About Chrysler Cars

Matthew C. Keegan asked:


Just before Christmas, the federal government announced that a $13.4 billion bail out package for the U.S. Auto industry had been approved. That package would allow General Motors and Chrysler to receive federal funding, monies which would keep the two automakers in business for at least the next few months.

Almost immediately, the federal government provided money for General Motors while also letting the feds purchase $5 billion worth of GMAC preferred stock, funds which in effect made the U.S. Government part owner of the automaker’s financing arm. Curiously, Chrysler hasn’t received a single penny yet, making some people wonder if the automaker would, indeed, receive money.

In a bid to quell rumors surrounding the lack of funding from the federal government, Chrysler LLC issued a statement recently to explain what was happening:

“We recognize the magnitude of the effort by the Treasury Department to complete these multiple financial arrangements quickly and sequentially. The discussions relating to Chrysler LLC have been positive and productive, and we look forward to finalizing the details of our financial assistance in the immediate future.”

Perhaps one of the sticking points with the Chrysler money is just how the automaker would cede shares to the federal government given that Daimler AG, which owns 19.9% of Chrysler to Cerberus Capital Management LP’s 80.1% stake. Last summer, Daimler wrote down its value in Chrysler to zero, suggesting that the automaker was worthless. Therefore, if the federal government is offering to lend Chrysler $4 billion, then exactly how much preferred stock would Chrysler be forced to provide?

Clearly, any sort of transaction could make the federal government the majority owner, given the depressed value of the automaker.

More than likely some funds will be made available in the next week or so as Chrysler teeters on the verge of insolvency. Yet, it is interesting to see that valuating Chrysler could be the sticking point in the loan as federal bureaucrats attempt to figure out some sort of value for the trouble car company.



Julia

edonthenet asked:


I am looking at buying a Chrysler T&C and was told if we get a Chrysler Employee Choice Number we could get a better deal.
Thanks for any help.

Roland

Evander Klum asked:


Chrysler LLC has a new item that will be added to its wide range of product lineup with the release of the 2008 Chrysler 300 full size entry level luxury sedan. For the 2008 model year, Chrysler added new premium features inside and out and a redesigned front end exterior styling. In addition, the 2008 Chrysler 300 also comes with a powertrain system equipped with new fuel efficiency technology.

This new fuel saving technology for the 2008 Chrysler 300, called the “Fuel Saver Mode” display found on the Electronic Vehicle Information Center (EVIC) allows the driver to determine if the 5.7-liter HEMI engine is on four-cylinder mode. With this display, the driver can adjust his driving methods to achieve for more fuel economy.

Outside, the 2008 Chrysler 300 comes with facelifts on the front and rear fascias, new rear deck lid, SRT-inspired integrated spoiler, new bodyside molding, and new taillamp design. Exterior paint options for the vehicle include Clearwater Blue Pearl Coat, Dark Titanium Metallic Clear Coat and Light Sandstone Metallic Clear Coat. The Chrysler 300 also rides on a new 17-inch machined face aluminum wheels with 17-inch wheel covers. Just like the new Honda Accord Tourer with quality Honda hub caps.

Inside, the 2008 Chrysler 300’s interior complements the sleek exterior appearance of the car. The 2008 Chrysler 300 is equipped with a sophisticated interior design accented by the new instrument panel, center console design, instrument cluster, and door trim panels. Interior highlights of the 2008 Chrysler 300 include available adaptive cruise control (Chrysler 300C) Faux wood interior accents (Chrysler 300 Limited), iPod interface added to UConnect module LED lighting in front cup holders and front- and rear-door map pockets, new interior color combinations, (Dark Khaki/Light Graystone and Dark Slate Gray), new cloth seat material and new speed control stalk. In addition, the car also comes with an upgraded soft-touch surfaces on arm rests, center console, and the door trim as well.

The 2008 Chrysler 300 also features a host of in-car information and entertainment systems. These include AM/FM/CD/MP3 radio, optional AM/FM/6CD/DVD/MP3 radio, MyGIG multimedia audio and entertainment system with available navigation, Boston Acoustics eight-speaker 5.1 Matrix Surround Sound amplifier including subwoofer, rear-seat Video Entertainment System (VES), SIRIUS Backseat TV, and remote start. Chrysler won’t compromise the safety of its customers. The 2008 Chrysler 300 comes with a host of passive and active safety components to provide the best protection during car accidents. These include power adjustable pedals, side-curtain and seat-mounted side air bags, and tire pressure monitor warning lamp.

Now for customers who wanted additional features, Chrysler offers two luxury packages. The first one consists of sun roof, 276-watt DSP Amp speaker system, California Walnut wood accent on steering wheel, door pulls and interior trim, SmartBeam headlamp control system, and rain-sensing windshield wipers. Additional options include adaptive cruise control, passenger side auto-dimming mirror, heated rear seats, and mirrors with turn signals and puddle lamps.

Chrysler did not yet announce the manufacturer’s suggested retail price (MSRP) and the availability of this model.



Dawn

linzksun1 asked:


Is that what the star and the CC mean? And if it does have that does that mean the chrysler corp actually manufactured that part or does chrysler have other companies that manufacture some of their parts?

Darlene

Anthony Fontanelle asked:


The launch of the 2008 Dodge Challenge is fast approaching and details of the car are slowly leaking out. According to Automotive News, Dodge plans to roll out the Challenger in two phases. A 5,000-car limited-run 2008 Challenger SRT will be unveiled at the 2008 Chicago Auto Show in February. The SRT version will be equipped with the 6.1-liter Hemi mated to a five-speed automatic.

The Challenger will be made in limited numbers on the same line as the Dodge Charger, Chrysler 300, and the Dodge Magnum in Brampton, Ontario, Canada. The flexible manufacturing system permits the Jeep Grand Cherokee and Jeep Commander to be built on the same line, as well as the Dodge Caliber, Jeep Compass, and the Jeep Patriot, end-to-end. This serves as a replacement to the batch production method.

For the 2009 model year, Dodge will expand the Challenger lineup to cover both 6.1- and 5.7-liter Hemi versions. The models will be showcased at the 2008 New York Auto Show in March. A six-speed manual will be added. Aside from the reliable Dodge shocks and other auto accessories, the automaker plans to add a dual-clutch transmission to the car. The automaker will be increasing the Challenger’s production output to 30,000-35,000 cars in 2009, continued the report.

In January 2006, Dodge unveiled the Challenger Concept at the same venue that saw the debut of Ford’s Concept Mustang three years prior - the North American International Auto Show. A relatively long hood and Chrysler’s idiosyncratic gangster window line flow into broadened and raised rear haunches, barely housing huge 21-inch wheels, and black stripes of unpainted carbon fiber run the length of the vehicle’s body. There is no denying it - the upcoming Challenger looked positively superior when the sheet is whisked off.

Soon after the launch, Inside Line visited Chrysler’s Pacifica Design Studio in Carlsbad, California, where the 2008 Dodge Challenger Concept was designed. “Early on, we just tried to capture ‘Mopar’ in the designs,” Mike Castiglione told Inside Line. “We tried to capture the beveled edges that were uniquely Mopar back in the muscle car days. If you look at an old Challenger or Charger, the lines have a snap to them. Once we figured that out, then we got more focused.”

Two Challenger Concepts were manufactured, both powered by the popular 6.1-liter Hemi V8. The first was the stunning orange Challenger Concept designed to be a street car that produces 425hp. The second concept is the 525-hp flat-black Challenger Super-stock concept which knocks off 11.0-second quarter-mile runs.

According to the automaker, the concept cars are based on a shortened Dodge Charger platform and are topped with carbon fiber bodies. To stress, both are real runners. Unlike all other American domestic sport coupes, the new Challenger is a true two-door hardtop, with no B-pillar. Recent spy photographs of production test mule Challengers have revealed the presence of a B-pillar, but it is as yet unclear as to whether actual production models will contain the B-pillar.

Late to arrive in the performance car arena, the 2008 Dodge Challenger is esteemed to smash into it big time.



Howard

Evander Klum asked:


The sale of the Chrysler Group has aroused various reactions. There are some who thinks that it was the best solution like for instance Veteran Des Moines-area Dodge dealer Stew Hansen who thinks that the sale of the Auburn Hills-based company was an absolute necessity.

If there is that analysts and Chrysler dealers agreed on it’s the fact that the automaker must change quickly under its new owner, Cerberus Capital Management, to win back customers.

The new owner of Chrysler Group is Cerberus which is a private equity company in New York City. Cerberus has expressed its desire to revive the Chrysler Group the maker of Dodge including the Dodge Charger parts and Jeep vehicles. It has bought the automaker from Daimler for $7.4 billion. According to Doyle Jensen, Finance Manager for Adel Chrysler Dodge Jeep, “I think we need fresh blood in Chrysler.”

At present Chrysler is trying to shift its product line to smaller more fuel-efficient models that carry smaller profit margins. Krebs said that Chrysler must lessen its dependence on sales of big vehicles such as pickup trucks and its larger sport utility vehicles. Krebs also added that Chrysler must learn to develop subcompacts that can compete with the likes of Honda Fit and the Nissan Versa. Krebs also thinks that Chrysler should negotiate with the United Auto Workers Union for a favorable contract especially one that would help reduce the company’s health care costs.

Chrysler has been able to roll out 10 new models last 2006 and will be releasing four more for this year plus an additional of four new models later in the year. Currently Chrysler has six vehicles that include small sporty utility vehicles that get more than 30 miles per gallon.

The concerns of local Chrysler dealers

On the part of the local car dealers their main concern is for Cerberus to have a better understanding of what their customers want. Jensen believes Daimler, renowned for its Mercedes-Benz brand bought Chrysler AG nine years ago hoping to enter the mainstream American car market but unfortunately it wasn’t prepared for the fierce competition that it has to face. Jensen said, “I think they’re tired of it.”

Hansen who is the general manager and former owner of Stew Hansen’s Dodge City, a Dodge and Jeep dealer said that in Germany, manufacturers “expect to put a car out there and the German people just buy it because it’s a Mercedes or a Volkswagen or whatever.” On the other hand here in United States, sales competition among automakers is aggressive, fueled by promotions, rebates, and low-cost-financing.

Hansen was very open about his dislike of Daimler’s German leadership. He thinks it’s too rigid and overbearing with its relations with Chrysler product dealers. He said, “It was their way or the highway is just the way it was.”

Tim Westrum, the owner of Granger Motors stores in Granger and Perry has also given his views on the transfer of Chrysler’s ownership. He said that ownership by the private equity group will help promote long-term strategies that will strengthen the company.

But unlike Hansen, Westrum has a different opinion when it comes to Daimler; he said that the German automaker has helped Chrysler in ways such as improved quality. He observed that Daimler will still own nearly 20 percent of Chrysler, “It’s not like they’re washing their hands of the company. There are some good things that Daimler brings to the table such as engineering, product development and quality.”



Colleen

2nd Commander asked:


I just got my statement for my new car from Chrysler. I was wondering if they would allow me to pay with credit card haha. Because I get some cash back for any purchases. I know they have a Dodge card. I’m not sure if it’s credit or debit, or if they will let you pay off your car with that.

Do i have to pay through my checking account? I have the money just wanna reap some rewards.

Lisa

Dave Foord asked:


There’s always safety in numbers and this appears to be true for the big three automakers in the US. Each individual company has had its own problems over the years, but at the end of the day falling sales have resulted from designing and producing cars that people just don’t want to buy. Major restructuring is the only way these behemoths can possibly survive. The problem is they don’t have the cash to do it. Or do they?

Taking each company individually, Ford would appear to be in the strongest position. Still one of the market leaders in Europe, Ford seems to have realised the error of their ways. Now producing some of the most economical European cars with their Econetic range, Ford are at least moving in the right direction and the money they have asked for will only be taken up if the economy continues on its downward spiral.

General Motors differs from Ford. General Motors is in big trouble. It needs the money and it needs it NOW. It needs it to pay its workforce, it needs it to pay its suppliers. In short it needs it to survive. The only glimmer of hope on the horizon would appear to be the Volt, GM’s plug in hybrid slated to be launched in 2010 or 2011. However when you use 3.1 million dollars per minute 2011 looks a long way away. Does it deserve the bailout? Probably not, but it has nowhere else to go and as a result GM will no doubt continue to limp along as no political party will want it to fail on their watch.

So to the last and the smallest of the big three, Chrysler. The big difference with Chrysler is who owns them. In 2007 DaimlerChrysler sold an 80.1 percent stake in Chrysler to the New York based private equity firm, Cerberus. Their Chairman John Snow, a former U.S. treasury secretary said at the time “We think at this particular point in Chrysler’s history, there may be opportunities in the private world, the world of private investment, that create more room for growth and expansion”. Whoa, whoa, whoa. The private world? The world of private investment? What’s gone so badly wrong that in just over a year it’s been decided that the problems with the company your company acquired cannot be solved by the private sector?

Take a look at the Cerberus website and it states that the company holds controlling or significant minority interests in companies around the world that generate over 100 billion dollars in annual revenues. A large sum of money in anyone’s book. Delve further and you will see a list of diverse companies from banks to burger franchises, paper manufacturers to plane leasing companies, companies that no doubt continue to make a healthy profit for their parent company. Can’t they use their own money to save Chrysler and the jobs that Chrysler provides?

Cerberus paid 7.4 billion dollars for their stake in Chrysler. They obviously expected some return for their investment. Unfortunately, the global economic downturn and the fact that Chrysler have concentrated on gas guzzling, uneconomical, minivans, SUV’s and pickups mean that that return is further away than ever. But surely that’s THEIR problem and not the problem of the American taxpayer. It really does leave a sour taste in the mouth when a private equity firm goes begging for government dollars. And for what? To postpone the inevitable and save Cerberus a few billion bucks along the way. Cerberus bought it. Cerberus should sort it.



Ethel

Noah Scott asked:


Last Monday DaimlerChrysler and General Motors — the world’s largest automaker and producer of the popular GM cargo liners — have engaged in an intensified talk about the possible linkup between Chrysler division and GM. According to reports from the Financial Times, DaimlerChrysler is considering taking a stake in Europe’s largest automaker in exchange for its money-losing Chrysler unit.

The Financial Times, citing people familiar with the situation, said that DaimlerChrysler is weighing on the possibility of trading Chrysler for GM stake or to sell Chrysler to private-equity firms such as Blackstone Group, Apollo Management LP, Carlyle Group, and the Cerberus Capital Management. The four mentioned private-equity firms have refused to comment on the matter.

Likewise, DaimlerChrysler denied reports that it is still interested in keeping Chrysler and this was confirmed when DCX Chairman Dieter Zetsche said that all options for the Chrysler Group are now laid on the table and he further said that the possibility of a sale is not ruled out from the options.

It is no secret that General Motors is the world’s largest automaker but despite its status as a global automotive power it has been losing market share in the US. And everybody knows that it is undergoing a massive restructuring that resulted to the closing of plants and cutting down of jobs. DaimlerChrysler is probably considering such facts before it decides on exchanging its Chrysler for GM stake.

Last Monday, a newspaper has also reported on its website that the Chairman of the Magna International Inc. had a meeting with two of the largest unions at Chrysler to discuss solutions on how to help the automaker surpass its current crisis. The meeting that transpired between Magna Chairman Frank Stonach and union leaders has become a rumor circulating through the auto industry. According to some sources familiar with the situation, Magna plans to takeover Chrysler in exchange to make the Canadian auto parts giant into a full-fledged automaker. DaimlerChrysler has not yet given any comment on this report.

A Senior Chrysler official last Friday told The Associated Press that the company is going to supply detailed financial information to some of their selected potential buyers and is working in partnership with its investment bank the J.P. Morgan Chase & Co. to avoid divulging sensitive information.

Meanwhile, Russia’s second biggest automotive company, the OAO Gaz Group has also expressed their non-interest on Chrysler after reports came out saying that they are interested in purchasing Chrysler– allegedly reported by the German weekly magazine Focus. The magazine did not cite any sources according to GAZ which is supplied by Chrysler with four-cylinder engines for the Russian company’s minivans and cars. Other automakers that have expressed their non-interest in Chrysler include Volkswagen AG, Renault-Nissan Auto Alliance and Hyundai Motor Co.

Most analysts think that an equity deal would benefit GM since a domestic tie-up would be much easier for Chrysler instead of a foreign buyout. “Since GM is short of cash, an equity deal would make sense if it is interested in Chrysler, and an equity valuation of Chrysler at, say, three billion euros or $3.94 billion USD would wind up giving DaimlerChrysler a 20 percent stake in GM,” said Stephen Cheetham, a senior analyst with Sanford C. Bernstein Ltd. He also said that “this kind of deal has some face-saving potential for management, and we believe that from a shareholder perspective, 20 percent of a combined GM/Chrysler entity is preferable to owning Chrysler outright. However it does not give DaimlerChrysler a clean break from equity exposure to the troubled world of US domestic carmakers, and we would expect the presence of a GM stake to be an ongoing irritant in its relations with investors.”

DCX shares increased by 0.3 percent to 53.93 euros or $70.83 in Frankfurt trading however the company’s US shares fell by 13 cents to $70.79 in an early trading on the New York Stock Exchange as compared to GM shares which rose by 33 cents to $34.59.

Chrysler has earlier announced it’s lost of $1.475 billion in 2006 and said that it expects losses to continue through 2007. On the other hand, its parent DaimlerChrysler has earned $4.26 billion in 2006. As part of the continuing losses that Chrysler is experiencing, the automaker will cut 13,000 jobs which include 11,000 production workers and 2,000 salaried employees. It has also announced the closure of one of its plant and additional layoffs at some of its other plants.



Larry

Jack asked:


It’s not like GM is going to do any better at all. I don’t understand at all why we had to bail out these two crappy comapnies.

Why didn’t Toyota, Nissan, and Honda need bailouts as well? True, they are Japanese companies (but they build some of their cars in the US) but you get the point. They are not struggling like GM, Ford,and Chrysler.

This is what happens when you build crappy, unreliable cars.

Reginald