In Jeopardy: Dodge Viper, Charger; Jeep Wrangler, Grand Cherokee
There's a lot more Chrysler news today, and for fans of the company and its brands, most of it isn't good.
The worst so far: the Dodge Viper and the Jeep Wrangler may be axed entirely. This comes from a document filed by Robert Manzo, the executive director of Capstone Group, LLC, who's been brought in as a sort of "expert witness" speaking in favor of the Chrysler/Fiat marriage. Manzo presents a liquidation analysis which "assumes four car lines are sold as going concerns (Wrangler, Viper, Ram/Dakota Truck, and Brampton Car)." In particular, he points to the prohibitive costs associated with the purchase of the Wrangler: in addition to the $330+ million purchase price, any buyer would need to chuck in an additional $550+ million in dealer costs, re-stocking costs, re-launch costs, etc. In this economy, finding such a big spender won't be easy.
(FYI, if you'd like to slog through the legalese yourself, it's found at ChryslerRestructuring.com. Just click on the "list of the First Day Motions", find Docket #52, "Declaration of Robert Manzo", and zip down to page 124. It's a non-stop thrill ride.)
Keep in mind, however, that Manzo isn't Chrysler, and although he's working with the company to clinch the deal, his is not the final word. Which means that selling off the Viper and the Wrangler are merely suggestions--and not necessarily great ones.
Also in the news: all Chrysler's troubles will likely slow the rollout of the next Jeep Grand Cherokee and Dodge Charger, both of which could put some much needed cash into Chrysler's empty pockets. We hope Alanis is reading, because that's the definition of irony.
[sources: Edmunds, WorldCarFans]
This story originally appeared at The Car Connection
Five Questions: Chrysler’s Jim Press
Jim Press is no stranger to pressure. Fresh from a two-decade career at Toyota, he became Chrysler's vice chairman and president just as the company was beginning to restructure under ownership by Cerberus.
In the past 18 months, Chrysler's difficult situation has grown dire. The financial crisis that began last September has crumbled Chrysler's sales--and federal loans have kept the company alive while it crafts a new plan.
The Obama administration has given Chrysler until the end of April to nail down a turnaround plan that involves a stake of about a third of Chrysler going to Italy's Fiat. Time is running out; a deal hasn't been signed; and even Chrysler is unsure what happens if they fail to sign an agreement with Fiat by April 30.
TheCarConnection.com sat down with Jim Press for five questions at the 2009 New York Auto Show as the company unveiled the 2011 Jeep Grand Cherokee, a stylish new crossover SUV based, Chrysler says, on some running gear from its former Mercedes stablemate, the ML-Class sport-ute.
What's the latest update on the Fiat deal--and what are the roadblocks in getting a deal done?
Nothing's finalized. We don't have anything to release--we're trying to avoid negotiating in public...You've got so many balls in the air, so many constituents. They all have to line up at some point. But then, can you get it all done in the next 20 days? We sure hope so.
A lot of this work was done before the start. We had a framework... around February 14th. When we submitted our viability plan...we included the Fiat term sheet at that time.
If a Fiat deal doesn't happen, what other options does Chrysler have?
It's unknown. The government asked us to be prepared for other outcomes, and we are. We're responsible for the assets and the equity of the company, so whatever happens we're going to preserve as much of the value as possible...but there's no guarantee. The best guarantee is to stay operational and get this done, and that's really what we're focused on.
How can Fiat and Chrysler together, change the poor perceptions that both companies have independently?
Our portfolio of products--trucks, vans, SUVs, Jeeps, performance vehicles, luxury cars--we've got a lot of the landscape covered. That's enough of the market for us [today]. But it doesn't allow us to serve the whole market. With a Fiat alliance, it allows us to bring in an A-segment, a B-segment, C-segment, D-segment cars, very good fuel efficiency. When you blend the two, and you also have these ENVI cars coming (ed. note--Chrysler's electric-vehicle program), we can see that we are a formidable lineup.
Perception's hard to change. It's a new company. Just like today, I drove out in a [Fiat] Cinquecento. We're not announcing anything, but imagine the possibilities. It shows a new face of the company. It changes our company dramatically.
If a deal is reached, how can Chrysler survive 18 months until new Fiat-derived products roll off U.S. assembly lines?
We were encouraged when the government accepted our liability plan with Fiat--that includes bridge cash needs between now and when the products with Fiat start to come. It's a long-term prospect and it's included in our financing.
Why should Chrysler survive?
Our products are emotional. We don't sell appliances. For those who want to sell appliances, they should, it's a good business for them and they should do it.
Chrysler will survive because of the fact there are a million people that have their livelihood tied to this company. It's an important part of the economy. The effect on suppliers...dealers...is catastrophic.
Don't judge us by what the company did 7 years ago. Judge us by what the company's done in the last 20 months.
Updated: Autoblog pointed out that Press actually arrived at the show in a Fiat 500.
This story originally appeared at The Car Connection
Restructuring Plans: Caddies, 300s, And Grand Cherokees, Oh My
If you've got nothing better to do on a Wednesday morning, we highly recommend you flip through the restructuring plans Chrysler and GM submitted yesterday. (And really, what could you possibly have to do that's more important than that?) Among all the legalese and financial statistics, there's plenty of info about each company's rollouts to tease and tantalize. We're pretty sure the folks at Ford have already printed out that stuff in quadruplicate and wallpapered the breakrooms with it.
Here are a few of the tidbits that caught our attention--and there are plenty more where these came from:
The Cadillac CTS Coupe (pg 65 of the GM plan):
- Start of production: 2010
- Location of production facility: Lansing, Michigan
- Powertrain with best fuel economy: 3.6L V6, 6-speed auto
We've seen it in person, and we have to say: the CTS Coupe is one sweet ride. We're sad that production was delayed by a year, but we're happy to see the model hasn't been scrapped. Rumors abound that a CTS-V coupe with a supercharged V8 may also be in the works, too, but not a convertible (even though the Cadillac XLR convertible will soon go the way of the dodo).
Next Generation Jeep Grand Cherokee (pg. 130-131 of the Chrysler plan)
- Chrysler's revenue in the near term will get a boost with the debut of a redesigned Jeep Grand Cherokee.
- Jeep is an iconic American brand whose roots go back to World War II, when the U.S. military needed a go-anywhere, do-anything vehicle to support American troops in every theater of the war.
- Today, Jeep is one of the best-known and strongest automotive brands in the world.
- Jeep Grand Cherokee set the trend as the first luxury SUV.
- The new fourth-generation Jeep Grand Cherokee will be built in the United States and will feature improved fuel economy and a best-in-class interior.
Obviously, this baby's ready for the assembly line, and the 2010 - 2012 model year versions will boast a 19% increase in fuel economy. Its styling may be a little "generic SUV" for some, but Jeep's legendary brand loyalty will likely turn this model into a winner on the lot.
All- New Chrysler 300 (pg. 132-133 of the Chrysler plan)
- Chrysler 300 is the Company's flagship sedan.
- The Chrysler 300C has won more awards than any car ever including North American Car of the Year, Motor Trend Car of the Year, Automobile Magazine's Automobile of the Year, and Car and Driver's Ten Best list.
- The next generation Chrysler 300 will feature stylish new exterior and interior designs, improved fuel efficiency and unprecedented "uconnect" connectivity.
- Powertrain options will include an all-new fuel-efficient six-cylinder engine in addition to the HEMI eight-cylinder engine. The HEMI engine features Chrysler's Multiple Displacement System (MDS) that automatically deactivates engine cylinders for enhanced fuel economy.
- Safety features available on the new Chrysler 300 include:
- Rear Cross Path and Blind Spot Monitoring systems to warn drivers of unseen vehicles
- Electronic Stability Control, all speed traction control, and four-wheel anti-lock brakes
- Energy-absorbing steering column, rear-sill reinforcement and structure, and available side-curtain and seat mounted side air bags.
According to the doc, Obama's former car of choice will see a fuel economy boost of 22% in the 2010 - 2012 model year, and certainly no one can argue with the 300's popularity. And the new fuel efficient V6 in lieu of the HEMI V8 is a nice touch.
But what say you, gentle readers? Is all this enough to pull Chrysler and GM out of the tank?
[source: Chrysler's PDF and GM's PDF]
This story originally appeared at The Car Connection
