AUTOMOBILE TECHNOLOGY » Chrysler Group LLC

Chrysler sends letters to 789 rejected stores, in first of arbitration steps

admin — Sat, 26 Dec 2009 02:33:14 +0000

Chrysler Group today sent letters to 789 rejected U.S. dealerships, kicking off a legislated process that could restore the franchises through arbitration.

The dealers have until Jan. 25 to notify Chrysler they intend to seek arbitration, the letter said, reiterating terms of a measure signed into law on Dec. 16.

The letter does not contain Chrysler’s list of criteria for rejection. Chrysler, as required by the law, will outline those terms in individual letters to be sent before January 16, spokeswoman Kathy Graham said.

The dealers lost their franchises June 9 at the end of Chrysler’s six-week, U.S.-directed trip through bankruptcy court.

The arbitration process was signed by President Barack Obama as part of a $446 billion appropriations bill. The legislation also affects General Motors Co., which announced plans to terminate 1,350 dealerships in May in advance of its bankruptcy.

Spokesman Greg Martin said GM is working on its “administrative next step. We plan to communicate with dealers soon.”

The law requires that arbitration must be wrapped up in six months.

Chrysler said in the form letter today that it is “assessing its rights and remedies with respect” to the legislation.

Speaking to reporters on Dec. 17, CEO Sergio Marchionne said restoring some of the large numbers of franchises could “cause havoc within Chrysler.”

Earlier in December, Chrysler had proposed its own binding arbitration process to keep Congress from getting involved. The negotiations ended when the legislation was introduced.

Marchionne said Chrysler’s offer would have “guaranteed a disgruntled dealer the opportunity to air its concern. Having said this, if Congress wants this, Congress gets this. And we’ll live with the consequences and react accordingly.”

Tammy Darvish, a co-chair of the Committee to Restore Dealer Rights, said: “It’s a shame the time and the money that Chrysler and GM have spent to fight this for absolutely no reason at all. If somebody can come back, just let them come back. Why are they going to spend millions more dollars to fight this?”

Doug Alley, owner of rejected Alley’s Chrysler Dodge in Kingsport, Tenn, said he hasn’t yet decided whether he’ll seek arbitration.

“We are assessing our position,” he said. “We’re waiting to see the criteria used for our rejection.”

Chrysler Resumes Production at Seven Additional Assembly Plants

admin — Thu, 18 Jun 2009 07:57:53 +0000

We already knew the PT Cruiser and Viper had some places in Chrysler’s immediate post-bankruptcy future, but a new release, illustrating which assembly plants will open again by the end of June, gives us a better preview of what offerings we can expect.

-Muscle car enthusiasts can breathe a collective sigh of relief, as the Canadian assembly plant in Brampton, Ontario — responsible for the Chrysler 300, Dodge Charger, and Dodge Challenger — is slated to resume production on June 29.

–Chrysler’s other Canadian assembly plant in Windsor, Ontario, will maintain production of the Dodge Grand Caravan and Chrysler Town & Country at the same time.

-Assembly of the Jeep Wrangler (and Unlimited) will manitain in Toledo, Ohio. Production of the Grand Cherokee has been halted until the new 2011 model is already ready to launch.

-We’d already reported on the PT Cruiser’s revival, but the same factory in Toluca, Mexico, also builds the Dodge Journey. Chrysler has approved the crossover has received a green light.

-Same goes for the Journey’s distant relatives, the Chrysler Sebring and Dodge Avenger. Production of these midsize sedans will still take part in Sterling Heights, Michigan.

-To help Dodge maintain a truck portfolio, assembly plants in both Warren, Michigan, and Fenton, Missouri, will reopen. Both plants build the full-size Ram, but the Warren facility will still build the mid-size Dakota.

Although production will start at the end of July, all assembly plants will still be idled for two weeks beginning on July 13. Chrysler also says to expect other plants (possibly those building small cars?) to start again production at “a later date.”

Fiat-Led Chrysler Begins Operations Immediately, New Staff Positions Announced

admin — Wed, 10 Jun 2009 17:20:03 +0000

With the Supreme Court stepping aside, the sale of Chrysler LLC’s strongest assets to a new company named Chrysler Group LLC was completed. The other parts of the automaker will remain in bankruptcy to be sold.

Fiat obtained a 20% stake in the company which can grow to35%. The UAW Retiree Medical Benefits Trust now owns 55% of Chrysler Group. The U.S. Treasury owns an 8% stake and the Canadian Government receives the remaining 2% stake.

The sale completes the Obama administration-directed organization for Chrysler in just 6 weeks. Operations at the new company will begin immediately.

With the alliance, Fiat will contribute technology, platforms, and powertrains for small and mid-sized vehicles. Chrysler will also get Fiat’s expertise in business turnaround, access to Fiat’s international distribution network.

As part of the deal, Fiat CEO Sergio Marchionne became chief executive of Chrysler. After his 20 months with the company, former CEO, Bob Nardelli left Chrysler and returned to Cerberus.

In his new role, Marchionne was quick to appoint a new management team that retains former President Jim Press and makes a new organization that similar to Fiat’s. Press will become Marchionne’s deputy CEO and a special adviser. Marchionne said Press will “assist the new company in transition” and will be “instrumental in the restructuring of the Chrysler Group LLC.”

Frank Klegon, executive vice president of product development will leave the company. He will be replaced by Scott Kunselman, who will be senior vice president of product engineering. Also, Steven Landry, executive vice president of North America sales, service, and parts, will retire.

Just as Fiat Group Automobiles’ Fiat, Alfa Romeo and Lancia brands each have executives responsible for profit and loss, Chrysler’s 3 vehicle brands: Chrysler, Dodge and Jeep-as well as the Mopar parts unit-will each be assigned a head executive.

The new aims of Chrysler’s brands are:

Peter Fong, former director of Chrysler’s Mid-Atlantic Business Center, is president and CEO of the Chrysler brand.
Michael Manley, was the executive vice president of international sales and global product planning operations, is president and CEO of Jeep.
Michael Accavitti, former director of brand marketing, is president and CEO of Dodge.
Pietro Gorlier, from Fiat Group Automobiles and CNH Case New Holland, is president and CEO of Mopar Service and Parts and Customer Services.

Also, Richard Palmer replaced Ron Kolka as senior vice president and CFO. Palmer was CFO at Fiat Group Automobiles. Kolka will lead the sale and closure of Chrysler LLC, the left over assets that are still in bankruptcy.