Book Review: Car Guys vs. Bean Counters

Bob Lutz, love him or hate him is one of my heroes. I see a lot of similarities between him and myself. Not only with the business prowess and the want to succeed, but also the fact that were are true dyed in the wool car guys. Having read Lutz's previous business book, Guts. I anxiously awaited the arrival of Car Guys vs. Bean Counters: The battle for the soul of American Business. At around 230 pages, I couldn't put this book. Every time I would pick it it up, I would get lost in the world of the auto industry I so truly love. There's a brief history lesson about GM's rise to to be the largest auto maker on the planet and the height of their style setting trends of the Harley Earl and Bill Mitchell era at  GM Design to loosing their ways in the Roger Smith era. But it's not all doom and gloom. There are plenty facts about what GM was doing right. And there's some interesting tidbits about other auto makers like Chrysler, Ford, Toyota, and VW. And lastly why the GM bankruptcy was an unfortunate truth that had to happen. bob Lutz is no stranger to the auto industry. His career has spanned nearly 5 decades and he has worked for all of the Detroit Big Three. I won't give away too much, but if you are passionate about cars and you are looking  for a great book to read. I highly recommend picking up Car Guys vs. Bean Counters.

Little known history of the Chevrolet Bowtie.

Some automotive brands are pretty clear about how their corporate logos have come about. Ford, Chrysler, Volkswagen, Porsche and Ferrari all come to mind. One that's not well known, but also shrouded with a bit of mystery is the bowtie logo of GM's Chevrolet division.

Several stories have emerged as to how the now famous logo originated. One from Billy Durant's daughter who says that it originated from her father's imagination one night at dinner. Another from Durant's widow saying that her husband found a similar logo while reading a newspaper while on vacation in 1912. Others say it is a stylized version of the Swiss flag cross as Louis Chevrolet was born in Sweeden.

The official origin from General Motors is that Billy Durant saw the logo as part of the pattern on some wallpaper in a Paris hotel that he would tear down and return to Detroit with in 1908. The earliest known use of the the bowtie logo dates to 1913. So who's to say which one is the true meaning behind the bowtie? Durant passed away in 1947, so the answer has certainly gone to the grave at this point. But there is no denying that it ended up being the right choice as now, 100 years later the Chevrolet brand is still in business making cars.

Press Release:

DETROIT, Sept. 2, 2011 /PRNewswire/ -- Globally recognized today, the Chevrolet bowtie logo was introduced by company co-founder William C. Durant in late 1913. But how it came to be synonymous with the brand is open to wide interpretation.

Durant's version of how the logo came into existence is well known. The long-accepted story, confirmed by Durant himself, was that it was inspired by the wallpaper design in a Parisian hotel.

According to The Chevrolet Story of 1961, an official company publication issued in celebration of Chevrolet's 50th anniversary:

"It originated in Durant's imagination when, as a world traveler in 1908, he saw the pattern marching off into infinity as a design on wallpaper in a French hotel. He tore off a piece of the wallpaper and kept it to show friends, with the thought that it would make a good nameplate for a car."

However, conflicting accounts have emerged, each of which is plausible enough to deepen the mystery and suggest it may never be solved. Two of the alternate origins come from within the Durant family itself.

In 1929, Durant's daughter, Margery, published a book entitled, My Father. In it, she told how Durant sometimes doodled nameplate designs on pieces of paper at the dinner table. "I think it was between the soup and the fried chicken one night that he sketched out the design that is used on the Chevrolet car to this day," she wrote.

More than half a century later, another Bowtie origin was recounted in a 1986 issue of Chevrolet Pro Management Magazine based on a 13-year-old interview with Durant's widow, Catherine. She recalled how she and her husband were on holiday in Hot Springs, Va., in 1912. While reading a newspaper in their hotel room, Durant spotted a design and exclaimed, "I think this would be a very good emblem for the Chevrolet." Unfortunately, at the time, Mrs. Durant didn't clarify what the motif was or how it was used.

That nugget of information inspired Ken Kaufmann, historian and editor of The Chevrolet Review, to search out its validity. In a Nov. 12, 1911 edition of The Constitution newspaper, published in Atlanta, an advertisement appeared from by the Southern Compressed Coal Company for "Coalettes," a refined fuel product for fires. The Coalettes logo, as published in the ad, had a slanted bowtie form, very similar to the shape that would soon become the Chevrolet icon. Did Durant and his wife see the same ad – or one similar – the following year a few states to the north? The date of the paper was just nine days after the incorporation of the Chevrolet Motor Co.

One other explanation attributes the design to a stylized version of the cross of the Swiss flag. Louis Chevrolet was born in Switzerland at La Chaux-de-Fonds, Canton of Neuchatel, to French parents, on Christmas Day 1878.

Whichever origin is true, within a few years, the bowtie would emerge as the definitive Chevrolet logo. An October 2, 1913 edition of The Washington Post seems, so far, to be the earliest known example of the symbol being used to advertise the brand. "Look for this nameplate" the ad proclaims above the emblem. Customers the world over have been doing so ever since.

Many variations in coloring and detail of the Chevrolet bowtie have come and gone over the decades since its introduction in late 1913, but the essential shape has never changed. In 2004, Chevrolet began to phase in the gold bowtie that today serves as the brand identity for all of its cars and trucks marketed globally. The move reinforced the strength of what was already one of the most-recognized automotive emblems in the world. More than 4.25 million Chevrolets were sold in more than 120 countries and regions during 2010.

About Chevrolet -- Founded in Detroit in 1911, Chevrolet celebrates its centennial as a global automotive brand with annual sales of about 4.25 million vehicles in more than 120 countries. Chevrolet provides consumers with fuel-efficient, safe and reliable vehicles that deliver high quality, expressive design, spirited performance and value. The Chevrolet portfolio includes iconic performance cars such as Corvette and Camaro; dependable, long-lasting pickups and SUVs such as Silverado and Suburban; and award-winning passenger cars and crossovers such as Spark, Cruze, Malibu, Equinox and Traverse. Chevrolet also offers "gas-friendly to gas-free" solutions including Cruze Eco and Volt. Cruze Eco offers 42 mpg highway while Volt offers 35 miles of electric, gasoline-free driving and an additional 344 miles of extended range. Most new Chevrolet models offer OnStar safety, security and convenience technologies including OnStar Hands-Free Calling, Automatic Crash Response and Stolen Vehicle Slowdown. More information regarding Chevrolet models can be found at www.chevrolet.com

Source: GM

Pittsburgh's Most Valuable Bloger

We have made it through the nomination period and have now moved on to the voting stage. The contest picks blogs from six categories ranging from Dining/Entertainment, Sports, Lifestyle, Local Affairs, Health/Fitness & Everything Else. We are competing in the Everything Else category and are the only automotive oriented blog eligible for voting. So here's a run down of what Autobahn Automotive News is all about and why I would like your votes (you can vote once per day).

Autobahn Automotive News is based in Pittsburgh Pennsylvania. I have been a life long car nut having a great passion for both cars and the auto industry as a whole. I have worked in the auto industry for 15 years holding a variety of positions at several well known dealerships in the Pittsburgh area. During the auto industry downturn, I became a freelance auto industry analyst and have continued to aid local dealers in regards to trends in the industry, marketing solutions and Internet marketing efforts. Autobahn Automotive News was born from some of these efforts and wanting to share some of my stories about cars, auto industry news, photos, event coverage, road tests and anything else I really fell like writing about that's related to cars.  Along with working in the auto industry, my passion goes deeper to the cars themselves. I have been privileged to drive some of the finest cars in the world. From Yugos to Aston Martins. I get excited looking at radiator mascots on pre war cars to the latest in designs from manufacturers all over the world, and everything in between.

While I have a great passion for everything automotive, my affinity is towards Volkswagen cars and their subsequent brands of Audi and Porsche. However, I also share a fondness for Ford, Chrysler, and General Motors and what made them the giants of the industry. I also have the honor of serving as a member of the car show committee for the Pittsburgh Vintage Grand Prix association and as having held several positions on the board of the Three Rivers Volkswagen Club. So with Autobahn Automotive News, we don't really follow any rhyme or reason as to what we post about, but one thing's for sure. It will be automotive related in some form or another. Having contacts within just about every auto manufacturer, along with media access grants me access to industry news before many hear about. So look for exciting new posts to come!

Voting for the CBS Pittsburgh's Most Valuable Blogger contest runs through September 9th, 2011. You are allowed to vote once per day so please vote for this site as many times as you can. There is a badge to the left that will take you to the voting page. Thank you for your continued patronage.

All this Chrysler Turbine talk....

With all this talk of the Chrysler Turbine, we thought we'd share some pictures from a recent trip to Detroit where we got to view not one, but two Chrysler Ghia Turbines. The first we found on display at the Walter P. Chrysler Museum at Chrysler's headquarters in Auburn Hills, Michigan. Along with one of the cars being on display is also a separate display motor and cut away display showing how it works.

The second, is at The Henry Ford in nearby Dearborn. Their automotive display is currently under construction, but the Turbine was considered one of their more important cars to keep on display nearby with several other cars from their impressive collection.


Both cars can be seen here.

The Walter P. Chrysler Museum

The Henry Ford Museum

Book Review: Chrysler's Turbine Car by Steve Lehto

A fascinating book came in to the office about a month ago that really grabbed our attention. Chrysler's Turbine Car: The Rise and Fall of Detroit's Coolest Creation. By Steve Lehto a forward by Jay Leno. With all of the talk of alternative energy and fuels and hybrid cars, you can't help but think back to the Chrysler Turbine program if you're a car nut like me. I had known about the cars themselves and a little about the user program from 1964 through early 1966. Outside of that, I had little knowledge of the program. That was until I picked up Lehto's book. It covers in fascinating detail the development of the turbine engine by Chrysler over a nearly four decade  period starting in the early 1950s by lead engineer George Huebner Jr and fellow engineer Sam Williams.

Lehto recounts many stories from those who worked on the program, including Bill Carry who was responsible for maintenance of the Turbine's used in the loaner program and may very well be the world's leading expert on these rare cars today. Starting in 1953, and ending just after Chrysler's first bail out in 1979, Chrysler developed 7 generations of Turbine powered cars. However, they never produced a single car for consumer consumption. The program became famous in the early 1960s with the launch and announcement of the Chrysler Ghia Turbine. The program gained popularity for the uniqueness of the cars, one being the ability to run on literally any liquid that could burn with oxygen and the cars jet like sound while driving.

Designed by Elwood Engel and built by Ghia in Italy. 55 cars were built and shipped to Chrysler in Detroit. 50 of those cars were lent to consumers all over the United States for free to use for about 3 months before going to another family. This was a ground breaking research and development project to see if consumers would actually BUY. The program was hugely successful thanks to lots of publicity. It also gave Chrysler over one million driving miles worth of research. Lehto recounts stories from many of the families that had use of the car also. Sadly a majority of the stunning Turbines were destroyed in 1966 by Chrysler, leaving only nine of these unique, entire hand built beauties left in existence. There is much speculation as to why the cars were destroyed, and the answer lies in the book, how ever we're not telling. You'll have to read for yourself.

The book then follows about further development thanks to money from the Government as an alternative to the traditional piston powered engine during the gas crunches in the 1970s and the eventual closing of the program after Chrysler's first bail out.

Had Chrysler not run out of money and killed the turbine program, who knows what would have or could have happened. Perhaps today we would have jet powered cars like many dreamed of in the 1960s. And with the original  car's performance being equal to if not greater than that of an equivalent piston engine, who know where performance could have gone. Maybe, we will see a resurgence in turbine technology combined with today's hybrid gas/electric powered cars? Only time will tell.

Chrysler's Turbine Car is 228 pages long with several black and white and color photographs. It retails for $24.95 and can be found in just about any major book store and of course online. We HIGHLY recommend it.

Chrysler names C. Robert Kidder as Chairman of Chrysler LLC

Bob "The Builder" Nardelli will be stepping down from his post as Chairman of Chrysler LLC when a new leaner Chrysler emerges. We won't be too critical of Mr. Nardelli in the fact that he really didn't grow Chrysler all that much, as that would take an entire blog all to itself.

Rather we'll focus on the new Chairman of Chrysler LLC, C. Robert Kidder formerly of the Borden Chemical Inc. and Duracell Batteries. Mr. Kidder has a very impressive resume and will be a welcome face to the new Detroit Michigan when its all said and done.

Source: Chrysler LLC

Press Release:

C. Robert Kidder to Become Chairman of Chrysler Group LLC

Auburn Hills, Mich., May 20, 2009 -

Chrysler LLC today announced that C. Robert Kidder, former Chairman of Borden Chemical Inc. and of Duracell International Inc., will become Chairman of Chrysler Group LLC, once it completes its acquisition of the operating assets of Chrysler LLC and completes a global alliance with Fiat SpA. He will succeed Robert L. Nardelli.

"We are most fortunate that Bob Kidder will lead the new company through its transformation," said Nardelli. "My number one priority has been to preserve Chrysler and the livelihoods of thousands of people who depend on its success. With his broad expertise serving on numerous world-class boards and his accomplished business background, Bob will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward." With more than 40 years of experience, Kidder currently serves on the boards of Morgan Stanley, where he is the lead director, Schering-Plough Corporation, and Microvi Biotech Inc. He previously has served as Chairman and Chief Executive Officer of both Duracell International Inc. and Borden Chemical Inc. and as director of such companies as Electronic Data Systems Corporation and General Signal Corporation. During his tenure with McKinsey and Co. Inc., Bob worked with a major OEM client in the automotive industry. Bob currently is Chairman and CEO of 3Stone Advisors LLC, an investment firm that focuses on clean-tech companies. He holds an M.S., Industrial Economics from Iowa State University and a B.S., Industrial Engineering from the University of Michigan. He resides with his family in Columbus, Ohio.

“I am pleased to join Chrysler at a time when Chrysler is poised to launch an exciting new era,” said Kidder. "I am confident that Chrysler will emerge from Chapter 11 a lean and powerful competitor, combining its own rich history of innovation with Fiat's technology and expertise to invigorate the American car market and to challenge other car companies around the globe." Chrysler LLC announced on April 30, 2009, that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it had reached an agreement in principle to establish a global strategic alliance with Fiat to form a vibrant new company. On the same day, Chrysler LLC and 24 of its wholly-owned U.S. subsidiaries also filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York. Chrysler also filed a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler's principal assets to the new company. The benefit of this type of filing is speed. It will allow a leaner new company to emerge in less than 60 days from the time of filing, well positioned for long-term viability.

Nardelli, Chrysler's Chairman and CEO since August 2007, announced on April 30 his plan to leave the company following the completion of the transactions. He will return to Cerberus Capital Management LP as an advisor. He said that it was "an appropriate time to let others take the lead in the transformation of Chrysler with Fiat, and I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance." As stated in the terms of agreement, upon successful completion of the alliance, a board of directors for the new company will be appointed. The majority of the directors will be independent (not employees of Chrysler or Fiat). The board will select a CEO with Fiat's concurrence. A complete biography of C. Robert Kidder is available at: http://www.media.chrysler.com/.

GM dealer network update

General Motors is going a different route than Chrysler LLC in regards to their dealer network. Rather than just say adios, you're done. GM is electing to not renew sales and service agreements with 1100 dealers when they come available for renewal in the 4th quarter of 2010.

Dealers targeted were stores that have poor annual sales 35 units or less per year. That makes up 400-500 of the dealers. The rest are not meeting their required sales and service performance, CSI, etc. that are performing below average. These 1100 dealers make up 7% of GMs yearly sales.

There are about 500 dealers who are dedicated to Hummer, Saab & Saturn brands. There will be a further update regarding these brands and those dealers in the next week or so. General Motors North America Vice President Vehicle Sales, Service and Marketing, Mark LaNeve did make it clear that dealers of these three brands "will exist outside of General Motors next year".

It was made clear that without GM filing bankruptcy, that these letters will be hard to enforce. This is why GM is putting the options into the dealers hands to enforce whether to wind down business and close, or find another brand to carry.

GM's intentions are to land somewhere in the neighborhood of 3600-4000 dealerships.

"This is one of the most difficult decissions we have as part of our restructuring" LaNeve said.

Press Release:

In conjunction with conversations General Motors started with its U.S. dealers today, GM issued the following statement -->

GM Statement Regarding Dealer Network Communications

As noted in our recent S-4 filing and updated Viability Plan, General Motors plans to reduce its dealer network from 5,969 stores today to approximately 3,600 by the end of 2010.

This process starts today, as GM begins contacting dealers regarding its long term planning. Approximately 1,100 underperforming and very small sales volume U.S. dealers will be advised that GM does not see them as part of its dealer network on a long-term basis. In most cases, existing franchise agreements run through October of 2010.

In addition, we will be updating about 470 Saturn, HUMMER and Saab dealers on the status of those brands and we will be discussing how the remaining dealers will support our retail plans going forward. While additional cuts will be made, we believe the vast majority, over 90 percent, of the remaining dealers will be offered a chance to remain with GM. However, specific dealer issues, further attrition and additional possible dealer network actions are expected to bring the number of future GM dealers to around 3,600 by the end of 2010, as described in the Plan. The actual number could vary given levels of attrition, etc. outside of GM’s control.

“We have said from the beginning that our dealers are not a problem but an asset for General Motors,” said Mark LaNeve, GM Vice President of Sales Service and Marketing. “However it is imperative that a healthy, viable GM have a healthy, viable dealer body that can not only survive but prosper during cyclical downturns. It is obvious that almost all parts of GM, including the dealer body, must get smaller and more efficient.”

“In response, we are letting them know about our long term plans. GM’s viability plan calls for fewer, stronger brands as well as fewer, stronger dealers. We have taken a very difficult step by identifying those dealerships we’d like to keep in the GM dealer network and those with whom we will have to wind down our business relationships,” LaNeve said.

As independently owned businesses, dealer owners will make their own decisions if and when they want to make this information public. GM is not releasing the names of any dealers.

“We are not terminating any dealerships today,” LaNeve clarified, “We will be talking to all of our dealers over the next few weeks, letting them know now in the spirit of open communication, so they are advised well in advance, about our long-term plans and their role in them. Long term, GM should have fewer, healthier dealers, maintaining GM’s current high customer satisfaction ratings, with more sales per outlet.”

NADA responds to Chrysler's dealer announcement

As the U.S. dealer network continues to take in the loss of 789 Chrysler, Dodge & Jeep dealerships. The National Automobile Dealers Association weighs in on the truth of the matter.

Source: NADA

Today’s announcement by Chrysler that it is rejecting 789 of its Chrysler, Dodge and Jeep dealers marks a very sad day in retail automotive history.

These dealers and their more than 40,000 employees have done nothing but proudly represent the Chrysler brand through good times and bad, and today find themselves left behind as the company reorganizes itself in bankruptcy court.

While NADA understands the realities of the current marketplace, we also know that dealers didn’t cause the situation that Chrysler finds itself in today. Furthermore, we believe that these draconian dealer cuts are not only misguided but counterproductive. Fewer dealers mean less revenue for the automakers. Dealers are the manufacturer’s customer; they buy the cars and parts and even the signs in front of their dealerships.

NADA fully expects Chrysler to honor all its obligations to the affected dealers who have been nothing but good partners over the years.

NADA will continue to work aggressively on all fronts with regard to assisting these dealers during these historically challenging times.

Chrysler to close 789 dealers.

In compliance with bankruptcy protocol, Chrysler LLC is exercising the option to close 789 Chrysler, Dodge, and Jeep dealers across the United States. This is just one of the many steps being taken to return Chrysler to profitability when they emerge from bankruptcy proceedings and the new aliance with Fiat.

44% of the dealers affected have dual brands, meaning Chysler & Dodge, Dodge & Chevrolet etc. So some dealers will only loose one brand. But one of the key alignments is to align the dealers with the expected annual sales numbers of 12 to 14 million units per year. So you will see a Dodge dealer, that may take on Chrysler and Jeep in the near future.

Jim Press, Co-President of Chrysler LLC states that "Chrysler is open for business". And assures Chrysler customers that they will still be able to purchase cars, parts, and have their Chrysler products serviced for many years to come.

This raises the question of what will happen to the current inventory of Chrysler vehicles when the 789 dealers close. There is currently 400+ thousand Chrysler, Dodge & Jeep vehicles spread across the 789 dealers. The cars will be taken back by Chrysler and redistributed to the remaining dealers. This is due to Chrysler's decission to not produce any more vehicles during the bankruptcy process. So dealers that will be taking on new franchises will have a supply of cars to pick from.

Source: Chrysler

PRESS RELEASE:

Chrysler LLC Files Papers to Retain Majority of U.S. Dealer Network as Part of Company's Sales ProcessAuburn Hills, Mich., May 14, 2009 - Chrysler LLC today filed a motion with the U.S. Bankruptcy Court seeking to reject certain U.S. dealer agreements, and a list of U.S. dealer agreements to be assigned to the buyer of its business assets. Subject to Court approval, 2,392 Chrysler, Jeep® or Dodge dealers will continue with the new company in a global alliance with Fiat once the sale is complete. This action will help improve the landscape of the Chrysler dealership network following the sale and enhance the full line portfolio of Dodge, Jeep and Chrysler products for customers."We are in the process of revitalizing Chrysler's business to succeed as a viable enterprise under new ownership in the future," said Jim Press, Vice Chairman and President. "The unprecedented decline in the industry has had a significant impact on our sales and forced us to reduce production levels to better match the needs of the market. With the downsizing of operations after the sale and reduction of plants and production, similar reductions must be made to the size of the dealer body. We appreciate the support of our dealers and regret this painful action. We wish market conditions made it possible to keep everyone."Chrysler plans to maintain "business as usual" with all of its dealers through the transition. The Company intends to honor warranty and incentive payments during the period that rejected dealers remain active. Chrysler is committed to working with these dealers to ensure a positive relationship with customers. To ease the burden on dealers whose agreements have not been assumed, Chrysler will work to assist in the redistribution of new vehicles and parts to the remaining dealer network."It is with a deep sense of sadness that we must take steps to end some of our Sales and Service Dealer Agreements," said Steven Landry, Executive Vice President, North American Sales and Marketing, Global Service and Parts. "The decision, though difficult, was based on a data-driven matrix that assessed a number of key metrics. In total, 789 dealers, which represents 14 percent of our sales volume, will be rejected and, subject to the court approval, they will discontinue selling Dodge, Chrysler or Jeep vehicles on or about June 9."The review was an objective and rigorous process that was both thoughtful and thorough. We plan to work to have an orderly transition. These are extraordinary times, and they call for an extraordinary response. It is important to our dealers and to our customers that these steps be completed quickly and seamlessly as we transition to a new Chrysler," Landry added.Additionally, on May 12, the Court approved the motion regarding Chrysler LLC's agreement with GMAC Financial Services to provide the automotive financing products and services to the Company's dealers and customers moving forward. GMAC Financial Services will be the preferred lender in North America for Chrysler, Jeep and Dodge dealer and consumer business, including wholesale of new and used vehicles as well as retail. GMAC Financial Services will be able to offer the best long-term finance options for Chrysler dealerships and customers and is established as a bank holding company with access to a variety of funding sources.While difficult, the actions to restructure its dealer network are a necessary part of Chrysler's viability plan and are central to the proposed sale transaction. These actions will help ensure that both remaining dealers and the new company will be stronger and more profitable going forward."A stronger dealer network supported by GMAC's long-term finance options provides an advantage to consumers, and that is what will ultimately drive the creation of a significantly stronger global competitor," said Press.Additional information, including the motions filed, can be found at www.chryslerrestructuring.com.

We have arrived at the end of the road. The U.S. Auto Industry Officially Dead

It's not often that you will get a rant out of me like this.

Thanks to our wonderfully stupid, thinking nothing but themselves politicians in Washington. And the lying folks over at the UAW. The United States Automobile Industry is now dead in the water.

8 Votes. 8 Votes. That's all they needed to get the 60 required for the government to get some much needed cash to the Big 3. 8 Votes.

52 ayes, 35 nays. We find it unbelieveable that there are that many uneducated and uninformed people in our government. "We don't want to have to take this money from our taxpayers" one Congressman said. Uhm, aren't the people who work for GM, Ford and Chrysler taxpayers? Correct me if I'm wrong, but I'm pretty sure that the lineworkers and other folks working for the Big 3, would want to keep their jobs. Surely they wouldn't mind.

The Asian markets are already falling. In a few short hours Wallstreet and the European markets will open. And surely mass chaos will ensue.

We're absolutely at a loss for words with this one. This is it. Game over.

Final Chrysler Crossfire Leaves Factory

With the close of 2007 upon us, we come also to the production of the final Chrysler Crossfire.

During its five year lifespan, the American coupe/roadster built in Germany sold 80,000 units. 2006 US sales accounted for only 8,216. Down over 50% from 14,665 units in 2005. The Crossfire was offspring of the now ended partnership between Chrysler and Mercedes, and shared its platform with the original Mercedes Benz SLK roadster.

The Crossfire is the first of four models that Chrysler is giving the axe under its new ownership, and since production of the car and many of its components are so closely tied to Mercedes, it's only natural that it's the first to go. Next to be cut are the Dodge Magnum, Chrysler Pacifica and Chrysler PT Cruiser Convertible.





Source: Motor Authority.

Energy Bill Passed! On to Pennsylvania Ave

In it's fourth round of voting in the House. The Energy Independence and Security Act of 2007 has cleared Congress and the House of Representatives. Now it's on to 1600 Pennsylvania Avenue for President Bush to officially sign the bill into law tomorrow. The bill passed through the House today with a vote of 314 to 100.

As many of you already know. The main importance of this bill was the Corporate Average Fuel Economy (CAFE) standards to rise to 35 mpg by the year 2020. Below we have attached official response from both Ford and Chrysler.

Source: Associated Press.

PRESS RELEASE:
FORD COMMENT ON CONGRESSIONAL PASSAGE OF NEW CAFE STANDARDS AND THE ENERGY BILL
The following is a statement from Ford Motor Company on the final passage of the Energy Independence and Security Act of 2007 by Congress:

WASHINGTON, D.C., Dec. 18, 2007 -- "Ford has worked with lawmakers to enact nationwide requirements that provide a significant increase in fuel economy while protecting consumers' choices of cars, SUVs and light trucks. We are working to do our part to help reduce greenhouse gases and U.S. dependence on foreign oil.

This legislation will provide one clear requirement for increasing fuel economy and provide greater certainty for our product planning. Ford is committed to providing safer, more fuel efficient, quality products – in high volume – that customers want and value."

Press Release:
Statement from Robert Nardelli, Chairman and CEO, Chrysler LLC, Regarding New, Nationwide U.S. Fuel Economy Standards:

"We commend the Congress for passing an energy bill today and we fully support it being signed into law. Chrysler is committed to meeting the fuel economy standards of the bill and doing our part to reduce greenhouse gas emissions and our country's reliance on foreign oil. We continue to devote significant resources to develop quality, fuel efficient products that our customers expect. This year alone, we offer six vehicles that get 28 miles per gallon or better, and more are on the way."

Chrysler says it can meet new CAFE standards

Chrysler LLC is readily welcoming thew new CAFE standards with open arms. When it happens of course.

"We will" cooperate rather than fight the anticipated increase in the Corporate Average Fuel Economy, or CAFE, standard," Chrysler CEO Bob Nardelli told TheCarConnection.com Wednesday. "We'll have to obviously accelerate significantly our investment in technology to get there," said Nardelli.

Some of the technology being used is a new two mode hybrid system that was jointly developed and engineered by BMW, General Motors, and Daimler. Chrysler's former German parent company.

Chrysler is looking to recent help from the United Auto Workers(UAW) and their agreement to take over Chryslers heft healthcare costs. This helped to free up a large amount of cash. This will allow for Chrysler to invest $500 million dollars in product development.

Source. The Car Connection.

Chrysler announces cutback in truck produttion. You're move GM

Following both General Motors and Ford, now Chrysler is going to shut down their truck plants for a while. Effective this month, Chrysler LLC is going to temporarily close their Warren, The Jefferson North Assembly and Windsor Assembly plants.

The Warren plant that assembles the Dodge Ram and Dakota pickup trucks will be closed the longest, from December 21 to February 4. Jefferson North, home of the Jeep Grand Cherokee and Commander SUVs, will close for three weeks starting January 4, 2008. That plant will also lose 911 workers, and will lose its second shift as of February 4. The Windsor plant, in Ontario, Canada, which builds the Chrysler Town & Country and Dodge Grand Caravan, will close January 14 for two weeks.

Source: Automotive News.

Super Bowl ads. Ford, Chrysler, & VW oddly missing

We got word that there will be four automakers with ads during the Super Bowl this year. General Motors will have a Chevrolet 60 second spot during the second quarter and Cadillac will be sponsor for the pre and post game shows.

Hyundai and Toyota will both have two spots each. Also announced is a spot from Audi. This marks their first time advertising during a Super Bowl in 20 years. Theirs will be a two minute long spot featuring the Audi R8.

Toyota's ad will more than likely pump up the new Sequoia and Tundra pickup. Though I highly doubt that it will do anything to help the Tundra's image right now.

Cars.com will also have a 30 second spot this year.

Strangely though is the lack of an announcement that Ford or Chrysler will be having spots. There is still time for them to jump on the band wagon, so we'll see where it goes.

I watch the Super Bowl just for the car ads. General Motors has always topped our list of favorites. So as a bonus, we're including our favorite GM spot from the Super Bowl in 06.


Source: Automotive News, Audi.

Chrysler: Uh oh! We screwed up.

Well it looks like the MSRP for the Dodge Challenger SRT8 was a little bit off. The Challenger ends up getting slammed with a gas guzzler tax of $2,100. That's now going to bring the price of the hot muscle car up from the $37,995 originally announced yesterday, to $40,095. Oh well. I guess that's the price you pay to play.

Chrysler could easily get rid of this if they oh, I don't know lowered the MSRP of the Challenger $2,100. But that's just me.

Source: Autoblog.com

European autos have resale edge over domestics

Recent surveys show that the Detroit Big Three are starting to lose footing on their vehicles resale values. Kelly Blue Book is saying that the top five brands with the best overall predicted resale value are Volkswagen, BMW, Honda, Acura, and Porsche. The rest of the Top Ten are Lexus, Subaru, Toyota, Infiniti, and Audi. Of course, none of these are Big Three domestics. Many of those brands made up the 1o worst picks for resale value for 2008.

Why the big turn? Simple. Over production. The Big Three lean towards overproducing their vehicles. Then they slap on huge discounts and rebates. Those combined with the over abundant supply of Taurus, Impala, and Stratus fleet and rental cars. Helps to absolutely destroy the resale value of those cars.

Volkswagen is the surprise comeback kid on the survey list. They have steadily grown over the last 5 years. Thanks to big boosts in quality, fuel efficiency, European styling, and exceptional value.

Source: The Wall Street Journal

Followup: Some official word from Chrysler regarding product cancelations

We finally have some official news from Chrysler regarding product cancelations, workforce cuts, and shift eliminations. It's unfortunate to see more bad news from the Motor City, but it's all going to pave the way for a bigger, more profitible Chrysler. Along with shift eliminations at 2 Detroit plants and what will be somewhere in the area of 11,000 possible labor cuts(both hourly and salary).

Chrysler has also made the decision of 4 cars that will be cut from the product line up. These include the Chrysler PT Cruiser Convertible, Pacifica, Crossfire, and Dodge Magnum. Mr. Nardelli also mentioned several new products that will be added to the line up. Including the Challenger, and Hybrid versions of the Chrysler Aspen and Dodge Durango. Here is what we know so far. This is according to an email to Chrysler employees from Bob Nardelli.

"• Shifts will be eliminated at five North American assembly plants: Belvidere, Jefferson North, Toledo North, Brampton and Sterling Heights. Combined with other volume-related manufacturing actions, this will lead to a reduction of an additional 8,500-10,000 hourly jobs through 2008.

• A shift will be eliminated at Mack Avenue Engine Plant II.

• Salaried employment will be reduced by 1,000 and contract employment by 37 percent. Additional reductions will be made in hourly and salaried overtime and purchased services due to the decline in volume.

• Four models will be eliminated through 2008 -- the Dodge Magnum, the convertible version of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. During the same time frame, we will add the all-new Dodge Journey and Dodge Challenger to our portfolio, along with two new hybrid versions of the Chrysler Aspen and Dodge Durango."

I agree with the Chrysler cuts from the product line, but will be sad to see the Magnum go from Dodge. The shift eliminations are unfortunate, but are necessasary to stabilise the company.

Here is the full e-mail from Bob Nardelli, and the full press release.

BOB NARDELLI E-MAIL TO CHRYSLER EMPLOYEES:

Dear Colleagues,

Today, we will announce some tough but necessary actions for Chrysler: the elimination of some assembly plant shifts, reductions in salaried and contract employees, and the phaseout of four of our products. These changes are part of our continuing efforts to right-size our business for the current market and competitive environment. They should not diminish our faith in our long-term strategy nor reduce our resolve to become a leader in the automotive industry.

I regret that short-term actions are required on our path to long-term success. Since the announcement of the Recovery and Transformation Plan (RTP) in February, the market dynamics -- especially in the United States -- have changed dramatically. The soft housing market and the spike in oil and gas prices have had a seriously adverse impact on consumer confidence and spending. Back in February, U.S. light-vehicle sales were running at a rate of 17.2 million vehicles. We now expect volume for 2007 to be significantly lower and carry over into 2008.

To succeed, we must align our costs with the market realities and the economic conditions we expect. We must position Chrysler to return to profitability next year without pushing unprofitable volumes of product through our plants and into our dealers' showrooms or fleet. This would only lead to a downward spiral of higher incentives, weaker brands, lower residual values and poor relationships with our dealers. That's why we are committed to right-size our costs and achieve inventory levels that are 100,000 units lower at the end of 2007 compared with last year.

We must move with speed and flexibility to meet the needs of a constantly changing market. This means continually re-evaluating our model lineup in order to ensure that our current and future product portfolios hit the sweet spots in the market. As a customer-driven company, we must sharply focus our limited resources on the most profitable and appealing products.

The following is a summary of the changes we are announcing today:
• Shifts will be eliminated at five North American assembly plants: Belvidere, Jefferson North, Toledo North, Brampton and Sterling Heights. Combined with other volume-related manufacturing actions, this will lead to a reduction of an additional 8,500-10,000 hourly jobs through 2008.
• A shift will be eliminated at Mack Avenue Engine Plant II.
• Salaried employment will be reduced by 1,000 and contract employment by 37 percent. Additional reductions will be made in hourly and salaried overtime and purchased services due to the decline in volume.
• Four models will be eliminated through 2008 -- the Dodge Magnum, the convertible version of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. During the same time frame, we will add the all-new Dodge Journey and Dodge Challenger to our portfolio, along with two new hybrid versions of the Chrysler Aspen and Dodge Durango.

Going forward, we need to concentrate on three areas in order to transform our company into a top performer.

First, we must rebuild a strong partnership with our dealers, who are an extension of our company and our only direct customers. We've taken major steps down this road by reducing our inventory and scaling back our fleet business to improve residuals.

Second, we must maintain a laser focus on the five business fundamentals our leadership has identified as the building blocks for success. You should have recently heard a report from your management on the five fundamentals: Customer First; Quality ... Period; Go Global; Be Green; and Powered by Great People.

Third, we must execute. With the RTP we have a clear and realistic strategy for success that does not need to be rewritten. We must now execute seamlessly, with a bias toward speed, a focus on the customer, and an emphasis on teamwork and achieving cross-functional goals. More than ever, your individual performance will determine your personal success and that of the company overall.

Thank you for your continued support and dedication as we drive to transform Chrysler into an enterprise that is stronger than ever and able to thrive in today's highly competitive marketplace.

Bob

PRESS RELEASE:
Chrysler Announces Product and Plant Changes-- Industry-wide volume reduction and sales slow down requires plant adjustments -- Four products will be cancelled from Chrysler line-up; while adding two all-new products and two hybrid models.

AUBURN HILLS, Mich., Nov. 1 /PRNewswire/ -- Chrysler LLC today announced that it would make volume-related reductions at several of its North American assembly and powertrain plants, and eliminate four products from its line-up.

Shifts will be eliminated at five North American assembly plants which, combined with other volume-related manufacturing actions, will lead to a reduction of 8,500-10,000 additional hourly jobs through 2008.

Additional actions include reductions of salaried employment by 1,000 and supplemental (contract) employment by 37 percent. The Company also plans to eliminate hourly and salaried overtime and reduce purchased services due to reduction in volume.

The volume-related actions are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan (RTP) announced in February. The objectives of the RTP remain the same.

"The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint," said Bob Nardelli, Chairman and Chief Executive Officer. "Annual industry volume (U.S. market) then was running at a 17.2 million clip. Now, we expect a seasonally adjusted annual volume for 2007 to be significantly lower and carry over into 2008."

"We have to move now to adjust the way our company looks and acts to reflect a smaller market," added Tom LaSorda, Vice Chairman and President. "That means a cost base that is right-sized and an appropriate level of plant utilization.

"LaSorda added that third-shift operations at assembly plants usually reflect a high demand after a product is launched. Three of the five plants affected by this action are the result of elimination of third shifts - in Belvidere, Illinois; Toledo, Ohio, and Brampton, Ontario.

In contract negotiations just concluded with the United Auto Workers, Chrysler committed to spending more than $15 billion on products, plants and engineering during the life of the contract through 2011.

The company announced that it will eliminate four models through 2008, including Dodge Magnum, the convertible version (only) of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. In the same time frame, Chrysler will add two all-new products to its portfolio: the Dodge Journey and Dodge Challenger, along with two new hybrid models, the Chrysler Aspen and Dodge Durango.

"These actions reflect our new customer-driven philosophy and allow us to focus our resources on new, more profitable and appealing products," added Jim Press, Vice Chairman and President. "Further, these product actions are all in response to dealer requests."

Manufacturing Actions

Chrysler will eliminate shifts at five assembly plants, and take further volume-related actions at several other facilities. It will:

Drop third-shift operations at Belvidere (Ill.) Assembly Plant in the first quarter 2008. Belvidere builds the Dodge Caliber, Jeep Patriot and Jeep Compass.

Drop second-shift operations at its Jefferson North (Detroit, Mich.) Assembly Plant in the first quarter 2008. It's expected that the plant will return to two shifts in first quarter 2010 with the introduction of the next generation of sport-utility vehicles. The addition of a third shift will remain an option, depending on market demand. Jefferson North builds the Jeep Grand Cherokee and Jeep Commander.

Drop third-shift operations at the Toledo (Ohio) North Assembly Plant in the first quarter 2008. Toledo North builds the Jeep Liberty and Dodge Nitro.

Drop third-shift operations at Brampton (Ontario) Assembly Plant in first quarter 2008. Brampton will build the Chrysler 300, Dodge Charger and Dodge Challenger. The Dodge Magnum will be discontinued.

Drop second shift operations at Sterling Heights (Mich.) Assembly Plant in first quarter 2008. Sterling Heights builds the Dodge Avenger and Chrysler Sebring sedans and Chrysler Sebring Convertible.

In addition, Mack Avenue (Detroit) Engine Plant II will return to a traditional two-shift / two-crew operation in the first quarter 2008 after operating on a three-crew, two-shift, 120-hour-per-week (3/2/120) schedule. Mack II builds the 3.7-liter V-6 engine.

"I'm confident that we have the right team in place and a business plan that doesn't need to be re-written," concluded Nardelli. "Like all good plans, the RTP has built-in flexibility that allows us to stay one step ahead of market change. And that is the way to long-term sustained profitability."

Sources: Autoblog.com, The Detroit News, Chrysler.

Chrysler ready to slash products from vehicle line up.

Chrysler LLC is preparing to cut many redundant vehicles from their portfolio. On October 10th, Jim Press, Chrysler's c0-president acknowledged that there is a product problem at Chrysler. Vehicles on the chopping block include:

Chrysler Aspen
Chrysler Pacifica(finally)
Chrysler Sebring
Dodge Durango
Dodge Magnum
Jeep Commander
and the Jeep Compass.

"We have models that overlap, where we've got two ro three vehicles that serve the same market segment or maybe the same customer, and we actually compete with each other to some extent. That's not very efficient." Press said at an annual meeting for dealers in Las Vegas.

New management at Chrysler is conducting a product review geared at aligning each of the three brands to match certain characteristics that they have set up. This will mean cuts and a speed up on re-engineered vehicles. Hopefully some new and fresh products in the line up.

Chrysler is also going to begin looking at their dealer network. Which is a combination of stores that are all three brands, and some with just two or one brand.

Chrysler is also seeking to become a worldwide power in the automotive world. They are right now a "North American" company, and that is no longer working. Bob Nardelli, Chrysler chairman, was quoted saying.

Chrysler I think is finally on their way to getting turned around in the US market. Hopefull these cuts, re-engineered , and hopefully fresh products will work.

Source: Automotive News

SEMA 07: Chrysler SR-392 Hemi Roadster breaks cover early.

Thanks to the guys over at Jalopnik.com for this breaking news. The Chrysler SR-392 Hemi Roadster was spied in the open before it's unveiling at the SEMA show in Las Vegas. The roadster is based on a reproduction 1927 Chrysler body, which has been heavily modified. The Custom SR-392 Roadster features a 392 Hemi crate motor from Mopar. The distinctively 'Detroit' roadster is a collaborative build project between Chrysler's Mopar Underground SEMA design team and Quality Metalcraft.

Rods seem to be the hot item at this years SEMA show. The Chrysler SR-392 is the second such vehicle to be unveiled. The first being the Chevrolet E85 rod from General Motors. Look for more info as the car becomes official. At cursory glance, the Chevrolet seems to be a bit more polished with it's look and overall finished product. But the Chrysler gains extra kudos in my book as it's a roadster, and it's got a Hemi..... Sweet!

Official Press Release:

Auburn Hills, Mich. -
What do you get when you combine the new 392 HEMI crate engine from Mopar with the world's first-ever steel reproduction of a 1927 street rod body and three car-crazy designers? The result is a custom SR 392 Roadster that will debut in the Mopar booth (#42427) at the 2007 Specialty Equipment Market Association (SEMA) Show. The SEMA Show is the annual showcase of technology, trends and products representing the $36.7 billion automotive parts and accessories industry that will be held Oct. 30 - Nov. 2, 2007 at the Las Vegas Convention Center.

For nearly two years, Chrysler's Mark Allen and Ralph Gilles planned to build the SR 392 Roadster as a SEMA stunner with Michael Chetcuti of Livonia, Mich.-based auto supplier, Quality Metalcraft (QMC). Allen is chief designer, Jeep®/Dodge Truck Studios - Chrysler LLC and Gilles is Vice President of Jeep/Truck & CFM Design, Chrysler LLC. Gilles and Allen are members of Chrysler's Mopar Underground SEMA design team, a group of in-house automotive enthusiasts who donate their time to SEMA project vehicles.

Allen said, "It was important to convey the car's theme as an homage to Detroit - the cool Detroit with its unique artistic community, music and gritty vibe. We used durable materials and let the mechanicals show to reflect the industrial backbone of the city. We wrapped it all up in a high-gloss black-and-chrome wrapper to evoke Detroit's cool attitude."

Allen, Chetcuti and Gilles saw a challenge in proving that the 6.4-liter HEMI crate engine could apply to a vehicle other than traditional muscle cars or modified up fits. The team's idea was to redefine the classic hot rod with a more functional urban and industrial attitude to create a distinctly 'Detroit' roadster.

The project was assisted by Chetcuti's QMC since the company has tooled, designed and now stamps the first-ever steel reproduction of a '27 street rod body -- the Shadowrods XL-27 Roadster and Lakes Modified bodies developed by hot rod legend, Jon Hall.

"The core design elements of this roadster speak to the grit and industrial edge of our city," said Chetcuti. "Things like the mezzanine flooring detail and Eames-inspired seating -- these take an industrial cue but are by no means 'rat-rod.' It is a refined and organized design throughout."

After several design variations were discussed (California hot rod king Chip Foose even had a peek), Allen brought his full resources to the design's completion. QMC stamped and performed the initial assembly on the reworked Shadowrods body - and fabricated and fit the revised hood, hood side panels, lower rocker panels and doors to the body.

With the car's extremely low stance, Shadowrods was asked to build a custom frame using a unique staggered truss concept. For the final build of the SR 392 Roadster, QMC turned to longtime concept- and show-car builder Wheel to Wheel Powertrain of Madison Heights, Mich.

Overseen by Gilles, the Mopar Underground SEMA design team has been customizing Chrysler, Jeep and Dodge production vehicles for the SEMA show since its creation in 2002. The team creates tricked, tuned and customized vehicle concepts meant to develop performance parts, accessories and customization, vehicle concepts and keep the Mopar spirit and passion alive.