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Fiat’s plan for Chrysler in the next 5 years

David Walker, LeaseTrader.com — Thu, 05 Nov 2009 21:12:51 GMT

Fiat’s plan for Chrysler in the next 5 years

Models On Their Way Out

    * Jeep Patriot (end of 2012)
    * Jeep Compass (end of 2012)
    * Jeep Commander (end of 2010, may continue being sold internationally)
    * Chrysler PT Cruiser (end of 2010)
    * Dodge Dakota (mid 2011)
    * Dodge Caliber (mid 2012)
    * Dodge Viper (mid 2011, may return in 2012)

New Models That Are Coming

    * Jeep compact SUV (2013, supplied by Fiat, may be Panda)
    * Jeep small CUV (2013, supplied by Fiat, replaces Patriot and Compass)
    * Jeep Liberty (2013, replaced by Fiat product but retains name)
    * Chrysler small car (2013, supplied by Fiat)
    * Chrysler compact sedan (2012, supplied by Fiat, replaces PT Cruiser)
    * Chrysler Sebring (2013, replaced by Fiat product but retains name)
    * Chrysler midsize CUV (2013, supplied by Fiat)
    * Ram midsize unibody pickup (under consideration for 2011)
    * Ram large and small commercial van (2012, supplied by Fiat)
    * Dodge small car (2013, supplied by Fiat)
    * Dodge compact sedan (2012, supplied by Fiat)
    * Dodge Avenger (major update 2010, replaced by Fiat product 2013)
    * Dodge full-size CUV (2010)
    * Fiat 500 (late 2010, convertible 2011, Abarth 2012)

Models Staying, Receiving Attention

    * Jeep Wrangler Diesel (2010/2011, not confirmed for U.S. market... yet)
    * Jeep Grand Cherokee (all-new 2010)
    * Chrysler 300C (all-new 2010)
    * Chrysler Town & Country (major update 2010, next-gen 2014)
    * Ram 1500/2500/3500 (major update 2012)
    * Dodge Journey (major update 2010)
    * Dodge Nitro (major update 2011 under consideration)
    * Dodge Challenger (refresh 2011)
    * Dodge Charger (all-new 2010)
    * Dodge Grand Caravan (major update 2010, next-gen 2014)

Download the entire presentation from the 2010 – 2014 Business Plan presentation on November 4, 2009.

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(PDF, 57.8 MB)

Chrysler reviles American on outside and Fiat inside

David Walker, LeaseTrader.com — Wed, 04 Nov 2009 21:15:16 GMT

Chrysler reviles American on outside and Fiat inside

DETROIT -- Chrysler Group's new vehicles will be American on the outside with a lot of Fiat on the inside.

In a wide-ranging presentation today, Chrysler executives unveiled a two-pronged strategy for the next five years. The U.S. automaker will rework many current vehicles next year while working on new vehicles with Fiat powertrains and platforms for the following few years.

Chrysler's dismal U.S. sales in October -- down 30 percent, for a 22nd straight month of decline -- underscored the urgency to improve the group's vehicles.

"There is no 'business as usual' at Chrysler," said Chairman Bob Kidder. "There is an incredible commitment and energy for change."

Here are some product highlights unveiled so far in a scheduled seven-hour presentation that began this morning:

In 2012-2013, the Dodge car brand plans:

• A new vehicle for North America in the C segment, which encompasses cars such as the Ford Focus. The car would be based on a Fiat platform.

• A hatchback smaller than the C vehicle, imported from a Fiat factory.

• A new sedan on a Fiat platform to replace the Avenger sedan.

New Dodge crossover

In the meantime, Dodge plans a full-sized seven-passenger crossover for the fourth quarter of 2010. The brand also plans updates next year for the Avenger, Journey crossover, Caravan minivan and Charger muscle car.

In addition, production of the Dodge Viper will end next summer, and an unnamed sports car will be added in 2012.

The Dodge brand will pursue a new lifestyle mission, de-emphasizing its traditional pitch to performance-minded males.

This leaves the new Ram truck brand to build a brawny image for pickup and work-vehicle enthusiasts. The Ram might even produce a heavy-duty 18-wheeler, said Ram brand CEO Fred Diaz.

But the Chrysler Group's larger challenge in the coming years is to meet the federal fuel economy standard of 35.5 mpg for the 2016 model year. That's where Fiat engines and powertrains come in.

Chrysler will use a Fiat diesel engine along with a 1.4-liter inline four-cylinder. The inline-four will appear first in the U.S. version of the Fiat 500 in the fourth quarter of 2010.

Chrysler will align its engineering organization to Fiat Group, making the most of common platforms, systems and components between the two companies, said Scott Kunselman, senior vice president of Chrysler Group engineering.

Shared platforms

By 2014, Chrysler will share three platforms with Fiat, increasing Chrysler's average models per platform from about two in 2010 to three in 2014. During that period, average volume per platform will increase to 305,000 units from 125,000. In the process, four platforms will be consolidated, Kunselman said.

While Chrysler's task ahead is huge, CEO Sergio Marchionne tried to allay fears about the company's finances.

Chrysler has improved its cash position since Fiat S.p.A. took the company out of bankruptcy in June, said Marchionne, who also is CEO of Fiat.

"Some of you have been surmising we're burning through cash," he told the assembled analysts and reporters. "This is not true."

The company had $5.7 billion in cash on hand at the end of September, up from $4 billion when Fiat took over in June.

SOURCE : { Automotive News ]

New Chrysler logo filed with the U.S. Patent and Trademark Office

David Walker, LeaseTrader.com — Tue, 03 Nov 2009 16:15:21 GMT

New Chrysler logo filed with the U.S. Patent and Trademark Office

Tomorrow, we'll get the official skinny from Chrysler on what the automaker's product plans are over the next few years. As the Fiat-directed new (and new again) Chrysler looks to break free from the shackles of mediocrity and reinvent itself, a filing at the U.S. Patent and Trademark office appears to confirm an Allpar report published earlier this month, showing the new winged logo that will presumably adorn cars coming from the Chrysler division.

The look is sleeker and clearly more modern than the previous winged logo, which incorporated the old Chrysler seal. The new one has an almost Aston-esque vibe to it, featuring "Chrysler" embossed in a blue emblem centered between the outstretched wings. Allpar also reports that Dodge cars will ditch the Ram's-head logo for something all their own as well.

We've got a feeling everything will be revealed during Chrysler's marathon six-hour press briefing tomorrow, so stay tuned for more.

SOURCE: [ Autoblog.com & U.S. Patent and Trademark Office ]

OCTOBER 2009 AUTOMOTIVE SALES BY THE NUMBERS

David Walker, LeaseTrader.com — Mon, 02 Nov 2009 17:21:16 GMT

OCTOBER 2009 AUTOMOTIVE SALES BY THE NUMBERS

U.S. light-vehicle sales

Automaker	Oct. 2009	Oct. 2008	Pct. chng.	10 month 2009	10 month 2008	Pct. chng.
BMW Group*	20,649	25,512	–19%	200,138	262,172	–24%
Chrysler Group LLC	65,803	94,530	–30%	781,319	1,278,049	–39%
Daimler AG**	18,869	17,250	9%	166,838	212,876	–22%
Ford Motor Co.***	136,583	132,248	3%	1,370,687	1,741,231	–21%
General Motors****	176,632	168,719	5%	1,713,535	2,581,385	–34%
Honda (American)†	85,502	85,864	0%	969,638	1,266,447	–23%
Hyundai Group††	53,495	36,303	47%	634,282	602,055	5%
Isuzu	–	251	–100%	165	4,440	–96%
Jaguar Land Rover†††	3,042	2,894	5%	30,101	16,842	79%
Maserati	111	157	–29%	1,059	2,085	–49%
Mazda	15,068	16,442	–8%	175,257	231,850	–24%
Mitsubishi	–	–	–%	–	–	–%
Nissan‡	60,115	56,945	6%	640,411	842,644	–24%
Porsche	1,642	1,427	15%	15,952	22,503	–29%
Subaru	18,169	12,917	41%	176,590	156,706	13%
Suzuki	1,745	3,482	–50%	35,270	77,999	–55%
Toyota‡‡	152,165	152,100	0%	1,448,587	1,945,404	–26%
VW‡‡‡	24,472	23,478	4%	244,764	266,849	–8%
Other (estimate)	304	444	–32%	3,043	4,433	–31%
TOTAL	809,894	807,485	0%	8,362,872	11,249,121	–26%

Numbers in this table are calculated by Automotive News based on actual monthly sales reported by the manufacturers and may differ from numbers reported elsewhere.
Source: Automotive News Data Center
Note: Other includes estimates for Aston Martin, Ferrari, Lamborghini and Lotus
*Includes Mini and Rolls-Royce
**Includes Maybach, Mercedes-Benz and Smart
***Includes Jaguar and Land Rover (through May 31, 2008) and Volvo
****Includes Saab
†Includes Honda Division and Acura
††Includes Hyundai and Kia
†††Tata Motors includes Jaguar and Land Rover as of June 1, 2008
‡Includes Nissan Division and Infiniti
‡‡Includes Toyota Division, Lexus and Scion
‡‡‡Includes VW, Audi and Bentley

General Motor Co.'s U.S. sales rose for the first time in 21 months in October following analysts' forecasts of the strongest month this year not aided by government incentives.

GM advanced 5 percent and Ford Motor Co. was up 3 percent. Among the biggest Japanese automakers, Nissan North America climbed 6 percent and Toyota Motor Sales gained less than 1 percent. Subaru, Daimler AG, and Porsche were all also up.

Chrysler Group, meanwhile, plunged 30 percent as it continued to struggle after its bankruptcy. Audi and Mazda also declined. Suzuki was down 50 percent, and BMW Group trailed year-earlier sales by 19 percent.

Some automakers' percentage changes are benefiting from comparisons to October 2008, when U.S. sales fell 32 percent. As the U.S. economy plunged further into turmoil, the seasonally adjusted annual sales rate that month dropped below 11 million for the first time since 1983.

Still, last month's adjusted rate was projected to reach 10.3 million units, according to an average of analysts surveyed by Bloomberg News. That would put the industry above the 9.9 million mark for the first time this year except for July and August, when demand was lifted by the cash-for-clunkers program.

“People aren't all of the sudden popping champagne bottle corks, but they are feeling … more stable in what's going on,” Ken Czubay, Ford's vice president of U.S. marketing, sales and service, told journalists last week.

Ford's report of a year-over-year sales gain, its third in the last four months, comes a day after the automaker posted a surprise $997 million net profit in the third quarter and its first operating profit in North America since the beginning of 2005.

Sales of the Ford Taurus sedan, freshly redesigned, more than doubled and deliveries to individual customers almost tripled from year-earlier levels. The Fusion climbed 24 percent, and the Lincoln MKZ sedan advanced 27 percent.

Czubay said last week that industry sales would improve gradually throughout the coming months. After the U.S. recession and global financial crisis sent sales rates plunging below 11 million units last October, industrywide sales stayed stuck at 27-year lows earlier this year.

The federal government's clunkers incentive this summer sent demand to rates of 11.1 million units in July and 13.7 million in August. Without the benefit of the clunker program, September's rate dropped to 9.5 million units.

Other automakers

Subaru gained 41 percent in October. Subaru's sales have now risen 13 percent from 2008 levels, the biggest increase among the few companies that have advanced this year.

Audi's sales slipped 1 percent from a year earlier, when the brand set a record for October sales. Its Q5 crossover, introduced in February, sold 1,238 units last month or 17 percent of the brand's total. Audi reported a 15-day supply of that model at the end of October.

General Motors Co.'s chief sales analyst, Mike DiGiovanni, said last week the automaker had a “good chance” of posting a year-over-year sales increase in October. GM's performance marks its first sales gain since January 2008.

Last month's gain comes in comparison to October 2008, when demand fell 45 percent, the most among the top six automakers.

Chrysler's 30 percent decline comes on the heels of a 35 percent drop the previous October.

Still ‘depression levels'

Despite their predicted improvements in October, U.S. sales still languish at “depression levels,” AutoNation Inc. CEO Mike Jackson said last week in reporting his dealership group's profit. He predicted sales would total just over 11 million in 2010.

“While much improved over 2009 sales level, it's still depression levels,” he said. “But we expect to welcome recession-level sales in 2011.”

U.S. sales had averaged a 10.2-million-unit rate through September. That's down from 13.2 million vehicles last year and 16.2 million in 2007.

SOURCE: [ Automotive News ]

FORD reports a $997 million Q3 net profit

David Walker, LeaseTrader.com — Mon, 02 Nov 2009 16:02:21 GMT

FORD reports a $997 million Q3 net profit

DETROIT -- Ford Motor Co. posted a surprise net profit of $997 million in the third quarter and its cash position turned positive, reversing a long stretch of cash burn.

Ford's pre-tax operating profit of $1.1 billion for the quarter marked its first quarter in the black on that basis since early 2008. The automaker ended the quarter with $23.8 billion in cash, up $2.8 billion from the end of the second quarter.

Its North American unit posted a pre-tax operating profit of $357 million, for its first positive quarter since the first three months of 2005.

Ford shares surged on the news, rising 64 cents or 9 percent to trade at $7.64 a share as of 10:32 a.m. EST. Trading volume in the first hour hit more than 76 million shares, surpassing the three-month daily average of 73 million shares.

Ford attributed the improved performance to new products, reduced structural costs and improved results at Ford Credit. The automaker recorded U.S. sales increases in July and August, aided by the cash-for-clunkers program, and lifted its market share for the quarter.

"Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said Ford CEO Alan Mulally.

Revenue in the third quarter fell to $30.9 billion from $31.7 billion a year earlier.

In the second quarter, Ford narrowed its pretax operating loss to $424 million. Its net profit of $2.3 billion for that quarter stemmed from gains related to debt-reduction actions.

Ford, which had said it would hit "break-even or better" in 2011, said it now predicts the company will be "solidly profitable" that year on a pre-tax basis, not including special items. Ford will have positive automotive operating-related cash flow that year, the automaker said.

More uncertain about 2010

Ford said it was more uncertain about the 2010 economic outlook and plans to give more guidance about its 2010 assumptions when it releases its full-year 2009 results.

The company said it predicted European auto sales will decline substantially as scrappage incentive programs end, while U.S. sales volumes may improve somewhat from this year's levels.

Ford is predicting U.S. total sales of 10.6 million vehicles this year, including a couple hundred thousand medium- and heavy-duty trucks. Ford has forecast 2010 total U.S. sales of 12.5 million units.

That 2010 figure is more optimistic than the forecasts delivered by U.S. dealer groups last week.

The ability to avoid the bankruptcies that engulfed General Motors Co. and Chrysler has given Ford a leg up, but now may be working against it. The UAW is expected to announce later today that workers have rejected proposed changes to their contract.

Votes tallied at union locals over the weekend made left no doubt that the concessions would be turned down. If the vote fails, Ford's long-term labor costs would not be in line with rivals.

Case for concessions

In February, Ford completed a revised labor agreement with the UAW that cut costs by about $500 million per year. The automaker has said it needs additional concessions to keep it cost competitive with GM and Chrysler over the long term.

The proposed agreement workers are chafing at includes a "no-strike" clause on wages and benefits and a reduction in job classifications for skilled trades workers, as well as some production commitments and a $1,000 one-time bonus.

The Canadian Auto Workers union, meanwhile, over the weekend voted 83 percent in favor of an agreement that freezes wages for some 7,000 workers into September 2012 in exchange for protecting most factory jobs in Canada.

Morningstar analyst David Whiston said the automaker's touting of increased U.S. market share and improved quality may be working against it in the UAW vote.

"Ford has a lot of good things going," Whiston said before today's results were released.

Ford posted net losses totaling $30 billion from 2006 through 2008.

Ford borrowed more than $23 billion in late 2006 to finance its turnaround and has said it believes it has enough money to complete its restructuring.

Ford burned through $4.7 billion of automotive operating cash in the first half of the year, including $1 billion in the second quarter. Ford had said it expected the second-half outflow to be substantially slower than it was in the first half.

SOURCE: [ Automotive News ]