Friday, May 9, 2008

This Day in Auto History:

Automobile Quarterly
Automobile Quarterly

5.9.1892
Warren Lowe Baker of the Socony-Vacuum Oil Company is born in Washington, DC
5.9.1907
Nova Scotia issues the province’s first automobile license plate to W. M. Black of Wolfville
5.9.1928
The Borg-Warner Corporation is organized in Illinois through the merger of the Borg & Beck Company, the Marvel Carburetor Company, and the Warner Gear Company
5.9.1941
Walter S. Cochrane, a design engineer with Buick 1913-1926 and a diesel engine designer with the Chrysler Corporation since 1926, dies in Detroit, MI at age 55
5.9.1960
The last Volvo PV445 chassis is produced

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

Thursday, May 8, 2008

Chrysler celebrates production of Dodge Challenger


Author: RP news wires

Chrysler LLC on May 8 celebrated the production launch of one of the industry's most highly anticipated vehicles – the all-new 2008 Dodge Challenger SRT8. Dodge Challenger is back in Chrysler's lineup as a modern muscle car with a new SRT8 model. A full lineup will follow in the 2009 model year. Consumer interest in the Dodge Challenger has been some of the highest seen at Chrysler.

The all-new Dodge Challenger is built at Chrysler's Brampton Assembly Plant in Ontario, Canada, on the same assembly line as the Dodge Charger and the award-winning Chrysler 300.

"Even though the development time for this Dodge Challenger SRT8 is one of the shortest in Chrysler's history, the wait for this exciting car has been too long, and as of today, the wait is finally over!" said Frank Ewasyshyn, executive vice president for manufacturing. "Dodge Challenger represents the best of Chrysler's past and future. The teams that worked to bring this vehicle to market with quality and speed have done an excellent job."

Nearly 1,000 employees and invited guests joined Ewasyshyn for the celebration.

Quality Manufacturing
To ensure quality targets were met and to foster a smooth manufacturing launch, a team of Brampton employees spent months helping to build pilot vehicles at Chrysler's Auburn Hills Technology Center. Then, early pre-production models were built on the Brampton assembly line – rather than a pilot facility – which allowed engineers to more realistically test the production process.

"The vision of rolling launches on lines that build multiple and variant models is becoming a reality as demonstrated with the Dodge Challenger at the Brampton Assembly Plant," said Fred Godetel, vice president for car and minivan manufacturing. "Chrysler's Flexible Manufacturing Strategy, little more than a theory a few years ago, is being proved out at plants across North America."

The Brampton Assembly Plant features Chrysler's Flexible Manufacturing Strategy, which provides for the production of higher-quality products at lower cost. This unique system combines off-the-shelf robotics with customized and interchangeable tooling to build a variety of products on a single assembly line. This manufacturing expertise also allows the Company to more quickly and easily balance vehicle production with customer demand.

Dodge Challenger
The return of the iconic Dodge Challenger combines unmistakable design cues reminiscent of the original Challenger with world-class performance. Approximately 7,000 2008 model-year vehicles for North American markets will be produced before 2009 model-year vehicles begin production in August. For 2009, the company will offer three models: Dodge Challenger SE, Dodge Challenger R/T and Dodge Challenger SRT8.

Dodge dealers have seen a tremendous interest in the Dodge Challenger and 2008 models are already sold out.

Although the original Dodge Challenger muscle car lasted only five model years, the Dodge Challenger became one of the most storied muscle car nameplates in automotive history, with meticulously restored and rare examples today selling for six-figure prices.

The U.S. MSRP for the 2008 Dodge Challenger SRT8 starts at $37,995, including the $675 destination charge.

Brampton Assembly
The Brampton Assembly Plant was built in 1986 and was later acquired by Chrysler Corporation with the purchase of American Motors Corporation in 1987. The Chrysler Concorde and Dodge Intrepid began production in 1997 and the Chrysler LHS and 300M in 1998. Production of rear-wheel-drive vehicles started in 2004 with the launch of the Chrysler 300 and Dodge Magnum. Production of the Dodge Charger was launched in early 2005.

The 2.95 million-square-foot facility along with the Brampton Satellite Stamping Plant occupies 269 acres and together employs approximately 3,200 workers, many of which are represented by the Canadian Auto Workers (CAW). The satellite stamping facility was completed and production started in December 1991.

Chrysler cranks out first Challenger pony cars

Think the classic American muscle car is dead in an era of $4-per-gallon gasoline?

Not so fast. Chrysler LLC marked the production launch Thursday of its latest retro ride, a remake of the Dodge Challenger coupe. And it says the entire run of the 2008 models, an estimated 7,000 high-powered SRT8 versions cars that crank out 425 horses, are already sold out.

How many more Challengers it will sell come this fall when it starts rolling out more fuel-efficient variants is anyone’s guess. The company declined to give any sales or production projections. “It’s the ultimate halo vehicle,” said Reid Bigland, Chrysler Canada’s president. "It's going to sell like crazy and it's going to bring people into dealerships."

Cars like the Challenger and General Motors Corp.’s upcoming Camaro are taking American automakers back to their roots, Mr. Bigland said. "We’re not just building typical four-door appliances for people to drive."

The Challenger is made at the company’s Brampton plant just north-west of Toronto. Buzz Hargrove, president of the Canadian Auto Workers union, said Wednesday he is worried that the assembly plant is pumping out vehicles now that are on the wrong side of gasoline prices. The Chrysler 300 sedan and Dodge Charger coupe are also made there. “The market for larger vehicles continues to drop, especially in the U.S., so obviously we’re very concerned,” Mr. Hargrove said.

Nicolas Van Praet

Report: Hulk Hogan's Son Will Plead Guilty or No Contest to Reckless Driving Charge

Report: Hulk Hogan's Son Will Plead Guilty or No Contest to Reckless Driving Charge

Thursday, May 08, 2008

CLEARWATER, Fla. — Hulk Hogan's son Nick Bollea will either plead guilty or no contest on Friday to felony reckless driving involving serious bodily injury, law enforcement sources told TMZ.

Hogan and the rest of Bollea's family will be in Pinellas County court in Florida on Friday, the Web site reported.

In March, attorneys for John Graziano, the critically injured victim of a street racing crash involving Bollea, filed a lawsuit accusing Bollea and his parents of negligence.

The lawsuit cites one count of negligence against Nick Bollea, three counts of negligence against Hogan, one against Linda Bollea (Bollea's mother) and a final count against Daniel Jacobs, the driver of the Dodge Viper that Bollea was racing.

Clearwater police said the Aug. 26, 2007, incident happened when Bollea crashed his 1998 Toyota Supra while street racing against a silver Dodge Viper driven by Jacobs. A report said Bollea was driving faster than 60 mph in a 40 mph zone.

Bollea's passenger, Graziano — a 22-year-old Marine who served in Iraq — was not wearing a seat belt and was critically injured. Bollea, 17, who was wearing a seat belt, was not seriously injured.

Graziano suffered serious head wounds, was left in a semiconscious state and his family says he will require medical care for the rest of his life. An attorney said millions of dollars will be sought.

The Graziano family is claiming in the lawsuit that Hogan and Linda Bollea should have known that their son was a reckless driver, and were also aware that their son was drinking on the day of the crash.

In November, Bollea's license was suspended for six months for allegedly having a blood alcohol level of 0.055 percent as a minor at the time of the accident. He was also clocked in April 2007 driving 106 mph.

Besides the reckless driving charge, authorities cited Bollea for using a motor vehicle in commission of a felony, being a driver under 21 operating a vehicle with a blood-alcohol level of 0.02 percent or higher and having illegal window tinting.

The blood-alcohol level at which Florida law presumes an adult driver to be impaired is 0.08 percent.

The Associated Press contributed to this report.

First Peek: 2009 Dodge Ram R/T

2009 Dodge Ram R/TYou know those videos that sometimes automatically start playing when you visit automaker websites? You know how you usually click right past them? Sometimes, they're worth paying attention to. If you visit to the 2009 Dodge Ram website, you're treated to a tour of the truck by Ralph Gilles and Mark Allen. Before the design guys give their spiel, however, you get a very brief glimpse of a poster showing '09 Ram body styles and options/accessories. There, clear as day, is a shot of the forthcoming Ram R/T.

When the new Ram was initially unveiled, PickupTrucks.com confirmed that the R/T was indeed on the way. Word at the time was that the R/T would be a standard-cab, 4x2, short-bed truck with a HEMI, 5-speed auto, and a 4.10 rear axle ratio. As you can see in the photo at right, the truck gets a monochrome treatment (a la the Ram Sport), a deep chin spoiler, and a hood reminiscent of the one used on the Challenger R/T and SRT8. As PickupTrucks.com reported, expect the Ram R/T's powertrain combo to deliver a sub-7 second 0-60 time. It'll be interesting to see the R/T's marketplace reception, given that gas prices are likely to continue climbing for the foreseeable future. Unfortunately for Chrysler, it's a less-than-perfect environment for welcoming a new performance-oriented truck. Nothing a little cash on the hood and a locked-in gas price can't fix, right? Thanks for the tip, David!

Outlook for Chrysler is expected to stay bleak

Ratings firm also downgrades credit

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER

The rating agency also said it expects Chrysler to continue with a strategy that could involve shutting down more assembly plants.

The rare public analysis of Chrysler's financial health came Wednesday when Fitch downgraded its credit rating on Chrysler LLC, and warned that its outlook for the automaker's ratings is negative.

The sour economy, Chrysler's market share losses, and decisions to eliminate poor-selling models, cut production and scale back on fleet sales have all pushed down vehicle sales and revenues for the Auburn Hills automaker and led the agency to cut its ratings on Chrysler to B from B-plus.

"Chrysler's restructuring efforts remain on track, and liquidity is expected to remain adequate over the near term to fund restructuring costs and operating losses through a period of economic weakness," Mark Oline said in a note.

Since Chrysler went private in August, it's been hard to judge its financial status against publicly traded peers such as Ford Motor Co. and General Motors Corp., both of which, according to Brian Bertsch, a Fitch spokesman, the agency has rated as B with negative outlooks -- the same as Chrysler.

Chrysler's sales are down 18% so far this year compared with last year. Sales of light trucks -- the pickups, SUVs and minivans that dominate Chrysler's lineup -- are down 23%.

Last week in an interview with the Free Press, Chrysler CEO Bob Nardelli stressed that the automaker is meeting its internal goals. Lori McTavish, a Chrysler spokeswoman, reiterated that Wednesday: "Since the return of Chrysler as an independent company, we've been meeting and in many cases exceeding our financial targets."

Since August, the automaker has made sweeping changes, eliminating as many as 12,000 jobs and four products and cutting back on unprofitable fleet sales.

Oline views the steps as positive for the company's long-term health. In a better economy, he adds, the cost reductions would quickly flow to the bottom line.

"However, the severe impact of weakening economic conditions has made this more challenging, and has extended the timeline projected for a potential reversion to positive cash flow," he wrote.

Chrysler has also announced plans to idle its Delaware assembly plant in 2009 and is believed to be quietly shopping its axle business to potential buyers.

More than just cutting products, Chrysler is looking to partner with other automakers to use their manufacturing abilities to augment their vehicle lineups. In April, Chrysler and Nissan Motor Co. announced a deal in which the two automakers will share some specific vehicles, allowing Chrysler to get a Nissan-made small car to sell under one of its brands in North America and elsewhere.

"Fitch expects that Chrysler will continue to employ an 'asset-lite' approach that could involve additional assembly plant shutdowns," Oline wrote. "Alliances and/or contract manufacturing will play a role in this decision, and Chrysler is expected to continue to pursue such arrangements on a global basis. Tie-ins with other global OEMs are expected to focus on growth in the company's brand, engineering and distribution capabilities, but requiring minimal capital investment."

A February 2007 turnaround plan by Chrysler promised to reduce material costs by $1.5 billion by next year.

"Variable purchasing, material and other efficiencies have been more difficult to realize as rising commodity costs have offset other progress," Oline wrote. "Cost reductions and the new UAW contract have positioned the company to moderate operating losses during the current economic weakness, but a return to positive free cash flow is likely to require an upturn in the construction market and Chrysler's pickup sales."

The rating agency also said it expects Chrysler to continue with a strategy that could involve shutting down more assembly plants.

The rare public analysis of Chrysler's financial health came Wednesday when Fitch downgraded its credit rating on Chrysler LLC, and warned that its outlook for the automaker's ratings is negative.

The sour economy, Chrysler's market share losses, and decisions to eliminate poor-selling models, cut production and scale back on fleet sales have all pushed down vehicle sales and revenues for the Auburn Hills automaker and led the agency to cut its ratings on Chrysler to B from B-plus.

"Chrysler's restructuring efforts remain on track, and liquidity is expected to remain adequate over the near term to fund restructuring costs and operating losses through a period of economic weakness," Mark Oline said in a note.

Since Chrysler went private in August, it's been hard to judge its financial status against publicly traded peers such as Ford Motor Co. and General Motors Corp., both of which, according to Brian Bertsch, a Fitch spokesman, the agency has rated as B with negative outlooks -- the same as Chrysler.

Chrysler's sales are down 18% so far this year compared with last year. Sales of light trucks -- the pickups, SUVs and minivans that dominate Chrysler's lineup -- are down 23%.

Last week in an interview with the Free Press, Chrysler CEO Bob Nardelli stressed that the automaker is meeting its internal goals. Lori McTavish, a Chrysler spokeswoman, reiterated that Wednesday: "Since the return of Chrysler as an independent company, we've been meeting and in many cases exceeding our financial targets."

Since August, the automaker has made sweeping changes, eliminating as many as 12,000 jobs and four products and cutting back on unprofitable fleet sales.

Oline views the steps as positive for the company's long-term health. In a better economy, he adds, the cost reductions would quickly flow to the bottom line.

"However, the severe impact of weakening economic conditions has made this more challenging, and has extended the timeline projected for a potential reversion to positive cash flow," he wrote.

Chrysler has also announced plans to idle its Delaware assembly plant in 2009 and is believed to be quietly shopping its axle business to potential buyers.

More than just cutting products, Chrysler is looking to partner with other automakers to use their manufacturing abilities to augment their vehicle lineups. In April, Chrysler and Nissan Motor Co. announced a deal in which the two automakers will share some specific vehicles, allowing Chrysler to get a Nissan-made small car to sell under one of its brands in North America and elsewhere.

"Fitch expects that Chrysler will continue to employ an 'asset-lite' approach that could involve additional assembly plant shutdowns," Oline wrote. "Alliances and/or contract manufacturing will play a role in this decision, and Chrysler is expected to continue to pursue such arrangements on a global basis. Tie-ins with other global OEMs are expected to focus on growth in the company's brand, engineering and distribution capabilities, but requiring minimal capital investment."

A February 2007 turnaround plan by Chrysler promised to reduce material costs by $1.5 billion by next year.

"Variable purchasing, material and other efficiencies have been more difficult to realize as rising commodity costs have offset other progress," Oline wrote. "Cost reductions and the new UAW contract have positioned the company to moderate operating losses during the current economic weakness, but a return to positive free cash flow is likely to require an upturn in the construction market and Chrysler's pickup sales."

Hemi Predictions come true and what next? By Mike

Hemi, reported three years ago on how the oil giants will transformed the 'supply and demand' model and move it to the speculation Future Commodities Market. Now, he reported last year this model will eventually move into other sectors of the market, food, metals, and others areas. We are now facing our grains, fruits, and other food products are heading into that arena. He stated, to end this version model, is to close the Future Markets doors.

Noting his ability to foresee this, he also reported that the oil companies, when the prices begin to skyrocket to the point of no-return, they will begin the process of lowering the drill sites output to keep the artificial demand if someone from the news media would investigate. It actual occurred in California. How it began the journey of 12 milbpd to now 1.3milbpd. It will be felt across the world eventually as greed and those who want a greener earth become involve, in trying to move the energy thirst in another alternative fuel source. He reported that we are the largest known reserve in the world, not only in Midwest [2 trillion barrels] but offshore and the arctic controlled US sector. With big government gaining every opportunity to real in the tax windfall from each gallon sold, there are in no position to stop this speculator model.

Eventually, he said, the consumer will begin the revolt and head in another direction. This is what we are seeing now through the globe. Even in the US, tracking the weekly and annual reports from a non-bias capturing energy data site, it reveals the glut of oil, within both storage and distilled is growing at an alarming rate since 2006. Also, output in both oil drill sites and distillery are down to counteract this impact.

He reported that the auto industry should bother with Fuel Cells since it will again be controlled by big oil but rather go the plug-n-play all electrics or upcoming magnetic pulse engines. Anything to bring down this industry and improve the overall automotive sector.

He also reported back in 2002 that oil will hit 150 dollar a barrel by 2010 if we do not do something about what is hidden from the consumers. Consumers as he said, are minions of the media and believe everything that is reported as the gospel. They will not bother research the truth and careless what is happening but would whine about it. We laughed when he mentioned this.

He talked about Honda and Toyota will have to dig deep in there profit margin to keep the sales on target to the point of giving away the vehicles to the consumer. Not bad for the consumer but overall hurt the manufacture bottom line. We are now seeing this as Toyota profit margin dropped by 28 percent last quarter.

Can Chrysler survive this? He said yes. Seeing Chrysler controls by Mercedes is gone, they have the expertise, engineering, and the ability to make changes to the overall auto sector. He noted, using Hybrid as a current band-aid, they should get away from both Ethanol and oil driven vehicles. This is what the public wants, he stated.

We have to wait and see if Chrysler would be the first auto manufacture to make that leap. Mike

The Chrysler Turbine

The forgotten concepts thread brouht this back to memory. one of my favorite concepts ever. its before my time but always facinated me. the thing ran at 60,000 rpm, ran on gas, diesel, kerosene, JP-4 jet fuel, or veggie oil.

From Wiki:

Chrysler Turbine Cars were automobiles powered by gas turbine engines which the Chrysler Corporation assembled in a small plant in Detroit, Michigan in 1963, for use in the only consumer test of gas turbine-powered cars. It was the high point of Chrysler's decades-long project to build a practical turbine-powered car.

The fourth-generation Chrysler turbine engine, which ran at up to 60,000 rpm, would run on diesel fuel, unleaded gasoline, kerosene, JP-4 jet fuel, even vegetable oil, it would run virtually on anything and the president of Mexico tested this theory by running one of the first cars - successfully - on tequila. No adjustments were needed to switch from one to another. The engine had a fifth as many moving parts as a piston unit (60 rather than 300). The turbine was spinning on simple sleeve bearings for vibration-free running. Its simplicity offered the potential for long life, and because no combustion contaminants enter engine oil, no oil changes were considered necessary. The 1963 Turbine's engine generated 130bhp and an instant 425lb ft of torque at stall speed, making it good for 0-60mph in 12 seconds at an ambient temperature of 85F - it would sprint quicker if the air was cooler and more dense. The absence of a distributor and points, the solitary start-up spark plug and the lack of coolant eased maintenance, while the exhaust produced no carbon monoxide (CO), no unburnt carbon and no raw hydrocarbons. But it did generate nitrogen oxides (NO) and the challenge of limiting them helped to kill the program. Its power turbine was connected, without a torque converter, through a gear reduction unit to an otherwise ordinary TorqueFlite automatic transmission. The flow of the combustion gases between the gas generator and free power turbine provided the same functionality as a torque converter but without using a conventional liquid medium. Twin rotating recuperators transferred exhaust heat to the inlet air, greatly improving fuel economy. Varying stator blades prevented excessive top end speeds, and provided engine braking on deceleration. Throttle lag, high fuel consumption (17mpg) and exhaust gas temperatures at idle plagued early models; Chrysler was able to remedy or mitigate most of these drawbacks and deficiencies. Furthermore, the car sounded like a giant vacuum cleaner, which was not satisfying to consumers who were more comfortable with the sound of a large American V8. High altitude troubled the combined starter-generator, for instance, while failing to follow the correct start-up procedure could wreck the engine in seconds. But troubles were remarkably few for such a bold experiment. More than 1.1 million test miles were accumulated by the 50 cars given to the public, and operational down-time stood at only 4%.

The bodies and interiors were crafted by Ghia in Italy. As each body was finished and shipped to Detroit, Chrysler employees installed gas turbine engines, transmissions and electrical components to prepare the cars for use by the 203 average motorists - 20 of them women - who were chosen to test them.

The Turbine Car was a two-door hardtop coupe with four individual bucket seats, power steering, power brakes and power windows. Its most prominent design features were two large horizontal taillights and nozzles (back-up lights) mounted inside a very heavy chrome sculptured bumper. Up front, the single headlamps were mounted in chrome nacelles with a turbine styling theme, creating a striking appearance. This theme was carried through to the center console and the hubcaps. Even the tires were specially made with small turbine vanes molded into the white sidewalls. It was finished in "Frostfire Metallic", later called "Turbine Bronze" and available on production automobiles. The roof was covered in black vinyl, and the interior featured bronze-colored "English calfskin" leather upholstery with plush-cut pile bronze-colored carpet.

The dashboard was lighted with electroluminescent panels in the gauge pods and on a call-out strip across the dash. This system did not use bulbs; instead, an inverter and transformer raised the battery voltage to over 100 volts AC and passed that high voltage through special plastic layers, causing the gauges to glow with a blue-green light.

The car itself was designed in the Chrysler studios under the direction of Elwood Engel, who had worked for the Ford Motor Company before his move to Chrysler. The designer credited with the actual look of the car was Charles Mashigan, who designed a two-seat show car called the Typhoon, which was displayed at the 1964 World's Fair in New York City. Engle used many older Ford styling themes. The rear tailight/bumper assembly was copied directly(with revisions) from a 1956 Ford styling study called the "Galaxia". Fortunately, he used none of the themes associated with his folly of the 1964 Imperial.

A total of 55 turbine cars were produced. When Chrysler had finished the user program and other public displays of the cars, 46 of them were destroyed to avoid an import duty. Of the remaining nine cars, six had the engines de-activated and then they were donated to museums around the country. Chrysler retained three of the turbine cars for historical reasons. Of the nine remaining turbine cars only three were functional. One of the cars kept by Chrysler is stored in running condition at the proving grounds, while another car was purchased from a museum by a private automobile collector and is also functional (Frank Kleptz of Terre Haute, Indiana). The last turbine car that is functional is owned by the Museum of Transportation in St. Louis, was photographed for Mopar Action magazine, and appears at car shows around the United States from time to time. An owner of a non-functional car got in contact with then Chrysler chairman Robert Lutz, who gave him the proper part to make it functional[citation needed], making four out of the nine fully working vehicles.

But the programme didn't die completely. The handsome new coupe body would appear, re-engineered and rebadged, as the '66 Dodge Charger. Chrysler went on to develop a sixth generation gas-turbine engine which did meet NoX regulations, and installed it in a '66 Dodge Coronet, though it was never shown. A smaller, lighter seventh generation engine was produced in the early 70s, when company received a grant from the Environmental Protection Agency for further development, and a special bodied turbine LeBaron was built in 1977 as a prelude to a production run. But by then the company was in dire financial straits and about to be bailed out by the US government. A condition of that deal was that gas-turbine mass production be abandoned because it was "too risky" giving roots to many conspiracy theories.

Modified by westy66 at 6:47 PM 5-7-2008

Modified by westy66 at 7:00 PM 5-7-2008

Automobile Quarterly
Automobile Quarterly
This Day in Auto History:

5.8.1899
The Olds Motor Works is incorporated for $500,000, acquiring the assets of the Olds Motor Vehicle Company and the Olds Gasoline Engine Works with Samuel L. Smith as President, Ransom E. Olds as Vice President and General Manager, and Frederick L. Smith as Secretary and Treasurer
5.8.1924
Racer Abram Joseph “A.J.” Watson is born in Mansfield, OH
5.8.1940
William R. Mitchell, Executive Vice President of the National Acme Company and an employee of that firm for 42 years, dies in Cleveland Heights, OH at age 62
5.8.1956
The Curtiss-Wright Corporation offers a “Joint Program” to the directors of the Studebaker-Packard Corporation
5.8.1959
Charles E. Hering of the White Motor Company dies at age 47

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


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Wednesday, May 7, 2008

Chrysler Expands Jeep Stalling Recall

Jeep Grand Cherokee

By Joe Benton
ConsumerAffairs.com

Transmission software will be reprogrammed

NewsChrysler is expanding the recall of Jeep Commander SUVs to repair engine stalling that has endangered scores of Jeep owners.

The National Highway Traffic Safety Administration (NHTSA) reported that the automaker has now recalled 24,461 2006 Jeep Commanders to reprogram automatic transmission software in Jeeps equipped with the 4.7 liter engine.

NHTSA warned Commander owners that the software glitch “could cause a crash without warning.”

NHTSA opened an investigation of the 2007 Jeep Wrangler SUV last year following at least 53 reports of the engine stalling at highway speeds.

That investigation involved 35,000 vehicles, according to NHTSA.

At the time, NHTSA reported that the agency had received complaints of engine stalls at highway speeds that included 12 cases with a loss of electrical power and lighting.

The latest Jeep Commander recall involves computer software in the automatic transmission control module of the 2006 Commander. Jeep dealers will reprogram the software in 2006 Jeep Commanders built before January 11, 2006.

In a limited action, Chrysler recalled 1,338 of the 2008 Jeep Grand Cherokee and Commander earlier this year to repair a stalling problem in the vehicles. In that recall, NHTSA reported that the “the front control module may have been incorrectly manufactured," and could cause the engine to stall while driving or not start.

Jeep owners describe the stalling condition as frightening. On May 6, a Galveston, Indiana woman struggled with a stalled Jeep.

“Everything just completely shuts down and I am unable to steer and have to restart the engine,” Cathleen wrote ConsumersAffairs.Com. “This has happened 3 to 4 times now and the dealer says there is nothing they can find wrong with my vehicle. It happened again today while in a parking lot.”

Consumers reported that in many cases Jeep dealers are unable to fix the stalling.

“I have had my Jeep in and out of the shop in regards to it stalling all of a sudden, a Wisconsin woman reported to ConsumerAffairs.Com. “Each possibility proposed to me is not a sure fix and is very expensive,” she said.

In San Francisco, a ConsumersAffairs.Com reader said the stalling problem behind two Chrysler recalls is not limited to the new Commander. “I have a 1997 Jeep Laredo that I purchased over 2 years ago from a used car dealer. The stalling problem started around January 2008,” she said. “I was going 60 mph on the highway and it just died.”

2010 Ram SRT-10 Caught At The Track? [2010 Dodge Ram SRT-10]

2010 Ram SRT-10 Caught At The Track? [2010 Dodge Ram SRT-10]


What is this now? A blacked out new 2009 Dodge Ram with a manufacturers plate lurking around a Waterford Race Track in Michigan? Why it certainly is. Why would a truck already unveiled be all blacked out and at a race track? Perhaps it’s the hi-po model. Oh how delightfully gossiptastic. We have very literally zero proof this is anything other than a run of the mill Ram, but we’re going to throw it out that this may be the Ram SRT-10, maybe just the R/T, but it’s being subjected to some laps around the track. True or not we’re willing to start some rumors.

galleryPost(’ramsomething’, 3, ‘Might Be Something Powerful, Might Be Nothing’);
[Dodgetalk]

Chrysler pact may mirror Ford precedent, CAW says

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER

"Chrysler made no commitment to begin early negotiations with the union, but did not indicate they would be unable to meet the pattern established last week at Ford," the union said in a statement. "The CAW remains optimistic that negotiations with Chrysler will begin shortly."

The contract expires in September. Ford and CAW surprised the auto industry last week in announcing that a deal had been reached so early.

Chrysler executives met with CAW officials Tuesday, the union said. A Chrysler spokeswoman declined comment.

Tom LaSorda, a Chrysler president and vice chairman, first raised concerns about Ford's CAW deal in an interview with the Free Press last week.

"We have to be competitive," LaSorda said. "And I'm not so sure the Ford deal was very competitive."

In response, CAW President Buzz Hargrove told Bloomberg: "If they want to be competitive, maybe one less president, like most companies have, will help."

LaSorda shares the title of president with Jim Press.

Hargrove has said Chrysler and General Motors Corp. have pushed hard for the creation of a two-tier wage system, such as that approved by the UAW last year. The Ford deal avoids that.

GM and the CAW will begin negotiations Thursday, the union said.

"Chrysler made no commitment to begin early negotiations with the union, but did not indicate they would be unable to meet the pattern established last week at Ford," the union said in a statement. "The CAW remains optimistic that negotiations with Chrysler will begin shortly."

The contract expires in September. Ford and CAW surprised the auto industry last week in announcing that a deal had been reached so early.

Chrysler executives met with CAW officials Tuesday, the union said. A Chrysler spokeswoman declined comment.

Tom LaSorda, a Chrysler president and vice chairman, first raised concerns about Ford's CAW deal in an interview with the Free Press last week.

"We have to be competitive," LaSorda said. "And I'm not so sure the Ford deal was very competitive."

In response, CAW President Buzz Hargrove told Bloomberg: "If they want to be competitive, maybe one less president, like most companies have, will help."

LaSorda shares the title of president with Jim Press.

Hargrove has said Chrysler and General Motors Corp. have pushed hard for the creation of a two-tier wage system, such as that approved by the UAW last year. The Ford deal avoids that.

GM and the CAW will begin negotiations Thursday, the union said.

This Day in Auto History:

Automobile Quarterly
Automobile Quarterly

5.7.1917
Samuel L. Smith, principal financial backer of the Olds Motor Works, dies at age 86
5.7.1939
The Mercedes-Benz W165 makes its racing debut, with Hermann Lang and Rudolf Caracciola taking the top two places in the Tripoli Grand Prix
5.7.1952
Racer Stanley Dickens is born in Farila, Sweden
5.7.1968
Racer Mike Spence is killed at age 31 when his Lotus crashes during a practice run at the Indianapolis Motor Speedway

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

Video: '09 Challenger SRT8 braun vs brains

Nice little video from The Dodge Boys. Road testers have already called the "brains" part pretty much a toy...

Tuesday, May 6, 2008

Automobile Quarterly
Automobile Quarterly
This Day in Auto History:

5.6.1886
Power brakes pioneer Robert Potter Breeze is born in New York City
5.6.1910
Elmer W. Bernitt of American Motors is born in Detroit, MI
5.6.1925
Donald Frederick McCullough, a manufacturer of textiles for automobile interiors, is born in Montclair, NJ
5.6.1939
The Maserati 4CL race car debuts in the Brooklands International Trophy dash as the entry of private owner Reggie Tongue, finishing third
5.6.1961
Vanwall makes its final racing appearance, as John Surtees finishes fifth at the Intercontinental Formula International Trophy race in Silverstone, England in the unique rear-engined VW14, known as “The Whale”

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

Vanishing Point Challenger Crashes at Road America

ELKHART LAKE, Wisc. — The world's fastest permanent road course, Road America here, proved difficult for Erich Heuschele when the prototype SRT8 Challenger he was driving met the tire wall after coming into Turn One a little too fast early last Saturday. But Heuschele is no hard-bitten racer, just a movie fan who found out the hard way that it all looks much easier on the big screen than it really is in life.

It all started when Heuschele and Ralph Gilles entered a Dodge SRT8 Challenger, done up to resemble the car in the 1971 road movie Vanishing Point, in the famous One Lap of America event. The men even borrowed the monikers used by the movie's characters, Kowalski and Super Soul.

Sadly, the crash that ended their dream came far, far ahead of the planned final scene.

The white beauty first got loose around the turn, then went into the infield grass and continued to smash into the tire pile on the outside wall hard enough to come to a standstill atop the wall.

Heuschele walked away from the incident, but the white Challenger was put out for the remainder of the race. Kowalski and Super Soul — if they are still brave enough to call themselves by those names — plan to return for the next event in a new Challenger. This one will be a defiant but non-movie-specific bright orange. However, since it's a replacement car, they will not be permitted to receive points in any of the upcoming events.

Tomorrow, One Lap events take place at No Problem Raceway in Los Angeles.

Chrysler's Eric Heuschele (vehicle dynamics supervisor) and Ralph Gilles (vice president of design), both hard-bitten fans of the movie Vanishing Point, loved but lost this Dodge Challenger in One Lap of America last weekend. (Photo courtesy of CarDomain Blog)
Luckily, driver Heuschele walked away from the crash. (Photo courtesy of CarDomain Blog)

Incentive to get a Chrysler: $2.99 gas

Deal locks in the price per gallon for 3 years

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER

Chrysler LLC announced a new incentive program Monday that will allow customers to lock in the price of gasoline at $2.99 a gallon for 3 years when purchasing most of the automaker's new vehicles.The Auburn Hills automaker and its truck-heavy lineup have been hit hard as the price of gasoline has skyrocketed and buyers have shifted away from trucks to more fuel-efficient cars.

Chrysler executives say the new program is aimed at giving customers greater peace of mind regarding the volatility of gas prices -- a major issue customers are bringing up to dealers across the country.

The so-called Let's Refuel America campaign will be available at Chrysler, Dodge and Jeep dealers beginning Wednesday through June 2.

It includes most of the automaker's vehicles, including its minivans, Dodge Ram pickup and Jeep Grand Cherokee SUV.

"Today, we are proud to introduce an unprecedented program to help put customers' minds at ease and do something to help working people who are worried about the volatility of fuel prices and vehicle cost of ownership," Jim Press, Chrysler president and vice chairman, said in a statement. The program "puts money in your pocket today, and allows our customers to better manage their fuel expenses."

The average price of self-serve regular unleaded gasoline in Detroit as of Monday was $3.61, according to AAA Michigan.

Under Chrysler's plan, the guaranteed price covers an annual allotment of gallons based on 12,000 miles divided by the average mileage per gallon of the purchased vehicle.

At $2.99 a gallon, drivers of the two-wheel-drive Dodge Ram 1500 pickup, which gets a combined 16 miles per gallon, according to U.S. Environmental Protection Agency estimates, could see a savings of $465 over 12,000 miles, based on today's average cost of gasoline in Detroit.

As the price of gasoline increases, so do the savings.

"Anything that has gas in it gets attention nowadays from consumers, so it's a smart strategy," said Jesse Toprak, executive director of industry analysis at Edmunds.com. "The expense from Chrysler's perspective may not be as sizeable as compared to, say, an actual cash rebate," he added.

Last month, Chrysler spent, on average, $3,795 in sales incentives of its vehicles, according to Edmunds.com.

Just last week, Chrysler executives told the Free Press that the nation needs high gas prices to encourage consumers to buy more fuel-efficient vehicles, and Press seemed to chide proposals by presidential hopefuls Sens. John McCain, R-Ariz., and Hillary Clinton, D-N.Y., to suspend the 18.4-cents-a-gallon federal excise tax on gasoline in a so-called gas-tax holiday.

"How can you be encouraging automakers to produce more fuel-efficient vehicles and then do something like that? There's an inconsistency," Press told the Free Press on Thursday.

Monday, he said the new program was consistent with giving customers what they want. "The customer is either choosing a regular incentive, an APR" -- annual percentage rate -- "or this," Press said. "All we're doing is taking the volatility out and giving them peace of mind on what they're going to be paying."

He noted that the automaker's vehicles that require a lot of gasoline, such as the Dodge Viper, are not part of the program. "It's not about how to make us not see our responsibility, but it's really about being responsible to our customers' wants," Press said.

Stuart Schorr, a Chrysler spokesman, said the incentive program also applies to lease customers.

So far this year, Chrysler's U.S. sales are down 18% from last year. Chrysler trucks are down 23%. The Dodge Grand Caravan minivan, which was redesigned and launched late last summer, is down 37% so far this year.

The customers of eligible new vehicles will be provided with registration documentation and be able to register at a Web site or over the telephone. They then will receive in the mail within four to six weeks a gas card to be used at eligible gas stations. The special price is for 87 octane regular, E85 fuel or diesel, the company said.

The gas purchase is charged to the customer's personal credit card at the $2.99 per gallon rate.

CAW faces GM, Chrysler hurdles

Negotiations for labor deal likely will be tougher than with Ford

Sharon Terlep / The Detroit News

GM and CAW negotiators will start official bargaining Thursday. GM spokesman Stew Low says the company wants to ensure it receives the same level of savings achieved at Ford. (J.P. Moczulski / Associated Press)


The Canadian Auto Workers this week begins a push to convince General Motors Corp. and Chrysler LLC to agree on a labor pact that mirrors the deal adopted with ease by Ford Motor Co., four months before it was set to expire.

But talks may prove tougher for the Dearborn automaker's crosstown rivals.

Even as Ford touted the CAW deal reached last week as a big money saver, industry analysts said the pact will prove too costly for GM and Chrysler, companies that have a larger portion of their North American production in Canada than Ford. The union says its pact with Ford will keep labor costs essentially the same as they are now.

"This puts GM and Chrysler into a difficult spot," Dennis DesRosiers of DesRosiers Automotive Consultants in Richmond Hill, Ontario, wrote in a research note on the Ford-CAW deal. "Both these companies were looking for the CAW to give back a lot more than this contract ended up giving up so they are going to be very disappointed."

The Canadian auto industry is under pressure to slash costs after years of boasting cheaper labor relative to the United States. A weak U.S. dollar and last year's cost-cutting labor deals between Detroit's Big Three and the United Auto Workers have cut the cost of building cars and trucks in the United States.

Negotiators from GM and the CAW already are in disagreement over some of the financial data that sets the groundwork for negotiations, CAW President Buzz Hargrove said. Despite the differences, he said, the two sides agreed to start official bargaining Thursday.

GM spokesman Stew Low said GM is analyzing Ford's deal. The automaker, he said, wants to ensure it receives the same level of savings achieved at Ford, which may call for variances in the agreements because the companies have significant differences in their operations.

"We want to ensure that the economics translate at least as well as they did for Ford," Low said.

Chrysler, CAW set up talks

Chrysler and the CAW meet today to discuss a framework for negotiations.

"We will continue our ongoing dialogue with the CAW behind closed doors, rather than provide guidance on the potential status of negotiations prematurely," Chrysler spokeswoman Mary Beth Halprin said Monday.

Hargrove said he expects GM and Chrysler to agree to deals similar to the one at Ford. The CAW said its membership voted 78 percent in favor of the pact on Sunday. About 9,000 CAW workers work for Ford in Canada.

GM has about 15,000 hourly Canadian employees and six factories; Chrysler has 7,900 hourly workers in three factories.

"Most of us just want to hold on to something close to what we have now," said Pete Papineau, a 27-year-veteran machinist working at GM's Windsor transmission plant.

Hargrove said the Ford deal puts the cost of hourly labor and benefits at $67 (in U.S. dollars) an hour in Canada, compared with $60 an hour for the U.S. hourly work force represented by the UAW. Canadian plants are 10 percent more productive on average than U.S. factories, he said, which makes up for the $7 difference.

"A big deal is being made of us of having this cost disadvantage," Hargrove said Monday. "We've lost more jobs than the UAW even though we've had a cost advantage for years."

But the Ann Arbor-based Center for Automotive Research said the Ford labor deal essentially created more than a $20-an-hour labor cost advantage to the UAW over the CAW. The UAW last year agreed to take over Detroit's automakers' massive retiree obligations in the form of a union-run trust. The companies will provide the cash for the funds, but at a fraction of the cost of their obligations to retirees. The UAW also agreed to a two-tier wage system.

"The Canadian advantage has dissipated and become a disadvantage," said David Cole, chairman for the Center for Automotive Research. "You can't sustain that kind of cost differential and maintain long-term investments."

CAW deal praised by Ford

Ford touted the CAW deal as one that secures long-term savings while requiring almost no new spending.

Joe Hinrichs, Ford's global manufacturing chief, said the deal effectively freezes CAW wages and benefits. Some minor increases were largely offset by modest benefit cuts, such as the addition of a 10 percent drug co-pay, he said.

The automaker negotiated to "buy out" a week's worth of vacation, which Hinrichs said is significant because Canadian Ford workers get a lot more time off than their U.S. counterparts. Ford also can pay new hires 70 percent of base wages for three years, which the automaker will be able to benefit from immediately when it brings on 500 new workers for a third shift at the Oakville, Ontario, plant that builds the popular Ford Edge and Lincoln MKX crossovers and will soon start production of the Ford Flex, a key new vehicle.In exchange for reductions, Ford agreed to keep its St. Thomas Assembly Plant open for the life of the contract. However, the automaker did not make any new product commitments to that facility. Production of Ford's full-size sedans -- the Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car -- is expected to end there in 2010.

Even with the new contract, Hinrichs said producing cars in Canada is still more costly than doing it in the United States.

GM, Chrysler see quick deal

GM and Chrysler rank-and-file workers in Windsor were cautiously optimistic Monday that Ford's deal with the CAW means a quick settlement for them.

But many are still nervous whether they can get product commitments and pension protections.

"There isn't much there not to like" in the Ford/CAW contract, said Lino Lomedico, a 17-year veteran and CAW representative at Chrysler Windsor Assembly, said of the deal. "I know there's no wage gains, but there's also no two-tier wages and (Ford) made some commitment to future products."

Getting commitments to Canadian plants is what autoworkers want to see in their contracts, many said.

"We keep getting work outsourced, so just to hear that we can keep working would be what we most want," said Janet Longmoor, who has worked eight years at Chrysler Windsor.

"I don't even think we expect the status quo. But something close to that status quo would be nice," Longmoor said.

At GM's Windsor plant, the sentiment was much the same.

"More money for co-payments on prescription medicines, OK, we can handle," said Wayne Durham, a 27-year plant veteran. "These days, it's all about job security and holding on to the pension, eh."

Chrysler CEO: We can meet job-cutting goals

Bob Nardelli says company will not upset the United Auto Workers; introduces deal to fix price of gas for new customers.

AUBURN HILLS, Mich. (AP) -- Chrysler LLC Chairman and Executive Bob Nardelli said Monday the automaker should be able to meet its job-cutting goals without antagonizing the United Auto Workers.

Chrysler also announced an offer that caps the price of gasoline at $2.99 a gallon for three years for people who buy or lease new vehicles from Wednesday through June 2. The offer is based on 12,000 miles of driving per year at the vehicle's rated fuel economy.

Customers will get a card for buying gas that is linked to their own charge account, Chrysler said. The customer will be billed $2.99 a gallon, and Chrysler will pay the rest.

Actual savings depend on what happens to gas prices over the next three years, but based on the $3.61 a gallon average price reported Monday by AAA, someone buying a 2008 Chrysler PT Cruiser, which gets an estimated 21 miles per gallon in city driving, would save $355 a year.

"It's a way to give (customers) peace of mind," Steven Landry, executive vice president for North American sales, said in a conference call Monday evening. "We want to get everybody through these challenging times."

As part of the efforts to trim the payroll, Nardelli said Chrysler will try to move workers currently in jobs banks into openings created at factories where large numbers of workers took buyouts or early retirement packages.

Workers in jobs banks get most of their pay while on layoff.

The company is working to reach its job-cutting goals through means other than layoffs, Nardelli said.

He said Vice Chairman Tom LaSorda and his management team have not missed a target, "and I'm confident that they'll be able to achieve that ... objective in a very cooperative way."

Chrysler announced in November plans to cut up to 11,000 jobs, including 8,000 to 10,000 hourly and 1,000 salaried positions.

Speaking to reporters at an event held to honor Chrysler employees who have served in the military, Nardelli called proposals by presidential candidates for a holiday on the federal gasoline tax a short-term solution.

"If you look at the bigger picture -- from an energy standpoint, from an environmental standpoint and from an economic standpoint -- one would certainly suggest trying to encourage consumers to be more cognizant of not only miles per gallon but the number of miles they're driving," he said.

The former CEO of The Home Depot Inc. (HD, Fortune 500) also recommended that the federal government create an incentive for people to buy domestically produced cars such as hybrids Chrysler plans to launch later this year. To top of page

Monday, May 5, 2008

Chrysler Receives Top Honor for Support of Employees Actively Serving in the National Guard and Reserve

AUBURN HILLS, Mich., May 5 /PRNewswire/ -- In support of Military Appreciation Month, today Chrysler honored those employees who have been called to active military duty as members of the Michigan National Guard and United States Military Reserve with a Blue Star Service Flag ceremony at its Auburn Hills Technology Center.
The Blue Star Service Flags are displayed by families and by organizations to honor their members currently serving in the Armed Forces during a period of war or hostilities. The flags were unveiled during a recognition ceremony where soldiers from Selfridge Air National Guard Base and members of the Chrysler Veterans Committee unveiled one flag for each of the 45 employees currently on active duty.
"It is with great respect that we honor the U.S. military tradition by unveiling the Blue Star Service Flags to acknowledge the efforts of Chrysler employees who take on the responsibility of protecting our country," said Bob Nardelli, Chrysler LLC Chairman and CEO. "We are lucky and honored to have this dedicated group of people within the Chrysler family."
One Gold Star Service Flag - representing a Chrysler employee who was killed while serving on active duty - was revealed for Master Sergeant William R. Balinski, Jr. from Richmond, Mich. who was killed in an automobile accident at Fort Benning, Ga. in March 2005. Balinski was a metalworker at Warren Stamping for nine years and had 15 years of military service, which included four years in Operation Desert Storm and Operation Desert Shield in the Middle East and Operation Just Cause in Panama before joining the U.S. Army Reserves.
"Our hearts go out to all the families and loved ones of the soldiers who have lost their lives while serving our country, especially the Balinski family," added Nardelli.
Nardelli then unveiled the newly designed Chrysler Corporate Service Flag, which combines the recognition sentiments of the blue and gold service stars to show support for all Chrysler employees who are actively serving in the United States Armed Forces.
Chrysler was also honored by the Employer Support of the Guard and Reserve (ESGR), a Department of Defense organization, which presented the company with the 2008 Pro Patria Award during the ceremony. The Pro Patria Award, translated from Latin means "for the country," is presented to one employer in the state each year that demonstrates exceptional support for national defense by adopting personnel policies that allow employees to actively participate in the National Guard and Reserve.
"Chrysler is honored to be recognized for its continuous support of the men and women in the military," said Nardelli. "The Pro Patria award is an extension of Chrysler's continued history of supporting the Armed Forces, which dates back to the 1930s."
"Chrysler exemplifies what the Pro Patria Award stands for with its longstanding support of the men and women who serve our country through its numerous military initiatives," said The Honorable Thomas F. Hall, Assistant Secretary of Defense for Reserve Affairs. "We applaud Chrysler for going above and beyond to support its employees in the National Guard and United States Reserves throughout the years. The company's policies continue to have a positive impact on its employees deployed all over the world."
In further support of Military Appreciation Month, The Chrysler Foundation announced $50,000 donations to the Michigan National Guard and to Operation Gratitude, a non-profit organization that seeks to lift troops' morale, and bring a smile to their faces by sending care packages to service members overseas.
"The Chrysler Foundation is proud to continue our support for the Michigan National Guard and Operation Gratitude," said Frank Fountain, President of The Chrysler Foundation and Chrysler LLC Senior Vice President - External Affairs and Public Policy. "Both organizations give so much to our troops, and this gift demonstrates our commitment to supporting their continued success."
Under the direction of Operation Gratitude, the Chrysler Veterans Committee and 80 Chrysler volunteers were present at the event to hand assemble 500 care packages for deployed troops as part of Chrysler's "Honoring Those Who Serve" program. Following the event, the packages will be sent to the Operation Gratitude headquarters for final packing and shipment to active troops currently serving in Iraq.

Chrysler recruits another Toyota executive

Sigmund Huber became director of supplier relations effective May 1

DETROIT -- Chrysler LLC has raided Toyota for another executive. Sigmund Huber, most recently general manager for external and corporate affairs for Toyota Engineering & Manufacturing North America in Erlanger, Ky., became director of supplier relations for Chrysler effective May 1, according to Chrysler spokesman Kevin Frazier.

Huber was with Toyota for nine years and had also been in charge of Toyota's purchasing relations. Huber will report to John Campi, Chrysler executive vice president for procurement.

Frazier said Huber would also be responsible for setting up a "global risk management process in Chrysler's procurement organization."

So far, the most prominent executive Chrysler recruited from Toyota is Jim Press, who worked for Toyota 37 years before being named president and vice chairman of Chrysler last September.

This Day in Auto History:

Automobile Quarterly
Automobile Quarterly

5.5.1909
Richard Lester Johnson of the Ford Motor Company is born in Walshville, IL
5.5.1927
The Graham Brothers Company, manufacturers of motor trucks, purchases the Paige-Detroit Motor Car Company from Harry M. Jewett, reorganizing as the Graham-Paige Motors Corporation
5.5.1938
The 5,000,000th Ford V-8 is produced
5.5.1948
Albert S. Matthews, President of the Packard Federal Corporation, the distributors of the marque’s taxicabs, dies in New York City at age 67
5.5.1960
Harvey S. Firestone III, heir to the Firestone tire fortune, dies in Havana, Cuba at age 30

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


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Dodge dealers battle to bust Ram logjam

ENLARGE
Mark Hodos has 120 Dodge Ram pickups on his lot — about twice the number he normally would have.
Photo credit: MIKE HAMEL

Click on the Web sites of several auto dealers in central California and you'll find Dodge Ram pickups offered at $13,000 below sticker.

With four months to go before a redesigned 2009 Ram arrives in showrooms, inventories and incentives are sky high on the 2008 model. Dodge has a 109-day supply of 2008s, and dealers say they're struggling to unload them.

The Ram is emblematic of a difficult pickup market. Sales of full-sized pickups fell 22.1 percent in April from the same period a year ago and are down 16.6 percent for the first four months of 2008.

For Dodge dealers, that has resulted in deals such as the ones offered in the Sacramento, Calif., area last week. Folsom Lake Dodge ran a newspaper ad that featured a Dodge Ram 1500 Quad Cab SLT 4x2 for $19,995 — $12,800 below the sticker price of $32,795. At Swift Dodge, also in Sacramento, $13,000 in discounts are offered on the same model.

The Dodge Ram was the most heavily discounted vehicle in March: an average of $8,260 per vehicle, according to Edmunds.com.

Tough market for pickups

It's standard practice to put money on the hood of the old model to make way for the shiny new one, and Dodge has a new Ram on the way this fall. The problem is, the bottom has fallen out of the pickup market.

Not only that, but Ford has a new F-150 arriving at the same time as Chrysler's 2009. Meanwhile, Toyota and General Motors have relatively new models on sale.

Managing build-out crucial

That makes it crucial that Chrysler manage the build-out so that few of the 2008 pickups remain on dealership lots when the Ram is launched, says Tom Libby, an analyst for the Power Information Network.

“They need to manage this so they avoid excess inventory of "08s,” Libby says. “They need to avoid immediately incentivizing the "09 and hurting its value.”

Steven Landry, Chrysler LLC executive vice president for North America sales, says the automaker is on target for the Ram build-out.

“We think our incentive plan will support an orderly run-out,” Landry says.

Incentives usually are high during the last year of a model cycle, he says. The Ram's price is higher than the competition's, “which is why our raw incentives are higher,” Landry says.

“It is absolutely tough out there for pickup trucks, both in terms of the competition and some buyers waiting on the sidelines,” he adds.

“We have pretty aggressive incentives out there and will remain competitive.”

Fuel prices hurt

Dealers blame a lethal cocktail of high gasoline prices, the credit crunch and a depressed housing market for bringing the once-booming pickup market to a screeching halt.

“Until we get gas under three bucks a gallon, these pickups are not going to move,” says Gus Whiteside, president of Tom Whiteside Auto Sales Inc. (Chrysler-Jeep-Dodge) in Mount Sterling, Ohio.

Dealerships face a double challenge. Sales of used pickups are slow as well because high fuel prices hit used-truck buyers particularly hard. That pushes dealers to lower prices for trade-in pickups, Whiteside says, leaving some shoppers with high negative equity on trade-ins.

“That devastates selling new ones because you don't want their trades,” says Whiteside. “I can't do anything with them.”

Mark Hodos, president of Monarch Dodge in Lauderdale Lakes, Fla., has 120 2008 Rams on his lot. Normally at this time in the run-up to a new model, he would have half that number. Hodos says he's not sure how he's going to sell them all before the new model arrives this fall, even though he has rebates totaling about $8,000 on them.

“If it was a regular market, we wouldn't have a problem,” he says. “But this is not a normal market.”