Showing posts with label Chrysler. Show all posts
Showing posts with label Chrysler. Show all posts

Friday, December 7, 2007

Super Bowl ads. Ford, Chrysler, & VW oddly missing

We got word that there will be four automakers with ads during the Super Bowl this year. General Motors will have a Chevrolet 60 second spot during the second quarter and Cadillac will be sponsor for the pre and post game shows.

Hyundai and Toyota will both have two spots each. Also announced is a spot from Audi. This marks their first time advertising during a Super Bowl in 20 years. Theirs will be a two minute long spot featuring the Audi R8.

Toyota's ad will more than likely pump up the new Sequoia and Tundra pickup. Though I highly doubt that it will do anything to help the Tundra's image right now.

Cars.com will also have a 30 second spot this year.

Strangely though is the lack of an announcement that Ford or Chrysler will be having spots. There is still time for them to jump on the band wagon, so we'll see where it goes.

I watch the Super Bowl just for the car ads. General Motors has always topped our list of favorites. So as a bonus, we're including our favorite GM spot from the Super Bowl in 06.


Source: Automotive News, Audi.

Friday, November 30, 2007

Chrysler: Uh oh! We screwed up.

Well it looks like the MSRP for the Dodge Challenger SRT8 was a little bit off. The Challenger ends up getting slammed with a gas guzzler tax of $2,100. That's now going to bring the price of the hot muscle car up from the $37,995 originally announced yesterday, to $40,095. Oh well. I guess that's the price you pay to play.

Chrysler could easily get rid of this if they oh, I don't know lowered the MSRP of the Challenger $2,100. But that's just me.
Source: Autoblog.com

Monday, November 26, 2007

European autos have resale edge over domestics

Recent surveys show that the Detroit Big Three are starting to lose footing on their vehicles resale values. Kelly Blue Book is saying that the top five brands with the best overall predicted resale value are Volkswagen, BMW, Honda, Acura, and Porsche. The rest of the Top Ten are Lexus, Subaru, Toyota, Infiniti, and Audi. Of course, none of these are Big Three domestics. Many of those brands made up the 1o worst picks for resale value for 2008.

Why the big turn? Simple. Over production. The Big Three lean towards overproducing their vehicles. Then they slap on huge discounts and rebates. Those combined with the over abundant supply of Taurus, Impala, and Stratus fleet and rental cars. Helps to absolutely destroy the resale value of those cars.

Volkswagen is the surprise comeback kid on the survey list. They have steadily grown over the last 5 years. Thanks to big boosts in quality, fuel efficiency, European styling, and exceptional value.

Source: The Wall Street Journal

Friday, November 2, 2007

Followup: Some official word from Chrysler regarding product cancelations

We finally have some official news from Chrysler regarding product cancelations, workforce cuts, and shift eliminations. It's unfortunate to see more bad news from the Motor City, but it's all going to pave the way for a bigger, more profitible Chrysler. Along with shift eliminations at 2 Detroit plants and what will be somewhere in the area of 11,000 possible labor cuts(both hourly and salary).

Chrysler has also made the decision of 4 cars that will be cut from the product line up. These include the Chrysler PT Cruiser Convertible, Pacifica, Crossfire, and Dodge Magnum. Mr. Nardelli also mentioned several new products that will be added to the line up. Including the Challenger, and Hybrid versions of the Chrysler Aspen and Dodge Durango. Here is what we know so far. This is according to an email to Chrysler employees from Bob Nardelli.

"• Shifts will be eliminated at five North American assembly plants: Belvidere, Jefferson North, Toledo North, Brampton and Sterling Heights. Combined with other volume-related manufacturing actions, this will lead to a reduction of an additional 8,500-10,000 hourly jobs through 2008.

• A shift will be eliminated at Mack Avenue Engine Plant II.

• Salaried employment will be reduced by 1,000 and contract employment by 37 percent. Additional reductions will be made in hourly and salaried overtime and purchased services due to the decline in volume.

• Four models will be eliminated through 2008 -- the Dodge Magnum, the convertible version of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. During the same time frame, we will add the all-new Dodge Journey and Dodge Challenger to our portfolio, along with two new hybrid versions of the Chrysler Aspen and Dodge Durango."

I agree with the Chrysler cuts from the product line, but will be sad to see the Magnum go from Dodge. The shift eliminations are unfortunate, but are necessasary to stabilise the company.

Here is the full e-mail from Bob Nardelli, and the full press release.

BOB NARDELLI E-MAIL TO CHRYSLER EMPLOYEES:

Dear Colleagues,

Today, we will announce some tough but necessary actions for Chrysler: the elimination of some assembly plant shifts, reductions in salaried and contract employees, and the phaseout of four of our products. These changes are part of our continuing efforts to right-size our business for the current market and competitive environment. They should not diminish our faith in our long-term strategy nor reduce our resolve to become a leader in the automotive industry.

I regret that short-term actions are required on our path to long-term success. Since the announcement of the Recovery and Transformation Plan (RTP) in February, the market dynamics -- especially in the United States -- have changed dramatically. The soft housing market and the spike in oil and gas prices have had a seriously adverse impact on consumer confidence and spending. Back in February, U.S. light-vehicle sales were running at a rate of 17.2 million vehicles. We now expect volume for 2007 to be significantly lower and carry over into 2008.

To succeed, we must align our costs with the market realities and the economic conditions we expect. We must position Chrysler to return to profitability next year without pushing unprofitable volumes of product through our plants and into our dealers' showrooms or fleet. This would only lead to a downward spiral of higher incentives, weaker brands, lower residual values and poor relationships with our dealers. That's why we are committed to right-size our costs and achieve inventory levels that are 100,000 units lower at the end of 2007 compared with last year.

We must move with speed and flexibility to meet the needs of a constantly changing market. This means continually re-evaluating our model lineup in order to ensure that our current and future product portfolios hit the sweet spots in the market. As a customer-driven company, we must sharply focus our limited resources on the most profitable and appealing products.

The following is a summary of the changes we are announcing today:
• Shifts will be eliminated at five North American assembly plants: Belvidere, Jefferson North, Toledo North, Brampton and Sterling Heights. Combined with other volume-related manufacturing actions, this will lead to a reduction of an additional 8,500-10,000 hourly jobs through 2008.
• A shift will be eliminated at Mack Avenue Engine Plant II.
• Salaried employment will be reduced by 1,000 and contract employment by 37 percent. Additional reductions will be made in hourly and salaried overtime and purchased services due to the decline in volume.
• Four models will be eliminated through 2008 -- the Dodge Magnum, the convertible version of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. During the same time frame, we will add the all-new Dodge Journey and Dodge Challenger to our portfolio, along with two new hybrid versions of the Chrysler Aspen and Dodge Durango.

Going forward, we need to concentrate on three areas in order to transform our company into a top performer.

First, we must rebuild a strong partnership with our dealers, who are an extension of our company and our only direct customers. We've taken major steps down this road by reducing our inventory and scaling back our fleet business to improve residuals.

Second, we must maintain a laser focus on the five business fundamentals our leadership has identified as the building blocks for success. You should have recently heard a report from your management on the five fundamentals: Customer First; Quality ... Period; Go Global; Be Green; and Powered by Great People.

Third, we must execute. With the RTP we have a clear and realistic strategy for success that does not need to be rewritten. We must now execute seamlessly, with a bias toward speed, a focus on the customer, and an emphasis on teamwork and achieving cross-functional goals. More than ever, your individual performance will determine your personal success and that of the company overall.

Thank you for your continued support and dedication as we drive to transform Chrysler into an enterprise that is stronger than ever and able to thrive in today's highly competitive marketplace.

Bob

PRESS RELEASE:
Chrysler Announces Product and Plant Changes-- Industry-wide volume reduction and sales slow down requires plant adjustments -- Four products will be cancelled from Chrysler line-up; while adding two all-new products and two hybrid models.

AUBURN HILLS, Mich., Nov. 1 /PRNewswire/ -- Chrysler LLC today announced that it would make volume-related reductions at several of its North American assembly and powertrain plants, and eliminate four products from its line-up.

Shifts will be eliminated at five North American assembly plants which, combined with other volume-related manufacturing actions, will lead to a reduction of 8,500-10,000 additional hourly jobs through 2008.

Additional actions include reductions of salaried employment by 1,000 and supplemental (contract) employment by 37 percent. The Company also plans to eliminate hourly and salaried overtime and reduce purchased services due to reduction in volume.

The volume-related actions are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan (RTP) announced in February. The objectives of the RTP remain the same.

"The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint," said Bob Nardelli, Chairman and Chief Executive Officer. "Annual industry volume (U.S. market) then was running at a 17.2 million clip. Now, we expect a seasonally adjusted annual volume for 2007 to be significantly lower and carry over into 2008."

"We have to move now to adjust the way our company looks and acts to reflect a smaller market," added Tom LaSorda, Vice Chairman and President. "That means a cost base that is right-sized and an appropriate level of plant utilization.

"LaSorda added that third-shift operations at assembly plants usually reflect a high demand after a product is launched. Three of the five plants affected by this action are the result of elimination of third shifts - in Belvidere, Illinois; Toledo, Ohio, and Brampton, Ontario.

In contract negotiations just concluded with the United Auto Workers, Chrysler committed to spending more than $15 billion on products, plants and engineering during the life of the contract through 2011.

The company announced that it will eliminate four models through 2008, including Dodge Magnum, the convertible version (only) of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. In the same time frame, Chrysler will add two all-new products to its portfolio: the Dodge Journey and Dodge Challenger, along with two new hybrid models, the Chrysler Aspen and Dodge Durango.

"These actions reflect our new customer-driven philosophy and allow us to focus our resources on new, more profitable and appealing products," added Jim Press, Vice Chairman and President. "Further, these product actions are all in response to dealer requests."

Manufacturing Actions

Chrysler will eliminate shifts at five assembly plants, and take further volume-related actions at several other facilities. It will:

Drop third-shift operations at Belvidere (Ill.) Assembly Plant in the first quarter 2008. Belvidere builds the Dodge Caliber, Jeep Patriot and Jeep Compass.

Drop second-shift operations at its Jefferson North (Detroit, Mich.) Assembly Plant in the first quarter 2008. It's expected that the plant will return to two shifts in first quarter 2010 with the introduction of the next generation of sport-utility vehicles. The addition of a third shift will remain an option, depending on market demand. Jefferson North builds the Jeep Grand Cherokee and Jeep Commander.

Drop third-shift operations at the Toledo (Ohio) North Assembly Plant in the first quarter 2008. Toledo North builds the Jeep Liberty and Dodge Nitro.

Drop third-shift operations at Brampton (Ontario) Assembly Plant in first quarter 2008. Brampton will build the Chrysler 300, Dodge Charger and Dodge Challenger. The Dodge Magnum will be discontinued.

Drop second shift operations at Sterling Heights (Mich.) Assembly Plant in first quarter 2008. Sterling Heights builds the Dodge Avenger and Chrysler Sebring sedans and Chrysler Sebring Convertible.

In addition, Mack Avenue (Detroit) Engine Plant II will return to a traditional two-shift / two-crew operation in the first quarter 2008 after operating on a three-crew, two-shift, 120-hour-per-week (3/2/120) schedule. Mack II builds the 3.7-liter V-6 engine.

"I'm confident that we have the right team in place and a business plan that doesn't need to be re-written," concluded Nardelli. "Like all good plans, the RTP has built-in flexibility that allows us to stay one step ahead of market change. And that is the way to long-term sustained profitability."

Sources: Autoblog.com, The Detroit News, Chrysler.

Wednesday, October 31, 2007

Chrysler ready to slash products from vehicle line up.

Chrysler LLC is preparing to cut many redundant vehicles from their portfolio. On October 10th, Jim Press, Chrysler's c0-president acknowledged that there is a product problem at Chrysler. Vehicles on the chopping block include:

Chrysler Aspen
Chrysler Pacifica(finally)
Chrysler Sebring
Dodge Durango
Dodge Magnum
Jeep Commander
and the Jeep Compass.

"We have models that overlap, where we've got two ro three vehicles that serve the same market segment or maybe the same customer, and we actually compete with each other to some extent. That's not very efficient." Press said at an annual meeting for dealers in Las Vegas.

New management at Chrysler is conducting a product review geared at aligning each of the three brands to match certain characteristics that they have set up. This will mean cuts and a speed up on re-engineered vehicles. Hopefully some new and fresh products in the line up.

Chrysler is also going to begin looking at their dealer network. Which is a combination of stores that are all three brands, and some with just two or one brand.

Chrysler is also seeking to become a worldwide power in the automotive world. They are right now a "North American" company, and that is no longer working. Bob Nardelli, Chrysler chairman, was quoted saying.

Chrysler I think is finally on their way to getting turned around in the US market. Hopefull these cuts, re-engineered , and hopefully fresh products will work.

Source: Automotive News

Monday, October 29, 2007

SEMA 07: Chrysler SR-392 Hemi Roadster breaks cover early.

Thanks to the guys over at Jalopnik.com for this breaking news. The Chrysler SR-392 Hemi Roadster was spied in the open before it's unveiling at the SEMA show in Las Vegas. The roadster is based on a reproduction 1927 Chrysler body, which has been heavily modified. The Custom SR-392 Roadster features a 392 Hemi crate motor from Mopar. The distinctively 'Detroit' roadster is a collaborative build project between Chrysler's Mopar Underground SEMA design team and Quality Metalcraft.
Rods seem to be the hot item at this years SEMA show. The Chrysler SR-392 is the second such vehicle to be unveiled. The first being the Chevrolet E85 rod from General Motors. Look for more info as the car becomes official. At cursory glance, the Chevrolet seems to be a bit more polished with it's look and overall finished product. But the Chrysler gains extra kudos in my book as it's a roadster, and it's got a Hemi..... Sweet!


Official Press Release:
Auburn Hills, Mich. -
What do you get when you combine the new 392 HEMI crate engine from Mopar with the world's first-ever steel reproduction of a 1927 street rod body and three car-crazy designers? The result is a custom SR 392 Roadster that will debut in the Mopar booth (#42427) at the 2007 Specialty Equipment Market Association (SEMA) Show. The SEMA Show is the annual showcase of technology, trends and products representing the $36.7 billion automotive parts and accessories industry that will be held Oct. 30 - Nov. 2, 2007 at the Las Vegas Convention Center.

For nearly two years, Chrysler's Mark Allen and Ralph Gilles planned to build the SR 392 Roadster as a SEMA stunner with Michael Chetcuti of Livonia, Mich.-based auto supplier, Quality Metalcraft (QMC). Allen is chief designer, Jeep®/Dodge Truck Studios - Chrysler LLC and Gilles is Vice President of Jeep/Truck & CFM Design, Chrysler LLC. Gilles and Allen are members of Chrysler's Mopar Underground SEMA design team, a group of in-house automotive enthusiasts who donate their time to SEMA project vehicles.

Allen said, "It was important to convey the car's theme as an homage to Detroit - the cool Detroit with its unique artistic community, music and gritty vibe. We used durable materials and let the mechanicals show to reflect the industrial backbone of the city. We wrapped it all up in a high-gloss black-and-chrome wrapper to evoke Detroit's cool attitude."

Allen, Chetcuti and Gilles saw a challenge in proving that the 6.4-liter HEMI crate engine could apply to a vehicle other than traditional muscle cars or modified up fits. The team's idea was to redefine the classic hot rod with a more functional urban and industrial attitude to create a distinctly 'Detroit' roadster.

The project was assisted by Chetcuti's QMC since the company has tooled, designed and now stamps the first-ever steel reproduction of a '27 street rod body -- the Shadowrods XL-27 Roadster and Lakes Modified bodies developed by hot rod legend, Jon Hall.

"The core design elements of this roadster speak to the grit and industrial edge of our city," said Chetcuti. "Things like the mezzanine flooring detail and Eames-inspired seating -- these take an industrial cue but are by no means 'rat-rod.' It is a refined and organized design throughout."

After several design variations were discussed (California hot rod king Chip Foose even had a peek), Allen brought his full resources to the design's completion. QMC stamped and performed the initial assembly on the reworked Shadowrods body - and fabricated and fit the revised hood, hood side panels, lower rocker panels and doors to the body.

With the car's extremely low stance, Shadowrods was asked to build a custom frame using a unique staggered truss concept. For the final build of the SR 392 Roadster, QMC turned to longtime concept- and show-car builder Wheel to Wheel Powertrain of Madison Heights, Mich.

Overseen by Gilles, the Mopar Underground SEMA design team has been customizing Chrysler, Jeep and Dodge production vehicles for the SEMA show since its creation in 2002. The team creates tricked, tuned and customized vehicle concepts meant to develop performance parts, accessories and customization, vehicle concepts and keep the Mopar spirit and passion alive.

VWoA announces new executive appointments & brand management restructuring.

Volkswagen of America, Inc., CEO Stefan Jacoby today announced new executive appointments and realignment of the Volkswagen brand executive management team, taking effect January 1, 2008.

Jacoby will add the title of executive vice president of the Volkswagen brand, in combination with his duties as CEO, Volkswagen of America, Inc.

The executive vice president role at Volkswagen has been held by Adrian Hallmark since November of 2005. Hallmark will transfer to corporate parent Volkswagen AG in Wolfsburg, Germany where he will lead Volkswagen sales and marketing initiatives for the Asia/ Pacific region.

Also announced was the appointment of Michael Lohscheller as executive vice president, chief financial officer for Volkswagen of America, Inc., reporting to Jacoby. Lohscheller transfers from corporate parent Volkswagen AG, where he was most recently director, Group Marketing and Sales Planning. He has been with Volkswagen AG since 2004, after holding various senior finance positions with Daimler and Mitsubishi Motors.

In addition, Falk Beil has been named executive vice president, Service & Quality, Volkswagen of America, Inc. Reporting directly to Jacoby, he has held multiple inter-disciplinary posts since joining Volkswagen AG in 1988.Jacoby also appointed the following vice presidents, both reporting directly to him, within the Volkswagen brand, taking effect immediately.

Mark Barnes has been named vice president, Customer Service. Mark has held numerous management positions at Chrysler, Hyundai and Nissan, bringing 25 years of Parts and Service experience in both national and regional operations.

M. Toscan Bennett has been named vice president, Product Marketing & Strategy. He replaces David Goggins, formerly director, Product and Marketing Strategy. Bennett brings more than twenty years of automotive brand management experience at Ferrari, Chrysler and Mitsubishi. Goggins will return to Bentley Motors headquarters in Crewe, United Kingdom where he will lead Bentley global communications.

"With these organizational changes, we have strengthened the enterprise to best meet the challenges of the dynamic American automotive marketplace," said Jacoby. "The Volkswagen Brand will continue on the path set by Adrian. We appreciate his efforts to build a solid platform for continued growth and profitability."

Thursday, October 18, 2007

Mr.Norm Strikes Again!


In the 1960s and early 1970s there were special dealers in the automotive industry who epitomized the spirit of high performance. Cheverolet had Yenko, Nickey, Baldwin, Gibb and Dana. Ford had Tasca; Pontiac had Royal, Knafel and Packer. The Mopar guys had Mr. Norm’s Grand Spaulding Dodge.


Norm Krauss revolutionized how high-performance cars were sold, and went so far as to create his own prototype 383 Dart GTS and the now famous M-Code 440 Dart, both eventually made it into regular Chrysler production.


Well, Mr. Norm is back and is offering a repeat of the golden days with the finest 21st century parts and accessories. However, the new Mr. Norm Mopars exceed the performance of the originals in every way. Each vehicle has its own production number and comes with a build book, production sheet and build order, and is delivered by Mr. Norm himself, just as he did back in the day. These new 1968 Darts are powered by a 528 cubic inch Hemi putting out 725 HP! It will also have 17" wheels and disc brakes all around.


Production will be limited to just 40 cars. Mr. Norm’s GSS Hemi Darts are capable of 10-second quarter-mile times. For more information, call 847-838-8749