Chrysler Suppliers Revolt, Demand Cash On Delivery For Parts [Carpocalypse Now]

Following the failure of the auto industry aid bill in the Senate, Chrysler's suppliers are demanding payment before any parts hit the assembly line in what is a major blow to the already embattled automaker. A little known part of the auto business is the contractual payment agreements between the end customer (Chrysler) and the supplier. Because parts may not conform to quality requirements, may fail in testing or may become damaged in transit, payment for parts is not done on arrival. Instead, payment is done after an agreed upon delay, normally anywhere between 30 and 90 days. Some of the more abusive customers stretch the delay all the way out to 180 days. This is great for the customer as it allows them to improve the balance sheets and free up revenue to do other things. It is not great for the supplier as they have a delayed return on investment and get to sit on their hands risking non-payment if the customer goes out of business. With Chrysler teetering on the brink of bankruptcy and the government appearing indifferent to collapse, the suppliers are no longer interested in trusting Chrysler to pay on those orders. It makes a lot more sense to demand payment on delivery than trust in Chrysler's survival. If Chrysler defaults on payment the suppliers will be up a creek without a paddle. By withholding parts they're hedging their bets, either Chrysler pays for them now, or they'll be able to sell the parts to distributors for maintenance duty. This is a major issues for Chrysler as they don't appear to have planned for a shift of budget in this manner. Typically, revenue flows in and becomes payment for contracts in the past, not in the present. If the supplier sentiment spreads, Chrysler's lines will starve for parts, and the Carpocalypse chain reaction will begin in earnest. [AutoNews Subs. Required]

 

Bailout Watch 284: White House Promises GM and Chrysler TARP Funds

The Washington Post reports that President Bush has signalled (from Air Force One no less) that he will "consider using funds from other sources to provide emergency aid to the nation's Big Three car companies following the Senate's rejection Thursday night of a Congressional bailout plan." This is a reversal of Bush's previous insistence that [...]

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Furies Watch: Chrysler Edition

In the cosmology of the ancient Greeks, the universe would not tolerate a gross breach of justice. When a hero was killed with dishonor or without completing his destiny, supernatural forces would emerge from the cthonic realm to haunt the guilty party. These karmic enforcers were called the Erinyes, or Furies, and they are coming [...]

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Chrysler Celebrates 25 Years Of The World’s First And Favourite MPV

Chrysler is celebrating a quarter-century of MPV innovation, on-going development and leadership since launching the world's first MPV.

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Bailout Watch 299: Chrysler “Government Loan Unlikely To Be Repaid”

With GM, the bailout is pretty straightforward. Give us money or the economy dies. With Chrysler, it's a lot more… complicated. In case you hadn't noticed, ChrCyo owner Cerberus is looking for an exit strategy. Give us the money and we'll sell/give our 80 percent share of the company to someone else. The United Auto [...]

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Chrysler Co-Prez Jim Press is Insane

When Chrysler stuck its nose in the bailout trough, the ailng American automaker's executives  had to wonder what the Hell anyone within the company could possibly tell lawmakers/money givers about Chrysler's viability. Except, you know, the fact that they don't have any. But never underestimate the power of positive PR or, as we call it [...]

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Chrysler LLC Begins Spending Government Loan with 'Thank You America' Print Ad...

American taxpayers will be glad to know that the folks over at cash-strapped Chrysler LLC thank them for the approved government loan of $4 billion that they received to help bridge the current economic crunch. In fact, Chrysler is so thankful that it created a new "Thank You America" print advertisement. First of all, if Chrysler wanted to be...

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Chrysler: America's Bimmer, Benz?

DETROIT -- If Chrysler LLC can survive its financial crisis, it will emerge as a boutique enterprise along the lines of Germany's premium carmakers, co-President Jim Press said in an interview last week. He suggested that Chrysler could show the way to a sustainable model for ...

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Can't win for losing: Chrysler criticized for "Thank You" ads

After receiving at least $4 billion dollars in low cost government loans, Chrysler, LLC thought the least it could do was thank the American people for their support. Instead of calling a press conference or writing a heart-felt letter to major newspapers, team Pentastar thought it best to take out full page ads in newspapers across America. Actually, maybe it wasn't such a good idea (not to mention several pop-up text ads). It seems there are quite a few Americans that don't like the fact that Chrysler found the need to spend hundreds of thousands of dollars taking out ads in papers when the company is struggling to remain in business. The full page ads were run in papers including the USA Today and Wall Street Journal, where the price of a full-page ad can reportedly cost up to $264,000. Action group American Solutions calls the ads "a precise example of the fact that they do not get it" and Americans for Tax Reform likened Chrysler's ads to a polite robber that said please and thank you but still made off with the cash. It's not surprising that special interest groups would jump on the ads, but apparently some tax-paying Americans are just as displeased. A click over to Chrysler's blog shows some angry responses. There are 15 consumer responses so far, and none of them are positive. We're no ad gurus, but this didn't seem like a very good idea from the start, and it appears we're not alone. [Source: Fox News]

 

Chrysler's 'Thank You' Ads: Not the Best Idea

Readers of the nation's major newspapers -- those still reading paper, anyway -- by now have seen splashy full-page ads from Chrysler LLC thanking "America" for its bailout-investment in the company. No harm in being contrite, but just like winging into Washington, D.C., on a trio of exec jets to demonstrate their dire financial straits, the "Thank You, America" ad isn't going to go down as one of Detroit, Inc.'s more wizened PR stunts. Chrysler's $200,000-a-pop Hallmark moments are being called out in all quarters as mindless and myopic. Fox News criticized not only the "spend" itself but the symbolic cluelessness of it all. If Chrysler had a brain, it could have done a "viral" Web campaign for practically no cost, and appeared all the more intelligent and resourceful for doing so. And, as one advertising-world reaction rightly noted, Chrysler's profligate ads are likely to be construed as proof the car companies simply can't figure out how to stop spending money -- particularly for inanities such as extravagant ads to express gratitude for the federal loans necessary to keep them from going bankrupt. Even one of Detroit's hometown newspapers, the Detroit News -- which itself would have been happy to cash a taxpayer-funded Chrysler check for a piece of the thank-you business that went to the Wall Street Journal and USA Today -- busted Chrysler's chops: "Although [the Detroit News] applauds spending money for any newspaper ads, we need to point out that most of the Americans you're thanking still don't think carmakers should get any taxpayer-backed bailout loans. Those folks may get even more cheesed-off seeing you write six-figure checks for their money to buy ads thanking them for something they don't think you deserve and didn't want to give you in the first place."

 

Cristiano Ronaldo crashed his Ferrari

We're usually not big on celebrity news at TopSpeed, but this wreck would have made it even without a sports star piloting this Ferrari to its demise. Soccer superstar (footballer to the rest of the world) Cristiano Ronaldo was out for a drive this morning when his Ferrari 599 met the wall of a tunnel near Manchester Airport in England. No other cars were involved in the accident, and the Manchester United player escaped without a scratch. Unfortunately we can't say the same about his (...)

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Forget the G8 ST: Chrysler studying unibody pickup

Just as General Motors announces the death of the short-lived El Camino revival Pontiac G8 ST, comes news that Chrysler is considering making a place for the same market with a uni-body pickup. Perfect timing, right? Considering the Pentastar brand trotted out a revived Dodge Rampage concept back in 2006 at the Chicago Auto Show, the news isn't particularly shocking. That concept was supposed to preview the direction the brand could take with future pickups, as sales of the Dakota mid-sizer were falling rapidly. Despite the slow sales of traditional small trucks, the market isn't exactly dead. Competition for a new Rampage truck could come from Toyota, which already announced it was considering producing the A-BAT and General Motors, which could replace its GMC Canyon with a unibody truck based on the Denali XT concept. Honda is currently the only player in the uni-body truck market with the Ridgeline, though that model has been on the market since 2005, has seen few meaningful changes and hasn't set the world on fire. Gallery: 2006 Dodge Rampage Concept [Source: Detroit News]

 

Could Chrysler's "Project D" be a Nissan?

Chrysler has been eerily silent about what, if anything, is in the works to replace the Avenger/Sebring twins, other than giving the replacement plan a cryptic "Project D" moniker. The pair are still relative newcomers to the scene, but the competition has delivered Chrysler's midsizers a sound drubbing both in the press and on the sales charts. The problem is that development costs money, something that's currently hard to come by. Thinking strategically, the unloved and outgunned Chryslers might seek solace by relocating to the Nissan Altima's platform. The Altima is one of the best - and best-selling - vehicles on the market. Put plainly, we would dive on an Altima's keys to avoid driving these Chryslers. A relationship between Chrysler and Nissan already exists, with plans for Chrysler to port the Ram over for Nissan to rebadge as the next Titan, and a version of the Versa wearing Pentastar badging for the South American market is in the mix, so it's not like the two companies are strangers to each other. If Chrysler decides that it still wants its own platform, a partnership with another company to do the building might still be in the cards. Project D is about finding the most economic way to bring a competitive midsize sedan to market, including shrewd lash-ups. According to Kicking Tires, Chrysler hopes to have a partner chosen by the end of the first half of 2009, with Nissan already being acknowledged as one of the possibilities. [Source: Kicking Tires]

 

Chrysler 200C EV Concept: Platform for Future Chrysler Connectivity Features

The passion for state-of-the-art, transformational vehicle connectivity continues at Chrysler LLC, as demonstrated in the all-new Chrysler 200C EV concept. Delivering unprecedented connectivity in the areas of convenience, socialization and synchronization, the Chrysler 200C EV connects consumers' online and on-road environments in state-of-the-art fashion as consumers begin to treat their vehicles as their second home."Chrysler [...]

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Chrysler 200C EV Concept

The definitive blend of design and technology, the all-new Chrysler 200C EV concept redefines the idea of responsible mobility with a touch of class and sophistication never before embodied so elegantly in one vehicle."The Chrysler 200C EV concept represents the perfect blend of provocative design and leading-edge technology, as well as the new Chrysler DNA," [...]

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Detroit Show: Chrysler's Gorgeous 200C Hybrid-Electric Concept

Seeing Chrysler's all-new 200C mid-size sedan concept, it makes you wonder how different things would have been for the brand if it had presented a car like this as the Sebring's replacement. Blending the classic, rear-wheel drive design proportions and low roof line / high beltline of the Chrysler 300 with modern styling elements, the 200C is a...

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Ferrari F60

Ferrari unveiled the F60 today. While a new F1 car doesn't always make headlines with us, this one seems to have dropped in a few nifty new features, and it celebrates an anniversary. It's the fifty fifth single-seater built by Ferrari specifically to compete in the Formula 1 World Championship. Starting 1950 Ferrari has competed in all the 60 editions of the Formula 1 World Championship (60 years of Ferrari; F60, get it). Ferrari has redesigned the front and rear spoilers as well as the (...)

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2009 Chrysler 200C EV Concept

(from Chrysler Press Release) Chrysler 200C EV Concept: Contemporary Design, Range-extended Electric Vehicle Drive System and Platform for Future Connectivity * Inspired and soulful look at the new Chrysler DNA * Beauty and brains coalesce in Chrysler 200C EV concept vehicle with design and technology appeal * Futuristic in-vehicle connectivity takes center stage * ENVI's Range-extended Electric Vehicle drive system with 400-mile range * 40-mile, all-electric range with zero fuel consumption and zero tailpipe emissions   Detroit, Jan 11, 2009 - The definitive blend of design and technology, the all-new Chrysler 200C EV concept redefines the idea of responsible mobility with a touch of class and sophistication never before embodied so elegantly in one vehicle. "The Chrysler 200C EV concept represents the perfect blend of provocative design and leading-edge technology, as well as the new Chrysler DNA," said Frank Klegon, Executive Vice President – Product Development, Chrysler LLC. "Chrysler's latest concept vehicle combines the benefits of progressive, ENVI Range-extended Electric Vehicle technology – which offers nearly zero emissions during daily commutes – with a design that boasts a combination of modern shapes, a planted athletic stance with classic overtones and an undeniably luxurious interior. The Chrysler 200C EV concept body was designed to manage aerodynamic forces while delivering a stunning form. On the inside, the 200C EV continues the theme of embracing the future with a highly sculpted and richly appointed environment. The interior is free of switches and levers. All vehicle functions, settings and uconnect features are managed via a panoramic multimedia touch screen, a passenger-dedicated "techno-leaf" and a stowable tablet PC. Based on a shortened version of Chrysler's successful rear-wheel-drive platform, the Chrysler 200C EV is a performance sedan in a package that looks spirited and agile. It delivers a blend of style, performance and amenities that both automotive and technology enthusiasts want. © Source: seriouswheels

 

Report: Chrysler in talks to sell brands to Renault, Magna

Chrysler's parent company Cerberus is in talks with Renault-Nissan and Canadian parts supplier Magna about selling its various car brands, according to a report published late Wednesday. Renault-Nissan is said to be interested in Jeep, while Magna might have its sights set on Chrysler and Dodge, or perhaps just the rights to certain models. Three sources [...]

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Chrysler Attempting To Sell Jeep To Renault-Nissan Or Magna [Over The Back Fence]

Struggling to restructure itself to meet demands for the bailout, Chrysler is in talks with Renault-Nissan and parts supplier Magna to sell off its assets. Those assets include Jeep. All parties currently deny that they're having this discussion, but Reuters is reporting otherwise. Why the hush hush? Carlos Ghosn is only interested in all or part of Chrysler if it actually gets all the bailout money. The companies are currently trying to figure out an arrangement that would permit the sale of one or more brands, but retain those brand's ability to benefit from the funding. Le Figaro reports that Renault is trying to raise $3 Billion for the purchase by selling convertible bonds. Renault denies that claim. [via Reuters]

 

Chrysler denies asset, brand sales

Despite well-publicized reports that Chrysler is in serious discussions to sell off some of its assets, including its core auto brands, Jeep, Dodge and Chrysler, the automaker's President adamantly denied the reports. Chrysler LLC President Tom LaSorda said this morning on a conference call with the media that the company has no intention to sell [...]

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Magna may be in talks to buy Chrysler

Rumor has it that parts supplier Magna International, and car makers Renault/Nissan are in talks to buy Chrysler, or some assets. Chrysler denies the rumor, which also says that Jeep is up for sale.

 

Top 10 2009 Detroit Auto Show Concept Debuts

After releasing our Top 10 2009 Detroit Auto Show Production Debuts - we thought it was only right to bring you Top 10 concepts that made their debut in Motown. Some of the concepts will never see the light of day - others may be on the road within 2 to 3 years. The list goes from no. 10 to no. 1 with no. 1 being the most forward design wise, along with the possibility of a production model. Disagree with the list? Have your say in the comments section below. Follow the jump for the full list. 10. Kia Soul'ster Concept:   It's got soul - but does it have potential. You decide. 9. Lincoln Concept C:   Lincoln MINI competitor - but is it even possible? We'll have to wait and find out. 8. Dodge Circuit EV:   Dodge EV gets a name and some cosmetic changes. 7. Chrysler 200C EV:   Chrysler's EVNI keeps pumping out concepts. Will they ever reach production? 6. Subaru Legacy Concept:   The next-generation Legacy may be the best looking Subaru ever designed. 5. Volvo S60 Concept:   Next-generation Volvo S60 will be sportier inspired by the race track. 4. Cadillac Converj:   An expensive luxury Chevrolet Volt coupe. Is that the answer to GM's problems? 3. Volkswagen BlueSport Concept:   An almost production ready version of the Volkswagen Roadster due out in 2012. 2. Audi Sportback Concept:   A hint at what the future Audi A7 four-door-coupe will look like. 1. Fisker Karma S Concept:   And just when you thought that the Fisker Karma couldn't get any better. Here is a look into what Fisker has planned for the future.

 

Chrysler's LaSorda denies sale of brands

One of the biggest criticisms for struggling Detroit carmakers General Motors and Chrysler is the number of brands they have under the one roof and the associated problem of selling models that often compete with one another in the same segments. In its efforts to secure its share of a federal bailout, GM said it intends to focus its U.S. product and marketing resources on four core brands, namely Buick, Chevrolet, Cadillac and GMC, leaving the others in a state of limbo. According to a report early Wednesday, Chrysler was also reviewing the future of some of its brands and was possibly in talks with Renault-Nissan and automotive parts supplier Magna International about selling some of its key assets. Read more

 

Dodge, Jeep, and Chrysler Electric Vehicle Concepts - Video

Chrysler shows it has a slew of electric vehicles in the pipeline, including a Chevy Volt competitor, and they're coming to a road near you soon. Keep Reading: Dodge, Jeep, and Chrysler Electric Vehicle Concepts - Video

 

Chrysler Axes the PT Cruiser

PT Cruiser is the seventh model since 2007 to be discontinued by Chrysler. Sales for the retro-styled Cruiser were down to 50,910 units in 2008 from a high of 144,717 back in 2001.

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Chrysler has discontinued the PT Cruiser...

Jan. 14 (Bloomberg) -- Chrysler LLC, pruning its lineup to save money, will stop building the PT Cruiser this year and is seeking buyers for the equipment used to make the model, President Tom LaSorda said. Production "ends this summer," LaSorda said today in a telephone interview. "Would we sell those assets? Yes. Do we have any offers to sell those assets? No. Would we be pursuing a buyer? Yes." The PT Cruiser, with a rounded body to mimic 1930s-style station wagons, would be the seventh model to be canceled since Cerberus Capital Management LP bought Chrysler in August 2007. The third-largest U.S. automaker is using $4 billion in federal loans to stay in business while reshaping operations to end losses. more detail. ...

 

Ferrari F450 rendering

It's been a little while since we did any speculation on Ferrari's F430 successor, so we thought we'd have a little rendering fun. Taking a few design cues from the F430 as well as the Millechili concept, we expect the new car to have adjustable aerodynamics that not only operate the rear wing, but will also possibly adjust the front spoilers and air intakes. The engine in the F450 should make over 500 hp, considering the F430-based Scuderia Spider 16M makes 510 hp with its V8 (...)

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Chrysler PT Cruiser production to end mid-year

Chrysler co-president Tom LaSorda has confirmed that production of the PT Cruiser will come to end by the middle of this year, citing falling sales and no future updates as the key reasons for the vehicle's demise. Released in 2000 with retro looks and an affordable price, the car immediately became an icon for many, allowing dealers to inflate their prices to suit the demand. Nine years later the car remains almost untouched, barring subtle styling changes made in 2006. This makes the PT Cruiser the seventh model to be axed from Chrysler's lineup since new owners Cerberus Capital Management stepped in.

 

Chrysler officially kills the PT Cruiser

The Chrysler PT Cruiser was one hot item when it launched back in 2000 – with many dealers selling the retro tall wagon for over sticker price – but the Cruiser has languished without any significant updates in the subsequent years, transforming it from a sales stud to a sales dud. But the pain [...]

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Barack Obama's Used 2005 Chrysler 300C Up On eBay

If I remember correctly, the current owner of Barack Obama's used 2005 Chrysler 300C is a restaurateur in the Detroit area and he only knew about the previous owner of the car when he already bought it. What luck! By the way, Obama sold it off because this car is not environmentally friendly and he had to get rid of it in order to attack GM and Chrysler for the vehicles. Obama replaced this car with a hybrid. Starting bid for the car is US$100,000 which the owner justified with the transacted prices of some other vehicles, namely Pope John Paul's Ford Escort which fetched almost US$700,000 and the BIN price has been set at a million dollars. Real market value for such a car, without taking into account its previous owner, is priced at about US$13,500. Read More

 

Chrysler extends shutdowns at five plants

Chrysler LLC announced that it will be extending shutdowns at five factories that were originally scheduled to reopen on Monday, January 19th. All five plants will take off an extra week and reopen on January 26th. The five-assembly plants include: Belvidere, Ill.; Sterling Heights, Mich.; and Toluca, Mexico. Chrysler's Global Engine Manufacturing Alliance engine joint venture and its Trenton, Mich., engine plant will also take another week off. According to Automotive News, Chrysler said that the extended shutdowns come due to difficult economic conditions and slow sales. Chrysler sales dropped 30 percent in 2008 and 53 percent in January - the biggest drop amongst large automakers. Other plants including the Windsor, Ontario, and Conner Avenue in Detroit will reopen as previously scheduled on February 2.

 

Chrysler Financial secures $1.5b government loan

The U.S. Treasury Department announced on Friday that it has granted Chrysler Financial a $1.5 billion loan. The $1.5 billion is in addition to the $4 billion Chrysler LLC has already received, and will be used to extend financing to Chrysler buyers. Chrysler was seeking an additional $3 billion in loans, but the Michigan automaker [...]

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Chrysler Financial to get $1.5 billion from government

Update: AutoObserver is reporting that Chrysler has just launched zero-percent financing for up to 60 months on select 2008 and 2009 model year Chrysler, Jeep and Dodge models through Chrysler Financial, effectively immediately. Eligible vehicles include: Chrysler Town & Country, 300 and 300C, Jeep Grand Cherokee, Commander, Wrangler, Dodge Grand Caravan, Charger, Magnum, Challenger, Ram Pickup and Ram Heavy Duty. Chrysler Financial will be getting $1.5 billion from the government to boost its ability to make vehicle loans, the U.S. Treasury said today. Executives at Chrysler said that the lack of available credit were hurting sales which were down more than 50 percent in December. "We appreciate the Treasury Department's support and their commitment to increase the availability of financing for consumers," said Thomas Gilman, Chrysler Financial vice chairman and CEO. "This funding will provide us with increased capacity to help Chrysler LLC and our dealers make new loans available to qualified consumers and sell more cars and trucks." He said that the funding will better position Chrysler Financial to tough it through the current economic downturn until other sources of funding become available through more traditional commercial sources. Source: Detroit News

 

Chrysler moves Jeep ad account back to BBDO

Nearly two years after Chrysler moved the Jeep advertising account to San Francisco boutique agency Cutwater from Detroit giant BBDO, the automaker says it is sending the business back to the Motor City. Yet BBDO won't get the same account it had back in 2006; Chrysler has cut advertising spending on the Jeep brand by [...]

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Chrysler extends shutdown for extra, fifth week

Imaginary soundbite never uttered: "This is going well, all this money we're not spending..." And so it is that the plant shutdowns announced in December will be extended for an extra week. Instead of reopening on January 19th, workers at the Belvidere and Sterling Heights plants; as well as Toluca, Mexico; will return on January 26th. The GEMA engine facility in Trenton, MI has also had its hiatus extended. The extension is an adjustment, according to Chrysler, in response to continued economic gloom that's hit the auto industry hard, and Chrysler even harder. January 2009 has been difficult for Chrysler so far, with sales off 53 percent, giving the Pentastar the dubious honor of being down more than its Detroit colleagues. Minivan and Viper facilities get an even longer break. The Windsor, Ontario and Conner Avenue plants don't reopen until February 2nd, a date that was part of the initial extended shutdown plan. [Source: Auto News - sub req]

 

Chrysler and Fiat Reported to be in Partnership Talks

Once again, the media is reporting that Chrysler LLC and the Fiat Group is in talks to form a strategic partnership that could give the American automaker access to platforms, engines and transmissions to Fiat's mini, small and lower /upper medium models. The Fiat Group on its behalf would benefit from Chrysler LLC's North American manufacturing...

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Chrysler and Fiat announce partnership

Chrysler announced this morning that the beleaguered automaker has entered into a global strategic alliance with Fiat SpA, giving both companies access to each others' products and markets. Fiat will also lend a hand in developing a business plan to present to the US Treasury; bringing to bear experience gained through the Italian auto giant's own restructuring. Overnight, Chrysler gets access to a range of small, fuel-efficient cars that are nothing like what is currently offered in Pentastar showrooms. Fiat's engineering will be ported over to some Chrysler manufacturing sites, keeping the plants busy and offering both brands ample capacity for the parts they will need to build cars. For its efforts, Fiat will get a 35 percent equity interest in Chrysler and a way for the Italian automaker to re-enter the American market incognito by lending Chrysler the small, efficient cars it's sorely lacking. The partnership will go the other way, as well, with Chrysler vehicles gaining access to other markets through Fiat's distribution muscle. The UAW is on board, as are CEOs Marchionne and Nardelli. It's far more exciting to think of the vehicles that might come this way from Fiat, but who knows, maybe some market, somewhere, will discover it can't get enough of the Sebring. Press release after the jump. [Source: Chrysler]

 

Breaking News: Fiat Confirms Plan to Take 35% Stake in Chrysler LLC

Confirming earlier reports, the Fiat Group and Chrysler LLC today issued a joint statement revealing that they have signed "a non-binding term sheet to establish a global strategic alliance." Under the agreement, Fiat will take an initial 35% equity interest in Chrysler with an option to increase its stake. However, the Italian automaker would not...

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Fiat, Chrysler announce partnership

Fiat and Chrysler say they've signed a nonbinding agreement for a strategic global alliance that gives the Italian automaker a 35 percent share in the struggling Michigan firm. The two companies announced in a joint statement that they intend to share platforms and technologies. Fiat would not invest cash in Chrysler, but would provide access [...]

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Fiat confirms plan for 35% Chrysler stake

Fiat S.p.A. and Chrysler LLC confirmed Tuesday that the Italian company intends to acquire an initial 35 percent stake in the U.S. carmaker. The deal will give Fiat the scale it needs to survive, while Chrysler can expand its product portfolio to include small, less-polluting cars. Chrysler said on Tuesday the deal, which involves no cash investment, [...]

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Daimler seeks to sell remaining Chrysler stake

Daimler looking to divest itself of its 19.9 percent share of Chrysler. The company hopes that Chrysler's alliance with Fiat will pave the way for their divestiture.

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Fiat and Chrysler Announce Strategic Alliance - Car News

This Italian-American mashup could bear some interesting fruit.     Fiat S.p.A and Chrysler LLC (backed by its majority stakeholder Cerberus Capital Management) today announced an alliance that will see the two automakers share vehicle platforms, distribution channels, and technology. Fiat will take a 35-percent stake in Chrysler, although no money will change hands, as Chrysler gives up a chunk of itself in return for viable future product development. (Chrysler's been broke for long enough that virtually all meaningful product development has been halted for some time.) The current agreement is nonbinding but should become a finalized partnership by April, according to Chrysler. Fiat Group includes the bread-and-butter brands of Fiat, Lancia, and Alfa Romeo, with luxury and performance marques Maserati and Ferrari perched at the top of the empire. We would expect most of any platform sharing to come courtesy of the lesser three Italian companies, although a rundown on the alliance by Chrysler chairman and CEO Bob Nardelli states that his company would have access to all but Ferrari's bits and pieces. Would this open the door to a second coming of the legendary Chrysler TC by Maserati? Let's hope not.   Keep Reading: Fiat and Chrysler Announce Strategic Alliance - Car News

 

Who's the Boss? Daimler still wants to offload remaining stake in Chrysler

For over a decade, ownership of Chrysler has been bouncing back and forth over the Atlantic like an Airbus jet. Since its founding in 1925, it was independently owned and operated right out of Detroit, then Daimler bought controlling interest in 1998, only to sell it to U.S.-based Cerberus Capital Management. Now Fiat is poised to assume a 35% stake in the company. So the question is, who holds controlling interest? Well in short, nobody does. Daimler holds nearly 20%, Fiat's taking over 35%, leaving Cerberus with 45% - the lion's share, but short of controlling interest. But while the majority of Chrysler's shares may be back in Europe, Daimler isn't interested in holding onto its stake. Daimler and Cerberus had been talking about transferring ownership of the remaining 20% for a while already, but with America's financial institutions in shambles, who knows if the capital management company can even manage to find the capital to buy the rest of the company. In the meantime, it looks like Chrysler's at the whim of European automakers... yet again. [Source: Reuters]

 

Fiat stock drops over Chrysler concerns

Fiat's stock dropped to its lowest point in 24 years on the Borsa Italiana stock exchange in Milan yesterday over analysts' concerns about the automaker's planned alliance with Chrysler LLC. Fiat fell to as low as 4.21 euros, its lowest point since January 2, 1985 amid fears that Fiat would have to absorb Chrysler's losses [...]

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Daimler looking to unload Chrysler stake

Despite enduring a less-than-amicable DaimlerChrysler divorce back in August 2007, German automaker Daimler still retains a nearly 20 percent share of Chrysler LLC. The German automaker, which produces Mercedes-Benz and Smart vehicles, seems to think that yesterday's Fiat-Chrysler alliance announcement makes this the right time to divest itself of Chrysler. "We are still trying to divest [...]

 

Chrysler will place its cars in Terminator Salvation

Seems like the new Fiat deal has given Chrysler LLC some encouragement. The automaker has announced that it will sponsor the fourth installment of the "Terminator" movie series in Terminator Salvation. The struggling U.S. automaker, which has received $4 billion in emergency loans, has a deal to place its vehicles in Terminator Salvation which stars Christian Bale. Financial details of the sponsorship have not been revealed. "This spring, Terminator 4 comes out and we will be one of the sponsors," Susan Thomson, Chrysler director of media, said at the Automotive News World Congress. "We have a following with the Terminator movies and we are going to continue with that."

 

Feds may want loan money back early after learning of Chrysler/Fiat deal

The conference room where Chrysler and Fiat worked out Fiat's 35% stake in the Pentastar probably still smells like hors d'oeuvres and bottled water, and already a Congressman is thinking about making Chrysler return its $4 billion dollar bridge loan. In fact, Chrysler and Fiat aren't even partners yet. All they have done so far is sign "non-binding term sheet to establish a global strategic alliance." They're engaged, but nowhere near married yet, and it is unclear yet what the final partnership - if there is one - is going to look like. Even so, Representative Barney Frank of Massachusetts has said the pact "might well trigger a repayment" depending on Fiat's ultimate interest in the company. The government, of course, wants to be repaid the money it gave to Chrysler. Having Fiat arrive with a potential life preserver and a plan that makes sense would appear to be good for everyone, including the government's chances of getting its money back. After all, if you believe all the writing on all the walls, Chrysler is doomed if it doesn't get hitched on the quick, which would make that $4 billion just another chapter in history. So announcing that if Fiat and Chrysler do tie up, the union might start off $4 billion poorer doesn't strike us as smart business, nor smart politics, nor sound financial planning with taxpayer money. We can only hope sense will prevail and Chrysler and Fiat will be given the time and resources they need to put a viable long-term plan together. [Source: Freep]

 

Skeptics frown on Chrysler and Fiat partnership

Can Italian automaker Fiat help Chrysler become a strong company? Well, we're all about to find out; however, investors and analysts are showing a little bit of skepticism on the newly announced Chrysler and Fiat partnership that gives Fiat a 35 percent stake in Chrysler. Analysts say that Chrysler needs cash and competitive new models - none of which Fiat can bring on-board. Fiat is making no cash investment for its 35 percent holding in Chrysler. Nonetheless, the deal will give Chrysler access to Fiat's fuel-efficient small car platforms and engines. Chrysler is operating on $4 billion in federal loans and seeking $3 billion more. "We are fairly skeptical in terms of the concrete benefits that an alliance of this kind could bring for Fiat," analyst Georges Dieng wrote in a report for Natixis Securities. We guess only time can tell. Source: Detroit Free Press

 

Chrysler’s deal with Fiat could threaten federal loans

Chrysler's strategic alliance with Fiat should help the Michigan automaker become more viable within the global auto industry, but the move has raised more than a few eyebrows in Washington. With Italy's Fiat now owning a 35 percent stake in the embattled automaker, many on Capitol Hill are questioning Chrysler's need for government bailout [...]

 

What does the Chrysler-Fiat deal mean for us?

Chrysler LLC and Fiat S.p.A. recently announced that they've entered into a strategic alliance that Chrysler believes "provides significant strategic benefits that support our viability and long-term competitiveness." Translation: When the ink dries in April, Fiat will have bought a 35-percent stake in Chrysler. The partnership will ...