Missed: The future of Cyrsler/Fiat - REPORT

While we were off, Fiat announced what were they going to do with Chrysler, now they own it. Of course, Fiat CEO - Sergio Marchionne, said this future plans for Chrysler is for the next 5 years. So here goes:

Starting off with the loans that the U.S Government has given Chrysler, Marchionne promised that by 2014, Chrysler would have payed all their $12.4 million loans, and even generated a profit of $5 billion. Chrysler say that they have $5.7 million in-hand.

Chrysler will also be the Fiat's channel to come to U.S. showrooms, as Fiat announced their 500 will be available in U.S. Chrysler dealers in 2010. Also, rebadged Chrysler vehicles (Chrysler 300 to go as Dancia, and Caliber to go as Fiat) will go on sale in Europe within the next year or two. Which hints the reason why Chrysler will be building smaller-sized cars, with fewer V8 engines, and more fuel-efficient 4-cylinders.

Starting with the Chrysler brand, the brand will be getting an all-new logo (image right). Next year, the brand will present the redesigned Sebring and 300 sedans, while in 2012, a new Fiat-based compact sedan will join the range., In 2013, Chrysler will get three new products based on Fiat platforms, including a Fiat Group sourced small car (most likely the Fiat Punto), a successor to the Sebring and a new midsize crossover. An all-new Chrysler-developed Town and Country minivan will be presented in 2014.

Moving to Chrysler's Dodge brand, Marchionne announced the official split of the brand into two cores - Dodge car brand, and Ram Truck brand. As for the car brand, Dodge will be unveiling refreshed versions of the Avenger and Journey, along with a fully redesigned Charger (teaser image right) sedan and a new fullsize CUV. The Nitro will receive a facelift in 2011, as will the Challenger pony car, while the Viper will be freshened up in 2012, and will only produce 500 more units. The same year will see the introduction of a new Fiat-based compact sedan that will replace the Caliber which will be discontinued after 2012. Dodge will get yet two more Fiat-based models, a small car and a replacement for the Avenger sedan. The Grand Caravan will be replaced with a new model in 2014.

As for Ram Truck brand, plans include the possible presentation of a new mid-size pickup truck based on a car platform in 2011, and the launch of Fiat-based small and large commercial vans in 2012. Furthermore, the company said that it will discontinue the production of the Dakota in mid-2011.

And finally, Jeep. In 2010, aside from the market launch of the new Grand Cherokee, the Patriot, Compass, Wrangler and Liberty will be freshened. The following year, the Wrangler will receive another update including a new interior. 2013 will see the Jeep brand receiving three new models based on Fiat platforms including a small SUV, a common replacement for the Patriot and Compass, and a new Liberty. The Commander will most likely be dropped off in 2011.

So what do you think? Can this 5-year business plan really change the fate of Chrysler, and the American auto-manufacturing business? Well tell us what you think in the comments below.

Source: [Chrysler via Autoblog and egmCarTech]

Report : Chrysler, Hyundai and Mitsubishi end engine manufacturing alliance!

It seems that after the merge of Chrysler and Fiat, Chrysler has to end any deals they had in the past. First notice, that Chrysler have ended collaboration with Nissan, into producing the Armada and Titan. Well, here's more "out-of-deal" collaboration.

Back in 2005, all Chrysler, Hyundai, and Mitsubishi have allied together, to create the Global Engine Manufacturing Alliance (GEMA), which eventually manufactured fuel-efficeint 4-cylinder engines that were avilable in all Chrysler, Hyundai, and Mitsubishi products. However, it was announced by Chrysler, that both Mitsubishi Motors Corporation and Hyundai Motor Company, have sold their interests in the manufacturing alliance to the Chrysler Group. “Going forward, GEMA and its employees will continue to build state-of-the-art engines for Chrysler Group’s line of exciting, fuel efficient vehicles,” Chrysler said in a statement.

Nonetheless, GEMA will now build engines for Chrysler vehicles only, including the Dodge Caliber, Dodge Avenger, the Jeep Compass, and the Jeep Patriot.

Source : [Chrysler]

BREAKING : Chrysler and Nissan end collaboration, Durango-based Armada and Ram-based Titan dead !

A several years back, Chrysler and Nissan have made a collaboration, to share some car platforms, and even future vehicles. Although the deal was to share some car platforms for only certain markets, the deal-breaker was to share the truck platform that the Dodge Durango and Dodge Ram created, onto the Durango-based Nissan Armada and Ram-based Nissan Titan, for worldwide market.

Well, the news here, Chrysler and Nissan have announced that it's best for both companies, to end collaboration, and therefore, kill all the deals they had. That means, the Armada and Titan are pretty much dead, until Nissan finds a new platform to base them on. Despite the Armada and Titan were somewhat successful, it seems that Chrysler, and its new Fiat owner, were the ones who demanded to end collaboration.

The collaboration involved:

1. Nissan providing to Chrysler a compact sedan for the South American market beginning this year.

2. Nissan providing to Chrysler a small vehicle for global markets beginning in 2010.

3. Chrysler providing to Nissan a full-size pickup truck starting in 2011.

Source : [Chrysler, Nissan]

RumorMill : Chrysler Group LLC to make Ram their fourth brand?

Due to the global economic downturn, automakers are trying to cut deep costs, and focus on quality-engineering, rather than badge-engineering. Look at Ford selling Land Rover, Jaguar, and Aston Martin; while GM axed Pontiac, and in the process in selling Saab, Hummer, Saturn, and Opel. However, the businessmen at Chrysler think otherwise.

According to Autoextremist's Peter DeLorenzo, he says he's hearing around that Chrysler is considering to break off the Ram from the Dodge, with the truck line becoming a dedicated brand. He believes that with new money from Fiat, Chrysler Gorup LLC plans to make a Ram brand, that includes all the Ram pick-up trucks and the Dakota. If this is true, the Ram brand will be Chrysler's fourth brand, which including Chrysler, Dodge, and Jeep.

We don't get how this could possibly be a good marketing idea. Considering Chrysler's financial crisis and struggling sales, why spend money marketing a new brand, while the Dodge Ram name is already a great hit? That's one of the things that just make us wonder! We'll have more if this turns out to be true.

Source : [Auto Extremist]

Chrysler : Dodge Viper is not for sale anymore, and will live on 2010 and beyond

After that Chrysler merged with Fiat, exited bankruptcy, and re-opened its factory plants, Chrysler still has to decide whether to sell the Dodge Viper brand-name or not. Well, earlier reports that Chrysler re-opend the limited-production Dodge Viper factory in Detroit, only for 2009 model year.

Though, Chrysler Group LLC just announced that the production of the Dodge Viper SRT10 and ACR package will continue through 2009. The company said today that its Viper brand-name business is no longer for sale and that it will continue making new models through 2010 and beyond.

“The Dodge Viper has successfully captured the hearts and imagination of performance enthusiasts around the globe,” said Mike Accavitti, President and Chief Executive Officer, Dodge Brand. “We’re extremely proud that the ultimate American-built sports car with its world-class performance will live on as the iconic image leader for the Dodge brand.”

So the Dodge Viper will live on with the Chrysler-Fiat era. So that does mean that the Viper and Ferrari are now cousins! It also means that the up-coming 2010 Devon GTX Concept needs to get a new platform, and a new name.

Source : [Chrysler]

Report : Chrysler re-opens its production plants, starting with... the 2010 Dodge Viper at Detroit plant !

Just emerging out of Chapter 11 bankruptcy, and merging with FiatS.p.A, Chrysler is back, and wants to start fresh. The new Chrysler Group LLC confirmed that it's re-opening its production factories, to restart freshly and hopefully set a new standard. Chrysler announced that by the end of June, eight of its plants will re-open, and start manufacture immediately.

"A restart of production at other Chrysler Group assembly plants will be announced at a later date," the company said in a statement. The plants will first resume production of some 2009 models and will then switch to 2010 models after the normal summer shutdown in July.

The first plant to resume its work after the bankruptcy, is the Conner Avenue Plant in Detroit, which is responsible to make the low-volume Dodge Viper. That's right, after all the rumors of the sale of the Viper brand name, it seems that after Fiat own the rights of the name, the Dodge Viper is still for at least the next model year. The 2010 Dodge Viper hasn't changed from the 2009 model, but the recipe for the Viper is already amazing. An 8.4L V10 packing over 600 hp, through a 6-speed manual and no driver aids make the Viper the ultimate American supercar.

Following the new production of the Viper, are seven more plants that will officially re-open by the 29th of June. The plants that will re-open are as follow:

* Sterling Heights Assembly Plant (Sterling Heights, Mich.) – Chrysler Sebring and Dodge Avenger

* Warren Truck Assembly Plant (Warren, Mich) – Dodge Ram and Dodge Dakota

* St. Louis North Assembly Plant(Fenton, Mo) – Dodge Ram

* Toledo Supplier Park (Toledo, Ohio) – Jeep Wrangler and Jeep Wrangler Unlimited

* Brampton Assembly Plant (Brampton, Ontario) – Chrysler 300, Dodge Charger and Challenger

* Windsor Assembly Plant (Windsor, Ontario, Canada ) – Chrysler Town & Country and Dodge Grand Caravan

* Toluca Assembly Plant (Toluca, Mexico) – Dodge Journey and Chrysler PT Cruiser

Source : [Chrysler Group LLC via CNN]

It's Official : Chrysler exits bankruptcy, Fiat steps in to makes changes immediately

Finally! Chrysler has finally finished its Chapter 11 bankruptcy filing, and moved its 'Good Assets' to Fiat, which took only 42 days from the bankruptcy day. With a couple of signatures and a wire transfer Wednesday morning, the sale was official. Fiat gets most of Chrysler's assets and $6.6 billion in "exit financing" from the federal government.

Now with Fiat in-control and the bankruptcy rules, Chrysler is now in an immediate change. Highlighting the most important changes to note are:

* A new name. the new company will be officially named 'Chrysler Group LLC'.

* As reported earlier, a new CEO for a new Chrysler. Bob Nardelli is now officially replaced by new CEO, C. Robert Kidder. Chrysler's current chairman Jim Press is also pronounced as Deputy CEO.

* Deep cutting-cost, analysing any good assets as 'Good Chrysler', and bad assets as 'Bad Chrysler'. Fiat will also decide to discard models, and coming up with all-new models for Chrysler.

* Closing 789 Chrysler-Dodge-Jeep dealerships across U.S., but Fiat models to come to U.S. sometime in 2011 market though Chrysler dealers.

* Producing more fuel-efficient hybrids and EV automobiles for future Chrysler.

* The Dodge Viper brandname, which Chrysler's old management wanted to sell, is now up to Fiat's decision.

As Chrysler just emerged its bankruptcy, its shares goes as: 55% for Chrysler's worker unions (UAW), Fiat gets 20% which may get up to 35% max, and the 12% rest, is shared to the American and Canadian governments. If the Fiat-Chrysler deal is any indication, General Motors may see a quick exit from bankruptcy as well. All there is to it now, that Chrysler and GM come up with really attractive and competitive products that consumer might actually consider to buy.

As a reminder, Chrysler is still pulling a “We’re building a new car company” advert campaign.

Source : [Chrysler via The New York Times -- Image by Sean Gallup/Getty]

BREAKING : Bankruptcy judge approves sale of Chrysler assets, and Fiat 500 coming to U.S. in 2011

It was reported earlier, that Chrysler Chapter 11 filing bankruptcy may take up to two years. While that maybe true, it's announced today that Chrysler just got the judge's approval at court for the sale of substantially all of its good assets [which includes United Auto Worker (UAW) VEBA health care trust, and successful products] to Fiat SpA.

Nevertheless, while Fiat is only getting out with 20% of Chrysler, the majority of Chrysler's stake will be in the UAW, at 63%. The 12% rest, is shared to the American and Canadian governments.

So the new company is formed with the worker union, Fiat, and the governments, will be called Chrysler Group LLC. So yes, it's still the same name, but the Obama administration has promised $6 billion to the new Chrysler Group LLC that will make Chrysler, Dodge, Jeep and Fiat vehicles.

It's also reported that with the new alliance, Fiat will finally ship their Fiat 500 minicar overseas to the states market. Fiat has confirmed that it sell its 500 minicar at Chrysler dealerships by early 2011. The Fiat 500 will be the only Fiat-derived vehicle that will be sold at Chrysler dealerships badges as a Fiat. Nonetheless, the new Chrysler announced it is planning six small and mid-sized sedans based on Fiat platforms. While those models will be based on Fiat platforms, they will be designed and engineered by Chrysler.

Finally, Bob Nardelli has stepped down as company CEO and will hand over his responsibilities to C. Robert Kidder who will be Chairman of Chrysler Group LLC.

Source : [Reuters and Automotive News]

BREAKING : C. Robert Kidder announced as CEO of Chrysler LLC Group

Once Chrysler finishing the Chapter 11 bankruptcy filing, which may take up to two years, Chrysler's current CEO, Bob Nardelli will step down and go back to Cerberus as an advisor. However, who's the replacement?

First, there were rumors that Fiat's CEO, Sergio Marchionne to become Chrysler's CEO. Luckily, there were just false rumors. Chrysler announced that after Bob Nardelli will go, C. Robert Kidder, former Chairman of Borden Chemical Inc. and Duracell International Inc., will become Chairman and CEO of Chrysler LLC once it completes its global alliance with Fiat SpA.

“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.”

Source : [Chrysler LLC Group]

PRESS RELEASE

C. Robert Kidder to Become Chairman of Chrysler Group LLC

AUBURN HILLS, Mich., May 20 /PRNewswire/ -- 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."

Closing Dealers: Chrysler to close 789 dealerships, and GM to close 1,100 dealerships

With Chrysler into deep Chapter 11 bankruptcy filing, they also want to cut costs as most possible as they could. Well, it seems they're going to have a lot fewer dealerships with their allince with Fiat. Chrysler LLC Group sent a total of 789 dealerships an overnight letter indicating that they are being closed down as a part of the company’s bankruptcy. Under the new plan, which is subject to review by the U.S. Bankruptcy Court judge, the 789 dealers have until June 9 to close their stores. Nevertheless, there's still 2,392 Chrysler, Jeep and Dodge dealers that got the approval to continue to operate under the global allince with Fiat.

Over at General Motors, their annoucement and judging from the Auto Task Force at June 1rst that will decide their future, GM is trying to cut anything that isn't necessery. GM is even selling Saab, Saturn and Hummer as well. Part of the cut-costing job, goes the poor GM dealerships, or the ones at are close to each other. It is reported that GM sent letters to 1,100 dealers to close their jobs, and not renewing their contract.

However, with massive lost jobs, Senate and the House of Representative officials told reporters that Congress may jump-in to help those dealers that are being notified that their contracts with GM and Chrysler will not be renewed.

Source: [Reuters]

Report : Chrysler Bankruptcy Could Take up to Two Years, and not 60 Days

When President Obama announced Chrysler's filing for Chapter 11 bankruptcy, he said that their bankruptcy would take from 30-to-60 days to finish, and then would team up with Fiat. However, things seem to be different.

A report from Bloomberg says that the 60 days announced by Obama at a press conference at the end of April only applies to the sale of Chrysler's best assets to a new entity held by Italy's Fiat S.p.A., an auto workers health trust and the U.S. and Canadian governments. As for the bad entities, which contains non-valuable assets like shuttered plants and be responsible for most of the companies debts and liabilities. Governments, creditors and any one else owed money by Chrysler would have to wait for these bad assets to be sold.

Which means, to get all the entities sold, and Chrysler repaying its debts and liabilities may take up to two year. By the time, Chrysler is going to cut any "bad" assets that may hurt the company. Therefore, we may see some Chrysler cars go out of production as part of "Bad Chrysler". As for "Good Chrysler", they will stay, under the leadership of Fiat.

Source : [Bloomberg]

BREAKING: Fiat’s CEO Sergio Marchionne to become Chrysler CEO !

On April 30th, when Chrysler finishes filing Chapter 11 bankruptcy, it states that Chrysler's current CEO Bob Nardelli will step down and go back to Cerberus as an advisor. However, who's the replacement? Well, the U.S. government will select six board members, while Fiat will select three. That new board would select a new CEO for the new company. Nevertheless, reports that Chrysler may have decided already!

In an interview with Bloomberg yesterday, Fiat CEO Sergio Marchionne said that he will head Chrysler LLC (if it is still called that after bankruptcy) once it emerges from Chapter 11 bankruptcy. “Chrysler is on track to re-emerge from bankruptcy in 60 days,” Marchionne said. “I will become Chrysler CEO after that.” The idea has been discussed in meetings with the U.S. Treasury, he told Bloomberg.

These reports are probably true. While Fiat will be the saviour for Chrysler, Fiat will actually own 35% of the Chrysler LLC Group. So with Marchionne in-control, Fiat might be planning to take over Chrysler someday.

Source: [Reuters]

Chrysler launches “We’re building a new car company” advert campaign -- UPDATE: TV ads

This past weekend, Chrysler LLC ran an ad in a dozen major newspapers across the U.S. called “We’re building a new car company.”

This advert campaign is to assure customers two things.

First, Chrysler isn't going out of business because of the Chapter 11 bankruptcy filing. Second, their new partnership with Fiat will not only bring Fiat models to the U.S. market, but actually share platforms of next generation Chrysler.

In fact, under the big heading, Chrysler presented three of their new generation. The 2011 Jeep Grand Cherokee, Chrysler 200C Concept, and the Dodge Circuit EV. Chrysler is basically showing what's coming up in a couple of years, but there's more to it than that.

According to a report from the Wall Street Journal, Chrysler will bring two new models that underpin Fiat platforms. So Fiat will provide the chassis while Chrysler will design its own exterior sheet metal. Rumors that the production 200C and the next generation Dodge Caliber will be based on Fiat models like the 500, and Bravo.

UPDATE - Chrysler Group has just added 4 new TV "We’re building a new car company" ads that start running on prime-time television on NBC, ABC and Fox. They're worth watching.

BREAKING : Chrysler files for CH 11 bankruptcy, partnerships with Fiat; and Nardelli out soon

So here's what happened. President Barack Obama announced that Chrysler is indeed filing for the Chapter 11 bankruptcy protection proceeding, and will start from Monday. However, Chrysler assured that this doesn't mean the death of Chrysler. In fact, this is a new life page for the Penstar company.

Because on the other hand, Chrysler has also announced that they have reached a full relationship with Fiat. This global alliance with Fiat will optimize both companies global supplier base and provide each with access to new markets. It also means that both companies will share technology and platforms. By some estimates, the restructuring is expected to take 30-to-60 days; which is actually during the Chapter 11 filing. After that, Chrysler is expected to sell new Fiat models in the U.S market within 18 months.

But also after filing the bankruptcy protection, Chrysler's current CEO, Bob Nardelli (whom Obama praised during the press conference) will exit the company and will head back to Cerberus Capital Management LP as an advisor

So this is actually good news for Chrysler. In fact, Obama reassured Americans to buy American vehicles. Because while the Chrysler factories and plants are temporarily closed during the bankruptcy filing, the dealers will still be opened. Obama also reassured Americans that they will be repaid in full before Fiat gets any stake in the automaker, and that GMAC has agreed to step in to provide loans and financing for Chrysler vehicles.


PRESS RELEASE from Chrysler:

Chrysler LLC and Fiat Group Announce Global Strategic Alliance to Form a Vibrant New Company

Auburn Hills, Mich., Apr 30, 2009 - Chrysler LLC today announced that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it has reached an agreement in principle to establish a global strategic alliance with Fiat SpA to form a vibrant new company. It will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.

"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages," said Bob Nardelli, Chairman and CEO of Chrysler. "It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution."

Chrysler initiated discussions with Fiat more than a year ago to develop plans for a global product alliance. Over the past several months, these discussions have evolved and expanded. Chrysler and many of its stakeholders worked tirelessly to agree upon concessions that will result in a significantly lower cost base and enable fulfillment of a broader strategic alliance.

"We want to personally assure everyone that the new company will produce and support quality vehicles under the Jeep®, Dodge and Chrysler brands as well as parts under the Mopar® brand. Chrysler employees will become employees of the new company. Chrysler dealerships remain open for business serving our customers. All vehicle warranties will be honored without interruption and consumers can continue to purchase our vehicles with complete confidence," explained Nardelli.

Despite substantial progress on many fronts, Chrysler was not able to obtain the necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.

"Even though total agreement was not possible, I am truly grateful for all that has been sacrificed, on the part of many of Chrysler's stakeholders to reach an agreement in principle with Fiat," said Nardelli. "My number one priority has been to preserve Chrysler and the thousands of people who depend on its success. While I am excited about the creation of the global alliance, I am personally disappointed that today Chrysler has filed for Chapter 11. This was not my first choice. "

Chrysler also will file 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 should allow a leaner new company to emerge in a matter of 30 to 60 days, well positioned for long-term viability.

Nardelli, who has been leading Chrysler since August 2007, also announced to Chrysler LLC's Board of Management and the U.S. Treasury his plan to leave the company following the emergence of the new company from Chapter 11 and the completion of the alliance with Fiat. He will return to Cerberus Capital Management LP as an advisor. "Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat," said Nardelli. "I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance."

During the restructuring process, the government will provide sufficient debtor-in-possession (DIP) financing to allow continuation of "business as usual." The company will seamlessly honor warranty claims, pay suppliers and keep our dealer body operating to continue to serve our valued customers.

"To create this vibrant new company, we are using this structured bankruptcy to rapidly implement tough but necessary changes, including: the agreed upon wage and benefit structure for active and retired employees that is competitive with those of transplant manufacturers; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers," said Nardelli.

Chrysler's Mexican, Canadian and other international operations are not part of any bankruptcy filing.

As part of the restructuring and with the backing of the U.S. Treasury, we have reached an agreement in principle with GMAC to become the preferred lender for Chrysler dealer and consumer business. GMAC will be able to offer the best long-term finance options for Chrysler dealers and customers with standard rate installment products.

When the transaction is completed, the Voluntary Employee Beneficiary Association (VEBA) will own 55 percent of the new company and the U.S. and Canadian governments will own proportionate shares of a 10 percent stake. Fiat will initially hold a 20 percent ownership stake in Chrysler. Fiat will have the right to increase its ownership stake an additional 15 percent in three increments as it meets the following criteria: 5 percent for bringing a 40 mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for providing a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles; and 5 percent for providing Chrysler access to its vast global distribution network to facilitate the export of Chrysler vehicles. Fiat cannot become a majority owner until after all U.S. government loans have been completely repaid.

As a part of the restructuring, most manufacturing operations will be temporarily idled effective Monday, May 4, 2009. Normal production schedules will resume when the transaction is completed, which is anticipated within 30 to 60 days.

"We want to recognize the Administration, the U.S. Treasury, President's Auto Task Force, as well as Members of Congress and representatives at the state and community level and Canadian Federal and Ontario Provincial governments for their energy and efforts in helping to move this new company forward," Nardelli said. "It is also important to acknowledge Cerberus and Daimler, which provided the foundation for the alliance as well as Chrysler's many other stakeholders including the UAW and CAW leadership, employees, dealers and suppliers. Without their deep sacrifices, unstinting loyalty and enduring belief in Chrysler, the alliance would not have been possible. We look forward to our new partnership with Fiat. To be sure, there will be many changes as we move forward to implement our plans. But today, from many great parts, we begin to build a vibrant new company with less debt, a stronger balance sheet, richer product portfolio, supported by a well-positioned finance company."

Great News For Chrysler : Chrysler lenders reportedly agree to loan terms, reaching agreement with UAW, and Daimler lets go of its 19.9% stake

So tomorrow is Chrysler's deadline to show a new viability plan to the Obama Auto Task Force Administration, to decide whether Chrysler would get the loans or not. Now, according to Bloomberg, they say that President Obama will announce tomorrow that Chrysler will be placed into Chapter 11 bankruptcy, but still partnership with Fiat. However, other news suggest that Chrysler is working-out the troubled situation, and that tomorrow Chrysler will get the loans.

To start with, according to a Reuters report, word is that Chrysler's first-lien lenders have agreed to write down the $6.9 billion in secured loans they are owed to just $2.0 billion, although there are no details as to whether lenders will receive an equity stake in exchange. Other reports suggest that the Chrysler-Fiat merger is recognized by the U.S Treasury Department to give out the loans needed. However, the news on that is settled tomorrow with Obama's announcement, hopefully!

Other news for Chrysler that come from Detroit News, that Chrysler has finally reached a deal with the United Auto Workers (UAW). It mainly states a $10.6 billion cut-off to the retiree health-care trust (VEBA). So with the CAW agreement, and now UAW agreement, Fiat's partnership with Chrysler is very, very close to complete.

Lastly, news from CNN Money, Daimler AG announced that it has reached an agreement with Chrysler to let go its remaining 19.9% stake in the company. Daimler sold an 80.1% stake in the U.S. automaker to private equity firm Cerberus Capital Management in 2007, ending a shaky decade-long relationship. Daimler will write off $700 million as a result of the deal.

So with Chrysler supported by its big lenders, and agreement with the workers, and fully 100% owned by Cerberus, the future seems bright. Now that all depends on tomorrow when Obama's Administration look into the viability plan, and decide.

Today's rumors might turn official by tomorrow : U.S. reportedly preparing Chrysler for bankruptcy; and GM ending Pontiac brand

Tomorrow might be a very important day for the automotive world. As Obama's Auto Task Force administration deadline coming close, rumors on the streets are out. Today we've got two life-changing rumors, that might transform into official statements by tomorrow!
The first story that comes from The New York Times, says that the Treasury Department and Chrysler are readying Chapter 11 bankruptcy documents for filing. In fact, despite their new relationship with Fiat, NYT says that Chrysler is already in bankruptcy court, for a $7 billion recharges for the lenders. -The New York Times-

UPDATE - Chrysler just responded to NYT reports, and assured that Chrysler still working on their viability plan with Fiat alliance, for the April 30 Presidential Auto Task Force deadline for Chrysler.

On the General Motors hand, there's their viability plan to issue here. To drop down costs, and convince the Auto Task Force for the loans, GM will probably announce tomorrow a new reorganization plan, which will very likely mean the end for the Pontiac brand; that's according to Inside Line. However, a press man from GM did not confirm any of it and said: “There’s nothing I can share with you at this time. Keep your eyes on our media site. Officially, nothing has changed with Pontiac’s niche-brand status, until you hear differently.” So Pontiac is not dead yet, but not optimistic either. -Inside Line-

Until we hear the whole truth, everything is safe! So keep visiting our site tomorrow for more, and maybe official reports.

BREAKING Report : Chrysler and Fiat Reach an Agreement with Canadian Auto Workers

The Chrysler-Fiat partnership have now reached a tentative agreement on new concessions that will end up saving the Auburn Hills automaker $240 million annually. Canadian Auto Workers (CAW) President Ken Lewenza said that in exchange, CAW got Chrysler and Fiat to agree to keep the company’s two assembly plants open even if bankruptcy is unavoidable.

After going through what CAW leader Ken Lewenza called "the most torturous and unfair process imaginable," the union and representatives from Chrysler and Fiat struck a deal that will:

*Retain current CAW wages and pension benefits (for now, at least)
*Have Chrysler/CAW set up a health care trust modeled after the UAW's VEBA fund. CAW's *Lewenza says there's still "work to do" on this and thus no implementation timetable has been set.
*End the third shift at Windsor assembly this August
*Keep all of Chrysler's Canadian plants open

Concessions by the CAW on benefits include:
*Elimination of semi-private hospital room coverage
*Elimination of the employee discount on vehicle purchases
*Elimination of a $3,500 employee vacation buyout option
*Elimination of tuition reimbursement
*Increased prescription costs

Finally, work rule changes agreed to by the CAW include:
*Total time per shift for lunch, bathroom breaks to be set at 40 min
*Chrysler Canada plants to adopt Fiat's "World Class Manufacturing" production process
*Chrysler will be given flexibility to use part-time temp workers when necessary
*Suppliers will be able to work (i.e. build, assemble parts) inside the vehicle assembly plants

So does it hint on Chrysler's survival? Well, if anything goes wrong in Chrysler's world, the workers and builders at the factory, will be protected.

Source : [Detroit Free Press, CAW]

Follow-up Report: U.S. Treasury asks GM to prepare for bankruptcy filing by June 1; and Fiat threatens Chrysler partership if union don't cut costs

Following the General Motors and Chrysler stories, which should come to a final answer by this month whether both GM and Chrysler will get loans to keep running from the U.S Government or not. Well things are getting even harder for both of them.
In GM's case, the U.S. Treasury Department is asking General Motors to prepare for a bankruptcy filing by June 1. Well according to an eariler report, GM is already filing the papers. Nevertheless, the company’s new CEO Fritz Henderson said that he still believes that General Motors can restructure without going into bankruptcy but said that a quick “surgical” bankruptcy is something that he’s willing to consider if anything goes wrong. In fact, Henderson just announced that the company will close more plants and make additional job cuts as it continues its tough restructuring efforts for a plan to be submitted to the Obama administration by the end of May. Henderson added that his daily contact with Obama’s auto task force and has been getting answers on the company’s future strategy to keep its four core brands.

As for Chrysler struggling situation, Fiat has warned the Chrysler LLC Group that if they DON'T cut labor costs, they'll throw-out the agreement, and Chrysler has to face Chapter 11 bankruptcy. According to an interview with Canadian newspaper Globe and Mail that was published on Wednesday, Fiat Group's CEO Sergio Marchionne said that the Italians are going to abandon talks with Chrysler LLC unless the American automaker's unions agree to perform deep cuts in costs. "Absolutely we are prepared to walk. There is no doubt in my mind," he said. "We cannot commit to this organization unless we see light at the end of the tunnel." Yet again, if Fiat and Chrysler don't reach a deal by the 30-day deadline which is by the end of this month, Chrysler’s current CEO Bob Nardelli may be asked to step down by Fiat and the U.S. Treasury as the two will select a new round of board of directors, seeing Chrysler and Fiat do finally partner-up. But if that is to happen, then Fiat technically takes over Chrysler and heads the struggling company into a new direction.

So all we can do at this point, is to wait till the end of this month to see what's happening to Chrysler's industry and next month for GM's.

Source : [Globe and Mail, New York Times, Free Press, Detroit News]

New York Auto Show Report : Chrysler's Jim Press arrives in Fiat 500, hints on official finalized partnership and U.S arrival

When President Obama's administration ordered Chrysler to finalize their new partnership with Italian automaker, Fiat, they reacted quickly enough. At the New York Auto Show, when Chrysler's CEO, Jim Press, wanted to introduce the all-new 2011 Jeep Grand Cherokee to the motoring press, he arrived to the public audience in a blue Fiat 500 city hatchback, and started to talk about Fiat's legendary history.

Jim Press' "arrival" clears out two things. First, that Chrysler and Fiat have finally finished all the partnership papers, and they will be sharing parts soon. We could actually see some Fiat cars rebadged as Chrysler cars soon enough. Second, it appears that the Italian brand will be coming to the U.S. market, as Fiat cars. In other words, we could actually see the Fiat 500 being sold in Chrysler dealerships in America.

With Chrysler appearing to have completed the Obama administration's task, does it mean that Chrysler will be up and running next month after the deadline? We sure hope so.

Follow-up Report: General Motors and Chrysler March sales report; 39% fell down at Chrysler, and 45% decrease for GM. Both automakers shut down plants

Due to Obama's administration rejecting GM and Chrysler's viability plan, and setting close deadlines for new plans or else the two companies will go bust, and Canada following suit, both General Motors and Chrysler are now paying what they "deserved".

Sales last March was poor for most automakers. It was even worse of these two desperate car makers from Detroit. Chrysler recorded a 39% fall down overall, compared to the same period last year. Chrysler finished March with 349,612 units of inventory - an 87-day supply. Inventory is down 17 percent when compared to March 2008, which totaled 423,607 units.

At GM, things are more of the same, but worse overall. General Motors said today that its March sales dropped 45% when compared to the same period a year ago. It said that it sold a total of 156,380 cars and trucks last month. General Motors shouldn't expect any increase this April, in fact more loss is to be predicted. Because the Detroit Free Press, has made its latest study survey, concluding that 76% of American tax payers believe their economy can survive without GM.

More worryingly though, in the DFP's survey, 62% of the Americans said neither GM nor Chrysler should receive any more loans, and that they agree with Obama's deadlines. 59% of the Americans also suspect that both GM and Chrysler will go bankrupt in the next few years.

With bankruptcy now as a big option for GM and Chrysler, both secured court orders to remove their equipment from Canadian parts supplier Transcast Precision. The move shut down two Chrysler plants in Canada on Thursday putting a stop to the production of the Chrysler 300, Dodge Charger and Challenger in Brampton. The General also suffered from one factory closing. Which all translates to major cut-off jobs.

At this point, all we can say is,

Hold on, Detroit! Except for Ford, they're doing OK.

Source : [Chrysler, General Motors, Free Press, Detroit Free Press, Detroit News]