Chrysler Bailout Loans Cost Taxpayers $1.3 Billion
The formalities behind the sale of the government’s remaining stake in Chrysler were completed this morning, and Fiat SpA is now the official majority owner of Chrysler Group LLC. Counting purchases from both the United States and Canadian governments, Fiat now owns a 53.5-percent stake in Chrysler.
Assistant secretary for financial stability Tim Massad called the government’s exit of Chrysler, six years earlier than projected, a “major accomplishment” that “helped save a million jobs during the worst economic crisis since the Great Depression.”
We’re not sure how Massad arrived at his “million jobs saved” estimate, since the Big Three domestic automakers employed less than a quarter of that number in 2008. Regardless of potential jobs saved, this major accomplishment came with a significant price tag. Per the Treasury Department’s own estimate, the Chrysler bailout will end up costing taxpayers some $1.3 billion. In total, Chrysler received some $12.5 billion in bailout funding, of which approximately $11.2 billion has been recovered.
The initial $4 billion in bailout funding came under the Bush administration, and was given to Chrysler in December of 2008. Another $8.5 billion in funding was approved by the Obama administration, and the Chrysler bailout success will be the focus of the president’s 2012 re-election campaign.
This story originally appeared at The Car Connection
Chrysler, Dodge Minivans Recalled For Inadvertent Airbag Deployment
Chrysler last week initiated a safety-related recall of 367,350 Chrysler Town & Country and Dodge Grand Caravan minivans, all from the 2008 model year, for an issue with improper water drainage off the heating and air conditioning (HVAC) system in these vehicles.
The issue, which is caused by an "improperly assembled HVAC drain grommet," allows moisture to potentially drip onto the floor in the cabin—a problem that wasn't initially seen as a safety issue.
The reason it's now a safety concern on 2008 Dodge Caravan and Town & Country models isn't that damp carpet so much as that the dampness will get to a critical airbag switch, "which can lead to illumination of airbag warning light and a potential inadvertent airbag deployment," according to the NHTSA recall notice.
Chrysler has received notice of a total of 15 inadvertent airbag deployments and one minor injury from the issue from 2008 through June 2010, then in the following three months the automaker received 15 additional complaints and four more minor injuries.
Dodge and Chrysler dealers will replace the faulty HVAC drain grommet at no charge, and the recall effort itself will begin in February 2011.
Owners can either contact Chrysler at 1-800-247-9753 or NHTSA's Vehicle Safety Hotline at 888-327-4236.
[NHTSA]
This story originally appeared at The Car Connection
TCC’s Best Car to Buy 2011 Nominees: Minivans
Today's minivans may be a smaller part of the automotive world than in the past decade, but the big family haulers are back in a big way for 2011.
For TheCarConnection's Best Car to Buy 2011 award, we've included nearly every minivan offered for sale in the U.S. for the new model year. It's no accident: this year, almost all the automakers competing for family dollars have refreshed or reinvented their minivans with new looks, new features or new powertrains--or all three.
The sole minivan not on TCC's list of nominees this year is the 2011 Kia Sedona, which itself gets a new powertrain and a new grille as it returns, minus its former Hyundai Entourage counterpart.
We've driven each of the new entries, save for one. The 2011 Nissan Quest goes on sale early next year, and while it qualifies on all other counts, our editors were not able to drive and road-test the Quest before our November 1 deadline. It's included among the nominees, with an asterisk, because of the Quest's traditionally high scores in TCC's numeric ratings--but unfortunately is not eligible to win.
Our road testers have sampled both Chrysler minivans, and are busy prepping first drive stories for those to go live on Monday, November 15.
Will any of these wagons elbow aside the fun hatchbacks, able sedans, or performance coupes on our list? High Gear Media will be handing out our Best Car to Buy 2011 awards next week, during the 2010 Los Angeles Auto Show media days. You can follow the build-up here at TheCarConnection, on our Facebook page, or via Twitter @CarConnection #BestCarToBuy.
Meanwhile, the minivan nominees, with our judges' notes:
2011 Chrysler Town & Country: The more formally styled Chrysler minivan will take on comers in the $30,000-and-more price range, with a sleeker front end, a more refined interior and a new powertrain, Chrysler's Pentastar 3.6-liter V-6.
2011 Dodge Grand Caravan: The companion piece to the Town & Country, the under-$30,000 Grand Caravan has all the features Chrysler's famous for, like stow-away second- and third-row seating, best-in-class entertainment options, even a fold-away picnic table. New this year: a much appreciated drivetrain with the Pentastar V-6, and better interior styling and materials.
2011 Honda Odyssey: That lightning bolt down the sides of the new Odyssey signifies thinking. Honda says it's bottled that energy into new creature comforts, better visibility, and more handsome design--while keeping the Odyssey's benchmark handling.
2011 Nissan Quest*: The 2011 Quest is the first Nissan minivan in a generation to come from Japan; in the migration back home, the Quest strikes a more upright pose, and caters to the more luxury-minded minivan buyers. The Quest goes on sale early next year, but alas, wasn't available for test drives before our award deadlines.
2011 Toyota Sienna: In spirit--or at least in advertising--this new Sienna is a "swagger wagon." Though it doesn't alter any of its minivan basics, and doesn't include fold-away seats middle or back, the Sienna's newfound interest in things like steering and braking fuses nicely with business-class seating in the second row, and a wide, gorgeous 16-inch LCD screen for its optional entertainment system.
This story originally appeared at The Car Connection
Chrysler Renews Zero-Percent Financing Offers For June
Chrysler this week renewed its generous zero-interest financing and cash-back offers for the month of June.
The automaker had already strengthened its incentive offerings for May, with either no-interest financing on many of its models or up to $4,000 cash back. The sweet zero-percent financing deals were newly available through GMAC, which was formerly GM's captive finance arm but now caters to Chrysler as well.
The strategy appears to be working. Chrysler finished the month on a positive note, with its total May sales exceeding predicted levels. Compared to last May, when the company was in bankruptcy, Chrysler finished the month with 33-percent higher sales. While April has been Chrysler's best month to date since March 2009, its May numbers broke that and topped the 100,000-per-month mark for the first time since the bankruptcy. Those numbers are quite impressive considering that the automaker pledged to reduce cut-rate fleet sales.
Since last month, Chrysler has added the Charger to the finance deals; now customers can choose from either zero-percent financing for up to 72 months OR $3,000 Consumer Cash.
All of the following are good through June 30:
2010 Chrysler PT Cruiser, Chrysler Sebring, Chrysler Town & Country, Chrysler 300: Zero-percent financing for up to 60 months or 1.9-percent financing for 72 months OR up to $3,000 Consumer Cash
Jeep Commander, Jeep Grand Cherokee, or Jeep Liberty: Zero-percent financing for up to 60 months OR up to $4,000 Consumer Cash
Jeep Wrangler: $500 Mopar Bucks
Dodge Avenger, Dodge Grand Caravan, Dodge Nitro: Zero-percent financing for up to 60 months OR up to $2,000 Consumer Cash
Dodge Charger: Zero-percent financing for up to 72 months OR $3,000 Consumer Cash.
2010 Dodge Challenger: $2,000 Mopar Bucks
Dodge Journey, Dodge Caliber: Zero-percent financing for 36 months OR up to $1,500 Consumer Cash
Dodge Ram (2010 Ram): Zero-percent financing for up to 60 months OR $3,000 Consumer Cash
Dodge Dakota, Dodge Ram 1500 (Ram 1500): $1,000 GMAC Bonus Cash to those who use the factory-approved GMAC financing
[Chrysler]
This story originally appeared at The Car Connection
Frugal Shopper: For Happiness, Don’t Sweat The Numbers
Consumer Reports, as part of this week's torrent of announcements from its Annual Auto Issue, named the 2010 Honda Fit and 2010 Toyota Prius the best new-car values of the year.
While it so happens we like both of those models very much (and appreciate the Prius' 51-mpg rating), they definitely wouldn't fit every shopper—not even every shopper who's strongly value-minded.
Of course, we each hold a different formula for value, and what matters in a vehicle.
Initial price certainly is just a small part of the story. The 2010 Chevrolet Aveo, with the 1LT package, one of CR's designated worst values this year, has a bottom-line sticker price of just $14,970. Likewise, CR chose one of the more expensive Prius models, the well-equipped 2010 Toyota Prius IV model, which includes leather seats (heated in front), an upgraded water-repellent windshield, a Plasmacluster ionizer, Bluetooth connectivity, the upgraded JBL premium audio system with satellite radio.
Other top-scoring vehicles on the CR value scale include the 2010 Hyundai Elantra Touring, the Subaru Forester 2.5x, and the Acura TSX (four-cylinder).
It's also revealed, unabashedly, a list of "worst value" vehicles. Six of the eight "worst value" vehicles—including the Dodge Avenger R/T, Charger R/T, Grand Caravan SXT, and Nitro SLT; the Jeep Wrangler Unlimited Sahara; and the Chrysler Sebring Convertible Limited—are from Chrysler. The Mercedes-Benz S550 was called the worst value among luxury sedans.
Angry? Chrysler Launches Hotlines To Handle Customer Complaints
Say what you will about Chrysler: the company knows that it has an image problem. The man behind Chrysler's marketing, Olivier Francois, has begun the rebranding process with some fairly controversial ads, but now the company's customer care executive, Pietro Gorlier, is taking things one step further by launching customer hotlines.
As of next Monday, January 18, Chrysler customers will be able to call one of four toll-free numbers -- one for Chrysler, Dodge, Jeep, and Ram -- to speak to a representative about their vehicle. Of course, Chrysler would love to see folks use those numbers to book test drives or to ask about warranties or to shower the company with high praise, but we're guessing that most people will be calling for...different reasons.
In a this long-tail era, when companies of all sorts are expected to offer the widest possible array of products and to remain in constant communication with customers via phone, email, and Facebook, the addition of hotlines is a great move on Chrysler's part. No, it's not what anyone would call groundbreaking, and frankly, we'd love to see something a bit edgier from the pentastar gang -- assistance by SMS? direct messaging on Twitter? -- but this is a great start.
[AutoNews]
This story originally appeared at The Car Connection
New Chrysler Logo Leaked, Approved By U.S. Patent Office
Today's the Big Day for the Chrysler Group, LLC: the day Sergio Marchionne unveils the new company's five-year recovery plan. Of course, like any CEO worth his bespoke suit, Marchionne understands the importance of being dressed to make a good first impression, so Chrysler has been given a sleek new logo (which has naturally leaked to the interweb before its official debut). The new marque is similar to one already adorning Chrysler vehicles, but like the company itself, it's leaner and more streamlined. As soon as we have details about company's strategic plan, we'll let you know if there's any substance beneath the companies new stylish face. [Freep]
This story originally appeared at The Car Connection
Rumor: Jeep To Be The Only Chrysler Brand Sold Overseas
Tomorrow marks the big unveiling of Chrysler's five-year recovery plan. There's been a lot of speculation about the company's new strategy, and now comes a bit more: sources familiar with the recovery document say that CEO Sergio Marchionne will scrap plans to sell most Chrysler brands outside North America. The sole exception? Jeep, which will instead receive a boost to its international marketing budget, especially in emerging markets like Brazil. Chrysler vehicles will appear on distant shores, but only as part of the shared technology underpinning other brands like Lancia and Alfa Romeo. Stay tuned for full, factual details tomorrow. [Reuters via egmCarTech]
This story originally appeared at The Car Connection
Safety Group Points To Jeep Grand Cherokee Fire Concerns
On Friday, the Center for Auto Safety petitioned NHTSA to initiate a defect investigation that could potentially cover hundreds of thousands of Jeep Grand Cherokee SUVs from model years 1993 through 2004.
According to the group, on these older Grand Cherokee models, the plastic fuel tank actually extends below the bumper, so it's more vulnerable to being punctured in an rear-end or rollover accident. The rear sway bar link bolt is just over an inch away from the tank, according to research from the Motor Vehicle Fire Research Institute (MVFRI), and could puncture the tank in a crash.
"The design is so bad that Chrysler frequently settles lawsuits without extensive discovery and subject to confidentiality agreements," stated the group's petition, which cited a total of 172 fire crashes—with 254 fatalities—in affected Grand Cherokees from calendar year 1992 through 2008, according to the federal government's Fatality Analysis Reporting System (FARS) data. The fatal fire-crash rate is about four times higher for the Grand Cherokee than for other SUVs, according to the petition, while the fatal fire rate for the 1993-04 model is six times higher than that of the newer Grand Cherokee models.
As part of a response to the NY Times, Chrysler spokesman Mike Palese said, "Chrysler Group is confident that a proper study which considered all factors in all collisions, including rear collisions with fire, would show that the 1993-2004 Jeep Grand Cherokees perform as well as or better than other vehicles in their class."
DaimlerChrysler moved the tank to a new position ahead of the rear axle in 2005 and shielded it from such punctures. The petition explains that since the relocation, there have no fatalities that were the result of fire in the revised models.
"To protect the public from more fire deaths and injuries in the 1993-04 Grand Cherokee as they continue to crash and burn, the Center for Auto Safety requests an immediate recall," stated the petition, signed by executive director Clarence Ditlow.
After lobbying from consumer groups earlier this summer, the 'new' Chrysler has agreed to accept legal responsibility for vehicles produced by the 'old' Chrysler.
NHTSA can decide whether to begin an investigation, which could lead to a recall, based either on its own analysis or complaints. Past campaigns from the Center for Auto Safety—once spearheaded by Ralph Nader—have helped lead to prior recalls of the Ford Pinto and GM pickups, both over fire concerns.
[NY Times; Center for Auto Safety]
This story originally appeared at The Car Connection
Fiat Laying The Groundwork For Chrysler’s European Future
Fiat may have concerns about its new bride's housekeeping and checkbook-balancing skills, but it's making aggressive plans for Chrysler's future in Europe, and CEO Sergio Marchionne has announced that Euro-market Chryslers will soon be manufactured at an Italian facility Fiat acquired from Bertone. Chances are good that the vehicle produced there will be the euro replacement for the Chrysler 300C, which is also going to be used as the basis of a new near-premium Lancia. So VW is designing Euro cars for Americans, and Fiat is designing American cars for Europeans? We love that kind of symmetry. [AutoNews, sub reqd]
This story originally appeared at The Car Connection
