Chrysler Offers Clunker-Like Incentives In Canada

Chrysler Group LLC is moving its "cash for clunkers" incentive blitz to Canada by offering another $500 to $1,000 to consumers who trade in their vehicles and buy new.

The auto maker is hoping to score a similar selling success as it has in the U.S. after offering to match the $3,500 to $4,500 rebate consumers received when they turned in their older cars under the clunkers program.

The U.S. federal government now intends to end the program Monday to ensure there is enough money to cover the rebates handed out by dealers.

As of Friday morning, U.S. dealers had sold 489,269 vehicles under the program through rebates totaling $2.04 billion. Some industry analysts expect as much as 750,000 new vehicles to be sold once the final tabulation is made.

Canada's government is sponsoring the "retire your ride" program aimed at reducing the number of older vehicles on the road. About 13,000 Canadians have taken advantage of the program.

2009 Chrysler 300 Signature Series AWD

Below are pictures of the 2009 Chrysler 300 Signature Series
AWD.

Chrysler to build Fiat 500 in Mexico

Chrysler Group LLC, now being run by Italian automaker Fiat Group SpA, is planning to build the Fiat 500 minicar at a factory in Mexico, according to a person briefed on the company's plans.

The automaker also is considering building a compact car in the U.S. that could be larger than the 500, according to the person, who did not want to be identified because the plans have not been made public.

Chrysler spokesman Gualberto Ranieri declined to comment Monday. But news of the Fiat 500 decision disappointed several members of the United Auto Workers union who had hoped that the minicar would be made at a U.S. factory because of UAW cost-saving concessions and the fact that Chrysler has received $15.5 billion in U.S. government aid.

It was not clear which Mexican factory would get the 500, but it likely would be a plant in Toluca that builds the PT Cruiser sedan and Dodge Journey crossover and employs more than 2,100 workers organized under a Mexican union. Chrysler also has a truck assembly plant in Saltillo, Mexico.

Even though the UAW has made concessions to reduce labor costs, workers still make far less per hour at Mexican factories. Since small cars generally fetch lower prices than larger vehicles, the profit margins are narrower, making low costs important. Also, Mexican factories are closer to Brazil, a key market for Fiat.

Turin-based Fiat's management is trying to turn Chrysler around. The Italian automaker took a 20 percent stake in Chrysler earlier this year as part of its exit from bankruptcy protection. The U.S. government owns an 8 percent stake in the Auburn Hills, Mich.-based Chrysler, which lost $8 billion last year.

Fiat, as part of its purchase, had announced plans to bring the hugely popular 500 to the U.S., along with the Alfa Romeo brand and Fiat-designed compact and midsize cars. The Italian automaker also plans to bring engines, transmissions and other technologies to Chrysler.

UAW members were hoping that Fiat would build the 500 at an assembly plant in Sterling Heights, Mich., which is slated to close by the end of 2010.

Fiat 500 Interior Pictures

Under the direction of Fiat SpA, Chrysler Group LLC is devising plans to produce the Italian auto maker's Fiat 500 subcompact a to Make Fiat in Mexico

Under the direction of Fiat SpA, Chrysler Group LLC is devising plans to produce the Italian auto maker's Fiat 500 subcompact at a Chrysler plant in Mexico, according to people familiar with the matter, while considering what other Fiat models to introduce to the U.S. market.

Chrysler is also looking at making a small Fiat engine for the 500 at a Chrysler plant in Trenton, Mich., and is considering building a Fiat-derived compact car slightly larger than the 500 in the U.S., a person familiar with the plans said.

Chrysler spokesman Gualberto Ranieri declined to comment on the company's product plans, which he said will be announced at a future date.

A decision to make the 500 in Toluca, Mexico, could be an early test for relations between Chrysler's new management and two key owners, the U.S. government and the United Auto Workers union. The plant's workers are represented by a Mexican union, not the UAW.

chrysler imperial

chrysler imperial

chrysler imperial

chrysler imperial

chrysler imperial

Chrysler Said to Boost 2nd-Half Production to Fulfill Demand

Chrysler Group LLC, the U.S. automaker run by Fiat SpA, will make more light trucks than it had planned in the second half to meet growing demand, a person with knowledge of the situation said.


Chrysler plans to run two plants on overtime and is operating a third shift at another factory to restock dwindled inventory on dealer lots, said the person, who asked not to be identified because the information is private. The automaker hasn’t said what its plans were and the person wouldn’t quantify the increase in unit or percentage terms.

The boost in production will generate more cash for the Auburn Hills, Michigan-based automaker. Auto companies book revenue when they build a car and sell it to a dealer. After losing $16 billion in 2008, according to documents filed in its bankruptcy reorganization, the higher production may help the automaker reach or even pass the break-even point.

“It won’t take much of an increase in volume to produce a substantial improvement in earnings,” said John Casesa, the managing partner of Casesa Shapiro Group LLC in New York.

Chrysler Group, created June 10 out of bankruptcy from what Fiat considered the best assets of the former Chrysler LLC using government financing, was scaled to break even when U.S. auto sales are at a 10 million annual sales rate, U.S. officials have said.

The U.S. sales rate was below that level for six months until reaching 11.2 million in July. Chrysler sold 88,900 vehicles in the U.S. in July, up from 68,300 in June.

Chrysler’s vehicle inventory fell to a 40-day supply at the end of July, while the industry standard is 60 days. Chrysler’s inventory of unsold vehicles was 136,734 at the end of July, down 68 percent from a year earlier.

Town & Country Chrysler Jeep Offers up to $4,500 off

Town & Country Chrysler Jeep expands the savings opportunity of the U.S. Government’s Car Allowance Rebate Systems (CARS), more commonly known as “Cash for Clunkers,” by offering up to $4,500 off an eligible new car purchase whether or not customers bring in qualifying “clunkers.”

“The ‘Cash for Clunkers’ program is a great way to get old, gas-guzzling vehicles off the road,” said Carlos R. Martinez, General Sales Manager. “We found a way to make it better by offering the same savings even if a trade-in doesn’t meet the official ‘clunker’ definition.

“If the trade-in is a qualifying ‘clunker,’ then we will add to the government’s rebate for a total savings up to $9,000. We call it ‘Double Ca$h for Your Old Car.’”

The Administration established the CARS program to help consumers replace older, gas guzzling vehicles with new, more fuel-efficient vehicles and to help stimulate the national economy.

The government credit is $3,500 or $4,500 depending on the amount of fuel economy improvement between the old and new vehicle.

Important points for consumers to know about CARS include the following:
• Vehicle must be less than 25 years old on the trade-in date
• Only new vehicle purchases qualify
• Generally, trade-in vehicle must get less than 18 mpg and new vehicles must meet certain fuel economy requirements
• Trade-in vehicle must be registered and insured continuously for the full year preceding the trade-in date
• The program ends Nov. 1, 2009 or when the government funds are exhausted (whichever comes first)

“Many drivers want a fuel-efficient new vehicle,’” Martinez said. “But, some customers are discovering their old vehicle doesn’t guzzle enough gas to meet the government’s ‘clunker’ guidelines.”

Town & Country Chrysler Jeep in Milwaukie, OR, is offering $3,500 or $4,500 savings on most 2009MY new Chrysler, Jeep® vehicles. Customers are not required to trade-in a ‘clunker’ to benefit from this savings. However, if customers do have “clunkers,” they can save up to a total of $9,000 off eligible new vehicles.

Consumers can learn more about the CARS program at http://www.cars.gov/ or by calling the U.S. Department of Transportation’s information hotline at 866-(CAR)-7891.

The staff at Town & Country Chrysler Jeep is available to provide estimates on the value of trade-in vehicles and answer individual questions about the program.

Could Ram become a brand for Chrysler

The name Ram could be attached to a lot more than a pickup if a new strategy under consideration by Chrysler management (reported by Automotive News) is adopted.

Check out all the latest cargo haulers that could be coming our way or already here in the photo gallery below.

Under the Ram umbrella could fall products such as the Fiat Doblò, Ducato and Iveco Daily.

All manufacturers would love to see their commercial European and American counterparts unite. Ford is bringing over its Turkish built Transit Connect for 2010 and will eventually merge the larger Transit and Econoline platforms.

Chrysler has been an innovator in this European wave by bringing over the Mercedes Sprinter as the Dodge Sprinter to great initial reception by the market. Since that time, Sprinter sales have slowed (off 64 percent through July) but that could be a function of the economy rather than the concept.

Of course, building Ram into a commercial brand could cause issues for the Ram pickup and its perception by personal use buyers. However, it would not seem that difficult to simply tack on a name at the end, like Ford's King Ranch F-Series pickup to denote a luxury model from a more pedestrian, commercial vehicle.

Chrysler’s new problem is vehicle shortage

A two-month factory shutdown and the cash-for-clunkers government rebates accomplished a feat that had eluded Chrysler Group: It turned several slow-selling vehicles into scarce commodities.

At the end of July, Chrysler had only a seven days' supply of Jeep Patriots, or 2,200 units, in dealer stocks. Sixty days is considered normal. Other recent slow sellers were also depleted, according to Chrysler's figures:

• Jeep Compass, 15 days or 1,597 units at the end of July.

• Chrysler Sebring sedan, 26 days or 1,764 units.

• PT Cruiser, 28 days or 4,412 units.

• Dodge Avenger, 15 days or 3,278 units

• Dodge Caliber, 17 days or 5,237 units.

That's radically different from early this year, when dealers were drowning in cars.

For example, according to the Automotive News Data Center, Chrysler had a 221-day supply of the Patriot (18,000 units) and 243 days of the Caliber (22,400 units) as of Feb. 1 this year.

Chrysler spokeswoman Kathy Graham said the company is not concerned about a shortage.

"The plant has been running for a little more than a week," she said. "Things are starting to ship and move. We are building orders. We think it's manageable."

At the end of January, Chrysler had a 151-day supply of all vehicles vs. 40 days at the end of July.

On July 22, Chrysler amplified cash for clunkers by matching the government's offer of up to $4,500 for most of its vehicles, regardless of whether customers had a qualifying clunker. Chrysler tweaked that offer yesterday by lowering the incentive on some of the scarcer vehicles.

Graham said the lower inventories are part of Chrysler's post-bankruptcy plan.

Chrysler ends its double 'Cash for Clunkers' sales campaign

Starting tomorrow, Chrysler is dumping its big ad campaign in which it promises to match the $4,500 incentives of the government's Cash for Clunkers incentive program. Many of the most lucrative deals aren't going to be as lavish anymore because the campaign proved so effective.

Though it was tied to the government program, Chrysler's deal was always kind of gimmicky anyway since you weren't required to trade in a clunker -- or anything -- to get the $4,500 in Chrysler's incentive. "It cut through the clutter," said spokeswoman Kathy Graham. Even the ancient PT Cruiser, above, saw its sales soar 24% compared to the same month last year.

"We're not running out of cars, but we do have a lower-day's supply on some of our small cars," said Graham. Double-cash $4,500 incentives will stay in place on PT Cruiser and lots of the bigger SUVs and trucks, but are going to be cut on some of the bigger clunker incentive replacements:

Now, instead of $4,500, Chrysler will kick in $3,500 to buy a Dodge Avenger or a Chrysler Sebring sedan. Instead of $3,500, Chrysler will now contribute $3,000 to buy a Dodge Nitro SUV, $3,000 for a Jeep Liberty and $2,500 for a Dodge Caliber. Vehicles like Jeep Wranger, Dodge Sprinter, Dodge Challenger and the high-performance SRTs were never part of the incentive.

Chrysler Decides to Keep Making PT Cruiser

Chrysler has announced that production of its retro-styled PT Cruiser hatchback will continue at the company's Mexican assembly plant.

Since its introduction in 2000, more than 1.3 million PT Cruisers have been sold in more than 60 countries, the automaker says.

Earlier this year when the company was dealing with financial issues, the PT Cruiser was on the chopping block as Chrysler was trying to implement some cost-cutting measures to stave off bankruptcy.

There is no word on just how long the PT will stay in production.