2007 Chrysler Nassau concept
Tuesday, March 13th, 20072007 Chrysler Nassau concept. Charles V. Tines / The Detroit News
Filed under: Chrysler, LLC., Earnings/Financials
Two days after General Motors got its first installment of cash from the Treasury Department, Chrysler also closed on its loan. On Friday, Chrysler received a transfer of $4 billion to help tide it over while management tries to find a way to right the ship. CEO Bob Nardelli acknowledged the complex arrangements that had to be made with privately owned Chrysler. It's not known at this point exactly what arrangements were made as far as collateral and what the government would get from Cerberus in the event of a default by Chrysler. No doubt the comments will be heated on the Chrysler Blog.[Source: Chrysler]
Continue reading Chrysler gets first $4 billion from government
Chrysler gets first $4 billion from government originally appeared on Autoblog on Sat, 03 Jan 2009 13:02:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Recalls/TSBs, Safety, Chrysler, LLC., GM, Honda, Nissan, Toyota
After such a gloomy 2008, automakers are looking anywhere they can for a ray of sunshine. One such glimmer came in the form of a preliminary report by the National Highway Traffic Safety Administration that recalls were down 30% last year compared to 2007, and at their lowest levels since 1994.It's not all good, though. While automakers recalled a combined 10.2 million vehicles in 2008, the total number of recall campaigns hit a record number of 642 -- a 9% jump over 2007 - and also included a 233 safety investigations last year, up from only 98 in 2007.
David Kelly, acting NHTSA administrator, said his agency is attributing the drop in recalled cars to an early warning system used to alert manufacturers to problems as quickly as possible. Early fixes in a product's production puts fewer flawed cars on the road.
Among the top six automakers, Chrysler had the fewest recalled cars in 2008 at 360,000. That's a huge drop from the 2.2 million it recalled in 2007. GM, on the other hand, recalled 1.9 million in 2008, up from 538,000 in 2007. Honda and Toyota both saw their recall numbers increase, while Nissan's dropped.
[Source: The Detroit News]
Vehicle recalls down 30% in 2008 originally appeared on Autoblog on Fri, 02 Jan 2009 18:33:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Government/Legal, Chrysler, LLC., GM, Earnings/Financials
On Monday, December 29, Chrysler and General Motors were supposed to get the first installments of its allotted funds from the $17.4 billion dollar bridge loans. On Wednesday, GM got it's $4 billion. Chrysler, on the other hand, is still "finalizing the details of our financial assistance." The U.S. Treasury - the body disbursing the funds - didn't have much to say beyond that, either, merely reiterating that it wants to get the deal done within a timeline that satisfies Chrylser's funding needs.
While we wonder what the holdup is, we have no reason to believe that Chrysler won't get its money. It is unlikely that anything has happened in the past three weeks to make the government go "On second thought..." We also wonder how Chrysler plans to meet the next deadline: by February 17, GM and Chrysler need to have submitted plans to demonstrate their long-term viability; on March 31, a putative "car czar" will decide whether those plans are actually worth anything. The idea that Chrysler can demonstrate sound health over the long-term in just 45 days is a head-scratcher, but hey, some folks didn't even think Chrysler would still be here, so that's got to count for something.
[Source: Automotive News, sub. req'd]
GM gets its $4 billion, Chrysler still waiting originally appeared on Autoblog on Fri, 02 Jan 2009 10:58:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: China, Chrysler, LLC., Earnings/Financials
It's not just North America that is yielding an ugly red balance sheet for Chrysler. ChinaStakes.com reports that the automaker's position in China is in rough shape, too. Right before the taxpayer bailout of General Motors and Chrysler became official, Chrysler's Philip Murtaugh exited the company after just 15 months on the job, creating a leadership void in its Chinese operations. Murtaugh had joined Chrysler to lead its Asia/Pacific operations after 32 years at GM, the last ten of which were spent heading up the General's Chinese division, and a stint at China's SAIC.
The thinking was that Murtaugh would be the perfect man to establish successful relationships and footholds in China for the Pentastar, but things evidently haven't exactly worked out that way. At all. Chrysler is still without a joint-venture partner in China, and without such an agreement, production and distribution operations in the country are basically non-starters. Other business relationships the automaker has in China are described as being alternately "overcomplicated" and "inefficient", and recent negoatiations with companies like Great Wall haven't lead to anything. Chrysler's tiny sales footprint in China probably hasn't helped matters, either. Murtaugh's division reportedly had little juice with the home office as a result.
The search for business partners in China will now reportedly be lead out of Auburn Hills, which also has to deal with the immediate problems Chrysler faces in its own home market. One has to wonder, if Chrysler couldn't turn around its Chinese business with an experienced and reputable man on the ground in-country, is it really reasonable to think that managers in a boardroom half a world away will fare any better... especially when they're dealing with an even more pressing crisis on the home front? After all, it's hard to worry about painting the fence when the house is burning down.
[Source: ChinaStakes.com]
Chrysler sputtering in China, too originally appeared on Autoblog on Fri, 02 Jan 2009 09:27:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Government/Legal, Chrysler, LLC.
Every year, Chrysler rewards its top dealers with an all-expenses paid trip to some exotic location. But with the financial situation at the privately-owned automaker in the crapper, the Pentastar decided to cancel this year's excursion. Chrysler spokesman Stuart Schorr told the Detroit News that "the state of the market and the financial challenges the company faces, it made sense not to hold this year's reward meeting." We're sure the decision to cancel the trip to the Hilton Los Cabos Beach & Golf Resort in San Jose del Cabo, Mexico was monetarily motivated, but there are likely other motivating factors as well.
There is the matter of the $4 billion loan from the federal government that kept the doors open at the Auburn Hills, MI automaker. Chrysler already learned that spending money to thank Americans was probably a bad idea. The bigger lesson likely came from insurance giant AIG, who received major backlash for spending $440,000 to pamper top sales executives just days after receiving billions from the government. It's good to see that Chrysler cancelled what sounds like a very fun trip, because the domestic auto industry doesn't need any more negative press.
[Source: Detroit News]
Chrysler scraps dealer awards meeting in Mexico originally appeared on Autoblog on Wed, 31 Dec 2008 17:27:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Marketing/Advertising, Chrysler, LLC.
After receiving at least $4 billion dollars in low cost government loans, Chrysler, LLC thought the least it could do was thank the American people for their support. Instead of calling a press conference or writing a heart-felt letter to major newspapers, team Pentastar thought it best to take out full page ads in newspapers across America. Actually, maybe it wasn't such a good idea (not to mention several pop-up text ads). It seems there are quite a few Americans that don't like the fact that Chrysler found the need to spend hundreds of thousands of dollars taking out ads in papers when the company is struggling to remain in business. The full page ads were run in papers including the USA Today and Wall Street Journal, where the price of a full-page ad can reportedly cost up to $264,000.
Action group American Solutions calls the ads "a precise example of the fact that they do not get it" and Americans for Tax Reform likened Chrysler's ads to a polite robber that said please and thank you but still made off with the cash. It's not surprising that special interest groups would jump on the ads, but apparently some tax-paying Americans are just as displeased. A click over to Chrysler's blog shows some angry responses. There are 15 consumer responses so far, and none of them are positive. We're no ad gurus, but this didn't seem like a very good idea from the start, and it appears we're not alone.
[Source: Fox News]
Can't win for losing: Chrysler criticized for "Thank You" ads originally appeared on Autoblog on Wed, 31 Dec 2008 08:58:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Hirings/Firings/Layoffs, Chrysler, LLC.
A little over a year ago, Chrysler was poaching and hiring folks with big brains to be a part of its executive turnaround team. Now a few of those hires, along with the old guard, are walking out the front door. Deborah Meyer came over from Toyota, where she had been VP of marketing for Lexus, and she took over the chief marketing officer spot at the Chrysler, LLC. At the time we wrote, "She must have been aware of the situation when she accepted the offer, however, so perhaps she sees hope in Chrysler's new beginning." Apparently, hope ran out, and Meyer has vacated her post effective immediately. Phil Murtaugh ran General Motors' gangbuster operations in China, left the company, and then was picked up by Chrysler a few months later. He fulfilled the same role at Chrysler, yet with the Chery/Dodge Hornet as the most public example, he couldn't engineer the same success. He has called "Time!" at Chrysler, and leaves at the end of this month. Meyer and Murtaugh's departures this month follow those of Chrysler's global purchasing head and its global service and parts head. Thanks for the tip, Derek!
[Source: Auto News, Sub Req.]
Two more out the door: Meyer and Murtagh leave Chrysler originally appeared on Autoblog on Sat, 27 Dec 2008 16:02:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Government/Legal, Chrysler, LLC., Ford, GM, UAW/Unions
Each month, the American Pulse Survey seeks respondents' opinions regarding various political, pop culture and economic issues. Seeing that the auto bailout is a hot topic these days, it is unsurprising that much of the latest survey centered on the $17.4 billion in so-called bridge loans to the Detroit 3 automakers. So, who's to blame for the Motor City's downfall? Survey says: bad management (78.8 percent), the UAW (63.8 percent) and global economic uncertainty (57.7 percent); so say 4,117 Americans.
59.1 percent of respondents believe that the union should offer concessions to the automakers. Lastly, about half of Americans surveyed say that they are just as likely to consider a car from Detroit as they were before all this mess started.
Oh, just two more nuggets: The survey also notes that those surveyed find that "Grandma Got Run Over By a Reindeer" is the most annoying Christmas song, and 6.7 percent of respondents still believe in Santa. Amazingly, we're not kidding.
[Source: MSNBC]
Blame Game: Survey says who's at fault — Management or union? originally appeared on Autoblog on Sat, 27 Dec 2008 10:58:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: BMW, Chrysler, LLC., Mercedes-Benz
What American automaker best matches up with the uber-machines from the Germans? Lincoln... no, probably not. Cadillac? Getting warmer. How 'bout Chrysler, asks ChryCo. co-Prez Jim Press. After a quick review of Chrysler's current line-up, we're not really buying the comparison; but it's fun to dream, so we'll bite. The Sebring is roughly the size of the C-Class and 3 Series, but it's driving the wrong wheels to go head-to-head with BMW and Mercedes-Benz, so that would need a complete rework, to say the least.
The 300C is a very nice car with an appropriate engine up front, rear-wheel drive and a relatively attractive price compared to the Germans. That could work, but it's clear that Chrysler would need to pump lots more money into the car to keep it up to date with it's competition from Germany. Minivans don't equate very well to any Germanic rivals, especially since the R-Class from MB has been a major disappointment.
One possible area that Chrysler has over its supposed competition is trucks. The new '09 Ram may be a major step up from its predecessor, but we're not so sure we're ready to call it the Mercedes-Benz of pickups, which is pretty much how Press says he sees it. We're all for the idea of an American competitor for Mercedes and BMW, and we'd love to see the Pentastar emerge from its financial problems a leaner, more focused manufacturer. Still, we wonder if Chrysler should set its sights on cross-town rival Cadillac before jumping all the way to Germany.
[Source: Automotive News - sub. req'd, Photo by Brendan Smialowski/Getty]
Jim Press says Chrysler could be America's Benz, BMW originally appeared on Autoblog on Mon, 22 Dec 2008 15:39:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Government/Legal, Chrysler, LLC., GM, Earnings/Financials
President George W. Bush will doubtlessly be remembered for many things things, but his parting legacy may yet be his eleventh-hour pledge of $17.4 billion in low-interest loans to General Motors and Chrysler (Ford Motor Company has said it does not require relief at this time).
The funding will reportedly come from the Troubled Asset Relief Program (TARP), the financial industry bailout package signed off on this fall. Up front, the White House will earmark $17.4 billion in short-term financing for December and January, and in February, another $4 billion will be disbursed, provided it can draw the funds from the second half of TARP's $700 billion.
More details are doubtlessly coming, but the bridge loans appear to hinge largely on whether General Motors and Chrysler are deemed "viable" enterprises by the government. In the terms of the agreement, that means that the automakers must prove whether they have a "positive net present value, taking into account all current and future costs, and can fully repay the government loan." There's no word yet on how they will prove said viability, but we expect to learn more soon. In the meantime, expect for both General Motors and Chrysler to stick to their previous production suspension announcements.
Politico has more specifics on the bailout here.
UPDATE: Press releases from General Motors, Ford and Chrysler have been added after the jump.
[Sources: ABC NEWS, Politico, Photo by Brendan Hoffman/Getty]
Continue reading BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package
BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package originally appeared on Autoblog on Fri, 19 Dec 2008 09:32:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Chrysler, LLC., Dodge, Jeep, Earnings/Financials
Last week, GM partnered with credit unions in four states to offer up to $10 billion in new car loans and incentives. Not one to be left shivering alone in the cold, and with November sales down nearly 28% compared to last year, Chrysler LLC has just announced their own 12-state credit union program allowing its customers access to upwards of $12 billion in auto loan financing. The partnership (also called "Invest in America") gives participating credit union members additional $500 to $1,000 rebates on most Chrysler, Jeep, and Dodge vehicles. Steven Landry, Chrysler's executive VP of North America sales, says, "We are confident that the Invest in America program and credit union member cash will provide significant value for our customers and the economy as a whole during these challenging times." While additional cash on the hood of a new Chrysler sounds appealing, we really don't think that buyers are avoiding showrooms due to a lack of financial incentives -- it's been a buyer's market for months.
[Source: Automotive News - Sub. Req.]
Chrysler officially hops on board 12-state credit union loan band wagon originally appeared on Autoblog on Fri, 19 Dec 2008 07:31:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Motorsports, Chrysler, LLC., Dodge, Ford, GM, Toyota
A rubber bullet has been dodged: NASCAR can still count on sponsorship dollars and involvement provided by the Detroit 3. Chrysler has stated that it will reduce the funds that flow from its taps into NASCAR, but won't leave the sport. As far as marketing and advertising goes, the "stock cars" still pay. Mike Acavitti, who runs the motorsports program at Dodge, said "We have to get our expenses in line with our revenues," but also said that "We're not going to pull out. We are going to throttle back. NASCAR is not exempt from anything else that we do to market and promote vehicles."
Chrysler is cutting back 30% on its NASCAR spend, but will still honor its current contracts. Ford has said it's reducing its NASCAR fund by 20%, and GM says that it, too, will be doling out a smaller NASCAR allowance and letting track sponsorships lapse to go along with its getting out of the Yankees business. Even Toyota plans to spend less on NASCAR. No matter what, though, NASCAR isn't going anywhere -- after all, even if all of the car companies and all of the other sponsors left, the guys in the overalls could always race, you know... stock cars.
[source: Reuters via Speedzzter]
Chrysler won't suspend NASCAR program, will reduce funding originally appeared on Autoblog on Thu, 18 Dec 2008 19:39:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Government/Legal, Chrysler, LLC., GM
The House of Bush told reporters this morning that the administration is looking into an "orderly" bankruptcy for General Motors and Chrysler that would be part of an overall rescue package. One possible plan is to give the two automakers enough cash to make it through the next few months (essentially the bailout funds that GM and Chrysler pleaded for in front of Congress) and after that time a federal overseer would sit down with the executives and other interested parties to discuss filing for Chapter 11.White House spokesperson Dana Perino said during the press conference that "...the president is not going to allow a disorderly collapse of the companies... [it] would be something very chaotic that is a shock to a system. There's an orderly way to do bankruptcies that provides for more of a soft landing." Perino quickly added that no final decision has been made.
The plan would likely include major banks providing debtor-in-possession financing for GM and Chrysler (Ford isn't part of the plan), and would require serious concessions from the UAW, stakeholders, suppliers and investment banks.
[Source: New York Times]
Bush looking into 'Orderly Bankruptcy' for Detroit, as opposed to...? originally appeared on Autoblog on Thu, 18 Dec 2008 14:03:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, LLC., GM, Earnings/Financials, UAW/Unions, Canada
Can this really be happening all over again? Weeks after merger talks between Chrysler and GM seemed to implode, the companies may be talking about hooking up again, according to the Wall Street Journal. General Motors Corp. and Chrysler LLC have reportedly stepped back into the negotiation room after Chrysler owner Cerberus Capital Management LP said that maybe, just maybe, it's willing to give up some ownership in the Pentastar. In fact, it may be that Cerberus has started this latest round of talks to show Washington it's willing to play nice with the other kids to secure part of a $14 billion rescue package that's on the table.
Nevertheless, GM spokesman Tony Cervone woke up this morning and immediately denied that merger talks between the two weakest Detroit automakers have resumed, saying only that GM's stance on the merger is the same as it was in November.
We talked about this the last time a merger was mentioned, but consolidating these two automakers would most likely lead to massive layoffs and more than a few plant shutdowns, plus the elimination of a lot of Chrysler models. There is too much capacity and overlap between the two companies' product lineups, but with money running low for both of them, merging could still be made a condition of receiving federal assistance.
[Source: Wall Street Journal via The Globe and Mail, Marketwatch]
GM, Chrysler holding merger talks again? Or not... originally appeared on Autoblog on Thu, 18 Dec 2008 10:58:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Plants/Manufacturing, Chrysler, LLC.
It's no secret that Chrysler is in the fight of its life, and the Auburn Hills automaker is pulling out all the stops to keep the lights on -- even if it means closing the doors. Chrysler is shuttering all of its plants for one month, beginning December 19. In a short release to the media, Chrysler blamed the continued credit crunch as the main reason for the shutdown, and is trying to better-align its vehicle stock with customer demand. Dealers have notified the Pentastar that they've got plenty of perspective buyers, but an astonishing 20-25% of customers are unable to obtain financing. Ouch. On the bright side, Chrysler plant workers will have a really, really long Christmas break at 95% pay, which can't be too horrible.Chrysler's move is far from unprecedented, though, as GM announced on Monday that it would be cutting production by 250,000 units in Q1 2009. GM has also delayed production of its Flint engine plant. Toyota has also delayed plans to open its unfinished Mississippi plant, and Mitsubishi is closing its Illinois plant for seven weeks. This is one depressed automotive market, and Chrysler may be getting hit worst of all. Hit the jump to see Chrysler's mini-release for yourself.
Continue reading Chrysler to shut down plants for a full month
Chrysler to shut down plants for a full month originally appeared on Autoblog on Wed, 17 Dec 2008 18:28:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Daimler, Ford, Volvo, Earnings/Financials
Volvo and Mercedes-Benz have been known for decades as automotive safety pioneers, sharing between them the bulk of new innovations in the field. These days, however, automakers are as as concerned about their financial security as they are with occupant safety. With the latter in mind, reports indicate that Mercedes parent company Daimler has decided against buying Volvo from Ford.Amidst slumping sales and a troubled future, reports surfaced a month ago that Ford was looking for a buyer for the last remnant of its ill-fated Premier Auto Group, after Land Rover, Jaguar and Aston Martin were all sold off to Asian investors. Ford bought the Swedish automaker from the Volvo group for $6.45 billion back in 1999, and is looking to offload it for $6 billion today. Unfortunately for FoMoCo, nobody seems to have the cash. The Volvo group has rejected the possibility of buying its car division back, the Swedish government isn't interested, BMW reportedly considered the prospect but ultimately rejected it, and now Daimler, which has had its fill of acquisition deals with Detroit, has passed as well. At this point, Chinese automakers like Shanghai (SAIC) and Geely, as well as Korean automaker Hyundai seem like the only tenable prospective buyers left.
[Source: Economic Times]
Safety First: Daimler reportedly passes on buying Volvo originally appeared on Autoblog on Sun, 04 Jan 2009 12:03:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Government/Legal, Chrysler, LLC., Daimler
Daimler has already admitted that its 19.9% share in Chrysler is worth absolutely zero as far as its corporate balance sheets are concerned, but that's not stopping Cerberus from going after that remaining bit as it tries to become the sole owner of the beleaguered American automaker. Without full control of Chrysler, Cerberus would have a tough time offloading it in either one lump deal or in smaller, bit-by-bit transactions. But it sounds like Chrysler's majority owner isn't making life easy for Daimler, accusing the German entity of providing incomplete information about Chrysler and prolonging the actual sale that took place late in 2007. As you'd expect, Daimler is denying these accusations completely and is claiming that Cerberus is making outlandish demands to take the rest of the company off its German hands.
Accusations beget accusations, so it's not terribly shocking that Cerberus has issued a press release countering Daimlers to explain its side of the story. From what we can discern from these early punches is that Cerberus has taken issue with Chrysler's past lease and financing practices while under Daimler's control. You can read the dueling press releases from Daimler and Cerberus after the break.
Despite the German and American origins of the dispute, the whole thing's playing out like a proper Telemundo telenovela. We await the obligatory kiss-and-make-up scene at the end.
[Source: Detroit News]
Continue reading Cerberus making big demands for remaining stake in Chrysler
Cerberus making big demands for remaining stake in Chrysler originally appeared on Autoblog on Wed, 26 Nov 2008 14:32:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Chrysler, LLC., Daimler, Earnings/Financials
So, just what is a 19.9% stake in America's third largest automaker worth? Um, nothing. So says Daimler, which owns exactly that amount. The German company claims that, for accounting purposes at least, there is absolutely no value in its part-ownership of Chrysler. Just about a year ago, Daimler estimated that its share of Chrysler was worth some $1.17 billion. The remaining 80.1% was sold to Cerberus Capital Management last August for $7.4 billion.According to Chrysler, Daimler's idea of its stake in the company is a totally different animal than its own. The two companies use different accounting techniques to arrive at earnings figures and net worth, and the privately-held American automaker doesn't release its internal figures. As we've covered, Daimler is currently in talks with Cerberus to rid itself of any attachment to its former partner by selling its remaining shares of Chrysler to the American company, which it would need if it were to make any sort of deal with General Motors, Renault or any other automaker for that matter. So, just how much is Chrysler worth as a whole? We could soon find out.
[Source: The Detroit News]
What's Chrysler worth to Daimler? Zip, Zero, Nada, Donut originally appeared on Autoblog on Fri, 24 Oct 2008 16:59:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Car Buying, Economy, Euro, Green, Daimler, SMART, Lifestyle
Click above for high-res shots of Daimler's car2go service
Cars represent freedom, right? Sure, but shouldn't that same freedom be available to those who can't justify purchasing their own car? Daimler thinks so, and has created a new pilot program called car2go that allows subscribers to rent a smart fortwo for just 19-cents a minute or less, depending on how long you need the car. The initial roll-out is taking place in Ulm, Germany and begins October 24. The cars can be reserved at a moment's notice from the internet, a mobile phone or in passing using an electronic chip that's given to the user upon the account's creation. There are no limits as to how far the car car be driven, and it can be parked and relocked wherever the driver's trip ends as long as it's within the city limits.
At the outset, there will be 50 smart fortwo's in use by car2go. For a trial period, only Daimler employees will be able to use the service, but the automaker hopes to expand to all Ulm citizens in the spring of 2009. We imagine the car2go service will expand into other locations based on how successful this pilot program proves to be, but don't hold your breath for smart rentals in the U.S. anytime soon.
Gallery: Daimler car2go
[Source: Daimler]
Continue reading Daimler's car2go: Rent a Smart anywhere, anytime
Daimler's car2go: Rent a Smart anywhere, anytime originally appeared on Autoblog on Tue, 21 Oct 2008 16:59:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Hirings/Firings/Layoffs, Daimler
The automotive industry is reeling under serious financial woes, plant closings and job cuts, so news that Daimler AG will be adding 1,000 new people to its payroll next year comes as a bit of a shock. The new jobs will be added globally, with 500 positions going to Daimler's headquarters in Stuttgart, and the rest being distributed around the world. These new positions will reportedly train the automaker's next generation of workers, which are entering the industry at a time when expertise in complex developing technologies are essential for survival. Even with the added jobs, Daimler can't cut any positions until 2012 because of an agreement already in place with its employees. Just like every other automaker, it's hoping to weather the rough time in between by focusing on efficiencies and flexibility wherever possible. So that's one piece of good automotive news, now let's get to work on those stock prices.
[Source: CNN Money]
What recession? Daimler adding 1,000 to payroll next year originally appeared on Autoblog on Sun, 12 Oct 2008 19:29:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Chrysler, LLC., Daimler, Earnings/Financials
Both Cerberus and Daimler have announced plans for the German automaker to sell the remaining 19.9-percent stake in Chrysler to the private equity firm. According to reports coming out of Germany, that relatively small stake in the American automaker is still weighing down Daimler's stock price. Perhaps the Germans aren't so sure that Chrysler's new electric vehicles will ever see the light of day? In any case, both sides suggest that all the rest of the two company's relationships would continue, so technology sharing and diesel engines could still be made available to Chrysler from its former German parents.
Note that the first 80-percent of Chrysler was sold to Cerberus for $7.4 billion. We wonder what the other 20-percent is worth.
[Source: Detroit Free Press]
Daimler may sell remaining Chrysler stake to Cerberus originally appeared on Autoblog on Wed, 24 Sep 2008 16:31:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Sedans/Saloons, Daimler, Tata
It's lonely at the top. If you've got a big budget to buy a big luxury sedan, you're typically looking at a Bentley Arnage or a Rolls-Royce Phantom (Mercedes tried to make a go of it with Maybach, but never really managed to establish itself outside the Persian Gulf and hip-hop videos). Now Jaguar's new owners at Tata want to take on the establishment with a storied name of its own: Daimler.
Not to be confused with the Mercedes parent company, Daimler has the same roots as the British subsidiary of Gottlieb Daimler's operation. Between 1896 and 1960, Daimler made a range of elegant limousines. After being acquired by Jaguar, the brand was relegated to becoming the top trim level of Jaguar XJ saloons. When Tata bought Jaguar, it also acquired the rights to the Daimler name (which the German company shares under license). Tata is now considering reviving the Daimler brand with a new luxury range, but it'll have quite a job on its hands distinguishing itself in name from the Mercedes parent company and in essence from the known quantities of Rolls-Royce and Bentley.
Gallery: Daimler Super 8
[Source: Auto Motor & Sport (Sweden) via The Truth About Cars]
Tata to enter uber-lux segment with Daimler revival originally appeared on Autoblog on Wed, 30 Jul 2008 07:57:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Euro, Chrysler, LLC., Daimler, Earnings/Financials
Normally the privately owned Chrysler LLC is under no obligation to reveal its financial performance to Wall Street, but yesterday the Cerberus-owned automaker was forced to show a few pages from its accounting books thanks to one of its largest stakeholders and former owner, Daimler AG. The German automaker revealed that in the last six months, its 19.9% stake in Chrysler has cost it $585 million. To clarify Daimler's numbers, Chrysler also revealed yesterday that the loss being attributed to it, all of which was incurred in Daimler's first fiscal quarter of the year, is around 65 million euro, or $103 million, using American accounting standards. Perhaps realizing that all analysts had to do was multiply Daimler's loss by five to arrive at Chrysler's total loss for the last quarter, the automaker just came right out and said it lost about $515 million. While a mere pittance to the $8.7 billion worth of red ink Ford spilled during Q2, it was enough to drag down Daimler's numbers halfway around the world.
[Source: The Detroit News, Photo: Fire Monkey Fish | Licensed under Creative Commons 2.0]
Daimler forces Chrysler to give up goods on $515M Q2 loss originally appeared on Autoblog on Fri, 25 Jul 2008 10:59:00 EST. Please see our terms for use of feeds.
Permalink | Email this | CommentsFiled under: Green, Daimler, Mercedes-Benz, SMART
When it comes to increasing fuel economy, turbochargers are the replacement for displacement. The combination of highly efficient snails and smaller engines provides the power people expect, while reducing the overall weight of the vehicle. Like other automakers that have realized that forced induction is a suitable stop-gap for improving fuel economy, Mercedes-Benz is in the process of developing turbo'd engines that will proliferate throughout its lineup in the next two and a half years.
Thomas Weber, a Daimler board member in charge of research and development told Automotive News, "All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest."
Mercedes is joining BMW and Audi by investing heavily into forced induction, primarily to cope with new fuel economy standards in the U.S. and Europe. But turbos are only going to take them so far. Mercedes plans to introduce hybrids into its lineup towards the close of the decade, beginning with the S-class sedan in 2009. According to Weber, zero-emission vehicles are the automaker's long-term goal and Daimler intends to push heavily towards fuel-cells and electric-powered vehicle in the future, including an electric smart fortwo which will go into production sometime in 2010.
[Source: Automotive News - Sub. Req.]
Mercedes-Benz to introduce fully turbocharged lineup by 2010 originally appeared on Autoblog on Thu, 17 Jul 2008 13:16:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Car Buying, Sedans/Saloons, Daimler, Mercedes-Benz, Earnings/Financials
With sales of the Mercedes-Benz S-Class down 23 percent in the United States, and off nearly 12 percent worldwide, Daimler officials are showing concern. The luxurious S-Class is the most profitable model in the lineup, contributing up to an estimated 25 percent of Daimler's pre-tax profits, the drop is getting painful. With the exception of the new C-Class (up 38 percent), overall sales for the German automaker have fallen in the first six months of the year. In response, Daimler is diverting shipments of vehicles to China and Russia as those emerging markets have yet to see a slowdown.
[Source: Automotive News, subs. req'd]
The wealthy concerned about gas prices? Merc S-class sales fall originally appeared on Autoblog on Mon, 14 Jul 2008 14:32:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Concept Cars, Coupes, Sports/GTs, Euro, Supercars, Daimler, Maybach
Click above for a high-res gallery of the Maybach Exelero
Big-bucks enthusiasts annoyed that they're not the only ones at the club with a Veyron can now ensure that they arrive in total exclusivity. That's because the one-off Maybach Exelero, commissioned by Fulda to act as a high-profile demonstrator for its tire line of the same name, is now for sale. The Exelero isn't some delicate flower of a show car. Based on the Maybach 57 and powered by a 700-horsepower version of that car's turbocharged V12, the Exelero reached 218 mph at Nardo. In many ways, Exelero represents what Maybach could have and should have been -- a place where daring styling and incredible performance could merge with extreme luxury to compete with Rolls-Royce and Bentley. Instead, while the marque's sedans clearly get the luxury part of the equation right, in terms of styling, they basically work in anonymity, looking like peculiar old S-Class sedans. There's nothing anonymous about the Exelero, though, and for €5,000,000 (around $7.8 million USD), you can drive the sybaritic supercar that Daimler should have given Maybach all along.
Gallery: Maybach Exelero
[Anamera via eGMCarTech]
The Maybach Exelero can be yours... for $7.8 million originally appeared on Autoblog on Sun, 06 Jul 2008 13:03:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Hybrids/Alternative, Green, Daimler
A few months back, Tesla Motors revealed that its upcoming WhiteStar sedan would be available in two variants, a pure battery electric like the Roadster and a range-extended electric more like the Chevy Volt. We still don't have many details on the car, although we do know that lessons learned while working on the drivetrain for the heavier sedan have been fed back into the Roadster for its updated 2.0 drivetrain.
As a small start-up with limited resources, developing a new engine for the WhiteStar would obviously be problematic. Tesla Chairman Elon Musk let slip in an interview with Fox Business News that the company has reached a technology deal with German giant Daimler (formerly of DaimlerChrysler infamy). Without any official comment from Tesla yet (we'll update you when we here something), one possible scenario for the deal is that Daimler will provide engines for the range extended WhiteStar. Daimler has always struggled to make money from Smart and the micro-car builder has a 1.0L three cylinder engine that might make a good range extender. If Daimler supplied 10,000 or so of those engines to Tesla, it could help drive down Daimler's costs. The other possibility is that Tesla might be licensing battery management technology to Daimler, but that scenario seems less likely.
Update: Tesla VP Darryl Siry declined comment on the matter.
[Source: Just-Auto - sub. req'd]
Is Tesla Motors working with Daimler? originally appeared on Autoblog on Thu, 12 Jun 2008 12:01:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Plants/Manufacturing, Daimler, Jaguar, Land Rover, Mercedes-Benz, Tata
The sale of Jaguar and Land Rover to Tata means that the two British marques will have to look elsewhere for the parts normally supplied by Ford. Following the news that Daimler could be a supplier to both automakers comes word from Dr. Z himself that a deal is a distinct possibility.
Daimler holds a seven-percent stake in Tata Motors, which could make an easy case for Mercedes to supply Jag and L.R. with the necessary components to wean them off of Ford. Dieter Zetsche told Auto Motor und Sport that, "If Ratan Tata approaches us regarding the supply of components, we would be open to talks." AMG-powered XF, anyone?
[Source: Auto Motor und Sport via Automotive News - Sub. Req.]
Jaguar and Land Rover could strike a deal with Daimler originally appeared on Autoblog on Mon, 05 May 2008 13:32:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Chrysler, LLC., Daimler, Mercedes-Benz, Earnings/Financials
Daimler may have divested 80.1% of its ownership in Chrysler, but the German automaker is still feeling pain from the Pentastar. The value of Daimler's portion of Chrysler has dropped from $2.18 billion to $852 million not even a year after the two parted ways. The loss of nearly $1.4 billion in value is a fair chunk of change, even for the mighty Daimler, but the news is not all bad for company shareholders. If Daimler hadn't sold Chrysler to the private equity firm Cerberus as fast as it did, the automaker's stock would likely be in much worse shape.
Since the privately owned Chrysler, LLC doesn't have to report earnings, it claims that its fiscal standing is all peaches and cream. According to Chrysler, the company has had positive earnings since it was bought out by Cerberus last year. The official line that explains the discrepancy with Daimler's reporting is that U.S. accounting rules are much more favorable than those overseas. Damn accountants.
[Source: Automotive News - subs. req'd]
Daimler reduces book value of Chrysler stake by two-thirds originally appeared on Autoblog on Thu, 01 May 2008 11:34:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsFiled under: Daimler, Maybach, Earnings/Financials
Daimler will take the next two years to decide whether to invest more in its failing Maybach flagship marque or else shut it down. This comes from the mouth of Daimler and Mercedes chief Dr. Dieter Zetsche, who inherited the problem-child brand from his predecessor, ex-CEO Juergen Schrempp.
After ditching Chrysler, another deal that was orchestrated by Schrempp, Dr. Z may be inclined to shut down Maybach, too. By all accounts the ultra-premium brand has not been a sales success, barely reaching ten percent of its original sales forecast. In speaking with TheCarConnection.com, however, Zetsche insisted that Maybach's profitability "does not matter" in the face of demonstrating Mercedes' capability of competing with archrival BMW's pinnacle Rolls-Royce (and Volkswagen's Bentley), but that may prove to be all talk if Maybach doesn't present a solid business case. Zetsche confirmed that there are currently no plans on the table for new Maybach products - cutting short speculation over a new baby Maybach positioned between the current 57 and the Mercedes S-Class - and that even the outrageously-priced 62 Landaulet was unlikely to make much headway in turning the brand's fortunes around. We guess P.Diddy and his crew will have to find another ride.
[Source: The Car Connection]
Daimler considers shutting down Maybach originally appeared on Autoblog on Mon, 17 Mar 2008 13:01:00 EST. Please see our terms for use of feeds.
Read | Permalink | Email this | CommentsArchive for the 'CHRYSLER' Category
Chrysler Pacifica
Friday, February 10th, 2006
Details info:
Alternative names:
Sales Company:
Available version:
3.5 V6 24v 4wd AutoStick
Previous version:
Variation:
Startech (Germany) Chrysler tuning
Donors:
Chrysler Crossfire
Friday, February 10th, 2006
Details info: Alternative names:
Crossfire (Chrysler Europe - Germany)
Chrysler Crossfire Roadster 2d
Sales Company:
Chrysler Europe (Germany)
Available version:
3.2 V6 18v 160kW
3.2 V6 18v aut. 160kW
SRT-6 - 3.2 V6 18v 246kW Supercharged
SRT-6 - 3.2 V6 18v 246 kW Supercharged aut.
Previous version:
Assembly Plans:
Karmann (Germany)
Info:
Chrysler Crossfire was developed after a concept version of the car was revealed at the 2001 North American International Auto Show in Detroit. A production version was unveiled one year later at the 2002 Los Angeles Auto Show. Manufactured by Karmann in Germany this new sporting coupe is a symbol of the possibilites of the DaimlerChrysler Group. Powertrain and axle components are shared from Mercedes-Benz cars.
11000 cars are scheduled to be produced in 2003.
Donors:
Chrysler Crossfire Coupé 3d
Thursday, February 9th, 2006
Details info: Alternative names:
Chrysler Crossfire Coupé 3d
Sales Company:
Chrysler Europe (Germany)
Available version:
3.2 V6 18v 160kW
3.2 V6 18v aut. 160kW
SRT-6 - 3.2 V6 18v 246kW Supercharged
SRT-6 - 3.2 V6 18v 246kW Supercharged
Previous version:
Variation:
Startech (Germany) Chrysler tuning
Startech (Germany) Coupé
Info:
Chrysler Crossfire was developed after a concept version of the car was revealed at the 2001 North American International Auto Show in Detroit. A production version was unveiled one year later at the 2002 Los Angeles Auto Show. Manufactured by Karmann in Germany this new sporting coupe is a symbol of the possibilites of the DaimlerChrysler Group. Powertrain and axle components are shared from Mercedes-Benz cars.
11000 cars are scheduled to be produced in 2003.
Assembly Plants:
Karmann (Germany)
Donors:
Chrysler 300C
Thursday, February 9th, 2006
Details info: Alternative names:
300C (Chrysler Europe - Germany)
Chrysler 300C Limousine 4d
Sales Company:
Chrysler Europe (Germany)
Available version:
2.7 V6 24v aut.
3.5 V6 24v aut.
5.7 V8 Autostick
SRT-8 - 6.1 V8 AutoStick
Previous version:
Variation:
Limousine 4d (2004 - )
Estate 5d (Touring) (2004 - )
Assembly Plants:
Info: New offering from Chrysler with retro styling and HEMI engine.
Donors: