Chrysler's credibility challenge

An auto company high executive who shall remain unnamed chuckled when asked about the competitive prospects of Chrysler:

"What's their market share, 7%? And what do they have to sell for the next two years besides the Ram [pickup truck] and the minivan? Their first new car after that will be the Fiat 500? How many of those are they going to sell? Fiat hasn't sold so much as a bicycle here for 20 years."

Though harsh and a bit off the mark (Chrysler's market share is closer to 9% nine percent), the executive's comments neatly summarized the challenge faced by CEO Sergio Marchionne and his executive team as they try to reestablish Chrysler as a credible choice for consumers in the U.S. market.

It won't be easy. Turning around car companies takes time -- three years to develop a new model -- and money -- up to $1 billion for a new car or truck and the tools and machinery to build it with.

Chrysler Bankruptcy Court Approves $24 Million Payout In Wrongful Death Action

Business Wire) Charles D. Naylor of the Law Offices of Charles D. Naylor and Robert J. Nelson of Lieff Cabraser Heimann & Bernstein, LLP, announced today that the U.S. Bankruptcy Court approved the payment of $24 million for the wrongful death of longshoreman Richard Mraz. The settlement is believed to be one of the largest ever for the wrongful death of a longshore worker, as well as one of the largest settlements ever of an individual wrongful death action involving an auto manufacturer.

“Richard was a loving husband and father who was just 38 years old when he died,” stated Adriana Mraz, wife of Richard Mraz. “When I found out many people have been injured by the same defect, and some even killed, I was determined to hold Chrysler accountable and send a strong message to all automakers that they must put safety first.”

Naylor and Nelson, along with Scott P. Nealey of Lieff Cabraser, served as co-counsel in the action. They demanded that Chrysler post an appeal bond which guaranteed the automaker’s ability to pay the $55.4 million verdict awarded by a Los Angeles jury in 2007.

“The appeal bond was a key factor,” said Naylor, a 34-year maritime litigator. “Had we agreed to Chrysler’s request to waive an appeal bond two years ago, the unexpected bankruptcy filing this year would have left the Mraz family without a dime for the tragic and preventable death of its breadwinner, husband and father.”

“We’re gratified that the Bankruptcy Court has approved the settlement, and the action has been resolved,” stated Nelson, who served as lead trial and appellate counsel. “We hope that the new Chrysler Corporation will never put short-term profits ahead of the safety of its customers."

Chrysler Corporation (formerly DaimlerChrysler) appealed the jury verdict to the California Court of Appeals. In April 2009 the automaker filed for bankruptcy, staying the appeal before a hearing could take place. The automaker’s bankruptcy put the Mraz family’s compensation at risk in the event of a reversal or remand on appeal; additionally, it exposed the appeal bond in the event the verdict was upheld.

This summer, the U.S. Bankruptcy Court lifted the stay and allowed direct negotiations to occur with appeal bond issuer, Safeco Insurance Company. At the center of the settlement negotiations was the issue of how compensation to the Mraz family would impact Chrysler's creditors due to the structure of the appeal bond. Safeco posted an $81 million bond to guarantee payment of the judgment and post-judgment interest.

“Ultimately, the $24 million settlement offered a substantial return to Chrysler’s creditors while providing fair compensation to the Mraz family, our ultimate goal,” said Naylor.

The settlement was approved by Judge Arthur J. Gonzalez of the U.S. Bankruptcy Court, Southern District of New York, who is presiding over the Chrysler bankruptcy filing.

In 2007 a Los Angeles Superior Court jury awarded $55.4 million, including $50 million in punitive damages, to the family of 38-year-old Mraz, who died after being hit and run over by a Dodge Dakota while working in the Port of Los Angeles in 2004. Attorneys for Mraz – Naylor, Nelson and Nealey – successfully argued that a “park-to-reverse” defect in the truck’s automatic transmission caused Mraz's death. The jury found that the automaker acted with malice by failing to warn consumers of the defect it had known about for years and by conducting a “phony” recall that did not adequately fix the vehicle. Mraz left behind his wife and three children.

About Lieff Cabraser Heimann & Bernstein, LLP

With three offices nationwide and on the web at www.lieffcabraser.com, Lieff Cabraser is one of the largest law firms in America dedicated solely to advancing the rights of plaintiffs. For the last six years, The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the United States.

Vehicle owners who wish to learn more about the park-to-reverse defect, and report their experience, should visit http://www.usautoinjurylaw.com/cases/defects/transmission/false-park.htm. For their work in the case, Robert J. Nelson and Scott P. Nealey won California Lawyer Attorney of the Year (CLAY) awards by California Lawyer Magazine.

About Law Offices of Charles D. Naylor

Since 1975, the Law Offices of Charles D. Naylor has been compassionately and aggressively representing injured workers from the maritime trades including seamen, longshore and marine construction workers, and cruise ship passengers and crew. With more than 100 years combined experience, our attorneys specialize in Maritime Personal Injury, Jones Act, Longshore & Harbor Workers Compensation Act and Cruise Ship Injury.

Charles D. Naylor received California Lawyer magazine’s prestigious CLAY Award in 2008, has an AV rating from Martindale-Hubbell and has been recognized by Southern California Super Lawyers as one of the “top attorneys in Southern California” (2007- 2009). For more information, visit www.naylorlaw.com.

Chrysler Working to Make Fiats Fit for America

Chrysler thinks its future may be in a new lineup of smaller cars based on models from Italian partner Fiat. The question is how to make them for Americans put off by stiff suspensions, firm seats and — perish the thought — not enough cupholders.

The problem is further complicated because Americans generally are plumper and taller than Western Europeans, and they're used to driving fatter and longer cars on wider roads.

It's a dilemma faced by nearly all automakers as they try to hold down development costs by tailoring cars to sell around the globe. But at no company is the problem more acute than Chrysler, where a wholesale lineup change is needed quickly to boost sagging sales.

On Friday, Chrysler's board was to consider a new model lineup that would consist of reworked Chrysler products on the larger end and everything from mid-sized cars to minis built on smaller Fiat frames, a person briefed on the agenda said.

Through August, Chrysler's sales were down 39 percent compared with the same period last year, the largest decline of any major automaker. In the critical midsize segment, which often is top-seller in the U.S. market, the company this year has sold only 34,700 of its two entries, the Chrysler Sebring and Dodge Avenger. That's only 15 percent of the 238,000 Camrys told by Toyota, the perennial leader.

Chrysler Buys Engine-Venture Stakes From Hyundai, Mitsubishi

Chrysler Group LLC, the automaker run by Fiat SpA since exiting bankruptcy in June, said it bought out Mitsubishi Motors Corp. and Hyundai Motor Co. stakes in a Michigan engine factory.

The U.S. automaker took full ownership of the Global Engine Manufacturing Alliance plant in Dundee, Michigan, effective Aug. 31, according to a statement today. Financial terms weren’t disclosed. The venture, formed in 2003, has been making four- cylinder engines used in Chrysler vehicles.

Buying out the two partners clears the way for Chrysler to produce Fiat-designed engines. Fiat owns 20 percent of the Auburn Hills, Michigan-based automaker and can get an additional 5 percent by making fuel-efficient engines in the U.S., under terms of Chrysler’s U.S. government-aided reorganization.

Chrysler “probably intends to built Fiat four-cylinder engines there,” said Ed Kim, an AutoPacific analyst in Tustin, California. “GEMA is a decent engine, but with Fiat in the picture it makes less sense to continue to the GEMA relationship, especially since Chrysler and Fiat have been pretty public with their intention to incorporate small- displacement” Fiat engines.

Chrysler may use Fiat engine system in some U.S. models

Chrysler Group may incorporate Fiat's new MultiAir fuel-saving technology in some gasoline engines, Fiat sources say.

Fiat S.p.A. considers the variable valve timing system a breakthrough. The company says MultiAir improves power by about 10 percent and reduces fuel consumption 10 percent.

MultiAir's electrohydraulic command of intake valves increases fuel economy.

(Credit: Automotive News/Fiat)

The MultiAir system provides direct control of air and combustion in engines, cylinder by cylinder and stroke by stroke, without using the conventional throttle. That saves energy wasted in traditional systems.

Fiat will offer its first MultiAir engine in Europe this month on the Alfa Romeo MiTo small hatchback.

The sources say Chrysler is considering MultiAir technology for these engines:

-- 2.0- and 2.4-liter four-cylinder units produced by the Global Engine Manufacturing Alliance, which Chrysler operates with Hyundai and Mitsubishi. The engines are used in the Chrysler Sebring, Dodge Caliber and Avenger and Jeep Compass and Patriot. MultiAir units could arrive in late 2011.

-- The Pentastar V-6 engine family now under development. The 3.6-liter Pentastar family will replace seven Chrysler engines. The new V-6 will debut next spring on the 2011 Jeep Grand Cherokee. MultiAir could be added in the second half of 2012.

New for Chrysler in 2010

2010 Dodge Ram Heavy Duty

Chrysler's in a tough spot right now. The beleaguered automaker survived the Daimler fiasco only to be picked up by an indifferent Cerberus team before ultimately ending up in bankruptcy court. Chrysler came out of those proceedings with a new dance partner in Fiat, and while the new company has a healthier balance sheet, a lack of funding has left the Pentastar with a nearly empty cupboard when it comes to new 2010 products.

In fact, Chrysler's new-product roster for the coming model year can be counted on one finger. The heavy duty 2010 Dodge Ram arrives with new sheetmetal, a significantly improved interior, a new crew cab configuration, and upgraded gasoline and diesel engines. It'll eventually be followed by commercial versions, with model designations ranging from 2500 to 5500.

As for the rest of the lineup, Chrysler did the most it could with its limited resources. Among the running changes for the 2010 model year are an improved Dodge Caliber interior, an updated, smooth-hooded Chrysler Sebring (as if anyone's going to notice) and plenty of fuel economy-related updates. The Dodge Nitro, Jeep Liberty and light-duty Ram receive a fuel cutoff feature during deceleration. The Dodge Caliber, Jeep Compass and Jeep Patriot add entry-level 2.0L four-cylinder models that deliver nominal fuel economy gains (2 mpg in the Dodge, 1 mpg in the Jeeps). The 3.5L Dodge Journey, a car that we'd all but forgotten about, will also see tweaks that will allow it to pick up an additional mpg as well.

Finally, Chrysler hopes to entice buyers by making previously optional equipment standard for 2010, while also adjusting pricing. The Dodge Caravan cost of entry has been lowered by $2,180 to $21,800, giving families a budget-priced option in the minivan market. Oh, and one last thing -- a limited edition Dodge Challenger SRT8 will be offered in Plum Crazy for 2010. Now that sounds genuinely interesting.

Chrysler ME Four-Twelve Fastest Car

Chrysler ME Four-Twelve Concept

The spectacular quad-turbo, V-12 powered, mid-engine Chrysler ME Four-Twelve super car has roared onto the scene to shine as the most advanced Chrysler ever built.
The ultimate engineering and design statement, and a brilliant example of the Chrysler Group's capabilities, the ME Four-Twelve will establish a real-world performance record for a rear-wheel drive, mid-engine super car and may also set a record for lightening-quick vehicle development. Taking less than one year to complete from start to finish, the Chrysler Group partnered with some of the best in the business to assist in its development. There are a grand total of 11 people working on the ME from Chrysler (out of about 10,000 at CTC, FREC, and JTE), according to press preleases. There are a handful of suppliers-let's just say under 10 that have admitted in the public forums (at least in the trade magazines and press).

With regard to the transmission research and development, in my opinion the most important piece of R&D, Ricardo is handling the "bodies" (meaning the people or "warm bodies") doing the work, under Chrysler direction and supervision. Approximately 30 people (2 from DCX, maybe ) would be involved with this work, including design, engineering, manufacturing feasibility, testing, and process.

Chrysler ME Four-Twelve Data
Base Price	$500,000
Power	850 hp
Zero to 60 mph	2.9 s
Zero to 100 mph	6.2 s
Top speed	248 mph (400 km/h )

History

According to Deutsche Press, around 300 Chrysler ME 4-12 were to be built each year, largely with carbon, aluminum, and other light-weight metals. Road testing was scheduled for late January 2004, with production rumored to start within two years. The car itself was being built in the United States by Metalcrafters, and we have been told that the lead engineer is from Chrysler and the lead suppliers from North America - and that this was the outcome of battles with Stuttgart, which wanted to use European suppliers and engineers. Most off the shelf parts appear to be from Chrysler aside from the engine. The transmission seems to be based on Chrysler, Mercedes, and other designs.The ME Four-Twelve braking system features massive 15.0-inch (381 mm) ventilated carbon ceramic composite disc brake rotors with six-piston aluminum mono block calipers for superior braking performance during all driving conditions. The composite discs are sixty-five percent lower in weight than comparable cast iron rotors. Wheels are cast aluminum: 19x10-inch front and 20x12.5-inch rear. Michelin high-performance radials are 265/35ZR19 in the front and 335/30ZR20 in the rear.

At just 44.9 inches tall, 78.7 inches wide and 178.8-inches long, the two-seat, mid-engine ME Four-Twelve was wind tunnel tested in Auburn Hills. The computer controlled active rear spoiler articulates rearward 100 mm to increase down-force to a total of 925 lbs. (421 kg) at 186 mph (300 km/h), while achieving a competitive coefficient of drag (Cd) of 0.358. All body openings have been optimized to achieve maximum thermal performance. Large vented front and rear wheel houses reduce lift as well as active and passive aerodynamic devices that have been implemented to provide stable vehicle performance at all speeds.

The interior is relatively spacious with 37.2 in (942 mm) of headroom, and 42.7 in (1085 mm) of legroom. A large glass roof panel extends from the windshield to the rear header. Passenger-side adjustable foot support helps keep the co-pilot in position during extreme cornering maneuvers.This vehicle breaks the mold of the super car genre because its packaging can easily accommodate drivers in a wide range of heights. Ease of access to driving controls was a primary focus. For example, there are steering wheel mounted controls, including a column mounted F-1 racing style paddle shifter with aluminum shift paddles and centrally mounted driver controls.

Styling was done by a young and friendly Chrysler designer, Brian Nielander, who normally designs trucks; he worked directly with engineers and aerodynamics experts to shape the interior and exterior and make sure that the engineers did not make the ME-412 uncomfortable. Wolfgang Bernhard, Chief Operating Officer - Chrysler Group, said, "It's everything we—ve learned about creating exciting, desirable automobiles. And, as such, it's not really a concept car but is, in fact, a prototype that will be road-ready by summer."

Technology

With a curb weight of just 2880 lbs. (1310 kg), the ME Four-Twelve has the weight-to-power ratio of 3.4 lbs/bhp — a new performance record. In actual Chrysler speed runs, the ME Four-Twelve goes from 0-60 mph in 2.9 seconds, 0-100 mph in 6.2 seconds, and it will blister through the quarter mile in 10.6 seconds at 135 mph. The estimated top speed of the ME Four-Twelve is 248 mph (400 km/h). The vehicle is designed and packaged to achieve outstanding thermal performance under extreme operating conditions. Its large capacity, high-efficiency engine-cooling system allows this engine to retain optimum thermal performance — a key advantage in the super car arena.

The 7-speed Ricardo Double Clutch Transmission was developed specifically for this vehicle and features the latest double wet-clutch technology and electronic control strategy. The exclusive transmission delivers uninterrupted torque to the rear wheels with 200 millisecond shift times. The double wet-clutch technology appears to come from Chrysler. (An anonymous Chrysler employee wrote, "I cannot believe that Chrysler didn't get the credit for this transaxle!!! To be fair, it fits with its replacement by the junk MB controls and system.")

Chrysler, Fiat to share spotlight Joint exhibit is set for Frankfurt

Chrysler and Fiat will make their first high-profile joint appearance next week at the Frankfurt Motor Show, but the real collaboration on new vehicles is still 18 months to two years away, according to analysts familiar with the companies' product strategies.
While many industry observers have been anticipating the new Chrysler-Fiat product plan, that lineup is still under review by Chrysler's board of directors, including Chrysler and Fiat CEO Sergio Marchionne. Details are expected later this year.

Last week, Chrysler said it would show in Frankfurt a new 2010 version of its Dodge Caliber hatchback that will be powered by a 2.2-liter diesel engine supplied by Mercedes-Benz and a freshly designed interior.

While the Caliber diesel is targeted at European consumers, the car and engine were in the works well before Fiat proposed a partnership with Chrysler, which was completed in June after Chrysler's 41-day journey through bankruptcy.

"Fiat hasn't been involved long enough to impact the 2010 model year," said Stephanie Brinley, an industry analyst at AutoPacific in Troy. "But it is significant that Chrysler's exhibit will share the same space as Fiat, Alfa Romeo and Lancia."

While Chrysler won't transform itself into a major European player overnight, Frankfurt marks an important first step.

Fiat has a direct incentive to help Chrysler grow outside North America. The fine print in the partners' operating agreement specifies that Fiat can expand its stake in Chrysler by another 5% by meeting several conditions.

That includes expanding Chrysler's presence in retail stores in Latin America and selling $1.5 billion worth of Chrysler, Jeep and Dodge vehicles outside of North America. Chrysler sales have a way to go to get to that level.

Between the global economic slowdown and the bankruptcy restructuring, Chrysler's overseas sales for February through August (January sales were not reported) fell 41% from a year ago to 80,687.

Chrysler Sebring 200C Sedan

The Chrysler Sebring 200C Sedan is completely new and it is not an upgrade from the previous Sebring. At launch it has four-door body.

2007 Chrysler Sebring 200C Sedan


Chrysler Sebring 200C Sedan

In July, approximately two versions Convertibles also are two doors, one with a rigid roof and a folding canvas roof.


Chrysler Sebring 200C Sedan

Initially, the range of 200C Sebring consists of a version with 140 hp diesel engines and a petrol 156 hp.


Chrysler Sebring 200C Sedan

The former is available with two levels of equipment, one basic and another called richest Limited, the gasoline is the only normal.


Chrysler Sebring 200C Sedan

The Chrysler Sebring 200C Sedan has front length of 4.842 mm. I.e., it is slightly larger than a Hyundai Sonata or a Chevrolet Epica (both 4.8 m).


Chrysler Sebring 200C Sedan

Its length is almost the same as that of a BMW 5 Series or a Volvo S80, but its range of engines and equipment for the Chrysler Sebring 200C Sedan smaller and cheaper, like a Ford Mondeo or Opel Vectra.


Chrysler Sebring 200C Sedan

The Chrysler Sebring 200C Sedan 2.0 156 hp cost € 24,260. 2.0 CRD diesel version is priced at € 25,100 (€ 27,800 The Limited), intermediate between that cost models such as the Hyundai Sonata or Ford Mondeo and the Alfa Romeo 159 or the Honda Accord.


Chrysler Sebring 200C Sedan

Both engines have four cylinders and 2.0 liters of displacement. These engines are the same with the Dodge Caliber. Diesel comes from Volkswagen. The gas is manufactured by Global Engine for some brands of DaimlerChrysler to Mitsubishi and Hyundai.


Chrysler Sebring 200C Sedan

In late summer there will be another petrol engine with six-cylinder 2.7-liter displacement and automatic. In the U.S. comes with a range of different engines (2.4, 2.7 and 3.5 liters of displacement) and all gasoline.


Chrysler Sebring 200C Sedan

With the previous Sebring, or the total body length (4.846 mm versus 4.842 mm the new) and width (1.791 mm versus 1.808 mm for the new) change significantly.

Chrysler Sebring 200C Sedan

The wheelbase grows from 2.743 to 2.765 mm. However, is characterized by rather short for the length of the vehicle (taking into account what is now normal). The penetration coefficient Cx of the body is 0.331, which is not a low.

Chrysler Sebring 200C Sedan

The Chrysler Sebring 200C Sedan out for the width available, mainly in the rear seat (although it is thought that only two people to occupy these seats). The trunk is wide, deep, not very high and irregular forms.

Chrysler Sebring 200C Sedan

The equipment includes stability control, six airbags, monitoring tire pressure, warning of the use of seat belts and child restraint seats. It also has air conditioning, speed programmer, computer, auto dimming interior mirror, radio-cd mp3 compatible (auxiliary connection) and rims of 17 ".

Chrysler Sebring 200C Sedan

The Limited also has leather upholstery with heated front seats, a holder for beverage chilled and heated, chrome exterior trim and handles and rims of 18 ".

Chrysler Sebring 200C Sedan

Among the items of equipment that can be optionally there is a sunroof, a screen for the rear seats and a browser with touch screen 6.5 "with voice recognition to activate different functions and DVD player (which only works when the Chrysler Sebring 200C Sedan stands).

Chrysler Sebring 200C Sedan

This browser is associated with a 20 GB hard drive which can store music (WMA), photos (JPEG), save voice messages and download MP3 files through a USB connection. You can also get connection "bluetooth 'for the phone.

Chrysler Sebring 200C Sedan

Chrysler showed the final design of the Sebring in the prototype Airflite, 2003. The Chrysler Sebring 200C Sedan is manufactured in the plant in Sterling Heights (Michigan, USA).

Chrysler To Report 15% Drop In August Sales

Chrysler Group LLC will report a 15% drop in its year-over-year U.S. August sales as the lack of inventory hindered potential purchases.

The auto maker is expected to say that it sold 93,222 vehicles compared with 110,235 in August 2008, according to a company official. Chrysler sales, however, did increase 5% over its July results. Full details will be released later Tuesday.

Dealers for the third largest U.S. based auto maker found that they couldn't fill orders as consumers flocked to showrooms amid the federal government's "Cash for Clunkers" program.

The program, which started in late July, offered as much as a $4,500 rebate for those who traded in their old gas guzzlers and bought new. Chrysler, earl on, matched the offer on all of its vehicles.

Demand quickly outstripped supply since most of Chrysler's plants sat idle for almost three months as the auto maker dealt with its bankruptcy process. Chrysler ultimately merged most of its assets with Italian auto maker Fiat SpA (FIATY).

"We are totally out of minivans and have only a sprinkling of the other models," said Joe Kramer, vice president of Armory Automotive in Albany, NY.

Chrysler is now using overtime and additional shifts to boost output as inventory levels now stand at an historic 28-day supply.

The company will offer $4,500 of consumer cash or zero-percent financing for up to six years on some 2009 models and consumer cash of as much as $2,000, on some 2010 models.

Chrysler May Use Fiat Vehicle to Replace Sprinter

Chrysler Group LLC, the automaker run by Fiat SpA, may use a commercial van from the Italian company to replace the Dodge Sprinter, which former parent Daimler AG will no longer provide.

Chrysler and Fiat may sell the Fiat Ducato or the Daily from the Turin, Italy-based automaker’s Iveco unit in North America, Gualberto Ranieri, vice president of public relations for the U.S. company, said today in an e-mail.

Daimler announced yesterday that it’s discontinuing the Dodge Sprinter, as its Mercedes-Benz unit assumes responsibility for the vans in the U.S. Chrysler, based in Auburn Hills, Michigan, since June has been run by Fiat after a bankruptcy reorganization aided by the U.S. government.

“It would make sense given that Fiat is the new owner that they would use their models instead of Daimler’s,” said Aaron Bragman, an analyst with IHS Global Insight Inc. in Troy, Michigan.

The Sprinter has been sold in the U.S. since 2001, first as a Freightliner vehicle and then as a Dodge starting in 2003. The Daimler-designed van has a base price of $37,170 and is built in Charleston, South Carolina.

The Fiat and Iveco models are similar in size to the Sprinter. Neither is sold in the U.S. now.

“They are all competing in the same segment in Europe,” Bragman said. “They are all basically the same kind of vehicle.”