US automakers Ford and Chrysler are recalling tens of thousands of vehicles due to safety problems, the government said Friday.
Chrysler Group was recalling about 143,000 vehicles over the 2008-2011 model years in three separate filings, according to a report on the National Highway Traffic Safety Administration's website.
The number-three US automaker, managed by Italy's Fiat, recalled more than 22,000 2008-2011 Dodge Ram trucks to address a potential steering problem.
Chrysler also recalled about 65,000 2009 Dodge Journey sport utility vehicles that could fail to deploy air bags, and 56,000 2011 Ram trucks to fix a bearing that could cause them to stall.
Ford Motor, the nation's second-largest automaker, recalled almost 15,000 2011 model years of pickup trucks, Ford Edge and Lincoln MKX SUVs to address an electrical problem that could cause a fire, the government said.
Chrysler said Friday it would recall 25,000 Dodge and Jeep vehicles in the U.S. to fix sticking gas pedals made by the same supplier involved in the recall of 2.3 million Toyota vehicles for the same problem.
Chrysler told the National Highway Traffic Safety Administration that because the 25,263 2007 Dodge Calibers and 71 Jeep Compass models were equipped with brake-override software, it did not consider the problem a safety defect, but would conduct a voluntary recall anyway.
The automaker said the problem stemmed from a manufacturing defect at CTS that caused the bearing housing to be made too large, a problem CTS corrected in March 2006. Chrysler estimated that only 30% of the vehicles covered by the recall would actually have the problem.
In addition to the U.S. vehicles, Chrysler's recall also covers 5,572 cars in Canada, 2,260 in Mexico and 1,536 elsewhere.
Toyota cited sticking pedals from CTS as the problem behind the recall of 2.3 million vehicles this year linked to reports of sudden acceleration. Toyota has said the pedals and unsecured floor mats were the only known reason for thousands of complaints, but NHTSA and two congressional panels are still probing the automaker's response and researching whether its electronics were at fault.
Chrysler Group gave Detroit another reason to celebrate the official start of production today of the 2011 Jeep Grand Cherokee by announcing that it will hire 1,100 more workers by July to add a second shift at the Jefferson North plant in Motown that's building the Jeep flagship.
The Grand Cherokee is Chrysler's key (and only all-new) vehicle launch this year and it showed confidence in the SUV by already announcing the second shift to boost capacity. The Grand Cherokee is due on sale in June.
Chrysler Group LLC said North Carolina has dropped a statute giving closed-down car dealers the right to hold their inventory rather than sell their vehicles to dealerships that remain open.
The change comes as three Florida dealers are preparing to plead their cases in separate arbitration hearings Tuesday. The dealers want the chance to rejoin the auto maker's network.
Chrysler closed 789 dealerships last year as part of its bankruptcy and agreement to merge its assets with Fiat SpA. The move—backed by the Obama administration—set off a state and federal backlash after dealers expressed outrage to their representatives and legislators.
North Carolina, along with Illinois, Maine and Oregon, enacted statutes in an attempt to override the bankruptcy laws giving the remaining dealers the opportunity to buy vehicles and brands from the closed dealers. Federal legislators also mandated Chrysler allow its closed dealers a chance to rejoin the network through arbitration.
Chrysler sued North Carolina, Maine, Illinois and Oregon arguing that the statutes interfered with the bankruptcy court sale process and federal law.
The state law said the closed dealers could release their inventory only if Chrysler paid the dealer the value of their former dealerships or filed an action showing the dealers were unfit.
"Chrysler Group is pleased to reach an amicable resolution to our issues," the company said Monday. "Such state dealer laws grant rejected dealers specific statutory rights previously afforded only to existing dealers, and are preempted in accordance with the bankruptcy court's prior rulings."
The all new Chrysler Grand Voyager was launched in March 2008 - replacing the popular outgoing model which had been with us since 2001. It also marks the demise of the more popular smaller Voyager.
The new Chrysler Grand Voyager is available with a choice of petrol or diesel engine, 6-speed automatic transmission and three equipment levels: LX, Touring and Limited. Prices start at £26,000 for the 2.8 CRD LX 6-speed automatic and rise to £33,000 for either the 2.8 CRD Limited 6-speed automatic or 3.8 V6 petrol Limited 6-speed automatic.
We drove the top of the range diesel model - the Chrysler Grand Voyager Limited fitted with a 2.8 CRD diesel engine mated to a six-speed automatic gearbox.
The new Chrysler Grand Voyager offers a choice of two engines: a petrol 3.8-litre V6 engine and the far more popular and sensible 2.8-litre turbo diesel engine that is commonly seen in the Jeep range.
Our test car was fitted with the 2.8-litre turbo diesel engine which outputs 161 bhp at 3800 rpm and produces 265 lb/ft of torque between 1600 rpm and 3000 rpm. Which propels the Grand Voyager from 0-62 mph in 12.8 seconds and onto a top speed of 115 mph.
The 2.8 CRD engine does seem to run out of puff up hill, which is especially apparent on the motorway. Of course the automatic gearbox changes down but it can all feel a little too lethargic to be enjoyable.
Chrysler Group LLC will offer 0% financing or as much as $4,000 cash back on its 2010 vehicles in an effort to remain competitive and lure customers into showrooms.
Consumers can choose between 0% financing for 60 months or a cash rebate on all of the auto maker's vehicles starting Friday and ending Jan. 4. There are also free equipment upgrade options—such as the installation of a DVD player or all-wheel drive—on some models.
The incentives highlight the reality new Chief Executive Sergio Marchionne finds himself in as he attempts to revive the third-largest U.S.-based auto maker. Mr. Marchionne, who is also CEO of Fiat SpA, told reporters just over two weeks ago that he wanted to reduce Chrysler's reliance on discounts.
However, auto makers aren't ready to abandon discounts as they still face a slow economic recovery. Chrysler is facing the hardest challenge to generate sales as its filing for bankruptcy protection and its subsequent change in ownership to Fiat may have kept consumers away from showrooms.
Chrysler didn't release its five-year survival plan until November, although the company exited bankruptcy protection in June. This year's sales of its vehicles have fallen 39% through Oct. 31.
The latest offer, called the "Year-end Wrap-up," includes $3,000 cash back or 0% on Chrysler brand vehicles and a no-cost service program for three years or 36,000 miles. Chrysler Town & Country minivan buyers will also receive a free installed DVD player.
The Jeep brand offer $4,500 cash back or 0% and the same free service program as Chrysler.
Dodge cars offers $2,500 cash back or 0% and a free all-wheel drive upgrade on a Dodge Charger.
Watch out, Ford. Chrysler has its sights on a promising area of new business that you thought you had carved out for yourself -- carlike fuel-efficient cargo vans.
Chrysler plans to import a version of the Fiat Doblo compact van in the U.S., Automotive News reports. The van has the same look and configuration as Ford's just-introduced Transit Connect, built in Turkey and a success across Europe. The Doblo would be sold as a Ram, the truck brand being separated from Dodge. And it won't be alone:
The Doblo will join a large Fiat-based van to be sold in the U.S. by the new Ram truck brand, along with a restyled chassis cab model and light- and heavy-duty Ram vehicles. Fiat has a 20% stake in Chrysler, which is enough to be considered the controlling shareholder.
The latest version of the Doblo starts sale in Europe starting in mid-January with U.S. sales in 2012. No name for the U.S. market yet. The new Doblo offers the most interior room and lowest carbon emissions of any van in its segment, Fiat boasts.
The Obama administration's preference for robust electric car production will not influence its oversight of taxpayer equity in General Motors GM.UL and Chrysler, an administration official said.
Ron Bloom, the head of the government task force that facilitated the restructuring of GM and Chrysler this year, said in an interview with Reuters that there is a bright line separating the two issues.
"We obviously would be very happy if Chrysler and GM were making lots and lots of high mileage cars. It's not a prerequisite. It's not an obligation," Bloom said on Tuesday.
The government, which has deferred to directors and management of both companies, wants viable automakers that can compete globally and repay their loans in a timely way.
The Obama administration has extended $30 billion and bankruptcy financing and working capital to GM, and $8.5 billion to Chrysler. Those taxpayer investments translate into a 60 percent stake in GM and a nearly 10 percent share of Chrysler.
Plans at both companies call for more fuel efficient vehicles regardless of engine technology and a variety of smaller cars.
GM has made a big side bet on the Volt electric hybrid due out next year. But Fiat (FIA.MI)-led Chrysler this month set aside its plans to develop a similar mass-market vehicle, concluding the effort did not fit with its accelerated business plan.
The decision raised eyebrows in Washington, and in the environmental and energy communities, since Chrysler secured help from the government partly on its blueprint for battery powered vehicles.
"We're completely separating policy from ownership," Bloom said in response to the Chrysler decision. "We trust that the board has carefully thought through the various options of the company and where it was and made judgments on the electric program based on that."
The Chrysler brand will handle U.S. distribution of the Fiat 500 minicar, said Peter Fong, Chrysler brand CEO and head of sales for all Chrysler Group brands.
Fong said the 500 most likely will have a dedicated corner in Chrysler-brand showrooms. The limited volume planned for the 500 prevents creation of a dedicated retail network.
About 80 percent of Chrysler dealers now offer all three of the group's brands: Chrysler, Dodge, and Jeep.
The Fiat 500 probably will have a dedicated corner in Chrysler-brand stores.
(Credit: Automotive News)
Fong said no decision has been made on how many dealers will sell the 500. The plan is for the 500 sedan to be built at Chrysler's plant in Toluca, Mexico, beginning in late 2010 or early 2011, says a supplier source.
Fiat prefers Mexico mainly because of its free-trade agreement with Brazil. The Italian automaker, which is the market leader in Brazil, plans to export about a third of the 100,000 Fiat 500s planned for yearly production in Toluca to Latin American countries.
Eventually, Fiat is expected to offer in North America the entire range of 500 body variants: hatchback, convertible, wagon, and a sporty version sold under the Abarth brand name
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 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 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.
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.
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.
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.
Here’s a vision for you: Imagine it’s the late 1950’s or early 1960’s. You are hanging out with the local soda-jerk (old people’s term – not mine) as the BAD boys begin rolling up. They drive a variety of Detroit iron from the late 40’s and early 50’s that are reminiscent of the bad-guy’s car from the movie, “Grease.” Cropped roofs, loud engines, sinister presence and a complete inability to round a corner.
That’s what I imagine when reminiscing about the Chrysler 300C SRT8.
Okay, it corners a lot better than a 1950 Oldsmobile Futuramic 88. This beast has a 6.1 liter HEMI V8 that growls with 425 horsepower and 420 lbs feet of torque – it’s got motor gordo. At 4,178 lbs, this is a lead-sled to be sure. With this weight and motor, the best thing the 2009 Chrysler 300C SRT8 does is purr content at nearly any speed along the highway.
Show it a corner at a sporting speed and prepare for the unknown. The steering reveals little of what the fat, 20 inch front wheels are doing. So much mass gets to speed so quickly. I clocked a few 0 to 60 times in well under 6 seconds, if you are foolish enough to turn off the traction control and accelerate around a tight bend – well, I hope you have your affairs in order. The 5-speed automatic transmission has the gimmicky autostick which does a fair job holding gears. Leaving the transmission alone to do its job is the best way to wring the most performance out of the Chrysler 300C SRT8.
I highly recommend the Boston Acoustics sound 6-speaker (with a 276 watt amplifier) sound system. The rest of the upgrades will cost you thousands including the video system (where the screen for the back seats resides in the arm rest) and the uconnect wireless online system. These are expensive toys. Still, even fully loaded, this beast is much cheaper than an equivalent German or Japanese performance sedan.
When driving, one must remember that a majority of this vehicle is underpinned by out-of-date Mercedes Benz parts. It’s true and not necessarily a curse. The (now discontinued) Mercedes Benz E Class of 1996 – 2002 was a great machine, but the core design is over a decade old. If the greasy bits were more modern, perhaps the front end’s tactile feel could improve.
On the road, it’s a pleasure to feel the thrust of a true rear drive machine (other Chrysler 300s have optional AWD). You sit low, nearly submerged in the cabin “gangsta” like. Looking out as your speed increases faster than most expect, you have to wait for the body to settle down before you charge out of a corner. It’s the only way this thing likes to be driven. Sure, the springs are tight and it is easy enough to drift the rear end - that’s NOT performance driving. On a road course, the Chrysler 300C SRT8 accounts for itself admirably until you give it the spurs.
The Pontiac G8 GT/GXP or brand new Ford Taurus SHO are much better handling vehicles.
Everything is solid and feels like it will last. I have never been excited about the design of the 300, although other enthusiasts seem to like it. It is a clean, unique design that has straight, masculine lines and in the case of the Chrysler 300C SRT8, a sporty mesh grill. I feel the Dodge Charger’s looks are more aggressive and contemporary. Either way, the look is getting a bit old.
So, am I saying this huge Chrysler is a bad car? No, not really. As long as the driver understands that this is a cruiser and not a racer, all is well. I was supremely comfortable driving at ridiculously high speeds on our interstates. Also, the sweet music the 6.1 liter HEMI makes is downright addicting. Abuse the Chrysler 300C SRT8 at 8/10th its total potential and the driver will have a ball.
Fully loaded (and before the massive amounts of rebates) the 2009 Chrysler 300C SRT8 runs nearly 50 grand. If you are careful and haggle hard as an associate of mine did, you can bring that price into the lower $40,000 bracket. For a vehicle with this much comfort and this much “go” that’s not too bad.
My overall combined mpg was a not so good at 16 mpg. My fault – I drive like an idiot.
Honestly, if you don’t mind spending your bread on go-go juice, this lead-sled may be your ride daddy-o. If you miss the big, powerful cars of yore and want the best warranty in the business – look up the Chrysler 300C SRT8. Just take it easy in the corners.
“If my dealership is not restored, we will lose everything — including college savings for my children and my home,” James Tarbox, who lost two Chrysler dealerships in Rhode Island, said on the second day of a House Judiciary Committee hearing about the dealership cuts.
“You would not believe the human suffering that is being caused by this reckless abuse of bankruptcy laws,” John J. Fitzgerald, who lost five Chrysler stores and three G.M. stores, said. “It is indescribable the things that I’ve heard. It is just not the American way.”
Louann Van Der Wiele, a Chrysler vice president and associate general counsel, defended the company’s decision to cut a quarter of its dealerships while it reorganized in bankruptcy.
She said the deal under which Chrysler’s good assets had been sold to the Italian carmaker Fiat last month could fall apart if the auto dealerships were restored. The rest of the company, now known as Old Carco, remains in bankruptcy protection and will be sold off in pieces.
“Legislation aimed at reversing some of the painful but necessary actions taken during Old Carco’s bankruptcy,” Ms. Van Der Wiele said, “will simply take Chrysler back to the future that Old Carco faced not long ago — and this time, without the option of a purchaser for substantially all of its assets. Complete liquidation, with all of its dire consequences, could follow.”
Committee members from both parties repeatedly demanded that executives from Chrysler and G.M. explain how the dealership cuts would lead to more profits for the companies and reacted skeptically to the answers they heard. Representative Bradley J. Sherman, Democrat of California, lamented that even if fewer dealerships did lead to higher profits, it would mean consumers would pay more for vehicles.
“If these dealers were so ineffective, why not just let them die on their own?” asked Representative Trent Franks, Republican of Arizona.
The G.M. executive who testified, Michael J. Robinson, said the automaker was trying to help the nearly 2,000 dealers whose franchise agreements would not be renewed next year by paying them about $600 million. Mr. Robinson, a G.M. vice president and its general counsel for North America, said, “While this process is far from painless, we think it is far preferable to an abrupt termination.”
Chrysler, in contrast, gave its dealers about four weeks’ notice before terminating their franchises and offered them no financial support, though it redistributed much of their inventory for a per-vehicle fee.
Kevyn D. Orr, a partner with Chrysler’s bankruptcy law firm, Jones Day, said the company did not have enough cash on hand to do a wind-down like G.M.’s.
Both companies said they had far too many dealers for the number of vehicles they now sell. G.M. said Wednesday that its global sales in the first half of 2009 fell 22 percent from a year earlier, largely because of its troubles in the United States.
July 22 (Bloomberg) -- Chrysler Group LLC is offering new-car buyers as much as $4,500 in cash, doubling the potential savings for customers who use a U.S. program to get less fuel-efficient cars off the road.
Customers who get the maximum $4,500 credit for a trade-in under the federal “cash-for-clunkers” initiative will reap a $9,000 benefit, the Auburn Hills, Michigan-based automaker said in a statement today. The incentive runs from tomorrow through Aug. 31 and covers most 2009 Chrysler, Dodge and Jeep models.
Chrysler’s offer takes effect alongside the $1 billion U.S. Car Allowance Rebate System and includes buyers who don’t tap government aid. The company’s 46 percent drop in first-half domestic sales was the deepest among big automakers in the U.S., damped by the recession and its April 30 bankruptcy filing.
“It’s a smart move, and I’m sure we’ll see this from other automakers,” said Jeremy Anwyl, chief executive officer of auto-research company Edmunds.com in Santa Monica, California.
U.S. credits to purchase qualified new autos are designed to speed the scrapping of older vehicles with lower fuel economy. Chrysler’s incentive may sway some buyers whose trade- ins or new autos aren’t eligible for federal help, Anwyl said.
“From a dealer perspective it gives them a much-needed tool to deal with the cash for clunkers rejects,” he said.
Chrysler is offering zero percent financing for 72 months through GMAC LLC on most 2009 models for consumers who don’t take the cash. GMAC took over lending from Chrysler Financial as part of the restructuring in which a group led by Italy’s Fiat SpA bought most assets of the former Chrysler LLC in Chapter 11.
The new Chrysler financing follows 60-month, no-interest loans on some models that started July 1 and end today.