 5 percent for providing a fuel-efficient engine family to be produced in the US for use in Chrysler vehicles; and 5 percent for providing Chrysler access to its vast global distribution network to facilitate the export of Chrysler vehicles. Fiat cannot become a majority owner until after all US government loans have been completely repaid.As a part of the restructuring, most manufacturing operations will be idled from Monday and normal production schedules will resume when the deal is finalised, expected to be within 30 to 60 days.The filing comes after a memo to Chrysler employees from Nardelli earlier this week, saying the company was hoping its 46 main creditors would accept $2 billion to wipe out $6.9 billion in secured debt.Chrysler says that, despite substantial progress on many fronts, it was not able to obtain the necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding.As a result, under the direction of the US Treasury, Chrysler LLC and 24 of its wholly owned US subsidiaries filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in New York late yesterday.The Chrysler move follows General Motor’s bid to survive by offering the US Government a controlling interest in a bid to shed debt, and hinting that it could be forced to file for bankruptcy if the deal is not accepted.

The high-end Italian fashion label worked with the Korean carmaker for more than four months on the project, which will result in a very limited edition of three cars to be called the Genesis Prada.The makeover includes Prada-designed — and built – 20” alloy wheels, matte metallic midnight blue paint set off by accents in titanium and dark matte gold plating on the badging, radiator grill and exterior handles.In the cabin, Prada’s signature ‘saffiano’ leather was used to give “a luxurious and sophisticated finish” to the artisan-crafted dashboard and upholstery. And anybody who’s been within hand’s reach of the fashion house’s shoes or bags will be betting that press blurb statement is, for once, not too far from the truth.This isn’t the first time there has been a collaboration between the catwalk and the car industry.French `luggagerie’ Hermes last year worked with Bugatti on the Bugatti Veyron Fbg par Hermès. Hitting the showroom floor at an estimated $3 million-plus, the Fbg featured interior surfaces “sheathed in bull calfskin” – although why the little girl calves were shunned for the task, nobody could explain.Among other touches, the door handles echo the shape of those on Hermes travel bags, and glovebox was redesigned to hold “a selection of small travel accessories and a zipped Hermes wallet” while the leather-lined trunk carries a specially fitted hand-made case.Even as far back as nearly four decades ago, Italian brand Gucci kitted-out a car for the American Motor Corporation – the manufacturer that bought the struggling Harley-Davidson badge and further ruined it before the Davidson family redeemed it into the merchandising powerhouse of today.For AMC, Gucci ran the red, green and beige livery over the trim of the 1972-73 Hornet ‘Sportabout’ station wagon. It was hideous, of course. And sold like hotcakes in the US. Naturally.Louis Vuitton’s history has long been tied to transportation – as the inventor of the first `trunk’ — so no surprises when it got in on the act with Chrysler for a version of the retro PT Cruiser. The Louis Vuitton Edition included extra chrome, ‘LV’ logo fabric upholstery and saddle leather trim.And not all the action has been overseas. Australia’s own Carla Zampatti redesigned a Ford specifically for the women’s market. The Carla Zampatti Ford Laser first appeared in 1985, and was followed two years later by more Lasers and Ford Meteors. Whether or not they won over the woman buyer remains open to question. But they had to have a better impact than the crowded cleavages of Ford’s later ute ads.And Aussie surfwear brand Rip Curl – which our Gen-Y workmates swear is a fashion house (like … totally awesome) – has teamed up with Renault for a version of the little Clio.Oddly not available here, but still aimed at the yoof market, the Clio Rip Curl has body graphics and “ocean inspired” paintwork in Ice Blue – a name that, however, suggests the inspiration may have come instead from amphetamines.There’s also a range of special options for the Clio ‘Ripped’ (as we’ve rechristened it), including an easy-clean cargo area and rubber matting. Both of which will make it a snap to hose out the Schoolies Week regurgitated alcopops.And thankfully, there’s also turn-by-turn satnav, because – ripped or not — that generation clearly has no idea where it’s going.

The Chrysler presentation at the show was delivered with an Italian twist. Jim Press, the company's vice-chairman and president, drove onto the stand in . . . a shiny blue Fiat 500. The unusual arrival was intended to highlight the growing tie between Chrysler and Fiat which is the key to the American company's survival. Fiat has taken a stake in the US brand and there is a plan for it to also supply the cost-effective small cars Chrysler has not been able to develop on its own. Press had nothing new to reveal on the Chrysler-Fiat deal but he did - briefly - show the interior of the make-or-break new Chrysler 300C during a video presentation.              

Just days after the cancellation of the British Motor Show, the first major international casualty of the global economic downturn, the Japan Automobile Manufacturers Association has decided to shorten this year's Tokyo show in October by four days.The decision for the 41st running of the event comes with a growing number of no-shows.In addition to America's big three _ Chrysler, Ford and General Motors _ the list of cancellations for 2009 runs to Mercedes-Benz, Volkswagen, Renault, Lamborghini, Hino Motors, Isuzu, Mitsubishi Fuso (trucks and buses) and Nissan Diesel.All have blamed the economic slump and the list is expected to grow.Chinese and Korean carmakers will also stay away.That is why JAMA, which earlier this year seriously considered cancelling the show altogether, has also decided to downsize the area used from the normal four halls to possibly as few as two at the giant Makuhari Messe site in Chiba prefecture, one hour east of Tokyo.But all is not lost. According to one source close to Toyota, the world's biggest carmaker will inject extra effort into this year's show in an attempt to stimulate the market.The Toyota source says the production version of the V10-powered Lexus LF-A supercar will be held back from its planned debut at the Frankfurt Motor Show to star in Tokyo, while the company will also reveal a car rumoured to have been put on hold _ the Toyota-Subaru joint-venture rear-wheel drive sedan that employs an Impreza platform and drivetrain.Toyota will also display a full range of hybrid and plug-in hybrid vehicles as well as the latest EV and battery technology.Originally scheduled to run from October 23 to November 8, the show's new closing date will be November 4. 

The wholesale restructuring of the US car industry has yielded some little gems of information, some of them from Chrysler.

Some major makers will skip the biggest car event in Asia, and others are planning to spend less, but the organisers are pressing ahead.The Japan Automobile Manufacturers Association has just confirmed the show is on, even though Nissan led a push by a couple of Japanese brands for either a cancellation or a postponement until economic conditions improve.The American 'Big Three' - General Motors, Ford and Chrysler - will definitely not be in Tokyo in October.The uncertainty over Tokyo comes after trouble with shows in many major markets including Australia, which is moving rapidly towards a single national motor show from 2010.The turnout at the North American Motor Show in Detroit in January was well down on previous years, both in the number of manufacturers at the event and their individual spending.Some companies, led by General Motors, trimmed their Detroit budgets by more than $1 million.Chinese carmakers, Brilliance and BYD, even got prime real estate in the heart of the show - instead of being shown to the basement - for the 2009 event as the number of no-shows included Porsche, Mitsubishi, Rolls-Royce, Suzuki, Daihatsu and Infiniti, the upscale arm of Nissan."We feel that it would be self-defeating to launch concepts against the backdrop of the intense Big Three survival story," says a Nissan spokesman.Even Honda, which had its massively important new Insight hybrid in Detroit, avoided an official press conference to save more than $1 million on its show budget.GM has justified its decision to skip Tokyo by revealing it spent more than $2 million on its involvement in Japan in 2007.Chrysler, which exhibits are more than 60 major motor shows each year, is putting the emphasis back on the day-to-day display at its dealerships.The true picture for the Tokyo show is still not clear, but one source in Japan says he only foreign manufacturers who 'may' come this year are the only ones actually selling any volume in Japan, which means Audi, Mercedes-Benz and Volkswagen. Even BMW is in strife.While some French and Italian carmakers remain upbeat about Japan they are unlikely to be at the show and even Brilliance and BYD, which took up the slack in Detroit, will not be at the show as they have no presence in Japan.