Chrysler

Auto/Economy
10:54 am
Thu January 5, 2012

Chrysler's new Dodge Dart gives Fiat another 5 percent in Chrysler

PR photo of the 2013 Dodge Dart
Chrysler

Fiat's ownership stake in Chrysler goes up 5 percent now that the company is building a car that gets 40 mpg in the U.S.

The added stake was part of the agreement with the U.S. government when it bailed out the auto company in the 2009 bankruptcy restructuring.

The Associated Press has more:

The U.S. government...gave Fiat a 20 percent stake in Chrysler in July of 2009 in exchange for Fiat's management expertise and use of its technology. Fiat gradually raised its ownership by meeting performance goals and buying the government's stake in Chrysler.

Chrysler said early Thursday that a pre-production version of the new Dodge Dart compact got 40 mpg in testing by the Environmental Protection Agency in late December. Full testing for the mileage sticker that will go on the Dart's window has not been finished. The window sticker testing is done under different standards and could be lower than 40 mpg.

The AP reports that the added 5 percent comes from a UAW trust fund that pays for retiree health care. After giving up the five percent, that fund still owns 41.5 percent of Chrysler.

Automobile Magazine has more on the Dart, which will be built Belvidere, Illinois:

Engine choices will comprise two “Tigershark” inline-fours displacing 2.0 and 2.4 liters, as well as a turbocharged 1.4-liter MultiAir inline-four. Chrysler has also said there will be a choice of three transmissions for the compact Dart sedan. The Dart is based on a lengthened and widened version of the platform that underpins Europe’s Alfa Romeo Giulietta hatchback.

The Dart will be revealed at the North American International Auto Show starting next week. We'll have more then.

Auto/Economy
2:11 pm
Wed January 4, 2012

Chrysler to shut down minivan plant in Windsor for one week

A 2011 Chrysler Town & Country rolls off the final inspection line at Chrysler Group LLC’s Windsor Assembly Plant.
Chrysler

Grace Macaluso of the Windsor Star reports that an "inventory adjustment" is to blame for a shutdown at the Chrysler Windsor Assembly Plant.

Close to 5,000 workers at the plant build vehicles such as the Dodge Grand Caravan, the Chrysler Town & Country, the Ram Cargo Van, the Lancia Grand Voyager, and some versions of the Volkswagen Routan.

More from the Windsor Star:

"Inventory adjustment" is being blamed for a weeklong shutdown starting Monday at Chrysler’s Windsor Assembly Plant.

“It’s very concerning,” said Laporte, president of CAW Local 444, which represents about 5,000 hourly workers at the plant, said Tuesday. “It’s not good. This has been happening year after year in terms of down time in January, which is the worst month for sales coming right after Christmas.”

LouAnn Gosselin, spokeswoman for Chrysler Canada, would only say the company was attempting to “balance inventories.”

A spokeswoman said most workers will lost a week's worth of pay as a result of the shutdown. It comes on the heels of their regular week-long Christmas break shutdown.

Auto/Economy
2:05 pm
Wed January 4, 2012

U.S. vehicle sales continue to rise

Consumers appear to be more confident in the economy, and it showed in the salesrooms of American car companies last year.  

Chrysler saw the biggest improvement, with sales up 26 percent over 2010.

The company says its Jeep Wrangler and Chrysler 200 sedan were the most popular of the 16 new or revamped models it rolled out.

Ford sales rose 11 percent, driven by demand for its trucks and SUVs.

General Motors reports a 14 percent increase for 2010 bolstered by its passenger car sales, including the new Cruze and Sonic.

Don Johnson is GM’s vice president for U.S. Sales Operations. He says the company predicts more growth next year, but is keeping an eye out for bumps in the road:

"Clearly we have to, as always, keep our eye on oil and gas prices, and on the political environment as we prepare for an election in November.”

Altogether, U.S. automakers sold nearly 6 million vehicles in 2011.

Auto/Economy
3:20 pm
Sun November 20, 2011

Could the auto industry help revive Toledo?

Three big, new investments by automakers in one Ohio city are raising hopes for a revived economy. Chrysler and General Motors have promised to spend more than $800 million on retooling and expanding their factories in Toledo.

These moves announced in recent months will create at least 1,400 jobs and keep thousands more. Parts suppliers also are expected to add more jobs in and around Toledo.

Chrysler announced plans on Wednesday to build a new Jeep SUV at its Toledo assembly plant while adding 1,100 jobs. It also hinted that more work could be coming.

That's why Toledo Mayor Mike Bell calls the news "the equivalent of a blood transfusion for our city."

Auto/Economy
12:09 pm
Fri November 18, 2011

Detroit carmaker CEOs watch Italy, Greece, and worry

automotiveauto.info

The heads of two of Detroit’s car companies say they’re concerned about the debt crisis in Europe. 

European consumers are pulling back from buying cars because of fears about the Euro and the economy.   

Fiat and Chrysler CEO Sergio Marchionne on Wednesday said he’s hopeful the new leadership in Italy will help turn things around in that country.  But he says car sales in Europe could worsen through next year.   

At the Detroit Economic Club Thursday, GM CEO Dan Akerson said the crisis could damage more than car sales.  But he’s hopeful the U.S. economy has become more resilient.

"Could the United States withstand a recession in Europe?" he asked rhetorically.  "I think it could. "

Ford CEO Alan Mulally earlier this month took the most optimistic view, saying he expects some global economic growth next year, despite sovereign debt concerns.

Auto/Economy
5:59 pm
Wed November 16, 2011

Toledo Jeep plant gets big investment as Jeep goes global

2011 Jeep Liberty
Chrysler Group Flickr

Chrysler plans to invest $1.7 billion dollars in a new Jeep program, that will first roll out a replacement for the current Jeep Liberty. 

The new Jeep is intended for a global market.    

The investment includes a $500 million re-tooling of the Jeep Liberty Assembly plant in Toledo. 

The investment means 1,100 new jobs at the Jeep Assembly Plant starting in 2013.  

Fiat and Chrysler CEO Sergio Marchionne says the new Jeep should help tap growing overseas markets, like China, the world’s largest car market.  He says the Jeep brand is already taking off in Europe.

"I have similar expectations for Jeep especially in the eastern part of Europe – Russia," Marchionne told a group of reporters after a press conference at the plant.   "It  (Jeep) is best brand that Chrysler owns, by far."

The new SUV could still bear the Liberty name.  Marchionne says there could be at least one other "top-hat" built onto the new platform, and eventually, the plant could build up to four different models of Jeeps.  

The new Jeep will combine a Fiat chassis, or underlying platform with a Chrysler design and engine.

Auto/Economy
2:02 pm
Sun November 13, 2011

Once rescued by Fiat, Chrysler is now rescuer of Fiat

Fiat and Chrysler CEO Sergio Marchionne
user dgtmedia-simone wikimedia commons

While Chrysler is finally making money in the United States this year, financial uncertainty in Italy is hitting car sales there hard.   

Inventories are swelling, and incentives are rising.

Fiat lost $285 million in the third quarter of this year, and the overall economic situation doesn't bode well for the company's fourth quarter.

Meanwhile, Chrysler made a modified operating profit of $483 million in the third quarter.

Michael Robinet is with IHS Automotive. He said the merger of the two companies is working the way it should. 

Read more
October U.S. auto sales
5:54 pm
Tue November 1, 2011

October U.S. auto sales up, especially at Chrysler

U.S. auto sales rose again last month, as pent-up demand for cars continues to overcome low consumer confidence in the economy. 

Chrysler’s sales increase was especially strong, as customers continue to return to the smallest of the Detroit Three car companies. 

The company's sales rose 27 percent over October last year. 

It was also the 19th straight month of sales increases for Chrysler.  

Michelle Krebs of Edmunds.com says Chrysler finally has new products to sell, like the new Jeep Compass, which outsold its predecessor by 566 percent. 

Krebs says Chrysler is also running good ads for its cars, like the instantly iconic Superbowl ad starring Eminem and the Chrysler 200.

"And it’s caused people to at least know that the company still exists," says Krebs, "when many people did not think the company would survive after its bankruptcy, and it’s catching the attention of buyers."

Nissan sales rose 18 percent, while sales declined nearly 8 percent at Toyota and 1 percent at Honda.  Both companies are recovering from inventory shortfalls related to the tsunami in Japan last spring.

Auto/Economy
1:27 pm
Fri October 28, 2011

Chrysler CEO says two-class pay system is not viable

Chrysler CEO Sergio Marchionne says he wants to eventually do away with the two-tier pay system.
user socialisbetter Flickr

Chrysler CEO Sergio Marchionne said the two-class pay system currently in place will have to be replaced with a single wage system in the next round of contract talks with the United Auto Workers.

The UAW and Chrysler just approved a 4-year contract with the two-class pay system in place, so the next opportunity to revise the system won't come until the next round of contract negotiations.

More from the Associated Press:

Negotiations for that contract start in 2015.

He says the current system creates two classes of workers. New workers in the bottom tier make about half as much money as longtime UAW members.

Marchionne didn't say how he would come up with one wage. But it's likely he'll try to reduce the pay of top-tier workers. General Motors and Ford could follow and pay could be cut for most of the UAW's 112,000 members.

UAW workers approved a four-year contract with Chrysler on Wednesday. It includes raises for bottom-tier workers.

More on what Marchionne said comes from Changing Gears reporter, Pete Bigelow:

The structure is, “not something that can go on for a long period of time,” he said on a conference call to discuss the company’s second-quarter earnings. Marchionne continued, saying, two-tiers is “not a viable structure on which to build our industrial footprint.”

Changing Gears reporter Kate Davidson provided some insights into the two-class pay system in a piece she produced last year for Changing Gears.

At the time, the starting rate for a "two-tier" worker was $14 an hour. The new contracts have pushed the starting rate for "two-tier" workers above $19 an hour.

Chrysler posts profit
6:09 pm
Thu October 27, 2011

Chrysler makes $212 million profit

Chrysler made a profit in the third quarter of this year.

The news comes a day after Chrysler workers narrowly approved a new four-year contract.

The $212 million profit is small compared to Detroit rival Ford, which made $1.6 billion in the same period.

But it’s the second quarterly profit this year for Chrysler, and a sign that its recovery from the 2009 bankruptcy is gathering some steam.

In fact, Chrysler would have made a profit last quarter too, were it not for one-time costs associated with paying off its federal loans.

Chrysler CEO Sergio Marchionne said the just-ratified contract with the UAW will support the company in its growth plans.

The contract includes a much smaller signing bonus than the one Ford union members will get.

That was likely one of the main reasons the contract was so narrowly approved.

Auto/Economy
11:27 am
Thu October 27, 2011

Chrysler reports profits for second consecutive quarter

Ricardo Giaviti Flickr

On the heels of the approval of a four-year contract with the United Auto Workers comes news of a 3rd quarter profit from Chrysler.

The company reported a profit of $212 million for the 3rd quarter (July, August, and September). The company had reported a second quarter profit earlier this year ($181 million for the months of April, May, June).

From Chrysler's press release:

Chrysler Group LLC today reported preliminary net income of $212 million for the third quarter, compared with a net loss of $84 million a year ago, as the Company continues to increase sales and benefit from its alliance with Fiat S.p.A.

In the third quarter of 2011, net revenue was $13.1 billion, a 19 percent increase from the third quarter of 2010, driven by increased demand for Chrysler Group’s 16 all-new or significantly refreshed cars and trucks.

Chrysler CEO Sergio Marchionne said these profits show the company is back on track:

"In the third quarter, Chrysler Group achieved increased sales and positive financial results, totally in line with the plan we laid out in November 2009. And in October, together with the United Auto Workers, we crafted a solid four-year contract that will support us in our growth plans and significantly reward our employees for their contribution to the revival of Chrysler," said Marchionne.

The Detroit Free Press reports the company "predicted it would make between $200 million and $500 million this year."

Auto/Economy
6:38 pm
Wed October 26, 2011

UAW declares Chrysler deal ratified, despite split

Update, 6:30 pm:

Speaking with reporters on a late afternoon conference call, UAW President Bob King says its International Executive Board followed the union’s constitution, which gives skilled trades workers a separate right of ratification on skilled trades issues.

But King says the board investigated the reasons skilled trades workers voted the contract down. He says according to Facebook posts and leaflets, the main reasons were general economic ones affecting all workers, such as bonuses - and not issues specific to skilled trades workers.

"You want to protect the rights of the minority, but you can’t let the minority overrule the rights of the majority," King said.

King says with all three contracts with the Detroit automakers now finalized, the union will turn its attention to organizing efforts, and the 2012 elections.

Here's the breakout of the vote, according to the UAW:

Read more
Ford falls in reliability, Chrysler rises
5:22 pm
Tue October 25, 2011

Ford Motor Company falls, Chrysler rises in reliability survey

Ford Motor Company fell from grace in a Consumer Reports survey this year.

The survey predicts reliability of new models, based on past performance of older versions of the cars.

Ford dropped from 10th place to 20th.

David Champion is with Consumer Reports. 

He says the MyFordTouch and MyLincoln Touch in-car communications systems work poorly.

And a new transmission in the Ford Focus and Fusion doesn’t work well, especially at parking lot speeds.

Read more
Chrysler UAW voting ends soon
9:28 am
Tue October 25, 2011

Chrysler UAW voting on contract ends soon, could be close

The United Auto Workers is expected to announce the results of voting on a tentative contract with Chrysler by Wednesday.

Chrysler is the last of the Detroit Three to reach a settlement on a new, four-year contract.

Kristin Dziczek is with the Center for Automotive Research.

She said so far, the vote looks very close.  Union members with Chrysler may have been expecting more than they got, she said.

This is coming on the heels of two very strong agreements with General Motors and with Ford that had more cash and fewer contingencies.

Entry-level workers, who receive about 1$14 an hour now, would get a raise of about $4 an hour, phased in over the four years of the contract.

Workers would get an immediate signing bonus of $1,750.00, with the promise of another $1,750.00 dollars if Chrysler meets certain financial goals.

If the contract is rejected, it goes to binding arbitration, because of an agreement the union made with Chrysler during the company’s bankruptcy.

Auto/Economy
9:53 am
Fri October 21, 2011

Keeping An Eye On Chrysler

There was a fair amount of anxiety in automotive circles over the new contracts hammered out between the United Auto Workers union and Ford and General Motors. GM remains the largest Detroit automaker, and this was the first post-bankruptcy contract.

The pact didn’t give workers as much as some had hoped for, and it did nothing to eliminate the new two-tier wage system that many old-time union members especially hate.

Read more
Ford union contract approved, Chrysler next
10:19 am
Thu October 20, 2011

With Ford contract ratified, UAW turns to Chrysler

Staff Chrysler Media

Chrysler union workers vote this week on a tentative new contract. 

Ford workers approved their contract on Wednesday, 63-percent in favor to 37-percent against. 

But the contract was narrowly rejected at the Michigan Assembly plant in Wayne.  Bob King is President of the union. 

"I don’t feel bad or in any way negative towards those workers because they voted against it," says King.  "I think they expressed honest, legitimate concerns.   I have the same concerns.   I don’t like a system where people on the same assembly line are making a different rate of pay."

Read more
Auto/Economy
4:38 pm
Wed October 12, 2011

UAW and Chrysler reach tentative contract deal

Chrysler and the United Auto Workers have agreed to terms for a four-year contract deal.

Chrysler is the last of Detroit’s three carmakers to reach a tentative agreement with the UAW.

The agreement follows some tense negotiations between the UAW and Chrysler, which is majority-owned by the Italian automaker Fiat.

Chrysler is smaller and more indebted than its fellow U.S. automakers, but the UAW sought a contract with similar terms to those it got from GM and Ford.

Like in the GM and Ford contracts, entry-level Chrysler workers will get a wage hike under this deal. Workers also stand to get more in bonus pay and profit-sharing.

“The overall framework, the overall labor cost agreement [compared to GM and Chrysler] is very, very comparable,” said UAW President Bob King. “We tweaked them, shifted them a little bit in each case, because of the specific needs of the individual companies.”

Also like the GM and Ford contracts, this agreement focuses more on creating and retaining jobs for U.S. workers than on boosting worker pay. Chrysler says it will invest $4.5 billion in U.S. production, and create 2100 U.S. jobs.

King thinks most of his members understand the focus on future investment.

“Our members overwhelmingly supported the goal of bringing more jobs into our plants,” King says.  “And our members understand overall that they can’t be secure unless there’s product and investment long-term in their facility.”

UAW officials hope to get Chrysler workers to ratify the deal within the next two weeks.

GM UAW workers ratified their contract by a roughly 2-to-1 margin. Ford workers are still voting.

Auto/Economy
7:44 am
Wed October 12, 2011

Chrysler & UAW reach tentative deal

Chrysler Group and the United Auto Workers have reached a deal on a new four-year contract that creates 2,100 new jobs.

The union says in a statement Wednesday that Chrysler will invest $4.5 billion in its plants under terms of the deal.

The union gave few other details.

But the agreement is expected to be similar to deals reached earlier with General Motors Co. and Ford Motor Co.

Workers at those companies gave up pay raises for most union members in exchange for profit-sharing payments.

The Chrysler deal covers 26,000 workers.

Auto/Economy
4:59 pm
Mon October 10, 2011

Chrysler and UAW to resume talks Tuesday morning

Contract talks between the United Auto Workers union and Chrysler resume Tuesday morning.  That’s after after negotiators were unable to reach a deal over the weekend. 

The UAW has asked its local presidents to come to Detroit on Wednesday.  That could mean an agreement is imminent. 

Read more
Auto/Economy
11:43 am
Mon October 10, 2011

UAW and Chrysler temporarily halt contract talks

Top officials with the United Auto Workers are briefing local union leaders on contract talks with Chrysler today, after negotiators were unable to come to an agreement over the weekend.

A statement from Chrysler says talks ended this morning so the UAW could meet with its National Council.

Chrysler is the last of the Detroit Three to reach a tentative contract with the UAW.  General Motors workers last week ratified a new four-year contract by a margin of two-to-one.

Ford workers are voting this week on a new contract.

Both the contract at Ford and General Motors provide for a pay increase for the company's entry-level workers.

But Chrysler has many more of the entry-level workers than Ford and GM.  Chrysler CEO Sergio Marchionne has called the pay increase at Ford and GM "overly generous."

Read more

Pages