Chrysler News

Lutz, a former fighter pilot and Chrysler engineer, was brought into GM to shake the product tree and did a pivotal job at a crucial time.Much of his real work is still to be seen on the road.But Australians can thank Lutz, a fan of the Commodore from the first time he saw one, for helping to forge the export deals for the Monaro and then the VE Commodore. Both went to the USA with Buick badges and the full support of Lutz.GM says Lutz will become a 'senior advisor' on April 1 and will retire at the end of this year, when he will be 77.He has been with GM since 2001 following time with Ford, BMW and Chrysler.Lutz's duties have been handed to Tom Stephens, currently GM's global head of powertrain development and product quality. He is 60 and picks up the product portfolio from April 1. 

US media quotes Chrysler president Tom LaSorda as confirming the end of production for the retro-styled sedan, launched in 2000."Since the announcement of PT Cruiser Cabrio last year, there have been a number of exaggerated reports announcing the end of the PT Cruiser model," Chrysler Australia's Jerry Stamoulis says. "To date, there has been no communication from the Chrysler product team that suggests PT Cruiser production will end."Over one million PT Cruisers have been sold worldwide and the vehicle remains an important part of our Australian portfolio."Stamoulis says the quotes relate to the sale of production tooling for the PT Cruiser."It is not unusual within Chrysler that a buyer will be sought for tooling and equipment from a model that is in the process of generational change," he says."PT Cruiser is at that stage of its model life and as I understand it Mr LaSorda's quotes are relative to that process."If the Cruiser were to be axed it would be the seventh cancelled since Cerberus Capital Management bought Chrysler in 2007.The Dodge Magnum wagon and Durango SUV, the Chrysler Crossfire, PT Cruiser convertible, Aspen SUV and Pacifica SUV have been discontinued. Chrysler is reportedly looking to sell the Dodge Viper. 

The cars – which will be built at Chrysler’s North American plants — will be developed as a result of the agreement between the two companies, under which Fiat has taken a 35 per cent stake in Chrysler. Four of the vehicles will be branded as Chryslers, while the remaining three are expected to be either sold as Fiats or Alfa Romeos. Fiat will reportedly supply platforms for four of the products, but there has been no information about design, vehicle segments or estimated launch. However industry insiders have suggested that the product plan being finalised between the two brands will see the Fiat 500 produced at Chrysler’s Toluca factory after the PT Cruiser currently built there is phased out later this year. However Chrysler’s Australian boss, Gerry Jenkins, says the local arm has as yet little detail of what is happening at head office. “All we know is that our top executives are in talks this week with Fiat executives and at this stage there is no further information,” Jenkins says. “I don’t have a whole lot of detail. We are having correspondence with head office but there is nothing concrete I can say at this stage. “But we’re all very excited. (The Fiat agreement) is a tremendous opportunity. “It’s a perfect marriage and I think the prospects are absolutely outstanding.” Fiat’s stake in Chrysler has not included any money being handed over, with the Italian badge’s involvement being repaid by more doors being opened to international markets and shared technology. Chrysler was one of the beneficiaries of the US government bail-out earlier this year, receiving US$4 billion in loans, however experts believed that the company would collapse without a strategic partnership. However a Fiat executive has warned that Italy’s automotive industry could lose 60,000 jobs – around 20 per cent of the workforce — unless the government implements a rescue package. ”If the government doesn't intervene, the risk that 60,000 workers in the automotive sector will have to stay at home is real,” Fiat chief executive Sergio Marchionne was quoted by Italy's Ansa news agency as saying earlier this week. "We are expecting measures for the entire automotive sector, which is currently selling 60 per cent less than last year," he said. “It's not a case of helping Fiat but of re-starting an entire production sector and the whole economy.” Fiat has slashed production recently and cut its forecasts because of the global auto slump, and announced earlier in January that it would not pay a 2008 dividend to shareholders.  

Yesterday the storm clouds lifted with the announcement that Italian carmaking giant Fiat had thrown a lifeline to the embattled Chrysler Group in the US.Both have signed a global agreement to share models, design, engineering and distribution networks.The CEO of Fiat Group, Sergio Marchionne said the partnership "is a great fit as it creates the potential for a powerful, new global competitor".Jenkins said the alliance would also give some security and vision for the future."I see pluses on both sides," he said.Under the terms, Fiat will take a 35 per cent equity stake in Chrysler, which also includes Dodge and Jeep.Fiat will also provide distribution capabilities in key growth markets, as well as substantial cost savings.The deal is a key element of Chrysler's viability plan and will provide access to Fiat's small car platforms, engines and components to be produced at Chrysler manufacturing sites.Chrysler, the third biggest carmaker in the US, has been dodging questions about a possible sale, asset sell-offs or alliances for months.The company is majority owned by private investment group Cerberus Capital Management, which has no carmaking experience.Analysts see the move as a strategic life-raft for the embattled US business.At the recent Detroit Motor Show, Chrysler vice chairman and president, Tom LaSorda, even went as far as to say that the iconic Jeep brand was not for sale.Fiat has been very successful in executing its own restructuring over the past several years.In addition, Fiat will provide management services supporting Chrysler's submission of a viability plan to the US Treasury as required.The alliance will also allow Fiat and Chrysler to take advantage of each other's networks and rationalise their respective manufacturing footprint and global supplier base.The alliance will be consistent with the terms of the US Treasury financing to Chrysler, which includes contributing to the company's restructuring effort.The deal is still subject to due diligence and regulatory approvals, including the US Treasury.Fiat does not intend making a cash investment in Chrysler or commit to funding Chrysler in the future.Over the past five years Fiat has signed several alliances and partnerships with leading carmakers and automotive suppliers.The chairman and CEO of Chrysler, Bob Nardelli said the benefits are huge."Including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," he said.Chrysler has previously has held alliances with Daimler, Mitsubishi and American Motors (Renault). 

GT-R out frontThe latest Nissan GT-R is about to be confirmed as the official pace car for the V8 Supercar championship, taking over from Chrysler and, before that, Audi.Action at the 'BoolThe biggest sprintcar race of the summer, the Grand Annual Sprintcar Classic, will be run at Warrnambool next weekend. The program includes NOS Sprints and a display of super rods.Twin BeamsDick Johnson will run different livery on his Jim Beam Falcons in the V8 Supercar championship. Steven Johnson will be in the red car and James Courtney will be the man in black to reflect the sponsor's latest products.Engaging typeRyan Briscoe has begun the season with Team Penske on a high after his engagement to Nicole Manske. The IndyCar racer met Manske in the US, where he is racing and she works as a TV presenter.Formula for MBELewis Hamilton describes his MBE award as ``a massive honour and incredible privilege''. The new world champion has been made a Member of the British Empire by the Queen for services to motorsport.Look back at BathurstThe latest running of the Great Race at Bathurst is recorded in brilliant style by the publishers of 1k.08, in shops soon. The book has some great pictures. It costs $59,95 -- or $175 with leather wrap. www.p101.com.au  

News cruisers are parked-up and beaming pictures before 6am as the temperature hovers around minus 10 and snow flurries drift through the pre-dawn blackness.By 9am there are union workers carrying placards in support of the Big Three outside Cobo Hall in downtown motown, as the great and the good from the world's motor industry arrive for the first major event of 2009.The buzz is down from recent years, with less security and fewer journalists jetting in for the action, but still there are major unveilings, technology, important speeches and so much more over the first two days.The North American International Motor Show is more than just glitz and glamour for General Motors, Ford and Chrysler in 2009 - this is the day when they have to deliver for the first time on the promises in Washington which have earned a government-backed rescue package.That means GM opens the action with a rolling cavalcade of 17 models which promise exactly what the government wants - hybrids, electric cars and regular production models which do better than 10 litres/100km in fuel economy.The headliner once again is the Chevrolet Volt, except this time it is wrapped in Cadillac bodywork and called the Converj - with the added bonus of a plug-in connection to its onboard battery system.Lexus is next and does its number around the brand's first dedicated hybrid, the HS250h, which was originally only planned for America but will now go to more than 80 countries.Then Ford becomes the second of the Big Three to present its position for 2010 and beyond, with an all-new Taurus family car - perhaps a pointer to something on the Falcon front - and the promise of an all-new electric car with a 160-kilometre range by 2011.Company chairman Bill Ford takes the stand to deliver on the company's promises to Washington, even though it was the only local not to take a multi-billion dollar loan."Ford is heading in the direction America and our customers want us to go, which is a green, high-tech and global future. I think that is where society would like to see the entire industry go, and Ford is going to lead that charge," Ford says.Then Chrysler, which many American analysts believe cannot survive the global economic meltdown, gets its turn and does a top job with the great looking new 200C family car and a range of electrics which shows it has not given up hope.It's best looker is the Dodge Circuit, which is most like a battery-powered Lotus sports car."The Dodge Circuit EV offers an extremely fun-to-drive, expressive sports car without fuel consumption and with virtually no impact on the environment,” says the vice-president of design at Dodge, Ralph Gilles.By now, after just two hours of the first press preview day, the pattern for Detroit '09 is set.The home team is going big on the cars it needs to make - even if Americans are still buying BIG with the drop in pump petrol prices - but there is more sizzle than steak because they have started way behind the Japanese and Europeans.And Cobo Hall looks sparse. There are fewer brands, fewer cars and none of the bold-and-brassy unveilings - Chrysler has always led the world in motor show stunts - which have been a signature of the Detroit show.“All I know is we took about 50 per cent out of the cost of our stand,” says the car boss at General Motors, Bob Lutz.“We took away a lot of the structures, such as salad bowl-shaped Saturn stands, and towers with holographic displays.”But he still applies some positive spin as everyone talks up the chances for the Big Three, even in the face of a selloff of the Hummer and Saab divisions at GM.“The fact that we don’t have any of that stuff gives our stand a much more businesslike and cleaner appearance. I think they cluttered up the stand. I imagine it’s going to be much the same around the show," Lutz says.As usual, the 80-plus former fighter pilot is right.BMW joins the hybrid rush at Detroit with news of its petrol-electric X6, thankfully with the all-new Z4 sportster to provide some glamour, as Volkswagen provides the best looking car of the show with its Concept BlueSport.The gorgeous VW is most like a Mazda MX-5, but promises Prius-buster fuel economy in the 4.3 litres/100km range and, without any promise of production, it clearly could have a future.“The Concept BlueSport is evolving into a car that that is a lot of fun to drive and at the same time makes an unmistakeable statement in terms of sustainability," says Volkswagen.“The Concept BlueSport is evolving into a car that that is a lot of fun to drive and at the same time makes an unmistakeable statement in terms of sustainability.”The next big mover in Cobo Hall is Kia, which shows a funky pick-up built on its baby Soul. The Soul'ster is never going to be an Aussie workhorse but will hit the Gen-Y button for America, and California in particular.As the first day in Detroit winds into darkness and more frigid weather, Subaru kicks the action with a preview of its new Liberty - called the Legacy in the USA - Jaguar runs out its high-performance R version of the landmark XF and Volvo shows the most adventurous concept car in its history, pointing to the next S60."The sporty design gives visual promise of an enthusiastic drive and I can assure you here and now that the all-new S60 will live up to that promise," says Volvo boss, Stephen Odell.Ford goes again to start day two at Cobo, with its Lincoln-Mercury models, then its back to Maserati and then GM pushes the home game hard with an announcement that the batteries for its Volt will be built in the USA. It's a boost for local jobs, more hard news on the Volt, and just what Washington will want before the Big Three report back on their survival plans at the end of March.And then there is a shock - at least for the Americans - as Chinese cars make the mainstream in Detroit for the first time and little-known BYD confirms it will be selling the world's first production plug-in electric car by 2010.The last big event of Detroit '09 is the one everyone already knows about - the new Toyota Prius.The list of 'firsts' is impressive as the car is unveiled, from its drag co-efficient to more luxury and a more-efficient battery system. But Honda has already undercut the third-generation Prius on price with its Insight, which is headlining for the brand in Detroit, and there is no sign of a cutting-edge lithium-ion battery pack.But the Prius has solar-powered air-conditioning to cool the car when it is parked, is bigger and quieter inside, and is certain to become the world's best selling hybrid. The car comes with more than 1000 new patents on technology and a claim of 3.9 litres/100km economy."Prius is more than a hybrid, it’s a solution. No longer is it a second car or a passing fad. In many households, it has become the primary family car," says Bob Carter of Toyota USA.There is other stuff to see in Detroit, and some things are obviously missing _ the Mercedes E-Class was an invitation-only event and Rolls-Royce is holding its all-new RR4 for the Geneva Motor Show in March - but the overall verdict on 2009 is surprisingly positive.Cars are still big news, look good and make promises of a better and more enjoyable life on the road.But the big question remains. Did the Big Three do enough, and show enough in Detroit, to convince the American government that they deserve the support it will take to get them through the biggest crisis in the history of the automobile? 

Like a stunned rabbit transfixed by oncoming headlights, you could see what was going to happen. So it was with the crash of 2008.But it’s time to look at the future and considering the cars at the Detroit Motor Show the future doesn’t seem too bad. Chrysler just roll over…. let us move on.It is simple maths really. There are hundreds of manufacturers; many with multiple brands and each of those brands make many models. The trouble is many look exactly the same. They have been designed by committee and have had focus groups (6 people with lives so boring they are happy to sit in a room with marketeers and useability experts discussing the name Aurion or the placement of the intermittent widescreen wiper speed controller).  The cars that result are packed with soul destroying usability and are so mind numbingly boring…. Do the opinions of these six really constitute a good cross section of what the broader buying public really care about in a car…. I like design by individual, Sergio knew so much more about what I would like than I ever did before he showed me.Except for the boutique and designer Marques, manufactures are all trying to build as many cars as possible and grab as much market share as possible. With the cycle that this puts in place there will be points in time where naturally occurring adjustments happen to re-balance the cycle and let it continue  So it was last year.Cars are not as disposable as other product lines such as TVs, MP3 players and computers. A car has a much longer life and people in most cases are happy not to replace it as regularly as they do their mobile phones. The other simple fact is that cars have a second paying market after their life with the original purchaser. Unlike the vast majority of mobiles, MP3 players, computers and TVs they get sold-on rather than handed down or put in a cupboard to be forgotten about until the next clean-up.So back to the simplicity of this problem. The big manufacturers have been building too many boring cars too well for too long. Simple.The second-hand market has started catching up with them. For many people a three-year -ld car is a great alternative to a new car. I for one would much rather buy a five-year-old Merc than a new Legend. (the likelihood of me buying a Legend is less than me winning Lotto. And if I were to win Lotto my Legend would be a true one in the form of a 250GTO).Again the maths is simple and obvious. How many used car lots are there in the world, how many do you yourself drive by daily. How many cars are in those lots. Now how many people do you know that are in a position to buy a car that haven’t already got a reasonably good car with a continuing life. That is without even the new cars being pumped in to the market place. I also catch a train past a new car dealership storage lot, literally football fields full of new white Camrys and Aurions.This whole problem was always eventually going to happen even without the financial sector issues. It boils down the type of CEOs being employed by the big manufacturers. A number have been run by Gordon Ghekos and what they have needed is a Steve Jobs or a Luca Di Montezemolo. Managers that know their market, know their brand and know the limits associated with both. Mulally though through this whole mess is gaining my respect with his management without hand outs and therefore keeping independence from the Car Tzar.Except for the personal cost to thousands of people whose income has been affected by the mess created by incompetent CEOs such as Wagoner, I am not overly unhappy about the situation. Holden looks OK, which is important to me. Ford globally looks pretty good and they have always consistently built the most interesting cars, they have kept the Mustang going continually. Chrysler is as good as dead, - oh well, As long as the Viper brand finds a good home I will be happy. Jeep can shrivel up and die as there are just too many SUVs.And I really don't care what happens with Toyota and Honda. Sorry however to all you Toyota factory workers that live in the Toyota-owned housing. Life on the street in Japan is going to be harsh for some time.Rod Halligan

Ford Australia and GM Holden are waiting to hear the outcome of a last- ditch appeal by their American parents for $15 billion in critical short-term funding to prevent them going into bankruptcy."We don't know how it could play out if they fail. That's not a prospect that anyone wants to contemplate," the chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar, said yesterday."The fortunes of all the local manufacturers are intrinsically tied to their global parents. The situation for the American companies is obviously extremely serious. They are not bluffing."There is no direct threat to either Ford Australia or GM Holden, and company chiefs insist there is no crisis at Broadmeadows or Fishermans Bend, but the drama in the American motor industry continues to create ripples of confidence in Australia."It is business as usual. But it is ever-more imperative that we continue to sell our cars and run our business correctly," the spokesperson for Ford Australia, Sinead McAlary, said yesterday."At Holden it's business as usual, just as it has been throughout the entire US process. We are continuing our efforts to address local market conditions," said Jonathan Rose of GM Holden.The 'Big Three' have appealed to President Bush for bridging loans to carry them through the first half of 2009 after the American Senate voted-down their original proposal for a bail-out. New-vehicle sales in the USA have collapsed as a result of the American financial meltdown, with analysts forecasting a 17-million market will drop to around 10 million next year.Chrysler, which is only an importer here, will also be affected by any decision in Washington."I don't know very much," Chrysler Australia's managing director, Gerry Jenkins, admitted yesterday."We all know in our heart of heart that the US economy is going to get better. We just don't know where the bottom is. We are riding the bronco."Everything is unfortunately about the US. The economy will have to turn before any positive comes out." 

The big question everyone is asking right now is not whether or not the $6.2 billion of taxpayer's money the Federal Government has stumped up for the local car industry is good value but whether the parent companies of Holden and Ford Australia in the US will be in existence next year.If, as is looking increasingly likely, they go belly up, where does that leave Holden and Ford Australia? And what becomes of our $6.2 billion investment.It's the subject of much speculation and calls into question the massive leg-up provided by us, the Australian taxpayer, to local subsidiaries of GM and Ford. And remember, both US parent companies have been in the poo for longer than a few months - their problems go right back to the start of the century when there was a lack of suitable development and poor forward planning. This resulted in both companies getting in a right pickle with the wrong vehicles at the wrong time, push sales driven by discounting and other ridiculous practices, zero per cent finance and a whole train crash of don'ts.They were too focused on cranking out massive pick-up trucks and not the sort of cars they needed to stay ahead of the game.A little crystal ball gazing is tempting in a situation like this, with a smattering of some hypothetical scenarios.Locally, Toyota stands to benefit hugely in the event of the demise or sell-off of Holden and Ford. And rest assured, GM and Ford wouldn't hesitate to flick their non-core businesses to keep the US parent companies afloat at home.That $6.2 billion earmarked for three companies would neatly go back to one, and Toyota has already moved solidly towards making a “green” hybrid car in Australia for which the funds are ostensibly provided. It's a fair old wad in the back pocket for Toyota.But there are other delicious possibilities.Could it be possible for Ford Australia and Holden to move to nationalised ownership and Australia take advantage of the wealth of talent and experience available there. It could be used to tap into a select market, manufacture cars locally and even start supplying technology and components to other carmakers. What red-blooded Aussie wouldn't buy a good car made here by a fair-dinkum Aussie company and not some quasi-Aussie company. It would be unthinkable, un-Australian.And remember, we are the supplier of most raw materials that go into making a car.Nationalisation has become a dirty word in the runaway capitalistic western world where most things are based on short term planning and the fast buck. Look where that led.And with the current international economic problem unsolved, nationalisation is happening anyway even to the pillars of the capitalist system - they are begging for government money.But I suspect the nationalisation pill would be too bitter for us to swallow so at a local level the second scenario probably has more weight _ foreign ownership for Holden and Ford Australia. And we are talking Tata for Ford (possibly Ford the world including Australia) and a Chinese manufacturer for Holden, possibly SAIC which is in an expansionist mood, has plenty of funds and recently took over SsangYong.Tata has already shown its hand purchasing Land Rover and Jaguar - both formerly part of Ford's Premier Auto Group and the Indian company seems well provisioned with funds.China already has a hand in our “local” cars as suppliers of components like windscreens, brakes, lights, switches, wipers and other bits and pieces. They know what's going on here and no doubt would like a car making foothold in an advanced, western economy like ours.Then again, GM, Ford and Chrysler in the US could just shut up shop, hang up the gun and fade into the past. Vultures would be circling already and despite the worrying international situation, some have plenty of cash for a cheap buy-out - they only have to wait it out.Look no further than Japan or Korea for the wherewithall to pick the prime cuts of GM, Ford and Chrysler. Hyundai probably has eyes for Jeep and some of the Europeans could also be in a buy-out position at the right price - Mercedes Benz for GM Opel for instance. We won't have to wait long to find out..... 

General Motors, Ford and Chrysler are arguing for their share of the rescue money provided by the American government as they continue to suffer the biggest losses in motoring history.The Bush administration opposes their call for cash but a bill has been presented by the Democratic party to the country's Congress, which is also in transition following the landslide win by president-elect Barak Obama, to give them some short-term relief.If any deal is approved - which seems a longshot - it will include a provision that none of the money can be used to pay executive bonuses.These have been a multi-million dollar windfall for most senior executives at the Big Three for decades, but look to pass into history - at least until the river of red ink in Detroit is damed.The proposal for the $25 billion assistance package has created a political furore in the USA, where one side of politics says the Big Three only have themselves to blame and the other is trying to protect jobs and even the pension and health insurance entitlements of retired workers.A USA Today-Gallup poll shows the split, as a 47 per cent of adults said they believe loans and other help for carmakers is "not that important".Meanwhile, everything from paperclips to concept cars has been culled as General Motors fights for survival.The one-time world leader, which is now certain to be overtaken by Toyota on the 2008 sales charts, has slashed all non-essential spending and has even withdrawn from the Los Angeles Motor Show later this week.GM was planning to unveil a new Buick concept car and something exciting for Saab, but has pulled both cars and also decided to keep its senior executives away from the California car show.Ford and Chrysler are also expected to go low-key in LA, leaving import brands including Nissan and Mazda - which will reveal their all- new 370Z and Mazda3 - to make the running.But it is the GM cutbacks which are making news in the USA, as the company - which is losing billions each month - reduces spending on everything from stationary to company cars. It has cut all executive bonuses and raised prices for executive lease cars.GM has admitted it will run out of cash reserves by the end of the year.Chrysler has also eliminated bonuses and is pushing e-mail to save on paper costs, while Ford is not having any Christmas parties in 2008 and has slashed all non-essential staff travel.