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Filed under: Supercars , Chrysler, LLC. , Dodge Click above for high-res gallery of the Viper ACR Chrysler may be burning to the ground like ancient Rome, but its craziest citizen, the Dodge Viper, is out dancing in the streets. Because even while General Motors prepares to ransack Chrysler LLC, the Viper sales are continuing undeterred. Although Chrysler sales overall are reportedly down a whopping 32%, Dodge continues to produce and sell Vipers at a rate of 100 units per month. Not just that, but the Viper ACR - the $105k track-prepped super-snake - is all but entirely sold out... not in spite of the poor economy, but because of it. Chrysler reports that with stock portfolios rapidly losing their value and dollar values plummeting, investors are seeing the Viper ACR - potentially to be discontinued and retaining a high resale value - as a sound investment opportunity. With smile inducing dividends, too. While GM and Cerberus talk take-over turkey, the fiscal viability of the Viper unit...
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Filed under: Government/Legal , Chrysler, LLC. , GM , Earnings/Financials In the latest development of The Incomprehensible Union, General Motors is reportedly asking the U.S. government for $10 billion -- on top of the $25 billion loan approved recently -- to help it merge with Chrysler. The supplemental infusion would give the government, i.e. you and me, a stake in the merged company in the form of preferred stock, would see the government taking over pension obligations and provide a credit line for operations. The government is weighing the request since it's likely that no federal official wants to be on the watch that saw the instantaneous vaporizing of two American icons and hundreds of thousands of jobs. The government has asked that as many jobs as possible be spared, and GM said "Sure!" Yet for a merger where cost savings and redundancy elimination have been the headlines, we don't know why anyone believes GM-Chrysler wouldn't jettison a whole bunch of the...
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Filed under: Chrysler, LLC. , Daimler , Earnings/Financials So, just what is a 19.9% stake in America's third largest automaker worth? Um, nothing. So says Daimler, which owns exactly that amount. The German company claims that, for accounting purposes at least, there is absolutely no value in its part-ownership of Chrysler. Just about a year ago, Daimler estimated that its share of Chrysler was worth some $1.17 billion. The remaining 80.1% was sold to Cerberus Capital Management last August for $7.4 billion. According to Chrysler, Daimler's idea of its stake in the company is a totally different animal than its own. The two companies use different accounting techniques to arrive at earnings figures and net worth, and the privately-held American automaker doesn't release its internal figures. As we've covered , Daimler is currently in talks with Cerberus to rid itself of any attachment to its former partner by selling its remaining shares of Chrysler to the American company...
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Filed under: Car Buying , Sports/GTs , Supercars , Chrysler, LLC. , Dodge Click for hi-res gallery of the 2008 Dodge Viper SRT-10 Cerberus may be trying to offload Viper , but not before it gives over a million Americans the opportunity to pick one up at discounted prices. Until now the Viper remained outside Chrysler's Employee Purchase and Certain Designated Individuals discount program, but that's about to change as the supercar joins the list of eligible vehicles. While Chrysler employs over 130,000 people, we doubt many of them, especially in this economic climate, will have the means or motivation to pick up the gas-guzzling V10 muscle car. However, an arrangement between Chrysler and Wal-Mart extends the benefits program to employees of the mega-retail chain, and with over 1.2 million employees, we're sure there are a few who'll take Chrysler up on its offer. Don't go rushing to pick up an ACR, however, as the track-focused model remains outside the program. Gallery...
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Filed under: Chrysler, LLC. , GM One aspect of the possible GM/Chrysler merger often overlooked is that Daimler didn't completely divest itself of its Chrysler ownership back in early 2007, and the German automaker's 19.9% stake could get in the way of any deal. Daimler has been clear that it is disinterested in becoming part of some Detroit super conglomerate, and Automotive News is reporting that Cerberus is close to a deal to buy up the remaining 19.9% stake. Also part of the rumor mill is possible involvement with Renault/Nissan, which has been actively working with Chrysler on collaboration projects in the past year. According to CNBC, the merger of GM and Chrysler could be complete within the next two weeks, but with neither of the two parties talking, it's all speculation at this point. Recent reports from the Wall St. Journal and CNN say that talks are rapidly accelerating, so there could be more to Chrysler/GM talks than we'd originally thought. Then again, the...
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Filed under: Chrysler, LLC. , GM , Earnings/Financials It's been a crazy few days as news broke that Chrysler and General Motors have been in talks to combine operations . It turns out that there's a pretty significant back-story to these proceedings, and it involves Cerberus Capital Management's possible desire to shed its car-building operations and acquire the rest of GMAC, of which it already holds a controlling stake of 51%, with GM holding holding the other 49%. According to reports, Cerberus would like to combine Chrysler Financial with GMAC, which would allow it to merge the offices of the two financial institutions and reduce costs. All right, that might make some sense, but what about merging the two automakers? That's the part that seems so confusing to analysts and us meager bloggers. Somehow, we feel certain that there's more to this story, which we'll be hearing about for some time. [Source: The Detroit News ] Read | Permalink | Email this | Comments
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Filed under: Plants/Manufacturing , Chrysler, LLC. Before Cerberus took over Chrysler, the Auburn Hills-based automaker announced that it would build a new axle plant in Marysville, MI as part of a broader plan to spend $3 billion on infrastructure upgrades. The new plant is under construction and scheduled to open in 2010, but the three headed dog's keen eye(s) on cash preservation has lead to talks with transmission maker ZF to somehow share the facility. It is unclear at this point what ZF, which is known for its transmissions but also produces axles for Mercedes, would get out of the deal, but the supplier would likely run the plant and get to build and sell axles for Chrysler, as well as other automakers, at the facility. The move to share the Marysville facility with ZF makes sense for Chrysler from a cash standpoint, and it could supply axles for one of the Pentastar's many collaboration projects with other automakers like Nissan. Regardless of whether ZF or Chrysler ends...
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Filed under: Chrysler, LLC. , Dodge , Jeep Automakers want top-notch quality in their vehicles because a good reputation for quality sell more cars. The pleasant side effect of high quality is spending less to repair your own vehicles. Millions of dollars can be saved per one percentage point improvement in warranty costs. Cerberus was quick to crack down on quality woes when it took over Chrysler, and the early fruit of its labor is hundreds of millions of dollars in warranty costs avoided. Chrysler cars and trucks are hitting the dealer less for repairs than before, which has resulted in a 29% drop in warranty claims for the automaker. That's good news for the cash-strapped automaker, and a big reason the privately owned company has earned $1.1 billion since the company's sale. The positive swing in warranty claims means Chrysler can appropriate less money for warranty claims in the future, giving it more money to spend on R&D, engineering, and, hopefully, interiors. If you're...
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Filed under: Chrysler, LLC. , Dodge , Misc. Auto Shows Click above for high-res gallery of Chrysler's booth on Woodward Ave. The Chrysler booth at the Woodward Dream Cruise is all about two things: muscle cars and Mopar. The Pentastar filled up the massive mall parking lot at 13 mile and Woodward with dozens of classic rides from the '60s, '70s, and today. Among the best examples of Motown Metal were old-school Chrysler 300s, a brilliant orange Dodge Charger equipped with the Super Bird wing, and quite a few vintage Challengers . For some reason the Nassau concept from the 2007 Detroit Auto Show keeps creeping up at all Chrysler events, and it made it's way to Woodward, too. Chrysler also had plenty of chances for Mopar fans to kick back and have some fun, including a massive slot car track , a rock climbing wall and Rock Band . Click on the gallery below to check out the pics in full resolution glory. Gallery: Woodward 2008 Chrysler Booth at 13 Mile Permalink | Email this...
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Filed under: Hirings/Firings/Layoffs , Chrysler, LLC. , Earnings/Financials , Rumormill Despite the fact that Chrysler shares are no longer sold on the stock market, rumors regarding the company's financial standing continue to haunt the number three domestic auto manufacturer in America. Last week, rumors regarding the negative cash flow were so rampant, a company spokesperson went out of his way to deny that the automaker was headed towards bankruptcy . Now, despite constant assurance from Chrysler that it's hitting all of its internal goals, the lack of announced future product and credit warnings from major firms such as Merrill Lynch and Fitch Ratings are causing some industry insiders to predict major changes from the automaker. Some analysts even believe that Cerberus is looking to offload or break up the company, allegations that Chrysler vehemently denies. Because the automaker is privately held, the world will just need to sit back and wait to see how Cerberus' so...
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Filed under: Podcasts , Hybrids/Alternative , Minivans/MPVs , Trucks/Pickups , Wagons/Estates , Crossovers/CUVs , Cadillac , Chrysler , Ford , GM , Mercury , Saab For three weeks in a row, now, we've brought you a new Autoblog Podcast courtesy of the B-Team. Here's episode #96 of the Autoblog Podcast, where Chris Shunk, Sam Abuelsamid, and Dan Roth kibbitz over some morsels of recent news. There's the requisite trip to the Autoblog Garage to start things off, then we move into actual discussion points like the CTS Wagon, a gasp of life on the Ford Ranger front, the massive confusion around Cerberus and Chrysler, and Hyundai's nose-thumbing at Toyota's hybrid technology. Remember to send in questions, comments, and suggestions for ways to mark the passing of upcoming episode #100 to podcast at autoblog dawt com. See you next week! SUBSCRIBE to the Autoblog Podcast in iTunes ADD the Autoblog Podcast feed to your RSS aggregator DOWNLOAD the show now Permalink | Email this...
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Filed under: Sedans/Saloons , Etc. , Chrysler When the Chrysler 300 dropped on an unsuspecting public in 2004, it was all crisp edges and upright stance, with a bulldog face to help drive home the message of urgent thrust delivered by a reborn Hemi V8. Chrysler's got a refreshing in the pipeline for the 300, and that's giving designers fits. It's akin to sophomore album syndrome - when the original is a huge hit, how, exactly, do you follow it up? Chrysler designers are invoking the Porsche philosophy used to update its 911 through the generations as a roadmap for the 300's body changes, so don't expect anything too dramatic on the outside. Inside, however, will be where the real action occurs. While not the worst interior Chrysler puts out, it's certainly got room for improvement. Cerberus chairman Steven Feinburg is reportedly passionate about improving the quality of Chrysler's offerings, and the lower quality materials we have today are being jettisoned in...
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Filed under: Car Buying , Etc. , Chrysler , Dodge , Jeep If you have a Dodge Ram in the driveway and someone claiming to be Jim Press calls you asking if you're satisfied with your truck, it just might be him. Chrysler recognizes that it has a customer service problem, and the Pentastar is going to extraordinary lengths to correct it. Its top 300 executives and directors are participating in a program called "Customer First" that puts a priority on -- you guessed it -- the customer. The executives, even guys named Nardelli, Press, and LaSorda, are responsible for at least one customer call per day, and all execs will man at least one shift at Chrysler's customer call center. The Pentastar elite are also partaking in a three month competition to see who can generate the most sales. We don't know what the prize is for the winner, but whomever claims top sales should get something really, really good. Like a lifetime supply of Chrysler Sebrings. [Source: Detroit Free...
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Filed under: Car Buying , Marketing/Advertising , Chrysler Car sales in the U.S. flat-out suck right now, and both domestic and Japanese automakers are feeling the pinch. Chrysler posted a 13.2% decline in its Daily Sales Rate last month while offering 0% financing, so the Auburn Hills-based automaker has little choice but to continue offering free loans in an effort to stop the bleeding. Current deals include five years at 0% for 2008 models and six years for leftover 2007 models. Chrysler is also dealing with folks with less than perfect credit, which is a risky move with credit restrictions so tight right now. Beyond money for nothing, Chrysler is also looking into further production cuts to keep dealer inventory in check. It's also cutting labor costs by offering buyouts to workers to shed its army of industrial storm troopers by up to 10,000. Times are tough right now in the auto industry, but if you're in the market to buy a new car, 0% appears to be making a comeback [Source...
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Filed under: Etc. , Chrysler , Dodge The recent decision by Chrysler to give employees a mandatory, unpaid two week vacation has workers peeved, and it's tough to blame them. Many long-time workers have already planned and paid for vacations that land outside of July 7-21, so those employees will have to cancel their plans or risk going unpaid for two weeks. It's very public news that Chrysler isn't exactly rolling in fortunes, and employees know that sacrifices being made, but as the Freep points out, Chrysler management really botched this one. The problem lies with the absence of communication regarding vacation time until less than four months before the scheduled time off, when many plans are already set, and some vacation is already taken. Then there's the fact that some of the product development is being shuttered for two whole weeks when Chrysler is already behind the competition and can't afford to take half a month off. Cerberus may be new to the auto industry...
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