Thursday, May 24, 2007

WSJ Reports GM To Put Up Rest Of GMAC As Collateral For $4.1 Billion Loan

gm-logo-250.jpgWell, they already sold off 51% of GMAC to Cerberus, why not mortgage the rest of it on the turnaround effort...err...sorry, "general corporate purposes including working capital needs." Those "general corporate purposes" are why the General's claiming it needs "a supplemental revolving credit facility in an aggregate amount of" around and close to exactly $4.1 billion. They'll get the "supplemental revolving credit facility" by putting up the remaining 49% of GMAC they've still got in the safe deposit box. Although the Journal makes it seem akin to what Ford did earlier this year in mortgaging off the entire company including the big blue oval, we're not so sure we'd agree -- at least not until we can buy the golden key to the exec washroom at the RenCen at auction. In addition to pawning GMAC, they'll be replacing $1.1 billion in convertible securities it put up in March of this year to "bolster liquidity at a time when the capital markets present an attractive opportunity to do so." We're assuming the "attractive opportunity" has something to do with...err...umm...OK, my brain hurts, so I'm just going to curl up into a ball now and scream about how I want a cookie and ice cream! [Hat tip to SwatLax!]

GM Taps the Well Again (sub. req.) [Wall Street Journal]

Related:
Going For Broke! I'll Pay Fifty Bucks For The Big Blue Oval; GM, It's Time To Decide: Deal Or No Deal? [internal]

Sales May Be Driven Higher due to Cerberus Ownership

Our friends at Autoblog are reporting that the multi-billion dollar buyout of Chrysler by Cerberus Capital Management is expected to have a positive impact sales for the car and truck manufacturer.

According to a report by CNW Market Research, some consumers see the purchase of Chrysler by Cerberus from DaimlerChrysler (NYSE: DCX) as a good sign. Apparently people prefer to buy cars from companies that are financially healthy and seem to have a positive future ahead of them. The impact on sales form this change in consumer perception could be substantial -- CNW Market Research says the increase in sales could be as much as 4.4%.

Autoblog points out that this change in perception may be short lived. Cerberus may take drastic steps to restore profitability, and this may generate conflict (and negative headlines) with labor groups. Chrysler has a long way to go to become profitable again. For one thing, it needs to stop relying on SUVs and big trucks and start building more fuel-efficient cars, since it looks the era of $3 per gallon gas is here to stay.

Sources: Talks resume on Chery building car for Chrysler


Alysha Webb
Automotive News
May 23, 2007 - 9:12 am
UPDATED: 5/23/07 11:58 A.M.





SHANGHAI -- The Chrysler group and Chery Automobile Co. have resumed talking about Chery assembling a car for the American automaker, industry sources and Chery managers say.

The talks stopped while Chrysler's future was being decided, they said. That future was resolved this month when DaimlerChrysler AG said it would sell a majority share of the Chrysler group to investor Cerberus Capital Management LP.

"We are still talking about producing a car together," said Wang Wei, a spokesman for Chery. "I can't give you any details, though."

Sources said Chrysler and Chery are discussing two models for export. The cars would be sold under a Chrysler group brand, Chrysler has said.

One model is a small car already in production for China. Chrysler plans to ship the car as a kit to Mexico and Central and South America to be assembled for sale in those markets, the sources said. Exports could begin as early as the end the year.

The car "was deemed too small for the U.S. market," said a source familiar with Chery's plans. If Chrysler decided to sell the car in the United States, a new engine would be needed to meet stiffer U.S. emissions requirements, the source said.

The second model under discussion is a production version of the Hornet concept car developed by Chrysler.

The two sides have agreed to produce the Hornet in China, said suppliers and Chery managers. It will be engineered and manufactured at Chery's research center and plant in Wuhu, in the central China province of Anhui.

Details are under discussion. Production could begin as early as 2010, said a supplier.

LaSorda issues challenge to workers

LaSorda See full image

Automaker's CEO tells employees they must have high expectations for 'The New Chrysler.'

Josee Valcourt / The Detroit News

Chrysler's top executive called his employees to arms Wednesday, challenging them to adopt a different way of thinking as they forge ahead under new owner Cerberus Capital Management LP.

In a message to workers, the latest of several since the announcement May 14 that Chrysler would be sold to Cerberus, CEO Tom LaSorda said although the automaker will reclaim its former Chrysler Corp. name, it "cannot -- and will not -- be the old Chrysler Corporation."

Chrysler will soon become a privately held company, which gives the automaker room to improve its financial condition without pressure from Wall Street. But that doesn't mean it won't be expected to perform, LaSorda said in a company-wide e-mail that was obtained by The Detroit News.

"Our new owners will have and deserve to have high expectations of our performance, just as we must expect that of ourselves," LaSorda said.

Since DaimlerChrysler's announcement that that New York-based Cerberus would buy Chrysler for $7.4 billion, there have been employee meetings, town hall gatherings, and memos and e-mails from LaSorda and other executives in an effort to ease employee concerns and prepare them for the future.

LaSorda is doing the right thing in communicating his vision for the new Chrysler to employees, said Michael Whitty, a labor professor at University of Detroit, Mercy. "It's quite important at this crucial stage to reassure all the employees that they should redouble their efforts so that the company has an ability to grow," he said.

LaSorda told employees the company can't afford to repeat past mistakes. "We never broke the boom-and-bust cycles that slowed our progress every few years and even put our very survival in doubt," the e-mail reads. "This time, we simply have to get it right.

"With the birth of The New Chrysler, we have a unique opportunity to truly reinvent ourselves for future success, while preserving the qualities that have set us apart from the competition: passion, speed, innovation and lean," LaSorda said.

In several places in the e-mail, LaSorda referred to "The New Chrysler," which has become a rallying cry of sorts within the company since the sale.

Also on Wednesday, Chrysler released an audio excerpt of LaSorda's Monday town hall meeting with workers at the company's Auburn Hills headquarters. Employees applauded as LaSorda exclaimed "It's Chrysler Corp. again, back in American hands again!"

The CEO went on to say, "The dealerships -- they're ordering again, which is kind of nice. Their inventory levels from this time last year are down byabout 110,000 units.

Reinvent Chrysler, LaSorda says

photo

Chrysler CEO Tom LaSorda

Chrysler CEO Tom LaSorda urged workers Wednesday to help reinvent Chrysler as a new company.

"Our corporate name will soon be Chrysler again. But we cannot -- and will not -- be the old Chrysler Corp.," LaSorda said in an e-mail.

Private equity firm Cerberus Capital Management announced last week it is acquiring Chrysler from DaimlerChrysler AG. Meanwhile, Chrysler is in the midst of a plan launched this year to return to profitability.

LaSorda said Chrysler must accelerate global growth, invest in products and brands, and look for global alliances.

"With the birth of the new Chrysler, we have a unique opportunity to truly reinvent ourselves for future success, while preserving the qualities that have set us apart from the competition: passion, speed, innovation and lean," he said.

He added: "The plan is in place, the uncertainty is gone and now it's time to execute. This is not about the past, but about our future. It's time to build a sustainable, global and profitable new Chrysler that will compete with the best in the world."

On Monday, he met with 400 employees to talk about the developments and the turnaround plan. During the meeting, LaSorda said: "The dealerships are ordering cars again, which is kind of nice."

Chrysler's buyer kicks tires

Private equity firm Cerberus is examining automaker for any hidden flaws
Mcclatchy-tribune

Originally published May 24, 2007
The selling of Chrysler is not a done deal - yet.

Cerberus Capital Management will spend the next few weeks - if not months - finalizing the deal, conducting further double-checking and settling details before signing on the dotted line to acquire the Chrysler Group from DaimlerChrysler AG.

Cerberus appears to be pushing hard for an early July closing date, a move that could remove a layer of complications from forthcoming labor negotiations with the United Auto Workers.

"You've got to check everything out. It's just like a home inspection," Chrysler spokesman Jason Vines said. "They looked at the basement, didn't see any leaks. Noticed the roof is pretty solid, but there are a few rooms they probably want to look at."

Dieter Zetsche, DaimlerChrysler AG's chief executive, has referred to Chrysler-Cerberus as a mature deal, indicating that it is far along in the process. Cerberus officials have occupied temporary space on the 15th floor of the Chrysler tower in Auburn Hills, Mich., meeting with executives and labor leaders in recent days.

No one is saying the Cerberus-Chrysler deal is likely to fail; rather they note that it is not final yet and that some deals do not get done. "Something extraordinarily unusual would have to happen to make this deal fall apart," said Joseph S. Phillippi, an industry analyst.

Last week, the DaimlerChrysler supervisory board agreed to the concept of the deal, which involves Cerberus spending $7.4 billion to acquire 80.1 percent of Chrysler.

The due diligence process typically involves looking "at every dimension of the business," said David E. Cole, chairman of the Center for Automotive Research.

"They have done a reasonable level of due diligence up to this point to put together their initial offer," Cole said. "Now they go in much more deeply and talk to people all throughout the company: They're into the technology, the labor agreement, the plants. ... They want to nail that down very, very tightly."

Usually Wall Street firms, such as Cerberus, insist on escape clauses in deals for such events as a sharp economic downturn, Phillippi said.

This could explain why DaimlerChrysler picked a buyer that could make a deal happen quickly.

Time also is ticking away before official talks begin in July between Detroit automakers and the UAW. The current contract ends in September.

The only official word from DaimlerChrysler about when the deal could be done is the third quarter. In an interview with a Detroit radio station last week, Chrysler CEO Thomas W. LaSorda seemed to indicate the parties are shooting for July.

A company insider indicated the company hopes for an early July closing, but Vines, the Chrysler spokesman, emphasized that no official date has been set.

"There is a lot of legal wrangling that has to happen," Vines said. "There is a push to get it done as fast as humanly possible."

Gerald C. Meyers, a University of Michigan business professor and former chief executive of American Motors, doubts the deal can be closed by July.

"This is a very complex deal," Meyers said, in large part because of labor issues.

"If they fail to get the concessions that make their numbers work, then there is going to be a great deal of unhappiness," Meyers said. "If that negotiation doesn't go well, that will put a cloud over the whole thing."

Zetsche has said the Cerberus-Chrysler deal is not contingent on a deal with the unions, but Cole said labor issues loom for Cerberus.

"When you get into due diligence and you get into the real facts of the situation, those issues are going to be there," Cole said.

"In business, lying is one of the things you do all of the time. There are things you can't talk about," he added. "There are things you just either from a legal standpoint or from a political standpoint, you can't talk about."

Longtime observers like to point out the proposed deal by Ford Motor Co. to acquire Daewoo Motor in 2000 after it beat out other automakers, including General Motors Corp., to snatch the South Korean carmaker out of bankruptcy.

After topping other competitors with a $6.9 billion offer in the summer of 2000, Ford pulled out a few months later. About a year later, GM bought a controlling interest in Daewoo for $400 million.

Mergers and acquisitions expert Brian D. Krasicky of O'Keefe & Associates said hurdles that arise at this point in a deal tend to be "things like unexpected and undisclosed liabilities."

But, he said, "I expect the deal to close regardless of the hurdles because Daimler appears to be a very motivated seller."

Chrysler engine plant work starts

Fuel-efficient V6s to be made in Trenton

At a time when gas prices hover near $3.50 a gallon, the Chrysler Group broke ground Wednesday on a crucial piece of its plan to begin building more fuel-efficient vehicles.

A new $730-million engine plant in Trenton is part of Chrysler's $3-billion plan to produce more efficient powertrains.

The Auburn Hills automaker, saddled with a truck-heavy lineup, is working to broaden its vehicle range, too, even as it is being sold to private equity firm Cerberus Capital Management and aiming to make money again by 2008.

The 822,000-square-foot facility will make a new V6 engine family called the Phoenix, which will replace four current V6 engine variations.

"You've got to give the customer what they need, obviously, in the way of performance, and at the same time you've got to be more fuel efficient. That's what this engine does," said Frank Ewasyshyn, Chrysler executive vice president for manufacturing.

The new plant is expected to be running in 2009. The company has not announced which products will have the Phoenix engine.

Look for it in the company's minivans, midsize trucks, SUVs and new crossover vehicles, said Erich Merkle, director of forecasting for IRN Inc.

"You're going to see those engines become used pretty widely for those applications," Merkle said. "If you can get a 15 to 20% bump in fuel efficiency, that's meaningful. In a really competitive environment, other automakers are making strides to become more fuel efficient because that is one area where you can gain an advantage over your competition."

Getting a more fuel-efficient V6 engine in trucks is a smart move, others agreed.

"The American market reflects the fact that consumers are not just interested in a small sedan. Fuel-efficient needs ... still don't change the fact that Americans want their bigger vehicles," said Catherine Madden, an auto industry analyst with Global Insight.

Another part of Chrysler's strategy is to get into the small-car market using an alliance with a Chinese carmaker.

Late last year, Chrysler and Chery Automobile Co. agreed to the framework of a deal for Chrysler to sell Chery-made cars in North America under a Chrysler Group nameplate, a way for the Auburn Hills automaker to enter the market without all of the expense.

Chrysler and Chery are in talks to cement the agreement, a situation made more difficult in light of the Feb. 14 move by DaimlerChrysler to sell Chrysler.

Chrysler has also announced plans to offer a 5.7-liter Hemi hybrid next year in the Chrysler Aspen and Dodge Durango SUVs. The company says the new SUVs will get nearly 40% better mileage while driving in the city.

Meanwhile, the current Trenton engine plant is expected to be idled in 2014 or 2015. It currently employs about 1,600 people.

The new facility will have about 600 people, UAW officials said. The average weekly wage of those jobs is expected to be $1,043, according to state records.

To help ensure that the new plant would stay in Trenton, UAW workers at the factory approved changes to workplace rules last year that aim to ease restrictions on job classifications and work schedules.

UAW Local 372 President Bryce Cobb Jr. takes some comfort that workers will be making more fuel-efficient engines when gas costs are on people's minds.

"It's smart for America, and it is smart for the industry," he said.

Chrysler reins in retiree, buyout packages at North plant

ST. LOUIS POST-DISPATCH
05/24/2007

May 14, 2007: A view of the Chrysler plant in Fenton.

Workers at Chrysler's North Assembly plant in Fenton are unhappy with Chrysler Group's decision to accept far fewer retirement and voluntary severance packages than workers had expected.

Shop stewards told union-represented employees Friday that the automaker will consider only 93 requests for either package, said Ron Davis, president of the United Auto Workers Local 136.

Davis was unsure of the exact number of workers who made requests, but he estimated that about 400 employees signed up at the north plant.

Davis said he planned to talk to Chrysler about accepting more requests. Chrysler originally said it would accept all requests for packages, though the timing of departures would depend upon each plant's operational needs.

It is unclear whether this signals a reduction in the overall number of job cuts expected at the north plant, which employs about 2,300 people to build Dodge Ram pickups.

In mid-February, Chrysler announced it would cut 1,935 jobs as part of a restructuring plan through 2009. Most of the job loss will come when the adjacent South Assembly plant loses one of its two shifts next year, though an unspecified number will be cut from the north plant.

There was no updated information on the status of retirement and buyout packages at the south plant, where about 3,300 workers assemble the Dodge Caravan and Grand Caravan and Chrysler Town & Country minivans.

Chrysler spokeswoman Michele Tinson declined to confirm the number of packages requested or accepted at either facility. She said acceptance of some packages would be delayed by workers' summer vacations.

The packages, negotiated by the United Auto Workers union, include a $70,000 incentive toward retirement for employees with at least 30 years of seniority or $100,000 for employees with more than one year with Chrysler who accept voluntary termination.

Retirees will keep health and other benefits consistent with their union contract, while the other workers would get six months of medical benefits.

Chrysler allowed workers to sign up for the packages at both Fenton plants through April 16.

This month, Chrysler said the companywide number of workers who accepted either the retirement package or the attrition package exceeded its goal.

DaimlerChrysler to bring Chinese subcompact to North America

Canadian Press

DaimlerChrysler Canada executives said Wednesday the company has a "framework for an agreement" with China to manufacture a subcompact car for the North American market.

The car would be manufactured by Chinese automaker Chery Automobile Co., company executives told media in a conference call Wednesday.

DaimlerChrylser CEO Reid Bigland and Steven Landry, the company's executive vice-president for sales and marketing in North America, said Wednesday in a conference call with reporters that it was possible the company could manufacture more than one car in partnership with Chery.

"We have a framework for an agreement ... and we'll continue to have ongoing meetings," Lori McTavish, the company's vice-president of communications, said at the end of the conference call.

The deal is still pending final approval from the Chinese government, McTavish said.

Bigland and Landry said the subcompact is very high on the company's list of priorities, since the category represents 11 per cent of the Canadian car market and is growing at a compounded rate of 15 per cent per year.

Their statements follow earlier reports by a German newspaper, which had said China had put the deal on hold after DaimlerChrysler announced it plans to sell most of Chrysler to private equity firm Cerberus Capital Management in a US$7.45 billion-dollar deal.

Last week, DaimlerChrysler's supervisory board formally cleared the way for the sale of 80.1 per cent of the company's money-losing U.S. unit to Cerberus.

The board added that "the closing of the transaction is expected to take place in the third quarter," but gave no further details.

The head of the Canadian Auto Workers said he was disappointed to hear more foreign imports appear to be headed for Canadian markets.

"Maybe this will spark a debate in the country," Hargrove said in an interview Wednesday. "Do we want to be hewers of wood and drawers of water, instead of doing manufacturing?"

Hargrove said his union is planning rallies this Sunday in Windsor and Oshawa to protest the loss of jobs as a result of foreign imports; another national demonstration is to take place on Parliament Hill in Ottawa on May 30.

Hargrove said DaimlerChrysler and Cerberus had promised there would be no new job cuts as part of the takeover deal.

"We got the commitment there would be no cuts, period," Hargrove said. "We were pleased as pudding."

Hargrove said the union, which will see its contract expire in September 2008, got a promise to save 900 jobs on the third shift at Chrysler's plant in Brampton, Ont., in exchange for giving up a salary bonus of 45 minutes pay per shift.

"We chose the jobs," Hargrove said.

But a May 15 letter from DaimlerChrysler to the Canadian Auto Workers appears to give the company some wiggle room on job cuts, indicating there are no cuts planned "in connection with" the takeover deal.

"You should know that there are no new plans – other than those previously announced – to reduce head count. Excluding abnormal market conditions and productivity, there are no additional job cuts in connection with the transaction announced," John Franciosi, senior vice-president of employee relations, wrote in the letter to Hargrove.

The outspoken union leader was initially opposed to the sale of Chrysler, which has numerous plants in Ontario, to a private-equity firm rather than to an industrial company such as Canadian autoparts maker Magna International (TSX: MG.A), which also made a bid.

DaimlerChrysler, which is to launch a new vehicle to be manufactured in Brampton next month, reported April sales were up 6.2 per cent.

CEO Reid Bigland, who noted the company's fortunes have been steadily increasing over the past year, said he expects May sales figures will show 10 consecutive months of sales increases.

Daimler-Benz and Chrysler teamed up in 1998 in a US$36 billion-dollar deal that, at the time, was dubbed the "merger of equals."

Magnitude 3.8 - GREATER LOS ANGELES AREA, CALIFORNIA


Earthquake Details

Magnitude 3.8
Date-Time
  • Thursday, May 24, 2007 at 06:11:39 (UTC)
    = Coordinated Universal Time
  • Wednesday, May 23, 2007 at 11:11:39 PM
    = local time at epicenter
  • Location 34.199°N, 117.383°W
    Depth 12.6 km (7.8 miles)
    Region GREATER LOS ANGELES AREA, CALIFORNIA
    Distances
  • 3 km (2 miles) SE (146°) from Devore, CA
  • 10 km (6 miles) N (359°) from Rialto, CA
  • 10 km (6 miles) WSW (241°) from Crestline, CA
  • 11 km (7 miles) NW (313°) from San Bernardino, CA
  • 81 km (50 miles) ENE (78°) from Los Angeles Civic Center, CA
  • Location Uncertainty horizontal +/- 0.3 km (0.2 miles); depth +/- 1.4 km (0.9 miles)
    Parameters Nph=160, Dmin=11 km, Rmss=0.42 sec, Gp= 25°,
    M-type=local magnitude (ML), Version=2
    Source
    Event ID ci10249565

    This Day in Auto History: 24 MAY

    Automobile Quarterly
    Automobile Quarterly
    This Day in Auto History:

    5.24.1903
    Marcel Renault, age 31, and his riding mechanic, Vauthier, are killed during the Paris-Madrid race in a crash near Couhe-Verac, France, with later crashes killing racer E. T. Stead and the riding mechanic Pierre Rodez – after completion of the first leg of the race to Bordeaux, France, officials cancelled the remainder of the event, declared leader Fernand Gabriel driving a Mors to be the winner, and the era of city-to-city races essentially ended
    5.24.1926
    Automobile safety advocate Dr. J. William Haddon is born in Orange, NJ
    5.24.1953
    Racer Lamberto Leoni is born in Argenta, Italy
    5.24.1966
    Racer Ricky Craven is born in Newburgh, ME
    5.24.1989
    Driving a Mitsubishi Colt GTi-16V at Rattvik, Sweden, stunt driver Bengt Norberg sets world’s records for driving a car on two side wheels for 192.873 miles and 27.842 miles in one hour

    Source: Automobile History Day By Day, by Douglas A. Wick

    Chrysler Group Continues 'Powertrain Offensive' With Groundbreaking for New Phoenix Engine Plant in Trenton, Mich

    -- Chrysler Group Phoenix Engine Plant brings $730 million investment to
    Trenton, Mich.
    -- New fuel-efficient V-6 engine family to play important role in company's
    Recovery and Transformation Plan
    -- New plant to employ 485; production to start in 2009

    TRENTON, Mich., May 23 /PRNewswire-FirstCall/ -- Marking another
    significant milestone in the progress of its Recovery and Transformation
    Plan, Chrysler Group hosted a groundbreaking ceremony today at the site of
    the future Trenton (Mich.) Phoenix Engine Plant. Scheduled to begin
    production in 2009, the $730 million investment will produce a new family
    of fuel efficient V-6 engines, known inside the Chrysler Group as "Phoenix"
    engines.
    The Trenton Phoenix Engine Plant is part of the company's $3 billion
    Powertrain Offensive announced in February.
    On hand for the groundbreaking ceremony were Michigan Governor Jennifer
    Granholm, Wayne County Executive Robert Ficano, Trenton Mayor Gerald Brown,
    UAW Vice President General Holiefield and other public officials. They were
    joined by Chrysler Group executives.
    "Today's groundbreaking ceremony commemorates an important growth
    milestone for Chrysler Group and for the City of Trenton," said Frank
    Ewasyshyn, Chrysler Group Executive Vice President - Manufacturing.
    "Constructing our new plant at this site also confirms the commitment of
    Chrysler Group to investing in the communities where we do business and
    supporting economic development throughout the State of Michigan. This new
    plant will enable us to develop products that are designed to meet changing
    consumer tastes for more fuel efficient vehicles."
    The Trenton Phoenix Engine Plant will be situated adjacent to the
    Trenton Engine Plant, on Van Horn between Fort Street and Jefferson.
    The 822,000-square-foot Trenton Phoenix Engine Plant will have an
    annual manufacturing capacity of 400,000 to 440,000 engines.
    "These engine plants help cement Michigan's position as the world's
    leader in automotive innovation and excellence and show what can happen
    when state and local governments work with business to make our state
    competitive," Governor Jennifer M. Granholm said. "From investing in our
    workers to creating a business-friendly climate throughout the state, we
    are working every day to attract new automotive companies and other
    industries that will bring jobs and grow here in Michigan."
    Once the plant is fully operational, Trenton Phoenix Engine Plant will
    employ 485 full-time workers.
    "We appreciate the confidence Chrysler Group has shown in its workforce
    by this continuing investment in powertrain operations, which will help
    preserve good-paying manufacturing jobs," said General Holiefield, UAW Vice
    President, who directs the union's DaimlerChrysler Department. "UAW members
    at Trenton are 100 percent dedicated to quality, and we're excited to
    participate in building the next generation of fuel-efficient engines for
    Chrysler's great line-up of vehicles."
    The Trenton plant will have a competitive labor agreement that
    incorporates Smart manufacturing initiatives and flexible CNC-based
    machining, volume-bundled parts purchasing, volume-bundled capital
    investment and standardized tooling.
    Over the long term, the Phoenix family of V-6 engines will reduce
    manufacturing complexity by paring the Company's four current V-6 engine
    architectures to one.
    The total cost of the building, land improvements and equipment
    represents one of the Company's largest capital investments ever in the
    city.
    Headquartered in Auburn Hills, Mich., Chrysler Group has invested $4.4
    billion in its Southeast Michigan manufacturing operations since 2003.

    Patent Update


    PAT. NO.
    Title
    1 7,219,009 Full-Text Short runner valve diagnostic
    2 7,216,636 Full-Text Evaporative system integrity monitor
    3 D542,192 Full-Text Automobile grille
    4 D542,181 Full-Text Automobile body
    5 D542,180 Full-Text Automobile body
    6 D542,179 Full-Text Automobile body
    7 D542,178 Full-Text Automobile body

    Mark Image

    Word Mark AMERICAN MOTORS
    Goods and Services (ABANDONED) IC 012. US 019 021 023 031 035 044. G & S: AUTOMOBILES AND STRUCTURAL PARTS THEREOF. FIRST USE: 20041029. FIRST USE IN COMMERCE: 20041029
    Mark Drawing Code (3) DESIGN PLUS WORDS, LETTERS, AND/OR NUMBERS
    Design Search Code 26.05.21 - Triangles that are completely or partially shaded
    26.11.21 - Rectangles that are completely or partially shaded
    Serial Number 78052356
    Filing Date March 9, 2001
    Current Filing Basis 1B
    Original Filing Basis 1B
    Published for Opposition January 1, 2002
    Owner (APPLICANT) American Motors Corporation CORPORATION
    Disclaimer NO CLAIM IS MADE TO THE EXCLUSIVE RIGHT TO USE "AMERICAN MOTORS" APART FROM THE MARK AS SHOWN
    Type of Mark TRADEMARK
    Register PRINCIPAL
    Live/Dead Indicator DEAD
    Abandonment Date May 17, 2005

    Chrysler Trademark Updates


    78884416
    EDITION 10 TARR LIVE
    2 78876554 3244409 BREEZE TARR LIVE
    3 78837996 3244290 F-CELL TARR LIVE
    4 78778229 3245557 CHILL ZONE TARR LIVE
    5 78918584
    DISCIPLINED PIZZAZZ TARR LIVE
    6 78938650
    SNAKESKIN TARR LIVE
    7 78778236 3243074 MUSICGATE POWER TARR LIVE
    8 78535995
    CALIBER TARR LIVE
    9 78507336
    ASPEN TARR LIVE

    Plant Production Update

    May 23, 2007

    2008*
    Chrysler Cars

    RED Indicates changed or new information

    The lead time represents the estimated order to delivery period under normal conditions and does not take into consideration holds or delays. Extended lead times (when available) are noted under the Key Production Hold or Delay column.

    *All models and constraints are for the 2008 MY unless noted otherwise.

    ** Orders should be placed at least 30 days prior to the option’s final build date for all DaimlerChrysler vehicles.

    Due to various assembly plant assignments for specific model lines or ordered options; the DaimlerChrysler constraints listed below may or may not apply at the time an order is placed.

    MODEL

    ESTIMATED LEAD
    TIME IN WEEKS

    KEY PRODUCTION

    HOLD OR DELAY

    Chrysler 300/300C,

    Dodge Magnum,

    Dodge Charger

    TBD

    None

    Chrysler Pacifica

    TBD

    None

    Chrysler PT Cruiser

    TBD

    None

    Chrysler Sebring Sedan

    TBD

    None

    Dodge Avenger

    TBD

    None

    Dodge Caliber

    TBD

    None

    Jeep Compass

    TBD

    None

    2008*
    Chrysler Trucks

    RED Indicates changed or new information

    The lead time represents the estimated order to delivery period under normal conditions and does not take into consideration holds or delays. Extended lead times (when available) are noted under the Key Production Hold or Delay column.

    *All models and constraints are for the 2008 MY unless noted otherwise.

    ** Orders should be placed at least 30 days prior to the option’s final build date for all DaimlerChrysler vehicles.

    Due to various assembly plant assignments for specific model lines or ordered options; the DaimlerChrysler constraints listed below may or may not apply at the time an order is placed.

    MODEL

    ESTIMATED LEAD
    TIME IN
    WEEKS

    KEY PRODUCTION

    HOLD OR DELAY

    Chrysler Town & Country

    Dodge Grand
    Caravan

    TBD

    None

    Dodge Dakota

    TBD

    None

    Dodge Durango

    TBD

    None

    Chrysler Aspen

    TBD

    None

    Dodge Nitro

    TBD

    None

    Dodge Ram Pickup DR 1500, 2500, 3500 and Mega Cab

    TBD

    None

    Jeep Grand Cherokee

    TBD

    None

    Jeep Commander

    TBD

    None

    Jeep Liberty

    TBD

    None

    Jeep Wrangler

    TBD

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    Jeep Patriot

    TBD

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    CHrysler News Media Updates: Archives

    Employees see link: http://comnet.chrysler.com/comnet/ComnetControllerServlet

    This Day in Auto History: 24 MAY

    Automobile Quarterly
    Automobile Quarterly
    This Day in Auto History:

    5.23.1905
    The first Rolls-Royce 30-hp 6-cylinder is completed
    5.23.1928
    The rocket-powered Opel RAK 2 makes its debut at the Avus track near Berlin, Germany with designer Fritz von Opel exceeding 125 mph before 2,000 invited spectators
    5.23.1940
    Racer Gerard Larrousse is born in Lyon, France
    5.23.1955
    Walter L. Goodman of the General Petroleum Corporation dies at age 62
    5.23.1965
    Racer Honore Wagner dies at age 44 when he crashes during a race at the Nurburgring in Germany

    Source: Automobile History Day By Day, by Douglas A. Wick

    Wednesday, May 23, 2007

    Cutting up DCX not a done deal

    A few details remain before Chrysler sold

    The selling of Chrysler is not a done deal -- yet.

    Cerberus Capital Management will spend the next few weeks -- if not months -- finalizing the deal, conducting further double-checking and settling details before signing on the dotted line to acquire the Chrysler Group from DaimlerChrysler AG.

    Cerberus appears to be pushing hard for an early July closing date, a move that could remove a layer of complications from upcoming labor negotiations with the UAW.

    "You've got to check everything out. It's just like a home inspection," Chrysler spokesman Jason Vines said. "They looked at the basement, didn't see any leaks. Noticed the roof is pretty solid, but there are a few rooms they probably want to look at."

    DaimlerChrysler Chief Executive Officer Dieter Zetsche has referred to Chrysler-Cerberus as a mature deal, indicating that it is far along in the process. Cerberus officials have occupied temporary space on the 15th floor of the Chrysler tower in Auburn Hills, meeting with executives and labor leaders in recent days.

    No one is saying the Cerberus-Chrysler deal is likely to fail; rather they note that it is not final yet and that some deals do not get done.

    "Something extraordinarily unusual would have to happen to make this deal fall apart," said Joe Phillippi, an industry analyst.

    Last week, the DaimlerChrysler supervisory board agreed to the concept of the deal, which involves Cerberus spending $7.4 billion to acquire 80.1% of Chrysler.

    The due diligence process typically involves looking "at every dimension of the business," said David Cole, chairman of the Center for Automotive Research.

    "They have done a reasonable level of due diligence up to this point to put together their initial offer," Cole said. "Now they go in much more deeply and talk to people all throughout the company: They're into the technology, the labor agreement, the plants. ... They want to nail that down very, very tightly."

    Usually Wall Street firms, such as Cerberus, insist on escape clauses in deals for such events as a dramatic economic downturn, Phillippi said.

    This could explain why DCX picked a buyer that could make a deal happen quickly.

    Time is also ticking away before official talks begin in July between Detroit automakers and the UAW. The current contract ends in September.

    The only official word from DaimlerChrysler about when the deal could be done is the third quarter. On WJR-AM last week, Chrysler CEO Tom LaSorda seemed to indicate parties are shooting for July when he said, "In about two months or so, we go private."

    A company insider indicated the company hopes for an early July closing, but Vines emphasized that no official date has been set.

    "There is a lot of legal wrangling that has to happen," Vines said. "There is a push to get it done as fast as humanly possible."

    Gerald Meyers, University of Michigan business professor and former CEO of American Motors, doubts the deal can be closed by July.

    "This is a very complex deal," Meyers said, in large part because of labor issues.

    "If they fail to get the concessions that make their numbers work, then there is going to be a great deal of unhappiness," Meyers said. "If that negotiation doesn't go well, that will put a cloud over the whole thing."

    Zetsche has said the Cerberus-Chrysler deal is not contingent on a deal with the unions, but Cole said labor issues loom for Cerberus.

    "When you get into due diligence and you get into the real facts of the situation, those issues are going to be there," Cole said.

    "In business, lying is one of the things you do all of the time. There are things you can't talk about," he added. "There are things you just either from a legal standpoint or from a political standpoint, you can't talk about."

    Longtime observers like to point out the proposed deal by Ford Motor Co. to acquire Daewoo Motor in 2000 after it beat out other automakers, including General Motors Corp., to snatch the South Korean carmaker out of bankruptcy.

    After topping other competitors with a $6.9-billion offer in the summer of 2000, Ford pulled out a few months later. About a year later, GM bought a controlling interest in Daewoo for $400 million.

    Mergers and acquisitions expert Brian Krasicky of O'Keefe & Associates, said hurdles that arise at this point in a deal tend to be "things like unexpected and undisclosed liabilities."

    But, he said, "I expect the deal to close regardless of the hurdles because Daimler appears to be a very motivated seller."

    Chrysler, meanwhile, is trying to go about business as usual.

    Mike Aberlich, a Chrysler spokesman, said officials are working on how the company will operate without Daimler.

    "We are going to have to begin looking organization by organization and operation by operation," he said.

    Chrysler to introduce dual clutch transimissions


    Earlier this week, after the groundbreaking for Chrysler's new axle plant near Marysville, Michigan, company spokesman David Elshoff spoke to the Worldwide Automotive Report. The new axles to be built at the plant are designed to help improve the fuel efficiency of both the Chrysler and Mercedes cars and trucks they go into.

    On Wednesday, Chrysler will also be breaking ground for an engine plant in Trenton, MI to build new, more-efficient V-6 engines. One interesting thing that Elshoff mentioned at the end of the interview was the forthcoming dual clutch transmission that Chrysler will be using. That's the first mention I've heard about the dual clutch units (like the VW DSG gearbox) in a Chrysler vehicle. No other details were mentioned but the new axles and engines are due in 2010 so presumably the new gearboxes will come at the same time.

    [Source: World Wide Automotive Report]

    Eye Candy: Jeep Jumps the Gun on SEMA With Two Concepts

    Date posted: 05-23-2007

    AUBURN HILLS, Mich. — In a bid to grab some SEMA glory well ahead of schedule, Jeep rolled out two of its entries this week for the fall show: the Jeep Wrangler JT and the Jeep Wrangler Ultimate.

    The Jeep Wrangler JT, a product of the company's specialty concept design team, is tricked out with a 5-foot pickup bed, a removable hardtop and whopping 35-inch BFGoodrich Mud Terrain tires. Off-road enhancements include a 3-inch suspension lift by Superlift, a Mopar rear bumper and rock rails, and a new Ramsey 9500 UT winch.

    The chrome-heavy Jeep Wrangler Ultimate is described by its creators as "the best off-road machine ever offered by Jeep." Chrome touches are bountiful and include the fuel-filler door, taillamp guards, tubular side steps, exterior mirrors, tow hooks, door handles, hood hinges and fascia overlays. The Wrangler Ultimate gets an all-new exterior color: liquid charcoal pearlcoat. The suspension gets a 3-inch lift and 35-inch BFGoodrich Mud Terrain tires mounted on custom 18-inch wheels.

    The cabin of the Wrangler Ultimate takes its cues from sports bags and accessories. Materials include orange mesh fabric and dark slate gray napa/Province leather with black leather baseball-style stitching.

    What this means to you: SEMA may be months away, but this unveiling is designed to get you salivating for some Mopar accessories.

    Wrangler JT concept
    (Enlarge photo)
    A little SEMA sneak preview to whet your appetites: Jeep unveils the Wrangler JT concept. (Photo courtesy of Jeep)
    Jeep Wrangler JT was built by Jeep's specialty concept design team, who hewed to traditional Jeep values. (Photo courtesy of Jeep)
    These are Jeeps worthy of the name: The Wrangler JT has a 5-foot pickup bed and 35-inch Mud Terrain tires from BFGoodrich. (Photo courtesy of Jeep)
    The Jeep Wrangler Ultimate is described by its creators as ¿the best off-road machine ever offered by Jeep. (Photo courtesy of Jeep)
    Chrome accents aplenty dress up the Wrangler Ultimate¿s rugged exterior. (Photo courtesy of Jeep)
    Jeep Wrangler Ultimate concept has baseball-type stitching on its leather seats. (Photo courtesy of Jeep)

    Eye Candy: Jeep Jumps the Gun on SEMA With Two Concepts

    Date posted: 05-23-2007

    AUBURN HILLS, Mich. — In a bid to grab some SEMA glory well ahead of schedule, Jeep rolled out two of its entries this week for the fall show: the Jeep Wrangler JT and the Jeep Wrangler Ultimate.

    The Jeep Wrangler JT, a product of the company's specialty concept design team, is tricked out with a 5-foot pickup bed, a removable hardtop and whopping 35-inch BFGoodrich Mud Terrain tires. Off-road enhancements include a 3-inch suspension lift by Superlift, a Mopar rear bumper and rock rails, and a new Ramsey 9500 UT winch.

    The chrome-heavy Jeep Wrangler Ultimate is described by its creators as "the best off-road machine ever offered by Jeep." Chrome touches are bountiful and include the fuel-filler door, taillamp guards, tubular side steps, exterior mirrors, tow hooks, door handles, hood hinges and fascia overlays. The Wrangler Ultimate gets an all-new exterior color: liquid charcoal pearlcoat. The suspension gets a 3-inch lift and 35-inch BFGoodrich Mud Terrain tires mounted on custom 18-inch wheels.

    The cabin of the Wrangler Ultimate takes its cues from sports bags and accessories. Materials include orange mesh fabric and dark slate gray napa/Province leather with black leather baseball-style stitching.

    What this means to you: SEMA may be months away, but this unveiling is designed to get you salivating for some Mopar accessories.

    Jeep's second SEMA Concept: the Wrangler Ultimate

    AUTOBLOG.COM | Posted May 22nd 2007 4:33PM by John Neff


    click above image to view 16 high-res pics of the Jeep Wrangler Ultimate

    Jeep is not only going to display its JT Concept at the 2007 SEMA Show, but also this vehicle, the Wrangler Ultimate. Not that the new four-door Wrangler Limited needs any more exposure (demand is currently outsripping supply for the popular configuration), but the Wrangler Limited takes that vehicle and adds some urban flair to make it more eye-catching to the valet crowd.

    The Wrangler Ultimate gets the same rock-crawling hardware showcased on the JT Concept, which includes a 3-inch lift kit and 35-inch BF Goodrich Mud Terrain tires, but also gets a set of handsome forged 18-inch aluminum wheels from Alcoa. The Jeep design team decided to dump the entire Mopar catalogue of accessories on the Wrangler Ultimate's exterior, which gets some fancy sparkle and shine from ts chrome fuel filler door, taillamp guards, tubular side steps, exterior mirrors, tow hooks, door handles, hood hinges, and overlays for the front fascia. The Liquid Charcoal Pearl Coat exterior paint color is not available from the factory, either.

    The Wrangler Ultimate's interior also gets the show car treatment with seats upholstered in a mesh fabric and trimmed in dark slate gary Nappa/Province leather bound with a heavy black leather baseball stitch. There are additional orange trim pieces on the steering wheel, shift knob and passenger handlebar, while the floor shifter appears to have a wooden trim piece, as well. Again, don't expect the Wrangler Ultimate to be an option package anytime soon, but at least Jeep has proven that you can dress up its weekend warrior.

    Check out the high-res gallery full of 16 high-res pics of the Jeep Wrangler Ultimate.

    [Source: Jeep]

    Chrysler gives hero 2nd Jeep

    Chrysler is getting some great mileage from its new Jeep Patriot.

    At the end of NBC's "Deal or No Deal" Monday night, contestant Wesley Autrey looked glum after missing his chance to win $1 million and walking away with just $25.

    But before Autrey, the New Yorker who gained national attention after rescuing a man from an oncoming subway train in January, walked off the stage, game show host Howie Mandel said the Chrysler Group wanted to award him a new Jeep Patriot.

    Perhaps it seemed odd to viewers that Autrey did not look surprised, but it was not the first time he had been presented with a new Jeep Patriot on national television.

    Autrey was given one on the Ellen DeGeneres Show in January, but that was just a prop. Autrey had to wait for assembly to begin on the Patriot, which was presented to him in April around the New York auto show.

    The next day, he was in Los Angeles for the taping of "Deal or No Deal."

    Can Chrysler still be saved?

    Guido Reinking is editor of Automobilwoche.
    Guido Reinking
    Automobilwoche
    May 23, 2007 - 1:00 am Bob Eaton, Chrysler's chairman back in 1998, will go down as the sharpest used-car dealer in history.

    He saddled his German customer, Daimler-Benz Chairman Juergen Schrempp, and his entourage, with a clunker at the highest possible price, roughly $40 billion.

    It soon turned out to be an economic basket case. Even after some expensive fixes at the outset, it ran just two years before it again needed massive repairs.

    Now Cerberus is towing this "great deal" off the lot. One can only wish the new owner good luck, even if it paid very little for the acquisition

    The question of how this disaster could have occurred in the first place isn't worth asking. The central issue is whether Chrysler can be saved in the long run.

    Can Cerberus succeed where Dieter Zetsche and his team failed? That is doubtful.

    Just the guarantee of free medical care that Chrysler promised its employees, its retirees and their families represents a commitment of $17.5 billion.

    About $29 billion in pensions will be paid out of a fund that currently is covering this expense because of a strong stock market. But Chrysler has to provide for medical care out of its cash flow.

    That's a mortgage that Toyota, Honda, Nissan and Hyundai don't have. They can put their money into their products, not retirees' dentures.

    And if Chrysler can barely cope with all this, just think how much worse the problem is for General Motors and Ford. They have to spend a multiple of that amount.

    There is no doubt that the U.S. auto industry is in a fight for survival. The responsibility lies with executives who burdened their successors' successors with horrendous costs due to irresponsible wage agreements. The main goal was to be able to avoid strikes and make the next quarterly numbers look good.

    It is small consolation that politicians from every party in Germany are behaving the same way and, with an eye to re-election, have built up a social system that can't be financed.

    In this country, the costs of those mistakes will be spread onto many shoulders. In the United States, the older industries have to bleed.

    It's not certain they will survive. Eaton's pension is secure, however. He went into retirement with compensation package in the two-digit millions.