White House confirms Chrysler will file for bankruptcy

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http://www.theage.com.au/business/wo...0422-t9hm.html

Chrysler posts $A4.08 bln post-bankruptcy loss in 2009
April 22, 2010 - 7:04AM

Chrysler posted a post-bankruptcy 2009 loss of $US3.8 billion ($A4.08 billion) Wednesday, but said it had exceeded financial targets and achieved an operating profit in the first quarter of 2010.

"The steady progression of our financial results from June through December 2009 shows that Chrysler is on track to meet the ambitious, yet achievable goals announced in November," said Sergio Marchionne, chief executive officer Chrysler Group LLC.

The $US3.8 billion ($A4.08 billion) net loss for the period of June 10 through December 31 included a nearly $US2.1 billion ($A2.25 billion) non-recurring loss related to retiree health care benefits.

In its first post-bankruptcy results, the number three US automaker reported modified earnings before interest, taxes, depreciation and amortisation of $US538 million ($A577.56 million) for 2009 and ended the year with $US5.9 billion ($A6.33 billion) in cash.

"As a result of improving trading margins, operational efficiencies and rigorous cost discipline, we continued to strengthen our cash position through 2009," Marchionne said in a statement.

Chrysler posted a first quarter operating profits of $US143 million ($A153.52 million) and its net loss narrowed to $US197 million ($A211.49 million) from $US2.5 billion ($A2.68 billion) a year earlier.

"This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 targets we have set for ourselves are achievable, Marchionne said.

"We are also generating cash to finance the investments being made in our product portfolio and brand repositioning."

AFP

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http://www.theage.com.au/business/wo...0422-t9fy.html

Fiat posts 21m euro net loss in first quarter 2010
April 22, 2010 - 7:05AM

The Fiat auto group announced on Wednesday a net loss of 21 million euros ($A30.3 million) in the first quarter of 2010, against a loss of 411 million euros ($A592.95 million) in the corresponding period of 2009.

Sales rose 14.7 per cent to 12.9 billion euros ($A18.61 billion) in the first quarter, the company said in a statement, calling 2010 "a year of transition and stabilisation".

Fiat released the statement ahead of a presentation of its 2010/14 industrial plan at its Turin headquarters on Wednesday.

The group forecasts sales in 2010 in excess of 50 billion euros ($A72.13 billion), "net profit near break-even" and a net industrial debt above 5.0 billion euros ($A7.21 billion), the statement said.

Fiat's board of directors on Wednesday formally named John Elkann, the grandson of historic leader Gianni Agnelli, to the chairmanship of the auto giant.

Fiat lost 283 million euros ($A408.28 million) in the last quarter of 2009 and 848 million euros ($A1.22 billion) for the full year.

AFP

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http://www.autoblog.com/2010/04/21/f...ect-in-detail/

Fiat unveils five-year product plan, we dissect in detail

by Jeremy Korzeniewski (RSS feed) on Apr 21st 2010 at 8:01PM



It would seem that Fiat head Sergio Marchionne is nothing if not ambitious. Following the seven-hour-long marathon presentation of Chrysler's latest business plan back in November of 2009, the giant Italian automaking alliance has just released its own five-year business plan, which includes Fiat, Maserati and Ferrari in addition to announcing the long-awaited return of the Alfa Romeo brand to the United States as a full-range automaker.

We'll start with Ferrari... for obvious reasons. Kicking off a series of six new models will be a replacement for the four-seat 612 Scaglietti, which is destined to add a hybrid powertrain to its impressive V12 engine. Next up is a convertible version of the new 458 Italia sometime next year, and later another 458-based model that will be much more track focused, like the 430 Scuderia.

Staying with the Prancing Horse lineup, we should see a new range-topping Ferrari to take the mantle from the discontinued Enzo hypercar, very likely to see an engine utilizing forced induction along with a lightweight platform. The 599 GTB will get a replacement as well, and the recently released California will see itself updated and granted an M designation.

Like what you're hearing so far? There's plenty more where that came from, make the jump for the rest of the goods.

Moving on to Maserati, Fiat promises a new four-door Quattroporte that will boast "a completely new style, offering outstanding driving emotions and high-level quality." Not surprising, given the recent additions of the Porsche Panamera and Aston Martin Rapide to the luxury/performance sedan ranks. The automaker will "maintain and sustain" its GranTurismo and GranCabrio lines, whatever that means.

Perhaps the most interesting news from Maserati is the planned addition of a smaller four-door that will theoretically go up against such respected nameplates as the BMW M5, Mercedes-Benz E-Class AMG and Audi RS6. In order to reach the desired 10-percent market share in this hotly contested segment, Maserati promises to improve its dealer network and streamline its production and cost-savings methods.

And now to the meat and potatoes of the automaker's lineup.

The Fiat brand will benefit from a comprehensive update that will include every one of its models being heavily revised or replaced by 2015. Of special interest to those of us living in the U.S. are an entry-level B-segment car to be based on a Fiat platform and deemed worthy for North American consumption in 2012. Along with that, a Fiat-based five-seat compact MPV is due out in 2012, a Fiat-based C-segment sedan in 2012 and a Dodge Journey-based Fiat for the European market in 2011.

As expected, Fiat will merge the Chrysler and Lancia nameplates with the automakers' next generation of vehicles. We already were counting on a significantly refreshed 300C for 2011, and Fiat confirmed it today. We'll also get a revised minivan in 2011. One year later, Chrysler should be getting its next set of compact vehicles, which will include a Fiat-based D-segment sedan in addition to the Chrysler-based C-segment hatchback and sedan.

Jeep won't be left out of the product renaissance either, with the Wrangler, Patriot and Compass getting significant upgrades in 2011. Hopefully, that will include a new powertrain for the hopelessly underpowered Wrangler. Of course, we all know that a completely redesigned Grand Cherokee is just around the corner, but Fiat also says that the Liberty (known as the Cherokee in Europe) will also be replaced in 2013, when it will be joined by a new Chrysler-based C-segment SUV that will abolish the Patriot and Compass twins once and for all.

Finally, Fiat will separate its industrial operations from its automotive operations. The automaker's newly-formed commercial outfit, Fiat Professional, will adopt a one-ton pickup truck for the European market that we're sure will draw very heavily from the Ram division's know-how. Fiat will also share its fuel-saving MultiAir and dual-clutch automatic gearbox technology with Chrysler in America.

Admittedly, that's a whole heck of a lot of information to digest. Feel free to browse through our image gallery below for slides from Fiat that may help make everything a bit less muddy. Maybe.

Link to 5 year plan

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Chrysler on the rise

http://www.goauto.com.au/mellor/mell...25770D0027A6A4

Chrysler posts Q1 operating profit as Marchionne details five-year model plan

22 April 2010

By TERRY MARTIN

CHRYSLER and Fiat chief executive Sergio Marchionne has unveiled detailed plans designed to boost sales of the Chrysler and Jeep brands across the globe, with Australia set to benefit from new vehicles and model lines.

The plans were revealed as Chrysler Group LLC, which has slashed costs under Fiat control, announced that it had recorded a $US143 million ($A154m) operating profit for the first quarter of 2010 after emerging from bankruptcy in June last year.

Revenue rose to $US9.69 billion ($10.43b) for the quarter, up 2.7 per cent on the final three months of 2009, and while the net result for Q1 was a $US197 million loss (-$A212m), it represents a massive improvement on the $US2.69 billion ($A2.9b) net loss it recorded in the ’09 final quarter.

Global sales were 334,000 for the first quarter, up from 318,000 in Q4 2009.

Mr Marchionne described the result as “tangible evidence that we are achieving the targets that we set for ourselves”.

“Our first-quarter results show we are generating the cash needed to build our brands and invest in products, such as the 16 all-new or refreshed vehicles that will be introduced by the end of this year, representing 75 per cent of our product line,” he said.

“While we still have a long way to go to rebuild our business, it is important to note that we are on track to achieve our 2010 targets.”

Fiat also recorded a net loss for the quarter – €25 million ($A36m) – although it has forecast a “trading profit” of €1.2 billion ($A1.7b) for the full year.

Presenting the new product plan this week, Mr Marchionne said Fiat and Chrysler would combine to produce around six million vehicles a year by 2014, and that under a new Fiat Group Automobiles (FGA) banner it was aiming to increase passenger car and light commercial sales from 2.2 million in 2009 to 3.8 million in 2014.

Fiat/Abarth will be responsible for the most of these (2.7 million), with Alfa Romeo contributing 500,000 sales, Chrysler/Lancia 300,000 and Jeep 100,000, with a further 200,000 units from contract manufacturing.

FGA does not include Fiat-owned Ferrari or Maserati, or the Dodge brand, which Mr Marchionne said was “being maintained as an American performance brand” with models to be sold outside the US restricted to high-performance sportscars such as the Challenger, Charger and Viper.

That said, Chrysler Australia continues to advise that a broad range of Dodge models – which currently includes Avenger, Caliber, Nitro and Journey – will remain on sale in Australia for the foreseeable future.

“We’re still focused on each of the brands – Chrysler, Jeep and Dodge,” said Chrysler Australia spokesman Jerry Stamoulis. “Regardless of what brand or vehicle it is, there is an emphasis placed on (what is best for) our market rather than a region or a global strategy.”

Under the combined Chrysler/Lancia product plan unveiled this week, Chrysler will launch its new 300C large sedan and a Europe-oriented Grand Voyager people-mover next year, with a new C-segment small-car family – including hatchback, sedan and station wagon derivatives – following in 2012.

The latter will be produced by Chrysler, rather than Fiat/Lancia, and should be a prime candidate for release in Australia.

A new medium-sized sedan dubbed the 200C and aimed primarily at the US will be launched in 2013, the same year that a large D-segment crossover wagon is introduced for international consumption.

A new Fiat-produced Ypsilon compact car is due for release in 2011, and will receive a further upgrade in 2014. This is significant, considering Mr Marchionne revealed to GoAuto in January that Australia would receive Lancia models branded as Chryslers under the new strategy.

Asked if Lancia cars would be sold as Chryslers in Australia, Mr Marchionne said: “As Chryslers? Yes, you will. Fear not, you will. To the extent that Lancia is not active, not present in any given jurisdiction, Chrysler will be with a combined offering of Lancia and Chrysler.”

The current Lancia Musa and Delta compact cars will be phased out in late 2012 and 2013 respectively, making way for the new C-segment small family.

A new-generation Grand Voyager is also due to be launched in 2014.

Mr Stamoulis said this week that the full Australian model program was still to be confirmed, although the new 300C is a certain starter for 2012. The company is also upbeat about the prospects of potential new models, such as the 200C.

Meanwhile, Jeep will launch a new Grand Cherokee later this year (January 2011 in Australia), with upgraded versions of the Wrangler, Patriot and Compass also landing on the world stage next year.

While Wrangler will continue indefinitely, Patriot will be discontinued early in 2013, when an all-new compact SUV will be introduced. The current Cherokee will also give way to a redesigned model in 2013.

“From a local perspective, we’re certainly happy to see the results are looking positive,” Mr Stamoulis said. “It’s good news.”

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http://www.caradvice.com.au/65701/fi...ge-the-brands/

Fiat Chrysler Annouce Plans To Further Merge The Brands

April 27, 2010 by Bridget Ahern

While Fiat and Chrysler are now one global company, their models have remained distinct from each other. But that’s all about to change. This week Fiat revealed the first step in a grand plan to integrate the two brands across product development, manufacturing, purchasing and other operations.

As early as 2012, Fiat will begin to assemble two models for Chrysler in Turin, Italy for a primarily US market, including the model to replace the successful Sebring.

Chrysler is expected to return the favour by producing two Alpha Romeo SUVs in the US. The compact model will commence assembly in 2012 and the larger model in 2014.

The five-year plan also includes:

* 2012 – Fiat will build in Italy a new compact sedan, which will be distributed in North America under the Chrysler or Dodge brand.
* 2013 – Alfa is planning a rear-drive that could be built in Canada or Italy.
* 2013 – Chrysler could import from Serbia new, Fiat-built subcompacts for both the Chrysler and Dodge brands.

Fiat and Chrysler CEO Sergio Marchionne said using existing factories to manufacture both Fiat and Chrysler vehicles was simply more efficient.

“The allocation of production between Fiat Group Automobiles and Chrysler will be based on rationalization and efficiency so that maximum capacity utilization is achieved for both organizations and the need to establish new plants avoided,” he said.

In order to maximise capacity, the two companies will pair similar models to be produced in the one plant.

* The new compact Chrysler or Dodge model will be built in Fiat’s Cassino plant in central Italy. This plant will build 400,000 units on the same platform, including the Alfa Romeo Giulietta, the Fiat Bravo replacement and the Lancia Delta.
* Chrysler’s new Sebring sedan will be built in the Mirafiori plant in Turin, along with the Alfa Romeo Giulia mid-sized sedan and wagon.

Chrysler will also export vehicles from North America to be sold in Europe under different brands.

The Mexico-built Dodge Journey crossover will become a Fiat model in Europe, Ram Truck’s Unibody Pickup will be sold as part of Fiat Professional’s light commercial vehicles while Fiat’s North American range will include a three versions of the 500 all built in Mexico.

European dealers will also receive Lancia branded versions of Chrysler vehicles including a Canadian-built restyled Voyager and an American-build new compact sedan and station wagon.

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http://www.autoblog.com/2010/05/10/c...-readying-ipo/

Chrysler outperforming internal forecasts, readying IPO

by Jonathon Ramsey (RSS feed) on May 10th 2010 at 5:28PM

From Monday's 'More Good News' edition, this nugget from Chrysler CEO Sergio Marchionne: "It is clear that if we continue to perform at this rate we're going to be in excess of the guidance that was provided in 2009." What does that mean? It means that Chrysler is making more money and using that money more efficiently than expected. If such performance keeps up, the Pentastar will put up better than expected numbers this year, and could be ripe for an IPO ahead of anyone's schedule.

Chrysler showed an operating profit in the first quarter of this year, but even so, it doesn't want to change its estimates for the entire year, at least not yet. The only brand-new vehicle it will be rolling out is the 2011 Jeep Grand Cherokee, and that leaves a lot of not-exactly-new product trying to keep the momentum going all the way to the end of the year.

Still, for a company that was left for dead last summer, to be here in May of 2010 talking about it at operational break-even this year and net break-even next year is not a bad year of work. With negative cash flow of $1 billion expected this year, true profit is still a couple of years away, but we can at least see the way with the Fiat 500 arriving in December, a Chrysler small car in Q4 of 2011, updates on its current offerings and an IPO. Come on, Jeep Grand Cherokee...

[Source: Reuters]

[FalconXV]

whats an IPO?

[DJR-351]

Originally Posted by FalconXV

whats an IPO?

"Initial Public Offering"...

http://en.wikipedia.org/wiki/Initial_public_offering

http://www.reuters.com/article/idUSN1021353820100510

[drew`SEVNT5]

Looks like the Italians are getting the yanks into shape!

[dracer]

yanks need a kick in the assssssssssss

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http://www.autoblog.com/2010/05/12/f...f-gm-chrysler/

Former Car Czar impressed with progress of GM, Chrysler

by Jonathon Ramsey (RSS feed) on May 12th 2010 at 5:31PM

Steven Rattner, the man who headed the Auto Task Force, saved Michigan from bankruptcy, shepherded the still-contentious resurrections of General Motors and Chrysler and will soon have a book on his time in the trenches, has said his little lambs are doing better than he expected they would a year ago. Not only are they outstripping the targets set for them, but he thinks the government could get $40 billion of the $50 billion it threw at GM last year.

Ratter wouldn't be surprised if GM posts a profit this quarter, but that assessment is "based on public statements by GM executives," and it's probably better to wait for the slightly harder fact of the bottom line than to expect some gravy. More solid might be Rattner's belief, based on the price of old GM's bonds, that the government could get back $40 billion of the $50 billion it threw at the company last year, once GM begins selling stock.

[Source: Automotive News – Sub. Req'd | Image: Neilson Barnard/Getty]

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http://www.autoblog.com/2010/05/18/c...in-govt-loans/

Chrysler pays back $1.9B in gov't loans

by Chris Shunk (RSS feed) on May 18th 2010 at 5:33PM

Since General Motors and Chrysler entered bankruptcy last spring, GM has stolen the lion's share of the headlines. The General has made front page news with new products, a government loan payback and first quarter profits, while Team Pentastar has quietly gone about the business of returning to respectability. Chrysler took another step towards its goal this week as the company paid back another $1.9 billion in government loans to the federal government. In total, Chrysler has paid back $3.9 billion of the $14.3 billion in loans the company received.

The U.S. Treasury Department said in a written statement that the repayment "is significantly more than the Treasury expected to recover on this loan, and is greater than an independent valuation of the loan." In other words, Treasury wasn't exactly expecting a cash return on its investment. Chrysler plans to unload further good news when it officially reports its earnings. The automaker said in April that it expected to earn up to $200 million on revenue of $40-45 billion.

[Source: Market Watch | Image: Bill Pugliano/Getty]

[Burnout]

Well done Crysler........ A good jump start.

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http://www.goauto.com.au/mellor/mell...25773B001508A7

Dodge kills Ram logo

Famed Dodge Ram logo to disappear from historic US brand’s cars and dealerships

7 June 2010

By MARTON PETTENDY

CHRYSLER has revealed a controversial new Dodge logo that does away with the historic North American brand’s famed ram’s head logo.

The move follows the formal separation of Dodge passenger cars from the Ram truck range in the US, as part of Chrysler’s drive to split its Dodge brand into two distinct franchises.

Chrysler last week said new Dodge brand logo, which features the ‘DODGE’ name with a pair of simple red racing stripes to suggest “speed and agility”, will be used only for communications, advertising, internet and merchandising purposes, but will not appear on Dodge vehicles or in Dodge dealership signage.

However, Dodge brand CEO Ralph Gilles has told Automotive News the new Dodge logo would debut on the next-generation 2011 Dodge Charger sedan, before being rolled out across all Dodge models as they are updated.

Chrysler Australia spokesman Jerry Stamoulis said the new Dodge logo, which some US Dodge fans have labelled boring, would likely be phased out in Australia, where the brand’s Ram models are not officially sold, and could eventually also disappear from local Dodge dealerships.

“The idea is the new logo will eventually be for Dodge cars and the ram logo will be used exclusively for Ram trucks, which we don’t sell here,” he said.

“We expect to learn more about the new branding strategy for Dodge cars and retail outlets later this year.”

Chrysler has been working to separate its Dodge car and truck business for some time, but last week issued a statement to clarify its intentions for the new logo, which was revealed in May and borrows its red racing stripes from Dodge’s SRT8 performance models.

“Dodge designers sketched the new logo after Dodge and Ram Truck were clearly defined as separate brands with their own identities and consumers, each needing a logo that represents the character of the brand,” said Chrysler.

“As the Dodge brand redefines itself with new lifestyle packages, new ads, events and sponsorships, and a slew of upcoming new products, it's using its brand name to send a clear message that its ‘forever young’ attitude and performance-driven history will drive the brand into the future.”

Released here by the Chrysler group in August 2006 after a 30-year hiatus from Australia, the local Dodge brand currently includes the small Caliber hatchback, the compact Nitro SUV, the mid-size Avenger sedan and the Journey people-mover.

Dodge’s now-famous ram’s head logo dates back to 1932 – four years after the Dodge brothers sold the brand to Chrysler – when a leaping ram bonnet mascot first joined the original Dodge Brothers logo, which featured two interlocking triangles forming a six-pointed star and the ‘DB’ symbol in the middle, encircled by the words “Dodge Brothers Motor Vehicles”.

It was streamlined from 1940 and by 1951 only the head – complete with curving horns – remained on both Dodge cars trucks, which were the last to use the original ram logo in 1950.

Various logos were applied to Dodge vehicles until after the ram’s head logo returned in 1973 for the Dodge Bighorn heavy-duty tractor, including the Dodge Crest from 1941, the Dodge Fratzog from 1962 and Chrysler’s own Pentastar in 1982.

Dodge’s current ram logo appeared in 1993, before gracing all Dodge vehicles except the Viper sportscar from 1996, when Chrysler went international with Dodge.

The ram logo remains unchanged for Chrysler’s newly independent Ram Trucks division, which comprises the Ram 1500, Ram Heavy Duty, Ran cab-chassis and mid-size Dakota. The fourth-generation Dodge Ram – now known simply as the Ram 1500 – was released in 2008.

The next-generation Charger will be the first to appear with the Dodge’s new ramless emblem (without the red slashes), followed by the new versions of the Caliber, Challenger, Avenger, Nitro and Journey, plus an all-new seven-seat crossover wagon to replace the Durango SUV.

The latter will be based on the same platform as Jeep’s redesigned Grand Cherokee, which launches in North America on July 1 as the next new model from the born-again Chrysler group.

While the Chrysler brand itself will disappear from Europe this year, both the Dodge Caliber and Nitro were discontinued in the UK last month due to poor sales.

Meantime, Dodge’s left-hand drive-only Challenger coupe recently received Australian Design Rule approval for low-volume release locally, bringing the number of outlets for locally converted right-hand drive versions of the Chevrolet Camaro and Ford Mustang rival to two.

[Geez Louise]

2011 Grand Cherokee Ready to Roll

From Go Auto Full story here:

http://www.goauto.com.au/mellor/mell...257729001D6455

Originally Posted by Go Auto

As GoAuto has reported, the all-new Grand Cherokee made its world premiere at the New York motor show in April last year after being revealed a couple of months earlier in official company documents tendered to US Congress as part of Chrysler’s survival plan.

The vehicle was developed in the period before Daimler split with Chrysler three years ago, and it has taken more than a year since its airing in New York to reach production, with Chrysler filing for Chapter 11 bankruptcy on May 1, 2009, and then restructuring after forming a new global alliance with Fiat SpA.

To be built at the “completely transformed” Jefferson North assembly plant in Detroit, the Grand Cherokee’s production debut comes as the US treasury this week announced that Chrysler had repaid $US1.9 billion of a $US4 billion loan made to the company (the so-called ‘Old Chrysler’) in January last year.

According to a statement released by the treasury department, which has a 9.9 per cent shareholding in the ‘New Chrysler’, the balance of this loan is unlikely to be repaid and the relevant Chrysler finance companies “no longer have outstanding obligations to treasury” under what is known as the Troubled Asset Relief Program (TARP).

Total TARP loans to both the ‘Old’ and ‘New’ Chrysler amount to $US14.3 billion, with treasury having received $US3.9 billion in repayments to date.

Actually looking at the car and reading what new features the Jeep has, and for the price it will be offered for, I think that Chrysler might just spring back from the GFC and come out a real winner.

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They're also going to be building ZF 8 speed boxes.

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http://www.autoblog.com/2010/06/17/r...from-lobbying/

Report: Chrysler, GM could be banned from lobbying

by Zach Bowman (RSS feed) on Jun 17th 2010 at 6:32PM

The House Oversight and Government Reform Committee is moving to prevent General Motors and Chrysler from lobbying while the federal government owns a stake in each company. Representative Darrell Issa (R, Calif.) is set to introduce the measure on behalf of the committee today. The ban isn't anything new for other bailed out companies. According to Automotive News, Fannie Mae and Freddie Mac are both currently under similar bans after receiving government aid last year.

Not surprisingly, that hasn't stopped General Motors from saying that it would oppose the legislation. Like most large corporations, the automaker employs a significant lobbying effort. AN says that from the time that it declared bankruptcy last year until March of 2010, GM has spent $4.3 million lobbying congress, and Chrysler has forked over $2.3 million doing the same.

Representative Issa has said that he hopes to bar any company that the government owns five percent of or more from lobbying at all. The move seems more than fair, and may act as a proper deterrent for companies looking for easy cash at the expense of tax payers.

[Source: Automotive News | Image: House of Representatives]

[vztrt]

While the figuers in the US are looking good for them in Oz they aren't that good.

http://news.drive.com.au/drive/motor...erokee_420-420

It's all uphill for battling American brands RICHARD BLACKBURN
July 10, 2010

Chrysler and Dodge are facing the grim prospect of joining a long list of US failures in the Australian market.

They came, they saw, but they've failed to conquer. American cars appear to be on the nose with Australian buyers, with Chrysler and Dodge both struggling to sell cars Down Under.

While most brands have bounced back from the global financial crisis in style this year, the two US brands have seen sales nosedive even further.

Chrysler sales are down almost 50 per cent, while Dodge sales have more than halved. The two brands are in danger of becoming the latest in a string of spectacular failures by US cars in the local market.

Often derided for their poor build quality, sloppy road holding and cheap cabin materials, American-built cars have come and gone from our roads with monotonous regularity in recent years.

Ford has failed with its mid-size Taurus, Probe and Mustang sports cars, Explorer four-wheel-drive and F-Series truck - a worrying sign for a company that is seriously considering replacing the home-grown Falcon with the US-designed Taurus after 2013.

General Motors has met with similar resistance to its US-made vehicles, with its behemoth off-roaders, the Hummer and Suburban, now gone from the local market.

GM also failed with an attempt to introduce the luxury Cadillac brand into Australia - the company pulled the pin on the plan just weeks from its official launch - while it recently shelved plans to import the Camaro sports car that was engineered in Australia for Americans.

The introduction of a Free Trade Agreement with the US in 2005, which meant zero tariffs for US imports, has done little to boost American brands; both Chrysler and Jeep sold fewer cars last year than they did in 2004, while Dodge has failed to make an impact since its introduction in August 2006.

US brands have fallen victim to the same buyer trends that have seen sales of locally built cars dwindle in recent years; they make mostly larger cars and four-wheel-drives, while most people are downsizing.

Overseas, the Dodge Viper and Chrysler PT Cruiser have both been discontinued in recent weeks, while GM killed off Pontiac and is winding down the Hummer brand.

Last year, two-thirds of Chrysler's Australian sales came from just two models, the 300C large sedan and the Voyager people-mover. At Dodge, the situation is dire, with the Avenger gone and the Nitro and Caliber attracting just 17 sales between them in June.

The Chrysler group in Australia comprises the Chrysler, Jeep and Dodge brands and has withdrawn six vehicles - the Chrysler Sebring sedan, PT Cruiser hatch and Cabrio, the Dodge Avenger and the Jeep Compass and Commander - from a range of 16 in recent months, while the Chrysler Crossfire was withdrawn in 2008.

Jeep sales have proven a bright spot, rebounding from a poor 2009, and spokesman Dean Bonthorne says the group is "absolutely 100 per cent" committed to the local market.

"We're really pleased with how Jeep's going," he says. "We're in a record period for sales and new models like the Patriot have been really well received into the market and the Wrangler just continues to sell.

"With Chrysler and Dodge, we're in a changeover period with models right now and we've had some limitations with stock availability over the last six months, which has amplified the figures a little bit and made it seem worse than it is.

"But there's absolutely fantastic product on the horizon so we're definitely forging ahead and look forward to the brands being very successful in the future."

Bonthorne admits the brands have been hamstrung by not having smaller vehicles but says the alliance with Italian car maker Fiat will solve that problem.

"The plan globally is for Chrysler to be able to access some of the smaller, more fuel-efficient powertrains and platforms that Fiat has on offer," he says.

"It's definitely not something for the next year or two but perhaps shortly after that."

Bonthorne claims the quality issues that have plagued the group - Chrysler, Jeep and Dodge regularly fall below the average in US quality surveys - are in the past, with the new Jeep Grand Cherokee, due early next year, leading the way.

"It's absolute night and day with anything from the past that's been produced by the Chrysler group and it's definitely the way forward," he says. "Quality is going to absolutely skyrocket."

[vztrt]

http://www.autoblog.com/2010/07/21/m...-profit-in-q2/

Marchionne: Chrysler earned operating profit in Q2

by Chris Shunk (RSS feed) on Jul 21st 2010 at 6:59PM

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.

[Source: Detroit Free Press | Image: Joe Raedle/Getty]

[vztrt]

http://www.autoblog.com/2010/07/21/c...chrysler-vehi/

Chrysler Financial to begin lending once again for Chrysler vehicles?

by Zach Bowman (RSS feed) on Jul 21st 2010 at 5:20PM

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.

[Source: Automotive News – sub. req'd.]

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http://www.autoblog.com/2010/07/28/r...n-cases-loses/

Report: Chrysler wins 73 of its dealer arbitration cases, loses 32

by Zach Bowman (RSS feed) on Jul 28th 2010 at 11:01AM

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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http://www.autoblog.com/2010/08/02/c...es-at-sebring/

Chrysler reportedly confirms second shift, 900 hires at Sebring/Avenger plant

by Jonathon Ramsey (RSS feed) on Aug 2nd 2010 at 11:01AM

Chrysler is so confident that you're going to go for the upcoming Sebring and Dodge Avenger that it's reportedly adding 900 workers and another shift to the Sterling Heights where the models are assembled. That's quite a turnaround, seeing how the factory was one of the eight slated for closure during Chrysler's bankruptcy. The updates for both cars include revised suspensions and interiors, with the convertible getting a Pentastar V6 to boot.

According to The Associated Press, the extra manpower will initially come from laid-off workers at Chrysler factories in Detroit, Michigan, Twinsburg, Ohio and Racine, Wisconsin. The 1,270 Sterling Heights workers currently employed at the plant have been living under a cloud of uncertainty regarding the plant's future, but with assembly of themodels secured, morale is on the mend. Perhaps the bigger question is, will the factory build the much-rumored, recently patent-submitted 200C?

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http://www.autoblog.com/2010/08/09/c...uarter-profit/

Chrysler reports $183M second quarter operating profit, $172 million loss overall

by Sam Abuelsamid (RSS feed) on Aug 9th 2010 at 10:31AM

The post-bankruptcy Chrysler Group is continuing its financial recovery even as the overall economy continues to sputter along. In the April–June quarter, the automaker posted an overall operating profit of $183 million and added $474 million to its cash coffers. After factoring in all the non-operational expenses (everything besides building and selling cars and trucks), the automaker still had a $172 million loss for the quarter. That's not bad considering the only new product that Chrysler has launched in the past year is the new Jeep Grand Cherokee, and it didn't start shipping to dealers until late in the quarter.

Chrysler isn't providing any comparisons to the pre-bankruptcy 2009 results, but second quarter revenues are up 8.2 percent compared to the first quarter of this year. The operating profit was up by $40 from Q1 and the bottom line was cut from the $197 million loss in the first three months.

For the remainder of 2010, Chrysler is projecting to at least break-even as it starts to sell the new Jeep in volume and brings a number of new and revised products to showrooms after a long drought. The revamped Dodge Charger and Chrysler 300 will be joined by the Fiat 500 by the end of this year, and several other vehicles get major interior upgrades. Depending on how things go in the current quarter, Chrysler says it expects to probably bump up its projections for the second half of the year.

[Source: Chrysler | Image: Gabriel Bouys/AFP/Getty]

Press release....

CHRYSLER GROUP LLC REPORTS FINANCIAL RESULTS FOR THE PERIOD ENDED JUNE 30, 2010

CHRYSLER GROUP ACHIEVED A POSITIVE OPERATING PROFIT OF $183 MILLION IN THE SECOND QUARTER AND POSITIVE CASH FLOW OF $474 MILLION, FURTHER STRENGTHENING CASH POSITION TO $7,841 MILLION AS OF JUNE 30, 2010

* Net Revenues in Q2 2010 increased to $10.5 billion, up 8.2 percent from $9.7 billion in Q1 2010.
* Operating Profit(a) came in at $183 million, an improvement of $40 million versus Q1 2010.
* Modified EBITDA(a,b) was $855 million (8.2 percent of Net Revenues), a $68 million increase from Q1 2010.
* Net Loss reduced to $172 million in Q2 2010 due to improved operating profit.
* Cash(c) at June 30, 2010 increased to $7.8 billion, bringing total available liquidity to more than $10 billion. Net Industrial Debt(d) decreased to $3.4 billion.
* Market share improved to 9.4 percent in the U.S., from 9.1 percent in Q1 2010; Canada market share remained strong at 12.9 percent in Q2 2010.
* 2010 guidance remains unchanged (including a minimum of operating breakeven), but will probably be revised upwards on the basis of Q3 2010 results.


AUBURN HILLS, Mich., August 9, 2010 – Chrysler Group LLC today issued its financial results for the second quarter 2010.

In Q2 2010, Net Revenues increased to $10,478 million representing an 8.2 percent improvement over the prior quarter. First half 2010 Net Revenues totaled $20,165 million.

The Company ended Q2 2010 with an Operating Profit(a) of $183 million and a first half 2010 Operating Profit of $326 million.

"The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead," said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. "Customer traffic in our dealerships and confidence in the Company's future continued to grow with the launch of the all-new 2011 Jeep® Grand Cherokee, one of the signature vehicles for Chrysler Group. The Grand Cherokee sets the standard for this Company to produce high quality, technologically advanced vehicles.

"2010 is seen as a year of transition and stabilization. With most of our 16 all-new or refreshed products launching later this year, including the all-new Chrysler 300, Dodge Charger, Dodge CUV, the iconic Fiat 500, and the Chrysler Sebring replacement, Chrysler Group must continue to be rigorous, disciplined and focused on the task at hand," Marchionne said.

The Q2 2010 Operating Profit improvement of $40 million, compared to Q1 2010, was driven primarily by continued volume increases. This improvement was partially offset by the impact of the Jeep Grand Cherokee changeover and moderate increases in incentive programs. Industrial costs increased due primarily to the ramp-up of ER&D expenses for the new product offensive starting in the second half of the year, partially offset by continued manufacturing efficiencies.

Modified Earnings Before Interest, Taxes, Depreciation and Amortization (Modified EBITDA)(a,b) was $855 million, or 8.2 percent of Net Revenue, a $68 million increase from Q1 2010; first half 2010 Modified EBITDA was $1,642 million.

Net Interest Expense in Q2 2010 was $296 million, including a non-cash interest accretion of $58 million. Net Interest Expense was $591 million for the first half of 2010.

Net Loss in Q2 2010 was reduced to $172 million as compared with $197 million in Q1 2010, driven by the increase in Operating Profit. Net Loss for first half 2010 was $369 million.

Cash(c) at the end of June 2010 was $7,841 million compared to $7,367 million at the end of Q1. An additional $2.3 billion remains available to be drawn under Chrysler Group's U.S. Treasury (UST) and Canadian and Ontario government loan agreements, bringing total available liquidity above $10 billion.

Gross Industrial Debt(d) at June 30, 2010 remained at $11.2 billion. Net Industrial Debt(d) improved to $3.4 billion, as a result of positive cash flow of $474 million.

Worldwide vehicle sales were 407,000 units for Q2 2010, an increase of 22 percent compared to 334,000 units in Q1 2010, with all brands posting gains. U.S. market share improved to 9.4 percent in Q2 2010 from 9.1 percent in Q1 2010. In addition, Canadian market share was a strong 12.9 percent as a result of sales increasing 32 percent versus Q1 2010. Throughout the quarter, sales showed steady growth as brand repositioning efforts and investments in marketing campaigns continued to drive increased customer traffic into dealership showrooms.

Worldwide vehicle shipments in Q2 were 433,000, representing an increase of 14 percent versus Q1 2010. U.S. vehicle shipments totaled 305,000, representing an increase of approximately 16 percent versus Q1 2010.

Chrysler Group maintained a U.S. dealer inventory level consistent with its higher sales performance, increasing from 208,000 vehicles at Q1 2010 to 222,000 vehicles on June 30. Days supply increased slightly to 60 days (from 58), ensuring that Chrysler dealers will be able to service customers during the model year changeover period.

Significant Events: Second Quarter and Subsequent to June 30, 2010

On May 21, the Company celebrated the production launch of the all-new 2011 Jeep Grand Cherokee at the Jefferson North Assembly Plant (JNAP). Concurrently, Chrysler Group announced the addition of a second shift of production with about 1,100 employees hired. In preparation for the new product, JNAP went through a complete transformation as part of World Class Manufacturing, taking the plant to world class levels of flexibility and competitiveness.

The Jeep Grand Cherokee quickly garnered widespread global opinion-leader accolades and also received the "Top Safety Pick" award from the Insurance Institute for Highway Safety (IIHS) – the highest rating the organization bestows.

On July 30, more than 1,500 UAW-represented employees welcomed President Obama to JNAP. The President visited the plant to see a company on the road to recovery and to congratulate employees for their contributions to Chrysler Group's success.

During the second quarter, Chrysler Group announced two significant investments in its Kokomo, Ind., facilities. In May, the Company announced a $43 million investment in new equipment and tooling that will expand operations at the Kokomo Casting and Kokomo Transmission plants. On June 9, an additional $300 million investment in Indiana Transmission Plant I and Kokomo Casting was announced that will ready the plants for the production of a new, highly fuel-efficient, eight-speed automatic transmission. The investments will result in nearly 1,600 new or retained jobs.

As part of the process to integrate the distribution activities of Fiat Group Automobiles and Chrysler Group in Europe, in May 2010, the two companies began the reorganization and integration of the Chrysler and Lancia sales networks. This integration will lead to the creation of an integrated network of over 1,000 dealerships across Europe by 2014.

Chrysler Group expects that its European and South American sales will double between 2010 and 2011, to nearly 200,000 sales, an increase largely attributable to Chrysler's ability to leverage Fiat's international distribution networks. During the second quarter, distribution of Chrysler Group vehicles under this new integrated business model began in Italy, France, Sweden, Denmark, Germany, Belgium and the Netherlands.

In May, Chrysler Group established an agreement with Santander Consumer USA to provide new-car financing at attractive rates to consumers with credit scores below 650, traditionally considered non-prime customers. Ally Financial remains Chrysler Group's preferred prime lender.

In addition to the Jeep Grand Cherokee, in the second quarter, the Company introduced an all- new 2011 Ram Chassis Cab commercial truck, the 2010 Dodge Viper SRT10 ACR-X special- edition model of America's ultimate sports car, and the Mopar® 2010 Dodge Challenger, the first-ever special-edition Mopar version of the Dodge brand's iconic American muscle-car.

Chrysler Group vehicles continued to win awards in the second quarter. The all-new 2010 Ram Heavy Duty and Dodge Nitro were named the Top Heavy Duty Pickup and Top Mid-Size Sport Utility, respectively, in the AutoPacific 14th annual Vehicle Satisfaction Awards (VSA). VSA is the industry benchmark for measuring how satisfied an owner is with their new car or light truck. Earlier in the year, the iconic Jeep Wrangler was named the "Best and Most Significant 4X4 Vehicle of the Decade" by Four Wheeler magazine editors.

On July 2, Chrysler de Mexico, a subsidiary of Chrysler Group LLC, entered into a financing arrangement with Bancomext and Nafin, for the Mexican peso equivalent of $400 million. The facility was fully drawn in July. The proceeds are to be used to finance the production of the Fiat 500 at the Toluca, Mexico plant.

The dealer arbitration process concluded in July with more than 70 percent of arbitrator decisions in Chrysler Group's favor. About 4 percent of the 789 dealers rejected during the bankruptcy process prevailed in arbitrations. Chrysler Group issued a Letter of Intent to each of the prevailing dealers to join Chrysler Group's dealer network, provided they meet financial and operational prerequisites.

On July 30, the Company announced that its Sterling Heights (Mich.) Assembly Plant, which was scheduled to close after 2012, will remain open beyond that date. Management is working with city and state officials to finalize certain related tax incentives. Chrysler Group will also add nearly 900 jobs on a second shift of production scheduled to start in the first quarter of 2011.

2010 Outlook

Pending the closing and reporting of Q3 financials, the Company confirms the following targets for the year:

Net Revenues of $40 - 45 billion
Operating Profit of $0.0 - 0.2 billion
Modified EBITDA of $2.5 - 2.7 billion
Negative Free Cash Flow of $1.0 billion

It is highly probable, in view of the Company's performance to date and our forecast of trading activity in the remainder of the year, that the Company will upgrade guidance for 2010 when announcing Q3 2010 results.

Management will hold an analyst conference call August 9 at 10 a.m. EDT to present the 2010 second quarter results. The call can be followed live and a recording will be available on the Chrysler Group website: www.chryslergroupllc.com.

Non-GAAP Financial Information

(a)A reconciliation of Modified EBITDA and Operating Profit to U.S. GAAP Net Loss for the three and six months ending June 30, 2010, is detailed in Table 1 of the attachment to the press release.
(b)Modified EBITDA is computed starting with net income (loss) and then adjusting the amount to (i) add back income taxes, (ii) add back net interest expense (excluding interest expense related to Gold Key Lease financing activities), (iii) add back depreciation and amortization expense (excluding depreciation and amortization expense of vehicles held for lease), (iv) add back all pension, OPEB and other employee benefit costs other than service costs, (v) add back restructuring expense, (vi) add back other financial loss and (vii) add back losses and exclude gains due to cumulative change in accounting principles. The reconciliation of Modified EBITDA to U.S. GAAP Net Loss for the three and six months ending June 30, 2010, is detailed in Table 1 of the attachment to the press release.
(c)Cash is defined as Cash, Cash Equivalents and Marketable Securities.
(d)A reconciliation of U.S. GAAP Financial Liabilities to Gross Industrial Debt and Net Industrial Debt at June 30, 2010, is detailed in Table 2 of the attachment to the press release.

Forward-Looking Statements

This document contains forward-looking statements that reflect management's current views with respect to future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project" and "should" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: the effective implementation of the Chrysler 2010 – 2014 Business Plan outlined on November 4, 2009, including timely vehicle launches; industry SAAR levels; slower than expected economic recovery in Europe or North America, including continued high unemployment levels and lack of available credit to consumers and dealers; introduction of competing products; and supplier insolvencies. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep®, Dodge, Ram Truck, Mopar® vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler's culture of innovation – first established by Walter P. Chrysler in 1925 – and Fiat's complementary technology – from a company whose heritage dates back to 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium- sized cars, allowing Chrysler to offer an expanded product line including environmentally friendly vehicles.

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http://theage.drive.com.au/motor-new...811-11ypm.html

Chrysler pares losses, see profit ahead August 11, 2010 - 9:32AM

Embattled US automaker Chrysler pared its losses in the second quarter and said it was firmly on the road to profitability.

Embattled US automaker Chrysler pared its losses in the second quarter and said it was firmly on the road to profitability and a successful public stock offering.

A year after emerging from a government-financed restructuring under bankruptcy, Chrysler was able to narrow its net quarterly loss to $US172 million ($A187.59 million).

This was a $US25 million improvement over the first quarter of 2010.

More importantly, said Chief Executive Officer Sergio Marchionne on Monday, both revenues and operating profits are on the rise and a major onslaught of fresh product is set to hit showrooms in the coming months.

The results posted for the first half of the year make it "mathematically impossible for us not to exceed the targets we set out for 2010," Marchionne said in a conference call with analysts.

"Unless all of us fall asleep at the switch here it is impossible for us not to upgrade guidance at the end of September."

Marchionne noted that Chrysler would have made a profit in the quarter had the US government chosen to convert its loans into an equity stake like it did for rival General Motors.

Operating profit - which excludes taxes, interest and other charges - was up $US40 million to $US183 million between April and June. Revenues grew $US791 million from the first quarter to $US10.5 billion.

Chrysler formed a strategic alliance with Fiat upon emerging from bankruptcy on June 10, leaving the Italian Marchionne to head the firm.

The success of the new Jeep Grand Cherokee, the first product launched since Marchionne took over, bodes well for the roll-out of 12 new or revamped models in the second half of the year.

"The ability to execute on that project to me was the most significant proof of the fact that the house knows how to make cars and knows how to do it well," Marchionne said.

"I may fail on the marketing side but the industrial side will not fail."

Marchionne forecast "a significant increase in performance in 2011" and said Chrysler would be ready for a successful IPO sometime next year.

He acknowledged that the new company's "track record may be in its infancy" but said Chrysler "has got a longer history than the bankruptcy" and said its efforts are "clearly visible in the product."

"It's impossible to fake your way through a new Grand Cherokee," he said.

"It's something tangible, it's relative large and it's relatively complex."

The fact that Chrysler is already generating cash and an operating profit when it has only one substantially new product in its showrooms is a "good indication" that it will be able to "stand on its own" and be solidly profitable once its full product line is revamped, he added.

Worldwide sales rose around 22 per cent in the second quarter, to 407,000 units, as US market share climbed slightly to 9.4 per cent, from 9.1 per cent.

Marchionne said it was likely Chrysler would hit a monthly US market share of 10 per cent in the next five months but said he would not chase market share at the expense of profits.

"We've all lived through significant periods here when market share was higher than this today and we were bleeding," he said in the conference call.

"If you ask me to trade a bleed for market share, the bleed is gone."

A more important number, he said, is hitting annual sales of 1.6 to 1.65 million vehicles in order to achieve Chrysler's operating profit target.

Chrysler sold 527,000 vehicles in the United States and 741,000 worldwide in the first half of the year.

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http://www.autoblog.com/2010/08/10/r...-bankruptcy-r/

Report: Fleet sales are behind GM and Chrysler post-bankruptcy resurgence

by Chris Shunk (RSS feed) on Aug 10th 2010 at 8:58AM

Before General Motors and Chrysler entered bankruptcy, the predominant fear was customers wouldn't purchase vehicles from a bankrupt automaker. Those fears turned out to be more or less unfounded, as the market share of the fallen two didn't fluctuate all that much during court proceedings, and both companies have seen sales increases the following year. Automotive News reports that while GM's sales are up 13 percent and Chrysler up 11 percent, the majority of those increases have come courtesy of fleet sales.

The General's fleet sales are reportedly up 53 percent to 400,000 units while Chrysler is up 40 percent to 242,000. GM does point out that its retail sales are up by one percent after the automaker cut four brands from its portfolio, while Chrysler isn't breaking down sales.

GM and Chrysler aren't the only automakers padding sales figures with fleets. So far in 2010, 35 percent of Ford's sales come from bulk buyers, more than the 31 percent at GM, but still less than the 39 percent at Chrysler. But to Ford's credit less, than half of those sales come from rental outfits, where discounts are deeper than they are with government and commercial fleets. Both GM and Chrysler are reportedly pushing two-thirds of its fleet vehicles to rental companies. The only other automakers to top 10 percent in fleet sales are Hyundai (16 percent) and Nissan (15 percent).

So do all these fleet sales spell trouble for GM and Chrysler? Not likely. Retail sales have remained relatively flat over the last year while fleet sales are up across most automakers. Detroit automakers also see higher fleet sales because each produces a large amount of heavy duty trucks and vans, while the overseas competition doesn't compete in those segments. All three Detroit automakers foresee a drop in fleet sales for the rest of 2010, with Chrysler and GM projecting about 25 percent of its sales going to fleets for the year while Ford is shooting for 30 percent.

[Source: Automotive News - sub. req. | Image: Chris Hondros/Getty Images]

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Chrysler and Fiat axe models

http://www.goauto.com.au/mellor/mell...25777C00816CE1

Mass model exodus for Chrysler, Dodge and Fiat in Australia
12 August 2010
By MARTON PETTENDY
CHRYSLER has officially axed the PT Cruiser retro-hatch, Sebring sedan and Dodge Avenger in Australia, and could limit both of its US passenger car brands here to just three models each for up to two years.

All three models were formally removed from Chrysler and Dodge price lists in July – the same month the decade-old PT Cruiser ceased production and ahead of a global facelift for the Sebring and Avenger, which won’t become available here.

A replacement for at least one of the mid-size sedans is not due to emerge until 2013, underpinned by a new platform from Chrysler’s parent company Fiat, which also recently eliminated two volume models from the passenger car brand that shares its name Down Under.

Production of the new Fiat-based rear-drive Avenger and/or Sebring sedan is likely to remain at Chrysler’s Sterling Heights plant in Michigan, which Fiat boss Sergio Marchionne last week said would gain a second shift of 900 workers from early 2011 – rather than close in 2012, as previously planned – “to support the company’s long-term product plan”.

Chrysler Australia senior manager of marketing and corporate communications Dean Bonthorne said no firm timing has been confirmed for the Australian release of the Chrysler brand’s next all-new model, the second-generation 300C, but it was not likely to arrive here before 2012.

“The Sebring and Avenger sedans will continue to be available overseas, but the number of models for export to international markets will be limited and won’t include Australia,” he said.

“There is a whole raft of new models coming over the next 24 months as part of the alliance with Fiat and we’re getting more information every day. (But) For the time being both the Chrysler and Dodge brands will include three models, which is what Dodge has offered for most of the time since its launch.”

Some examples of all three discontinued models remain in dealer stock around Australia, but VFACTS figures show no PT Cruiser Cabrios, Sebring sedans or Avengers have been sold here this year, with just 52 PT Cruiser hatchbacks finding local homes in 2010.

The moves leaves Chrysler dealers with just the 300C large-car, sales of which are 38 per cent down this year, Sebring Cabrio, just 74 of which were sold to July, and the Voyager people-mover, which has attracted 163 buyers this year (down 36.6 per cent).

Overall, Chrysler sales are down some 46.8 per cent this year, with just 636 vehicles sold – including 347 examples of the 300C.

As for Dodge, which was relaunched by the Chrysler Group here in September 2006, the disappearance of the mid-size Avenger sedan (launched here in August 2007) leaves the historic American brand represented by only its original Caliber hatchback, Nitro medium SUV and Journey people-mover.

The latest Caliber is now available in just a single 2.0-litre SXT petrol automatic variant priced at $29,990, following the axing of three other variants last month, while the Nitro can now be had in just two automatic petrol guises following the culling of both diesel versions from July.

Australian Dodge sales are down 46.4 per cent this year, with Caliber sales down 52.5 per cent and the Nitro down 85.6 per cent. The Journey is Dodge’s one shining light in 2010 with 658 sales (up 136.7 per cent) representing more than three-quarters of all Dodge sales this year (869).

Of course, Chrysler Australia’s most successful brand is Jeep, which is 52.3 per cent up this year at more than 3500 sales, despite no 2010 sales of the small Compass and large Commander SUVs.

The famed US off-road brand’s 2010 resurgence comes largely as a result of the small Patriot SUV, which is 197 percent up year-on-year, and the hard-core Wrangler off-roader, which is Jeep’s top-seller with 1634 sold this year (up a big 82 per cent).

Sales of the mid-size Cherokee – Jeep’s next-best seller – are also up, by 23 per cent to 885. The buoyant SUV brand’s next all-new model, the redesigned Grand Cherokee due here in the first quarter of 2011, should be on sale within six months.

Over at the Fiat brand, which is imported by independent distributor Ateco Automotive, is down 33 per cent so far this year in a market that’s more than 15 per cent up, and currently has just one passenger model on sale – the pint-sized 500, supplies of which are limited.

GoAuto understands some Fiat dealers have returned customer deposits for both the light-sized Punto and small Ritmo hatchbacks, which have been discontinued for some months as Ateco awaits facelifted versions that will not become available until next year.

Even then, mainstream (manual) versions of the upgraded Punto and Ritmo may not be joined by volume-selling TFT automatic versions and flagship Abarth derivatives until later next year.

A total of just seven Fiat Punto and Ritmo models have been sold in Australia this year and while sales of the Ducato and Scudo commercials are steady, global demand for Fiat’s sole Australian passenger model has reduced local 500 model sales by 12 per cent this year. Fiat sales are 33 per cent down in 2010.

Ateco has received Australian Design Rule of approval for the 500 Abarth, which debuted at the 2008 Geneva motor show and was to have been launched here this year, but says both it and the 500C Abarth remain at least six months away because demand exceeds supply in Europe.

To rectify that, Fiat will shift Panda production from Tychy to Naples, where Alfa Romeo’s 159, Brera and Spider are produced, increasing production capacity of the Ford Ka-based 500 in Poland by up to 300,000 vehicles a year.

Other Fiat group brands distributed in Australia by Ateco include Ferrari and Maserati, sales of which are both up this year, and Alfa, which is down almost 14 per cent to July, when the GT coupe was reduced to a single limited-edition model.

Ateco also holds the Australian import rights for Fiat’s Lancia luxury marque, whose models will be badge-engineered as Chryslers in some export markets.

Chrysler has said it will renew its entire model range by 2012 and aims to almost quadruple its sales outside North America to 500,000 annually by 2014 – the same year it expects 50 per cent of its products to be derived from Fiat Group platforms.

While Chrysler also hopes to return a net operating profit in 2011 before repaying – in 2014 – the US government loans that helped rescued it from bankruptcy, Fiat posted a 2009 operating loss of $1.3 billion in January – the Italian giant’s first loss since Mr Marchionne returned it to profit in 2005 after four years in the red.

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http://www.autoblog.com/2010/08/11/c...at-franchises/

Chrysler chooses 600 dealerships for possible Fiat franchises

by Steven J. Ewing (RSS feed) on Aug 11th 2010 at 5:31PM

The Chrysler Group is only a few months away from bringing the Fiat brand back to the United States, starting with the launch of the too-cute 500 later this year. The automaker will be holding a Fiat Experience event in Detroit at the end of August, and around 600 dealers from around the country have been invited to attend.

These 600 dealers are located in cities where Chrysler is planning to have Fiat franchises – a total of 119 different markets around the country. The Fiat Experience program will give dealers a detailed overview of Chrysler's exact plans for the brand in the U.S., and dealers will be allowed to submit proposals for snagging a Fiat franchise through mid-September.

No, not all of these 600 dealers will be approved for Fiat franchises, and Chrysler will be announcing its final list of Fiat locations in the fourth quarter of 2010. Hit the jump to see the current list of market considerations to find out if a Fiat dealer might be heading to a city near you.

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http://www.autoblog.com/2010/08/24/c...io-marchionne/

Marchionne: Chrysler profit not likely for 2010

by Dan Roth (RSS feed) on Aug 24th 2010 at 1:59PM

Sergio Marchionne harbors no illusions about Chrysler being in the black for 2010. The Detroit News reports the Chrysler chairman and Fiat CEO stated flat out that a net profit in 2010 isn't likely during an August 23rd tour of a Toledo Jeep plant. Despite recent reports of operating profits from Chrysler, there's still tremendous cost associated with loan interest payments and a lineup of moribund product to turn over. Add to the mix the reintroduction of Fiat automobiles to the U.S. market, and you've got an outlook that's best described as "challenging."

Still, Marchionne told U.S. Vice President Joe Biden, also in attendance, that Chrysler is "ahead of plan" during the tour. That plan includes paying back its $12 billion in governmental loans and launching the Fiat 500 in North America. A meeting on August 30th will lay out the requirements for dealers interested in Fiat stores, and Marchionne reports strong interest.

Dealers that choose to take on Fiat must create standalone showrooms for the brand, requiring significant investment, though there's little overlap between Fiat and Chrysler product lines to muddy sales efforts. Other rumors that Marchionne dodged were talk of a Jeep Liberty-based SUV to be built in Toledo, and whether or not an Alfa Romeo sedan will be built in Brampton, Ontario.

[Source: Detroit News]

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http://www.autoblog.com/2010/08/25/2...-by-late-2012/

200 Chrysler dealerships to sell Alfa Romeo by late 2012

by Chris Shunk (RSS feed) on Aug 25th 2010 at 8:29AM

Fiat is a few months away from awarding 200 Fiat-branded retail outlets to select Chrysler dealers. The first vehicle those new stores will sell will be the Fiat 500, and there won't be any Chrysler, Dodge or Jeep-branded models in sight. But that doesn't mean Fiat will have those dealerships to themselves for very long.

According to Automotive News, company CEO Sergio Marchionne announced at an event in Toledo, Ohio that those Fiat stores will also sell Alfa Romeo vehicles by late 2012. Marchionne has already announced that the first Alfa to hit North American shores will be the Giulia sedan and wagon, followed at some point by a midsize SUV, a subcompact, a hatchback and even a roadster. That's a lot of Alfa, and the Italian automaker will need all of those models to be at least moderately successful if it has any shot at reaching its lofty goal of 500,000 Alfa Romeo sales by 2014.

Before we get to 2012 and the return of Alfa Romeo on our shores, we need to get a clearer picture of what Fiat's plans are for the U.S. AN reports that the Fiat forecast will clear up soon, as the Turin, Italy-based automaker plans to educate Chrysler dealers during an August 30th briefing.

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http://www.autoblog.com/2010/08/30/r...hear-fiat-pit/

Report: 400 Chrysler dealers meeting in Detroit to hear Fiat pitch

by Chris Shunk (RSS feed) on Aug 30th 2010 at 8:28AM

Two automaker bankruptcies and a massive downturn in sales have conspired to wipe out hundreds of auto dealerships, and Chrysler retailers have been especially hard hit, as the stores who haven't been forced to close are faced with an aging product lineup and very little foot traffic.

That isn't stopping 400 of Team Pentastar's best remaining dealers from looking into expanding their empires with a Fiat dealership. The Detroit News reports dealers flying into Detroit Sunday morning to watch a sales pitch by Fiat executives with the goal of getting 200 of those dealers to start a stand-alone Fiat store. The dealers will see future Fiat products, as well as speeches from Laura Soave, who heads branding for Fiat in North America, and Chrysler fleet and network boss Peter Grady.

Dealers are waiting on franchise agreement and financial obligation details before committing to Fiat, but interest in one of the 200 retail outlets isn't enough to get approved. Fiat will award franchises based on their current sales performance, but those dealers must also have a stand-alone store with dedicated staffing and an established marketing plan. Those dealers will have only the Fiat 500 to sell for a good long while, but Fiat and Alfa Romeo plan to sell an array of sedans, hatchbacks, crossovers and even a roadster by 2012 – supposedly. Dealers have until September 22 to apply for a dealership, after which Fiat will award the dealerships in October.

[Source: Detroit News | Image: Mark Ralston/AFP/Getty Images]