Arbitrators have finished wading through the 105 cases of rejected Chrysler dealerships, determining that Chrysler was right to send the lots packing in 73 instances. According to Automotive News, those who weighed in on the cases typically cited the carmaker's plans to sell all four of its brands through the same dealerships as reason enough for ousting those that couldn't come up with the facilities to do so.
Chrysler offered around 232 dealers the chance to return to the company after kicking 789 sites off of the corporate life boat. The 32 dealerships that won their cases were part of the group that received the Pentastar olive branch, but to date, only 29 of the 232 have signed letters of intent with Chrysler that outline their terms of reinstatement. Few of those that won their arbitration case have accepted the letter of intent, though that number is expected to grow over the next few months.
There is some indication, however, that not every dealer is happy with their final agreements. Some have come forward with complaints that the terms of reinstatement are harder for those that got the boot than for dealerships that managed to survive the company's bankruptcy. Calls for facility upgrades have caused at least two dealers to file lawsuits contesting the letters of intent.
[Source: Automotive News - sub. req.| Image: Jeff Robertson/AP]
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Chris Shunk, Alex Nunez and Dan Roth are joined this week by Mike Spinelli, editor-in-chief of 0-60 magazine. Topics for Episode #188 of the Autoblog Podcast are the 2011 Ford Explorer, Audi's A7 Sportback, the announcement of the Hyundai Equus coming to the U.S. market, hybrid/electric Porsches and zombie-like rumors of a new Ford Ranger for North American showrooms. We also pepper poor Mike with our impressions of his fine publication. It's an hour-and-ten of stellar repartee this week, thanks for listening, see you next time!
Autoblog Podcast #188 - with Mike Spinelli from 0-60 magazine
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Good news if you've been itching to get a look at something other than a renderings and grainy detail shots of the Mopar '10 Challenger. Dodge has just dropped a hefty batch of photos of the model in full. Supposedly, the company is only building 500 examples of the car, each of with a price tag of $39,000 if you want a six-speed manual. If you can live your life with a slushbox, Dodge will give you the car for $38,000. For that kind of coin, you get a raucous hood scoop and your choice of three accent colors.
Likewise, the interior will also wear a slew of new niceties, including Mopar logos embroidered in the side bolsters of both front seats, matching thread accents and a new steering wheel. Unfortunately, the car is based off of an R/T model, so don't expect to see the heavy-breathing 6.1-liter V8 from the Challenger SRT8 under the hood.
Toyota and Honda may be improving the images of their minivans, but we mustn't forget about the company that started it all: Chrysler. The very first Dodge Grand Caravan went on sale 27 years ago, and through all of the ups and downs that the automaker has faced over the years (especially in recent times), the Grand Caravan and Town & Country twins have always been a mainstay.
The current pair of minivans was introduced for the 2008 model year, so it's only fitting that a slight mid-cycle refresh is on deck, and the folks at The Detroit News have snagged some spy shots of a Town & Country prototype out testing. In addition to modest exterior updates that include things like LED taillamps and a reworked rear bumper, expect Chrysler's new 3.6-liter Pentastar V6 to be slotted under the hood. Combined with a six-speed automatic transmission, this should account for a healthy improvement in fuel economy, not to mention power.
What's most important for minivan shoppers, though, is interior refinement, and the 2011 T&C is expected to get a host of cabin upgrades. More comfortable seats, higher-quality materials and an integrated center console will be on hand, and we'd expect the nifty Stow 'N Go and Swivel 'N Go seating configurations to carry over, as well. Look for similar improvements to make their way into the Dodge Grand Caravan, as well. Thanks for the tip, Aaron!
Ah, the magic of the interwebs. Chrysler has yet to officially reveal the 2012 Dodge Durango (which could yet be birthed under the name Magnum), but we've come across this rather nonchalant camera phone photo taken by one of the Twitterati.
Judging from the Durango/Magnum spy shots that have come through our hands, the exterior design hasn't changed much during the SUV-turned-crossover's development. If we're honest, the design is a little milquetoast, but we'd rather Chrysler be executing simple designs rather than unsightly messes. Expect the Pentastar 3.6-liter V6 and 5.7-liter Hemi V8 to be under the hood when the SUV hits the road in early 2011.
Chrysler may be more than a little short on new products right now, but that apparently isn't stopping Team Pentastar from bolstering its bottom line. The Detroit Free Press reports that Fiat/Chrysler CEO Sergio Marchionne told reporters that Chrysler managed to produce black ink between April and June. We won't know exactly how much money Detroit-based automaker pulled in until August.
In any case, this counts as phenomenal news for the struggling automaker, which went through bankruptcy proceedings during the second quarter of 2009. Chrysler also posted an operating profit of $143 million in the first quarter, though one-time costs meant an overall loss of $197 million at that time.
While we'll have to wait a couple more week for Chrysler's official Q2 numbers, Fiat has already posted its results for the quarter. The Italian automaker managed a $146 million profit bolstered by a 12.5 percent increase in revenue. Global sales reportedly grew by 6.7 percent versus the same quarter in 2009, even with a 21.5 percent drop in sales in Italy. Fiat's domestic market sales were negatively impacted due to the end of the country's Cash for Clunkers-style program.
Chrysler Financial hasn't been doing a whole lot since the domestic automotive implosion of aught-nine. When the Obama Administration's Automotive Task Force found that the lender didn't have the wherewithal to continue making large loans to dealers, GMAC was forced to take over lending duties for Chrysler. Part of that decision was due to the fact that last year, used car values were at one of their lowest points in decades. Since the majority of Chrysler Financial collateral involves used cars and trucks, that was a bit of an issue at the time.
But that was then and this is now. Used vehicle values have rebounded in a big way, and as such, word has it that Chrysler Financial is once again looking into making large-scale loans to dealerships across the country. Word has it that Tom Gilman, Chrysler Fianancial's chief executive officer, has been contacting numerous dealerships in order to get a feel for whether or not there's enough interest for the institution to return to lending, according to Automotive News. Even so, with most dealers now cozy with GMAC, it may be difficult for Chrysler Financial to reestablish itself as the titan it once was.
Chrysler is out to improve the company's dealer experience for consumers by sending the old Five Star program out to pasture. In its place, the smallest of the Big Three has set up Dealer Standards, which awards cold hard cash for meeting a lengthy set of goals. In contrast, the Five Star program merely handed out a few corporate perks - like pointing internet shoppers directly to winning dealers. That program had been around since 1997. According to some workers, it was something of a catch 22. You needed sales in order to meet the Five Star standard, but if you didn't get the internet leads, you didn't get the sales.
Instead of sending dealers chasing their tails, the new Dealer Standards program requires showrooms to acquire 900 of 1,000 points in a system managed by a third party every quarter. The points are tied to everything from dealership appearance to how workers handle telephone follow-ups and whether or not there are new kiosks on the showroom. As you can imagine, not all of Chrysler's dealers are thrilled about the change, even though it means some of the largest lots out there can earn up to $200,000 per quarter for hitting the gold standard. Nabbing silver still means a solid chunk of change - $120,000.
We know what you're thinking. What good is a vehicle capable of overlanding to the remotest parts of the planet if there's no place to lay your head when you arrive at your for-the-night destination? Here's a bit of good news for you world travelers: Jeep has just announced a new Trail Edition Camper that will be available as an official Mopar accessory from any Jeep dealership. And it looks just about perfect hooked up behind a new Wrangler.
From what we can see in the high-res image gallery below, these trailers are pop-ups that fold down to a manageable size for towing. Each trailer will sport sleeping arrangements for four with one dedicated queen-size bed (the other sleeping quarters are converted from the table and couch), built-in aluminum cabinet, 110-volt power supply and a "premium canvas enclosure."
Two models will be available, the standard Trail Edition Camper and the (*cue monster-truck-announcer voice*) Extreme Trail Edition Camper. While the basic model gets 32-inch tires and 12 incles of ground clearance, the Extreme Edition ups the ante with 35-inch BFGs and a whopping 15 inches of clearance. Other suitably extreme upgrades include a beefed-up frame and full underbody skid plates.
Pricing starts at $9,995 for the regular model and $11,995 for the Extreme. Full details and specifications can be found after the break, and we highly suggest you check out our high-res image gallery below.
General Motors and Chrysler terminated the contracts of thousands of dealers while the automakers were in bankruptcy proceedings; a move that was required by the Obama Administration's auto task force as a condition of bankruptcy. The scheme was heralded as a way to save the struggling automakers millions or even billions of dollars, but special inspector general for the Troubled Asset Relief Program (TARP) Neil Barofsky claims in an audit that the dealer closings weren't "necessarily critical to the manufacturers' viability." Barofsky added in his TARP audit that the closing of dealerships would add thousands of workers to the unemployment lines "without sufficient consideration of the decisions' broader economic impact."
The U.S. Treasury, obviously, doesn't agree with Barofsky's assessment. The Detroit Free Press quotes an anonymous source who points out that it was well known in the auto industry that Detroit automakers have too many dealers. Toyota, for instance, has a much smaller dealer body than GM. And the dealers Toyota does have average much higher sales volumes than dealers of domestic products. That theoretically leads to dealers with more marketing muscle in their perspective markets. Not all automaker executives wanted to shrink their dealer networks, either. Some feared the loss of sales that would follow shutting down retail outlets, but the task force reportedly felt those lost sales would be recouped within a few years
But while arguments can be made for or against shrinking the pool of retail outlets around the country, one fact is hard to ignore. A reported 35,000 dealer employees lost their jobs in 2009 and 2010, or over three percent of all dealership employees around the country - roughly equal to the 32,000 jobs lost within the industry.
Barofsky also touched on the process which both Chrysler and GM used to determine which dealers should stay and which should go. The auditor claimed that Chrysler stuck to its plan throughout, which is evidenced by the fact that only 28 dealers won their arbitration cases out of 789 stores that were closed last year. Barofsky claims that GM wasn't so strict in determining which dealers to cut, and there wasn't much documentation to show how and why the General cut its dealers. GM has since restated 666 of the 1,454 dealers it cut, though the company gave dealers more than a year to wind down operations, while Team Pentastar cut off its under-performing dealerships almost immediately.
It's no secret that Chrysler's future plans are in a constant state of flux right now. After all, the automaker just went through a ridiculously fast bankruptcy where bits and pieces were shed before stewardship was handed over to Italy's Fiat. It's only natural that Chrysler's new management would need some time to get itself organized.
According to The Toledo Blade, Chrysler decisionmakers are still up in the air as to how the Toledo North Assembly Plant figures into the company's future roadmap. Previously, Chrysler said the Ohio facility would build three new SUVs based on Fiat's C-Evo platform to replace the Jeep Liberty and Dodge Nitro.
Apparently, however, Chrysler has three plants that could build the new 'utes - Toledo, Belvedere, Illinois and Sterling Heights, Michigan. The reality is that the Pentastar really only needs two of them to handle the project. Alternately, all three could build the vehicles using fewer shifts. At this point, it's anyone's guess which, if any, of these facilities will be left out in the cold, and what the resulting employee impact will be.
Rendering of a next-generation Chrysler PT Cruiser - Click above for high-res image gallery
The end of production of the Chrysler PT Cruiser prompted a reader at the Cheers and Gears forum to try his hand at rendering what could have been a next-generation edition of the retro hatchback. It's often been said that following up a retro design is particularly difficult, though admittedly, BMW has managed to do so with the Mini.
The artist, Andrew Currie, has taken his cue from Mini by retaining the original PT's basic shape, with the biggest changes applied to the nose. A larger grille with four round, exposed headlamps still retains the flavor of the outgoing model. If the design were applied to a more modern platform with an up-to-date powertrain and better handling, it's certainly possible it could have been successful. The problem is that such designs tend to be fashion statements, and you know what they say about "One day you're in ..." In part, Mini's success has come by expanding the concept to different body styles including the Clubman, Countryman and the upcoming coupe and roadster. It's not clear that a single PT variant could do the job.
What do you think, could a new PT Cruiser with modern running gear still succeed? Let us know in our poll after the jump.
[Source: Sector 329 Graphics/Andrew Currie via Cheers and Gears]
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Chris Shunk, Alex Nunez, Sam Abuelsamid and Dan Roth convene yet again for Episode #186 of the Autoblog Podcast. Topics are the final passing of the long-suffering Chrysler PT Cruiser, General Motors' "Build your own engine" for Chevrolet Corvette buyers, Tesla and its dalliance with Toyota prototypes, and the work being undertaken to develop vehicles that can be driven by the blind. There's the inevitable tangential excursions, and we finish up by responding to your feedback and questions before wrapping at an hour and twenty-five minutes. Thanks for listening, see you next time!
Autoblog Podcast #186 - The PT Cruiser is dead, blind drivers, Tesla and Toyota, and more!
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Hyundai has had the largest jump in transaction prices so far this year, but the Detroit Three have made the kinds of gains they haven't seen in years. Overall, according to Edmunds.com data, consumers spent an average of $29,217 on a car through the first five months of this year, with the domestics all meeting or exceeding that number. Only Chrysler fell a hair short, with an average transaction price just seven dollars below the industry average. However, all three Detroit companies posted percentage increases that beat the industry.
While the popularity of full-sized pickups, crossovers and SUVs has made a difference for Ford, General Motors and Chrysler, the "more disciplined approach" to running their business caused by the recession and their own financial issues, has also been credited for reducing inventory and incentives. Additionally, buyers with good credit make up more of the consumer pool now, and they're choosing more technology and options for their cars. If they keep this up they might one day be The Big Three again. Eventually...
Sha Na Na tribute to the Chrysler PT Cruiser - Click above to watch video after the jump
Hear that? It's the lid on the dustbin of history about to close on Chrysler's PT Cruiser, which ends production today. In case you don't remember how popular the retro hatch used to be, in 2006, none other than Sha Na Na composed a song about "The Cat in the PT Cruiser," 'cause "he's where it's at."
That, and the fact that the final example being made today looks almost exactly like the ones featured in this video might just answer all of your questions about why the once maniacally popular PT Cruiser has a date with Charon this evening. Follow the jump for a look at history.
Back in February, Chrysler rolled out its "Minivan Pledge," which gave customers the choice of returning their vehicle within 60 days if they were unhappy in any way. The program must have been successful for Team Pentastar, because the program is now being expanding to all Chrysler, Dodge, Jeep, and Ram Truck models. Chrysler Lead Executive for U.S. Sales Fred Diaz says in the company's press release that the program will give customers "the confidence to know they made the right purchase or they can return the vehicle no questions asked."
Chrysler has also announced July incentives, which, we're guessing, will render the 60 day guarantee almost completely useless. See, customers will be able to choose from incentives like zero percent financing for up to 72 months, cash rebates of up to $4,000 or the 60-day guarantee. So if you're in, say, a Dodge dealership and you're given a choice of $4,000 on the hood or a 60-day return policy that can only add up to $1,000 ($500 per month), which would you take? Hit the jump to read the Chrysler press release.
Recalled Chrysler PT Cruiser after the fatal crash - Click above to watch video after the jump
We don't typically think of rental cars as the most well-loved vehicles on the planet, but we do expect them to be well maintained and reasonably safe. According to findings from a recent lawsuit against Enterprise, that may not always be true. In a case involving the death of two California women who were killed after their rental Chrysler PT Cruiser caught fire and struck an oncoming semi. Enterprise admitted that it routinely rents out vehicles that are under recall and haven't been repaired. The PT Cruiser was one of those vehicles.
In September of 2004, Chrysler issued a recall for the car. In certain instances, the vehicle's power steering unit could leak, causing an engine fire. Enterprise continued to rent the vehicle for a full month after receiving the recall notice before Raechel Houck, 24, and her sister, Jacquie, 20 rented the vehicle for a trip to visit their parents.
In further testimony, it was revealed that Enterprise routinely rents out vehicles under recall, and that the company has no standing policy against doing so. ABC News also indicates that other major companies like Hertz and Avis conduct themselves similarly.
In the case of the PT Cruiser, a jury awarded the womens' parents a $15 million settlement. Click past the jump to watch the ABC News video report.
Mopar '10 Challenger - Click above for high-res image
The Mopar division of Chrysler has, in a way, been one of the automaker's silent heroes. This brand continues to build standard-spec and aftermarket parts for a range of Chrysler products, and while these optional goodies have always been offered in an a-la-carte fashion, Chrysler is now offering a true Mopar version of the 2010 Dodge Challenger.
Mopar starts with a Challenger R/T, fitted with the 5.7-liter Hemi V8 and adds a hood-venting system, cold-air intake, front strut brace, unique engine cover and a strut-tower brace. Chrysler hasn't released official numbers, but we'd say that these modifications are good for an additional 10 or 15 horsepower - nothing crazy.
Inside, there's a Katzkin leather seating package, special gear shifters for either transmission, a custom leather-wrapped steering wheel and - you guessed it - a serialized dash plaque. Only 500 of the Mopar '10 Challengers will be built, finished in a brilliant black clear coat with a choice of either red, blue or silver accents. (What, no white?) Other exterior changes include things like a black chrome grille surround, black wheels, functional hood vents and hood pins.
The Mopar '10 Challenger hits dealerships next month, priced from $38,000 with the automatic transmission (including the $750 destination charge). Want a do-it-yourself shifter? Add $1,000 to that price. (Wait, what?) For the full details, hit the jump for the press release.
Chrysler has introduced musclebound V8 engines carrying the Hemi moniker twice over the last fifty years, and the company is reportedly preparing to once again back away from the Hemi. As we discovered during our First Drive of the 2011 Jeep Grand Cherokee, the burly, modern engine with a throwback name won't be going away so much as it will be re-framed when the marketing-speak starts to flow. Dodge vehicles and Ram trucks will unbashedly carry the Hemi, and it will continue to be available in some Jeeps and the Chrysler 300, though it will be downplayed as merely a "5.7-liter V8" in those brands.
According to The Wall Street Journal, the Hemi's Multi-Displacement System will also be given more prominence to point up the engine's fuel-saving abilities. With the Pentastar V6 finally putting a fully competitive V6 in the Chrysler engine stable, and a desire by management to cultivate a more refine and efficient image, it seems that the iconic powerplant will move to the back seat for now. The Hemi is one of the best V8s out there, just like the original, and for now, it's still available.
Fiat has the highly regarded Multijet diesel engine among its offerings, and Volkswagen has been spending massive amounts of moolah to soften American hearts toward diesels. Yet in spite of those two factoids, at a recent symposium in Michigan Fiat CEO Sergio Marchionne championed compressed natural gas (CNG) as a fuel he'd like to see take a notable place among the panoply of domestic options.
Last year when Fiat presented its five-year plan, the senior VP of powertrain, Paolo Ferrero, mentioned diesels, hybrids and electric cars as intentions beyond the direct-injected and turbocharged ICE. Earlier this year an electric Fiat 500 was announced for 2012. But the push has apparently already begun to integrate compressed and liquefied petroleum gas (LPG) vehicles. Fiat's already has the experience and hardware in South America, where its tetrafuel engines run on four different fuels.
Marchionne didn't offer any kind of timetable for the arrival of CNG, saying only that it "is the most effective solution, in terms of costs and timing, to lessen this country's reliance on oil" as well as making it clear that it could be a quicker way for Chrysler to get seriously green. He did admit, though, that the infrastructure is nowhere close to making it viable. We will admit that the idea of an Alfa Giulietta that runs on LPG is an enticing thought. But we'd be even more enticed if Fiat could get even one Giulietta here for retail sale that runs on... well, anything.
Toyota
