mopars

[chunga1]

Chrysler Optimistic Despite Dismal Auto Show Presence
Bailed-Out Company Has Meltdown in Detroit
BY TAHMAN BRADLEY
DETROIT, ,Jan. 14, 2010—


For Chrysler Group LLC, the 2010 North American International Auto Show in Detroit, which opens to the public this Saturday, could not have come at a worse time.

New products and positive publicity helped Chrysler's U.S. rivals, Ford Motor Company and General Motors, earn favorable reviews among analysts at the show.

Chrysler's appearance, on the other hand, was more of a car wreck, critics said during press previews this week.

Already reeling from its worst sales in 47 years, the bailed-out company came to the show with only one new car, and that was from Lancia, a division of Italian carmaker Fiat, which now owns 20 percent of Chrysler.

About the only other high point for Chrysler in Detroit this year was an electric version of the Fiat 500. A gasoline version of the popular European minicar will go on sale in Chrysler showrooms in the U.S. later this year.

Otherwise, Chrysler's exhibit on the convention floor is dramatically scaled back from previous years. It's even sharing space with a Masarati and a Ferrari, also part of the Fiat family.

The lack of new products, Chrysler said, was the reason they took the usual move of not holding a news conference. The company has said its new policy is not to show new cars until they are close to coming to the market. Auto insiders wondered about the company's health.

"Right now, there would be no reason to believe that the turnaround efforts are going to be successful for them based on what you saw at this show," said Karl Brauer, editor and chief of Edmunds.com. "They really needed to look more vibrant and look like they were in turnaround mode."

The show opened to the press Monday and Tuesday, but Chrysler had little to say. Despite repeated requests for an interview, Chrysler did not make anyone available to ABC News. The company cited scheduling conflicts.

In a public relations disaster, a scheduled question and answer session between television media and CEO Sergio Marchionne was canceled about 10 minutes before it was to begin. A producer for ABC station WXYZ-TV said the cancellation and lack of access during the first day of the show was "professionally discourteous."


New Leadership and Ownership for Chrysler
Fiat SpA chief executive Sergio Marchionne took over Chrysler in June when the company emerged from bankruptcy. Unlike GM, President Obama's automotive task force concluded that Chrysler's only chance at survival was with a partner.

As part of Marchionne's turnaround plan, Chrysler is to launch small cars designed by Fiat in 2011 and 2012. But with sales of Chrysler brands in the tank and the company burning through cash, there is concern the automaker could go under.

"I think the big question is, will they be able to get to 2012 ... when they get to start introducing some of these exciting new Fiat-based products they've been telling us about but that they haven't shown us," said John Wolkonowicz of Global Insight Auto Group.

Chrysler's business plan also expects the company will break even this year and return to profitability within two years.

But those forecasts seems a bit optimistic given Chrysler's current state of the global car market, said Wolkonowicz.

"In order to fund this rather ambitious product plan that they've set forth, they're seeking a market share of 14 percent in the U.S. by 2014. That's about twice what we and other forecasters are expecting from them. So there's kind of a rather significant disconnect from them."

Marchionne told newspaper reporters Tuesday that the company would achieve its goal of breaking even by selling 1.1. million new vehicles in 2010. Chrysler sold more than 931,000 vehicles last year.

There was a small sign of hope for the company, even though 2009 was the worst sales market for new vehicles in 27 years. Chrysler sales increased 36 percent from November to December.

One way Chrysler could boost sales this year is to offer large incentives and rebates. Marchionne has reportedly said he doesn't believe slashing prices to combat falling sales helps generate profits in the long term.


New Vehicles Coming in the Next Few Years
Among the technology Chrysler is showing off in its exhibit in Detroit this year, the Fiat 500 will reportedly have more than 5,000 lithium-ion battery cells and operate on a regenerative braking system that allows it to travel a total of 150 miles on a single charge. A television in cars is not new, but the idea of 20 channels of live programming is. FLO TV allows customers to get ESPN, Fox News, MSNBC, Comedy Central and more.

The first Fiat brand car to be sold at Chrysler dealerships will be a gasoline version of the Fiat 500. But no other cars are headed to the U.S. this year, so the company will have to continue pushing it's struggling brands.

"I think that Fiat has every intent to save Chrysler and to turn Chrysler into a profitable enterprise, but competition in this industry is extremely aggressive right now," said Wolkonowicz. "It's going to be an uphill fight."



http://abcnews.go.com/Business/WorldNews/chrysler-optimistic-dismal-auto-show-presence/story?id=9554035

[chunga1]

anyone get to the carlise show?

[chunga1]

UAW Said to Get 55% Chrysler Ownership, Board Seats (Update1)




By John Lippert and Mike Ramsey

April 28 (Bloomberg) -- The United Auto Workers union’s retiree health-care fund will own 55 percent of Chrysler LLC in exchange for cutting in half the automaker’s $10.6 billion cash obligation to the trust, people familiar with the matter said.

Under the terms of the contract, the trust would get representation on the company’s board of directors, said two people briefed on the deal, who asked not to be named because the matter is private.

The tentative agreement was approved unanimously by UAW leaders yesterday and will be sent to union locals for ratification, one of the people said. Chrysler, operating with $4 billion in U.S. loans, faces an April 30 deadline to restructure its costs or risk losing government support.

“With employees effectively sharing the risks, this could play to the advantage of the ailing company,” said Howard Wheeldon, a senior strategist at BGC Partners LP in London. The UAW role, if confirmed, may be the only “feasible way of moving forward,” he added.

The U.S. Treasury, which still is negotiating on Chrysler’s behalf with the company’s secured lenders, has little room to give the banks more equity. Fiat SpA would get 20 percent of the company to start, with the ability to increase ownership to 35 percent by hitting performance goals. The Treasury would keep 10 percent.

Shawn Morgan, a spokeswoman for Auburn Hills, Michigan- based Chrysler, declined to comment on the tentative agreement “as it still needs to be ratified,” she said in an e-mail.

‘Weak’ Chrysler Products

The Fiat connection may not be the best approach for saving Chrysler, though employee ownership through the union may help, BGC’s Wheeldon said.

“The weakness remains Chrysler’s product base and how quickly this can be adapted with or without Fiat’s ‘help,’” the analyst said.

Instead of contributing $8.8 billion to a retiree health- care trust, Chrysler will give the union trust shares of the company and a promissory note for $4.59 billion that will be paid in installments with 9 percent interest until 2023, one of the people said. This reduces the up-front cash Chrysler would have had to pay under its 2007 contract agreement with the Detroit-based union.

The union’s equity in Chrysler is valued at $4.2 billion. If it can sell the shares for more, the Treasury would get the difference, one of the people said.

Workers also agreed to changes in work classifications, including the number of types of skilled trades. The contract also has a provision that all new hires for the company in the factories will make $14 to $16 an hour, up to 25 percent of the total Chrysler-UAW workforce. This increased from 20 percent in an earlier contract.

Separately yesterday, General Motors Corp. said it will be at least half owned by the U.S. government under a plan to slash its debt and cut dealer ranks nearly in half.

http://www.bloomberg.com/apps/news?pid=20601087&sid=al89RU9gWof8&refer=home#

[chunga1]

GM and Chrysler 'in merger talks'
Chrysler plant in Michigan. File pic
Chrysler is the No3 maker in the United States, and GM the No1

US car giants General Motors and Chrysler are in talks about a possible merger, US media say.

Reports say the talks have been going on for a month but details of the deal vary from a merger to an acquisition by GM of Chrysler.

GM is the leading manufacturer and Chrysler third after Ford. All have been suffering with a plunge in US sales to 15-year lows.

Neither of the parties have made any direct official comment.

Ford move

Sources told the Wall Street Journal that Cerberus Capital Management, which owns 80.1% of Chrysler had proposed trading its automotive operations to GM in return for GM's stake in the auto lender GMAC Financial Services.

The New York Times's sources spoke of a merger that was a "50-50" possibility, although it could take weeks to finalise and had been stalled by the turmoil in the financial markets.

GM spokesman Tony Cervone said: "Without referencing this specific rumour, as we've often said, GM officials routinely discuss issues of mutual interest with other automakers."

Analysts have questioned Chrysler's position, given its reliance on North America for 90% of its revenue.

Both companies have been hard hit by falling truck and SUV sales and are struggling to push through job cuts against union opposition.

GM shares hit a 60-year low this week. It posted a second-quarter net loss of $15.5bn.

Separately, Reuters reports that Ford is planning to sell most of its 33.4% holding in Japan's Mazda.


http://news.bbc.co.uk/2/hi/business/7664866.stm

[HoosierHoagie]

Chunga I love everything there is to do with cars but I am not a collector... GM to you too. <G>

[chunga1]

you into mopars hoagie? and gm sir!



shut up and play your guitar

[HoosierHoagie]

Cool board chunga..:^)

[MOPAR10R/T]

G'm, chunga. Thanks! It's a BLAST to drive. Corners like a train and will go from 0 to 60 in 6.4 seconds!...))

[chunga1]

sweet!

[chunga1]

WAY COOL!!

[nitetrade]

1975 Dodge Ramcharger, 4X4, 360, 720, NP203. I have owned this truck for 15 plus years, (since college) and have rebuilt just about every part.
Sadly, I bet with fuel at $4, and mileage at 9, it is probably the nicest, worthless Mopar around.

Good Luck with your board!!!

Khris

Oh, I have an 04 Grand Caravan too :)

[MOPAR10R/T]

This is my car. A 2000 Plymouth Prowler. The Woodward model, #076 of only 151 made in the color combo of black over red.
This picture was taken at an ALL MOPAR show at Salem's, OR, Waterfront along the Willamette river.

[MOPAR10R/T]

Hi chunga, AUdad just told me about your new board!
Congratzzz!!!

Please come and post your cars on my NEW Nazcar board.
I count ALL the 4 picks for your total points in each race.
I'll be looking for you there, thanks!

Ron
))