| For the second time in two months, Chrysler LLC has announced changes to the ranks of top executives overseeing vehicle development.The latest shakeup comes with the departure of Michael Donoughe, the Chrysler vice president who had been leading the efforts to come up with future product in the midsize car segment. The Wall Street Journal, citing unnamed people familiar with the matter, said late Tuesday that Donoughe left in a dispute with senior managers. David Barnas, a Chrysler spokesman, declined to talk about why Donoughe left other than to say: "Chrysler denies that the departure had anything to do with a clash with management." In late January, Chrysler announced a reorganization of its product development and said that Donoughe would lead future midsize car development, calling it "an important vehicle category worldwide." His job on the so-called Project D is believed to have begun last fall after Bob Nardelli took over as Chrysler's chief executive. Previously, Donoughe had overseen key vehicles such as the Dodge Ram and Jeep Wrangler. Chrysler's current lineup of midsize cars -- the Chrysler Sebring and Dodge Avenger -- has struggled and the company is trying to better compete. With Donoughe's departure, Chrysler has turned to Mark Chernoby to lead development of a new midsize car as vice president and chief engineer for Chrysler's future midsize product team. Chernoby had been vice president of core components, processes and international engineering. James Issner replaces Chernoby in that role. Issner had been vice president of advance vehicle engineering. Lou Rhodes, who is president of Chrysler's ENVI -- an effort to bring electric-drive vehicles and related advanced-propulsion technologies to market -- will take on the additional title of vice president of advance vehicle engineering.
Michael Donoughe departs. Jim Issner to replace Chernoby. Mark Chernoby: Midsize cars. |
| |
Wednesday, March 26, 2008
Chrysler shuffles development execs again - Mike, you will be missed
Job training focus of budget
Laid-off workers, the poor and manufacturers are getting a helping hand from the provincial government.
Ontario's economy "is being buffeted by a number of challenges," Finance Minister Dwight Duncan said yesterday as he unveiled the Liberal government's first budget since its re-election in October.
"We know certain sectors, some communities and too many families are not sharing in Ontario's prosperity," Duncan said. "A slowing U.S. economy, rising oil prices and a higher-than-anticipated Canadian dollar are reducing growth forecasts and creating greater uncertainty here in Ontario."
So, Duncan introduced a three-year $1.5 billion Skills to Jobs Action Plan. The plan will train unemployed workers for new careers, expand apprenticeships, build more spaces in colleges and universities and help students with education costs.
Priscilla McKenzie could qualify for the retraining plan. The single mother, laid off a few weeks ago from her $35-an-hour assembler job at the Chrysler plant in Brampton, said it could help her. But she wonders where new jobs will come from.
"What are these specific sectors which are going to have these good paying jobs? It's hard to replace the high-paying job that I had."
Duncan proposed other measures to encourage a "more productive, competitive and greener economy" in the face of economic growth in the province projected to be only 1.1 per cent this year.
He confirmed that the government will introduce a $1 billion infrastructure program already announced by Premier Dalton McGuinty, including $497 million for public transit in the GTA.
The budget also includes $750 million over four years in business tax breaks, including retroactively eliminating the capital tax for manufacturers as of Jan. 1, 2007.
Duncan also announced a one-year, $100 million plan to upgrade the province's aging social housing buildings.
And he set aside $10 million for a pilot program to help low-income Ontarians save for an education or start a business.
The $96.2 billion spending plan tabled in the Legislature neither raised any taxes nor offered tax relief for most individual Ontarians.
The budget surplus for 2007-08 (the fiscal year ending March 31) is $600 million. Last week, Duncan announced that if the surplus reached $800 million, $600 million would go to help pay down the $162.3 billion debt, with the rest divided among Ontario municipalities for more infrastructure spending.
If the surplus increases to $800 million once the government adds up all the revenue it gets this summer, cities and towns would share in $200 million, with the City of Toronto receiving $40 million.
"There is a good likelihood that there will be additional money available," Duncan told reporters.
The retraining program would help 20,000 laid-off workers, Duncan said. Statistics Canada has reported that 77,000 Ontario manufacturing jobs have been lost from 2001 to 2006.
"The plan will strengthen long-term economic productivity, while stimulating investment and job growth today, and move us to a greener, more sustainable future," he said, noting economic growth for this year is forecast at a worryingly low 1.1 per cent but should jump to 2.8 per cent by 2010.
"Most importantly, our people will be training in areas where growing industries are experiencing a shortage of workers."
Ignoring federal Finance Minister Jim Flaherty's call Monday to slash Ontario's corporate income taxes, Duncan said he opted to invest in human capital.
"It is a balanced approach that is prudent and pragmatic," he said in a shot at Flaherty, who insists tax cuts pay for themselves by stimulating economic activity.
On poverty issues, Duncan confirmed Premier Dalton McGuinty's announcement from last week of $135 million over three years for a free dental-care program for the working poor, and $32 million over the same period for student nutrition programs in schools and community centres.
As well, social assistance benefits are being increased by 2 per cent, slightly more than the inflation rate.
The budget provides $385 million over three years for student grants to buy textbooks and computers, and $27 million to help students in remote areas with travel expenses.
Duncan, whose Windsor-area riding has been battered by the loss of manufacturing jobs, reiterated the oft-stated but yet unrealized promise to improve the Windsor-Detroit border crossing, North America's busiest trade corridor.
He also announced that author Richard Florida, professor of business and creativity at the University of Toronto's Rotman School of Management, and Rotman dean Roger Martin would study Ontario's workforce with an eye toward enhancing competitiveness.
Progressive Conservative Leader John Tory dismissed the budget as too little too late for Ontario's struggling economy, charging that the Liberals are "ignoring the warning signs."
"Ontario's economy is in trouble," said Tory, who echoed Flaherty's call for lower corporate taxes to stimulate the economy and chastised the Liberals for overtaxing Ontarians by $5 billion more than anticipated.
"Whether they are farmers or business people, families or public servants, people are worried," he said.
"Canada's economic engine is stalling, but (Premier Dalton) McGuinty thinks a one-time trip to the carwash will get it going."
NDP Leader Howard Hampton said it was "a half-baked budget that offers up small-potato solutions to Ontario's pressing problems."
Hampton said the anti-poverty measures were "an embarrassment," noting the Liberals are continuing the clawback of the national child tax benefit, which hurts poor families.
"Dalton McGuinty is offering Ontarians scraps from his kitchen table. Ontarians starving for solutions from their government deserve far better," he said.
"This budget effectively leaves them to fend for themselves."
Top engineer at Chrysler leaves company
by Dee-Ann Durbin | Associated Press Wednesday March 26, 2008, 8:22 AM
DETROIT (AP) -- One of Chrysler LLC's top engineers left the company Tuesday because of a dispute with senior managers, a person with knowledge of the situation said Tuesday.
Mike Donoughe was leading the company's effort to develop a new generation of global mid-size cars. The person said Donoughe clashed with Peter Arnell, a marketing consultant hired by Chrysler Chairman and Chief Executive Bob Nardelli. The person asked not to be named because Chrysler wasn't publicizing the reason for Donoughe's departure.
Chrysler spokesman David Barnas confirmed Donoughe left the company but wouldn't say whether he resigned or was fired.
"Chrysler denies that the departure had anything to do with a clash with management or with Peter Arnell," the company said in a statement.
Donoughe, 49, joined Chrysler in 1983 as a product development engineer for final drive and transmission systems. Before heading the mid-size car team, Donoughe was vice president of body-on-frame products, including sport utility vehicles and pickups.
Nardelli announced in January that Chrysler was starting the new mid-size car development team. The team is critical to the company, which needs strong products in the highly competitive segment that includes the Toyota Camry, Chevrolet Malibu and Honda Accord. Two of Chrysler's most recent midsize entries, the Chrysler Sebring and Dodge Avenger, have been flops, and a mid-size sedan that can appeal to global consumers is important to Chrysler's goal of doubling its sales outside North America by 2012.
Barnas said Mark Chernoby will replace Donoughe as vice president and chief engineer for Chrysler's midsize product team. James Issner will replace Chernoby as vice president of core components, process and international engineering. Issner will also oversee Chrysler's expanded engineering centers in China, India, Eastern Europe and Mexico.
Chrysler will Add WI-FI to Vehicles this year
As state laws continue to become more stringent with regards to safe driving practices, Chrysler appears to be going a different route. Sure, Chrysler’s upcoming wireless internet service offering is more geared towards passengers as opposed to the driver but you know as well as we do, plenty of people will want to take advantage of that high speed data while commuting. According to Frank Klegon, Chrysler’s head of product development, a new WiFi connectivity option will become installable on the automaker’s lineup at some point this year and will later be added to assembly line production. The new system will make use of high speed cellular data networks and as such, customers will need to subscribe in order to make use of the offering. We’re not yet sure which carrier(s) Chrysler will be dealing with for its in-car WiFi service. The connectivity service announcement comes on the same day Chrysler CEO Robert Nardelli made it known that Chrysler will be stepping up its game as far as Mopar parts and accessories are concerned. Special editions and accessory packages will kick off the effort, such as a Wrangler sporting an off-road navigation system, chrome grill, heavy duty bumper and beefed up sound system. It looks like money in the car-manufacturing business isn’t what it used to be. Those of us already packing high speed connectivity solutions such as HSDPA laptop cards or JoikuSpot might not be running out to purchase a Chrysler as a result of WiFi integration, but it certainly is progressive in terms of opening up a host of new service options for the everyman.
Friday, March 21, 2008
Chrysler sets new rules for discount
Workers' friends, some relatives cut out of best deals
Chrysler LLC has stopped allowing employees to share their employee discount price -- typically around 5% below factory invoice on the purchase or lease of a new vehicle -- with friends and extended family, the Free Press has learned.
"Chrysler LLC continually monitors employee pricing in assessing its competitive position within the marketplace, and the company adjusts accordingly," spokeswoman Beverly Thacker said in explaining why the program was cut.
She stressed that the employee discount program continues for employees and retirees, who are allowed six discounts for themselves and immediate family members each year.
The move could come as a culture shock in metro Detroit. Using friends' discounts on new U.S. vehicles is ingrained in the local car-buying landscape, where thousands of people tied to the auto industry are accustomed to the discounts. Most TV and newspaper ads routinely list the discounted prices.
Chrysler's Employee Choice Program allowed employees and retirees to give the same discount, plus a $200 fee, to a friend, extended family member or acquaintance. They were allowed to give one discount a year, though last year, they could do it twice. The company said the discount was used 60,000 times in 2007.
The so-called EC Program began in October 2004 and was officially terminated in January. Thacker said the discount ranged from 4% to 6%, but most received a 5% discount.
After canceling the program, Chrysler mailed to former EC customers a $1,000 certificate toward the purchase of a new Chrysler-brand vehicle, Thacker said. Chrysler declined to quantify the savings from the change.
Chrysler employees can still help a friend get a smaller deal on a new Chrysler vehicle. Under the so-called Friends Program, friends, neighbors and extended family members are given a preferred price -- up to 1% below factory invoice plus a $75 administration fee -- toward the purchase or lease of select models.
Thacker also noted that Chrysler had boosted its supplier discount by $500.
Carl Galeana, owner of Galeana's Van Dyke Dodge in Warren, said the elimination of the discount has not affected his sales. He said most sales there involve a company discount.
"I've always felt it was an artificial stimulus. Don't get me wrong, it's a good thing to have, but at some point, we have to get along without it. If everybody in the city has a number, it doesn't do us all any good. At some point, we have to sell retail," Galeana said.
New leaders shake things up
Since Chrysler came under the control of Cerberus Capital Management in August, the new management team has been remaking it as the first privately held major U.S. automaker in more than 50 years.
Employees have been facing many changes that affect them in many ways. Last week, Chrysler Chief Executive Bob Nardelli announced that the automaker would have a near-company-wide shutdown in July, during which employees would have to use two weeks of vacation. Employees who lacked enough time could face unpaid time off, the company has said.
Nardelli has spoken several times about Chrysler's change to a private company and the creation of an owner-operator mentality. "There's no doubt that the leadership team has always been passionate about Chrysler. But now they've got some real skin in the game," according to Nardelli's speech at the New York auto show Wednesday.
"Ask anyone who has a meaningful ownership stake in his or her company. It makes a huge difference in the way they approach their jobs and in their dedication to their work."
Jessica Caldwell, an industry analyst with Edmunds, said the move to cut the friends discount is another example of Chrysler's efforts to save money. While the 60,000 times it was used last year "doesn't seem like a big number," Caldwell said, "it seems like they are counting every penny these days."
The automaker's internal numbers indicate that Chrysler lost $2.9 billion last year on operations and restructuring costs, the Free Press has reported.
Some workers see a benefit lost
Many workers interviewed outside Chrysler's truck assembly plant in Warren said they were unaware of the change and that the program was popular.
April Lynch, 42, of Monroe figured the change would become controversial as more people heard about it and saw it as a lost benefit. "I think they need to give us something," she said.
Another Chrysler worker questioned whether it made good business sense, fearing that potential customers would just "go with another company."
This is just one in a series of changes for Chrysler workers. Last week, chief Bob Nardelli announced mandatory July vacation.
Now only workers and close relatives can get employee discounts on the Dodge Journey, shown here, the Dodge Grand Caravan and other vehicles.
Now only workers and close relatives can get employee discounts on the Dodge Journey, the Dodge Grand Caravan, shown here, and other vehicles.
Thursday, March 20, 2008
Donation in George Lopez's name made by the Chrysler Classic by CC
RANCHO MIRAGE - A week after announcing George Lopez will no longer be the host of its tournament, the Bob Hope Chrysler Classic has announced a $60,000 donation to the National Kidney Foundation of Southern California in the name of Lopez and his wife."We are proud to be in a position to help the National Kidney Foundation with their endeavors," said Dave Erwin, president of the Classic.
"We thought it fitting that this gesture comes from George and Ann Lopez, who serve the National Kidney Foundation, and served our tournament with such high regard for excellence."
George Lopez received a kidney transplant from his wife in 2005 and the couple have been spokespeople for the foundation ever since.
In a statement announcing the gift, which comes from the Classic's special grants fund, Lopez said: "I have enjoyed hosting the tournament for the past two years and I am grateful for the Classic's donation to the National Kidney Foundation of Southern California. Many lives will benefit as a result of their generosity."
Lopez did not return calls from The Desert Sun last week when the Classic announced he would not return as host of the PGA Tour event after hosting the event in 2007 and 2008.
The $60,000 will go to the foundation's Kidney Early Evaluation Program, designed to screen those at increased risk for kidney disease because of high blood pressure, diabetes or a family history of kidney disease. The funds will be used for screenings in the Coachella Valley.
Wednesday, March 19, 2008
Dundee engine plant gets lean-manufacturing award
Called the "Nobel Prize of manufacturing," the Shingo award recognizes business excellence in the United States, Canada and Mexico. The philosophy of the Shingo Prize is that world-class performance for quality, cost and delivery can be achieved through lean principles and techniques in core manufacturing and business processes.
"We are pleased to have been recognized by the Shingo Award organization for our GEMA plant," said Richard Chow-Wah, vice president - manufacturing for Chrysler LLC and a member of the GEMA board of directors. "At GEMA, our mission is clear - to set the pace in engine manufacturing with cutting-edge people, processes, systems and technologies. This award is further confirmation that we are accomplishing that mission," he said.
The Michigan GEMA facility is the only automotive manufacturer to receive a Shingo award in 2007.
"Our success starts with great people, and the Shingo Silver Medallion is a tribute to the commitment and hard work of our GEMA team members who make our Michigan facility one of the finest manufacturing operations in the world," said Bruce Coventry, GEMA president.
"At the same time, in the spirit of continuous improvement we recognize there are many opportunities in our processes. We understand that manufacturing excellence is a never-ending journey, not a final destination.
The GEMA plant in Dundee, opened in fall, 2005, produces 1.8-, 2.0- and 2.4-liter naturally-aspirated engines for Dodge Caliber, Avenger and the new Journey, Jeep Compass and Patriot, and the Chrysler Sebring sedan and convertible.
In addition, the plant produces a 2.4-liter, turbocharged, gasoline-powered, aluminum four-cylinder engine with four valves per cylinder and dual variable valve timing for Dodge Caliber SRT-4. The GEMA plants also machine and assemble cylinder blocks (aluminum), cylinder heads (aluminum), and crankshafts (steel).
"We stay focused on the core business - to manufacture and assemble best-in-class engines, with high quality and great affordability," said Bruce Baumbach, GEMA plant manager. "That means we rely on our service providers to give us the expertise we need to accomplish that task. The knowledge and experience of each of our team members is critical to our success."
GEMA is part of a global venture that includes Chrysler, Hyundai Motor Co., and Mitsubishi Motors Corp.
All GEMA facilities use a unique business model with lean manufacturing principles and innovative operating patterns to achieve world-class efficiencies.
"We congratulate this year's recipients in expanding their lean focus to all their business processes," the Shingo committee said in announcing the awards. "This year's recipients have demonstrated various best practices in world-class processes and have achieved outstanding results delivering high quality, competitive cost and high customer satisfaction."
The Shingo awards will be presented during the 20th Annual Shingo Prize for Operational Excellence Conference in Dallas, Texas, March 31 to April 3.
The Shingo awards are managed by the Utah State University College of Business.
Tuesday, March 18, 2008
Chrysler Mexico Reports February Sales Increase
Sales up 13.6 per cent versus February, 2007, marking 9 consecutive months of growth
Mexico City, Mar 17, 2008 - Chrysler Mexico reported February sales of 10,452 Chrysler, Jeep® and Dodge brand vehicles, an increase of 13.6 per cent compared to February, 2007. This marks the best February sales for Chrysler Mexico since 2001 and is the 9th consecutive month of sales growth for Chrysler Mexico.
“Chrysler Mexico continues its positive trend in 2008 and sets new records despite being in a slightly down market,” said Joseph ChamaSrour, President and Managing Director of Chrysler Mexico. “Contributing to our success is a broad and innovative product lineup that offers quality, technology, attractive designs and the best warranty in the business.”
February 2008 Sales Highlights
In February, the Jeep brand increased 58.6 per cent, pushing overall Chrysler Mexico SUV sales up 16 per cent. The successful SUV sales was led by the 7 model Jeep lineup, offered in Mexico, including the Compass, Patriot, Wrangler, Wrangler Unlimited, Grand Cherokee, Commander and Liberty.
The 2008 Chrysler Town & Country, maintains its momentum and minivan sales increased 19.7 per cent in February.
Chrysler de Mexico, headquartered in Santa Fe, Mexico has 1,200 salaried employees and 5,000 hourly employees.
Source: Chrysler
Monday, March 17, 2008
Chrysler clarifies vacation mandate
Development on products excepted
Chrysler LLC employees with time-sensitive jobs developing new vehicles or working with the company's dealers and customers will not be part of the company-wide two-week shutdown in July, the automaker's top executives said Friday.
However, "at least 75%" of Chrysler's 72,000 employees are expected to be off work the weeks of July 7 and 14, company Vice Chairman and President Tom LaSorda said.
The enforced vacation coincides with Chrysler's annual two-week summer shutdown of its assembly plants. Workers at the plants, including management and engineers, are expected to take their vacation at the same time as the shutdown.
"Really, it's taking a bold leap into the 1980s," Chrysler Chairman Bob Nardelli said, referring to the automaker's old practice of having everybody from the CEO to the janitor off work when the plants weren't running.
"If we shut down a factory, we should have its management team off when the factory is closed, not on vacation when we need them," he said.
Nardelli was bemused by the attention the plan drew when he announced it to employees in an e-mail Thursday.
"I looked up and I had knocked Eliot Spitzer off CNN," he said.
Work developing new cars and technologies for the automaker will continue during the period, said Frank Klegon, executive vice president for product development
Further UAW-American Axle talks held
The United Auto Workers union and parts supplier American Axle held further talks Friday but a work stoppage over wages and benefits appeared headed into its third week.
Negotiators met as police briefly arrested two people Friday outside the company's Detroit headquarters on disorderly conduct charges.
American Axle and Manufacturing Holdings Inc. spokeswoman Renee Rogers said bargaining took place Friday but she said she did not know if full negotiating teams were present for both sides. Only the lead bargainers for both sides met on Thursday, she said.
Rogers also did not know if any progress had been made before talks broke off Friday afternoon. Negotiations will resume Saturday, she said.
A message was left for UAW spokesman Roger Kerson.
About 3,600 UAW workers at five American Axle plants in Michigan and New York left their jobs for the picket lines on Feb. 26.
The resulting parts shortage forced General Motors Corp. to close all or part of 28 plants, affecting more than 37,000 hourly workers.
American Axle makes axles, drive shafts and stabilizer bars for GM, Chrysler LLC and other automakers. GM accounts for about 80 percent of American Axle's business, while Chrysler accounts for 10 percent and other automakers make up the rest.
American Axle parts go into GM's full-sized pickup trucks as well as its large sport utility vehicles and vans. The company and dealers say they still have plenty of inventory of the vehicles, and the strike so far has not affected sales.
Detroit police said on Friday they responded to reports that an entrance to an American Axle plant was being blocked.
Sgt. Eren Stephens Bell said officers arrested two people who were part of a demonstration by striking workers. They were given tickets for disorderly conduct and released, she said. Their names were not immediately released and it is not immediately known if they were American Axle employees.
Rogers said the picketers were stopping trucks from either entering or leaving the plant with parts for the company's customers.
American Axle, formed from parts plants sold by GM in 1994, says its hourly manufacturing labor cost is $73.48 in wages and benefits, three times the rate at its U.S. competitors. American Axle wants to cut that to $20 to $30 an hour, which would be similar to the agreements reached between the UAW and the in-house axle-making operations at Ford and Chrysler as well other parts suppliers.
Local union officials say workers make far less than $73.48 per hour, and that figure includes retiree health care and other costs that shouldn't be added in.
------
Associated Press Writer David Runk contributed to this report.
Tuesday, March 11, 2008
The American Axle dispute could affect up to 2,000 workers here.
| By NORMAN DE BONO, SUN MEDIA |
A strike at a Detroit parts plant is threatening to idle more than 2,000 London-area workers.
American Axle and Manufacturing Holdings Inc. supplies parts to Presstran and Formet in St. Thomas. Those plants may be shut down within two weeks if the strike drags on.
"If the axle strike continues we will be forced to have a layoff," Tracy Fuerst, director of corporate communications with Magna, said yesterday. "We are taking it day by day, but it will happen within two weeks if it continues. That is the timing."
But the good news is that negotiators for the United Auto Workers and American Axle returned to the bargaining table yesterday after a full weekend of bargaining.
"We are just hoping the two sides come to an agreement soon," Fuerst said.
About 3,600 UAW workers at five Michigan and New York American Axle plants, which make axles, driveshafts and stabilizer bars, have been on strike since Feb. 26.
Presstran employs 500 and Formet, also in St. Thomas, has more than 1,500 workers. Formet makes pickup truck frames and Presstran stamps underbodies for vehicles.
"Every time we lose jobs to layoff, whether short-term or not, I am concerned," said Dave Kerr, chair of the St. Thomas and District Labour Council. "It means money is being taken out of our economy. It impacts everything."
The impact may also widen throughout London as several parts plants supply General Motors, which accounts for nearly 80 per cent of American Axle's business. The London and area plants that sell to GM include Magee Reiter, Copperweld, Intier Automotive Inc., TDS Automotive, Thyssen-krupp Budd Systems and Amino, also in St. Thomas.
GM has said parts shortages from the strike -- mainly for GM's pickup trucks, large sport utility vehicles and vans -- are forcing it to shut down part or all of 28 plants, affecting 37,000 hourly workers, including its plant in St. Catharines.
The strike also could affect Chrysler. American Axle makes components for Dodge Durango, Chrysler Aspen and Dodge Ram vehicles.
The UAW has said American Axle is demanding wage reductions of up to $14 an hour and elimination of future retiree and pension benefits. The company says the union should agree to the same wage concessions it has with other suppliers and automakers.
It wants wages and benefits cut from $73.48 an hour to $20 to $30 an hour, and also said its original U.S. locations have lost money for three years.
Monday, March 10, 2008
Chrysler to close Calif. design studio
Richard Truett
Automotive News
March 10, 2008 - 12:01 am ET
DETROIT -- Chrysler LLC is closing its Pacifica Advance Product Design Center, the studio near San Diego where several key vehicles -- such as the 300 sedan, Dodge Challenger and Pacifica crossover -- took shape in recent years.
All of Chrysler's future design work will take place at Chrysler's headquarters in Auburn Hills, north of Detroit.
"Increasingly, we are leveraging resources worldwide, forming new joint ventures and alliances and consolidating operations in order to better achieve global balance and manage fixed costs. These moves are designed to help Chrysler become a more globally focused manufacturer, with design, engineering, sourcing and a local presence to serve local customers," Chrysler said in a statement.
It was not immediately clear how many employees would be affected by the closure of the Carlsbad, Calif., studio.
In the late 1980s, Chrysler was one of the first automakers to open a California design studio. A number of automakers have studios in California because of the state's influence on culture and automotive styling trends.
Chrysler spokesman David Barnas said the move was consistent with the automaker's strategy of controlling costs and consolidating operations where it can.
Chrysler may build vehicles in Russia
Rick Kranz
Automotive News Europe
GENEVA — Chrysler LLC aims to double vehicle sales outside North America by 2012 with help from an assembly plant in Russia.
Chrysler is negotiating with at least two automakers to build vehicles there and wants to make a deal this year.
Last year, Chrysler sold 238,000 vehicles outside the United States, Canada and Mexico. It sold 5,636 vehicles in Russia last year, up 40.2 percent from 2006.
"I would not rule out going into Russia and installing our own manufacturing facility or our own capacity," said Mike Manley, Chrysler's head of sales, marketing and business development. But the preferred choice is to "find a partner that has excess capacity or is looking for a partner."
"We are talking with some potential people," said Manley, who was interviewed at the Geneva auto show.
Russia's auto sales are booming and so are its auto suppliers.
"The supplier base in Russia is developing tremendously," Manley said. "The more manufacturers that are localized, the quicker you can get your production up and running. The time horizon I'm looking at for localization would be over the next two to four years."
Manley did not name models but said vehicles the size of the Chrysler Sebring, Dodge Caliber or smaller would be assembled in the plant.
He also said vehicle decisions are being made from a global sales perspective. Models might be dropped from the United States but sell outside North America. For example, despite talk that the Jeep Compass could be dropped in the United States, the small crossover sells well in Italy.
The Jeep Liberty SUV is Chrysler's top seller outside North America. Next year, Manley expects the new Dodge Journey crossover to be the No. 1 seller.
Manley expects sales outside of the NAFTA region to double in about four years. Chrysler has about 1,600 dealers outside North America and wants to boost that by 15 to 18 percent this year. The main regions targeted are China and countries in Asia, eastern Europe and Latin America.
Tuesday, March 4, 2008
Chrysler plans to double international sales in 5 years
Neil Winton / Autosinsider
GENEVA, Switzerland -- Chrysler LLC said it plans to double international sales to 400,000 a year by 2012 from 2007's level.
James Press, Chrysler Vice Chairman and President, made the forecast at a news conference at the Geneva Car Show.
Mark Manley, executive vice-president international sales, said the company was carrying forward the sales momentum it generated last year, when international sales rose 15 percent. In the first 2 months of 2008, sales rose 10 percent.
Press said Chrysler was in the process of regionalizing international sales responsibilities, and some European functions would be moved to Stuttgart, Germany from Detroit. Press gave no details.
Chrysler's Fenton plant may get temporary boost as Canadian strike continues
| |||||||||||||
Auto sales slide as economy takes toll
Trucks, SUVs take biggest hitFord, GM to cut output; Chrysler will roll out deals
Sharon Terlep / The Detroit News
The entire U.S. auto industry got hammered by a tough economy in February, but Detroit's Big Three automakers bore the brunt of the sales downturn as consumers shunned big trucks and SUVs or avoided showrooms altogether.
Battered by the economic forces that have been looming for months -- anemic home construction, high fuel prices and shaky consumer confidence -- domestic carmakers on Monday said they're taking action to stem the sales decline. General Motors Corp. and Ford Motor Co. announced impending production cuts, while Chrysler LLC will roll out sweeter deals to consumers.
"It's been an especially challenging first couple months of the year," said Ford marketing chief Jim Farley. "All of our predictions have come true."
Demand for GM cars and trucks fell 12.9 percent last month, the company's biggest year-over-year sales decline since July, while Chrysler LLC sales plummeted 14 percent. Ford Motor Co. fared the best of the domestic automakers, but still took a 6.6 percent hit in a market that was down 6.3 percent overall, according to Autodata Corp.
Among Asian manufacturers, Toyota Motor Corp. sales dropped 2.8 percent, but Honda Motor Co. sales rose 4.9 percent and Nissan Motor Co. got a 1.2 percent bump, helping all Asian automakers increase their collective share of the U.S. market to 41.8 percent, from 39.4 percent in February 2007.
Ford said it plans to build 10 percent fewer vehicles in the second quarter of 2008 compared to a year ago to bring production more in line with shrinking demand. GM forecast a 5 percent production cut in the second quarter.
Newly private Chrysler does not disclose production forecasts but on Monday announced plans to bolster incentive spending 5 percent this month.
"There is clearly a lack of confidence in spending on higher ticket items," said Steven Landry, Chrysler's executive vice president of North American sales. "Fuel costs are going up, you have the effects of the housing bubble, and it's starting to peek through to the automotive industry."
The U.S. Commerce Department reported last week that inflation-adjusted consumer spending is at its weakest since the winter of 2001, when the United States was emerging from the last recession. On Monday, the price of oil rose to an inflation-adjusted high of $103.95 before settling up 61 cents at $102.45.
Making matters worse for Detroit is the slumping sales of highly profitable pickups and full-size SUVs as high fuel prices make gas-friendly cars more appealing to jittery consumers.
GM truck sales fell 19.2 percent and Chrysler's dropped 23.1 percent. If not for some hot-selling small cars, including the Chevrolet Cobalt, Dodge Caliber and Ford Focus, last month's sales numbers would have been even uglier for the Big Three.
Small-car sales up
Competing in the small-car market is important as the segment grows, its popularity rising as Americans come to accept that high gas prices are here to stay. Small-car sales were up last month 4.9 percent from February a year ago, and have increased 5.7 percent this year.
But the trend is still painful for the truck-dependent Big Three. A Cobalt sedan, for example, retails for about $14,000, while the price tag on a base Chevy Tahoe SUV is $35,000. Even after last year's historic cost-cutting labor deals between the United Auto Workers union and the Big Three, the companies continue to earn more modest profits on those small vehicles compared to foreign-based rivals with cheaper labor costs.
"The vehicles may help with the showroom traffic; they don't help significantly the financial bottom line of the companies," said Jesse Toprak, chief economist at car shopping site Edmunds.com. "But they are mitigating a worse decline by creating some momentum in the cheaper end."
Ford, however, touted the success of its redesigned Focus that has been reeling in younger buyers. GM reiterated its promise to become a bigger, more respected player in the car market.
Incentives aimed at trucks
Even so, auto companies remain determined to keep moving their trucks.
GM Sales chief Mark LaNeve said the automaker likely will continue with incentives targeted at the biggest vehicles. Farley said Ford will tout the improved fuel efficiency of its redesigned F-Series pickups when they hit the market this fall. To perk up slumping truck sales, Chrysler is offering a no-charge Hemi-engine upgrade on its Ram 1500 pickup -- a $945 option.
Even car-heavy Toyota is no exception to the incentive game; the Japanese automaker has offered aggressive discounts on its remade Tundra pickup.
Amid the bleak news, new models continued to be a bright spot for Detroit. Sales were strong for GM's new Chevrolet Malibu and its crossover SUVs. Ford saw an 11 percent increase in sales of its redesigned Focus, as well as strong buying of its crossovers, the Ford Edge and Lincoln MKX. Chrysler's Town and Country minivan, redesigned last fall, got a 1 percent bump.
Auto executives were hopeful that last month could turn out to be the bottom for the struggling U.S. auto market. Car and truck sales have been running below the industry's trend for more than two years and are expected to hit a 10-year low in 2008.
Analysts said a federal economic stimulus plan could help bring consumers back to showrooms, and pent-up demand from shoppers who've been putting off buying a new vehicle could begin to surface later this year.
Said GM sales chief Mike DiGiovanni: "We think this quarter is the trough of the downturn."
Chrysler looks to double international sales
GENEVA (Reuters) - Chrysler LLC expects to double its international sales to about 400,000 vehicles within five years, the company's vice chairman and president, Jim Press, told reporters on Tuesday.
Chrysler remains open to partnerships to increase the sales and to reduce its development costs, Press said, adding that the so-called BRIC countries of Brazil, Russia, India and China offer growth opportunities for Chrysler.
"It isn't all about numbers," Press said on the sidelines of the Geneva auto show.
Press, who had said last week that forecasts for a recovery in U.S. auto in the second half of 2008 were "wishful thinking," also said Chrysler had not made any plans to cut its North American production, though it continues to watch the market closely.
Chrysler had cut back some production late in 2007.
"We were ahead of the game and anticipated this market before others did and made some adjustments to our production schedule early on," Press said.
"If the market continues to get more challenging, if the headwinds pick up, than we will re-evaluate," he said.
Chrysler LLC Honors Spike Lee with the Sixth Annual Behind the Lens Award
CNN’s Soledad O’Brien to Host
Auburn Hills, Mich., - Spike Lee, one of the most influential figures in contemporary cinema, has been named the Chrysler LLC 2008 Behind the Lens honoree. Lee, a director, producer, screenwriter, author and educator, is to be recognized for his outstanding achievements in film and television at the sixth annual award ceremony. Hosted by CNN's anchor Soledad O’Brien, the private invitation-only event will be held at the Beverly Wilshire Hotel in Los Angeles on March 26, 2008.
"We are very excited to have Spike Lee as the Behind the Lens Honoree for 2008,” said Frank Fountain, Chrysler Senior Vice President - External Affairs and Public Policy (Auburn Hills). “Spike Lee is synonymous with thoughtful and provocative filmmaking and activism in Hollywood which has inspired a generation of filmmakers, uplifted actors and expanded the field to include many more African Americans in key roles behind the lens. He fully embodies the spirit behind this award and Chrysler is delighted to celebrate his commitment and passion.”
In recognition of Lee’s accomplishments, the Chrysler Foundation will donate $25,000 to Lee’s alma mater, Morehouse College in Atlanta. The donation will benefit the vision of the Morehouse College School of Sports Journalism, a program created to expand the field of sports journalism from the small percentage of African Americans currently working in it today. The program, which began with seed money donated by Lee, launched its first course offerings in January 2007. A graduate of Morehouse, class of 1979, Lee is a third-generation Morehouse graduate and now serves on the school’s Board of Trustees. To date, his efforts have raised more than $1 million to benefit the program.
“It is an honor to receive this award and to be surrounded by so many whom have helped make this recognition possible,” said Lee. “I’m thrilled to join the group of talented artists and professionals who have previously received this award, all of whom are friends, mentors and partners. And I want to thank Chrysler for doing its part with this award to turn the spotlight on the men and women who create and shape the images that influence us every day.”
Lee’s film career began at New York University’s prestigious Tisch School of the Arts, where he drew critical attention for his master’s thesis, the short film Joe's Bed-Stuy Barbershop: We Cut Heads. He went on to write, produce, direct and edit his first feature film, She’s Gotta Have It, which earned him the Prix de Jeunesse Award at the 1986 Cannes Film Festival, the Independent Spirit Award for Best First Feature and the Los Angeles Film Critics Association New Generation Award. Since that time, Lee has directed 20 more feature films and feature-length documentaries including Jungle Fever, Malcolm X, Inside Man, 4 Little Girls and When the Levees Broke, all under the banner of his production company, 40 Acres and a Mule Filmworks. His prodigious talent includes commercials, directing numerous television spots including an acclaimed series of Nike ads featuring Michael Jordan and dozens of music videos for recording artists as diverse as Miles Davis, Public Enemy, Bruce Hornsby and Prince.
The consummate entrepreneur, Lee founded SpikeDDB in 1997, a minority-owned full-service advertising agency in partnership with DDB Worldwide. SpikeDDB has created multi-level advertising campaigns for Pepsi, Ambi Skincare and Mountain Dew, to name a few. 2008 will mark Lee’s Broadway debut when he directs a new production of “Stalag 17,” the 1951 comedy-drama about American prisoners of war written by two former POWs. Lee’s next feature film, “Miracle at St. Anna,” starring Derek Luke, Michael Ealy, Laz Alonso and Omar Benson Miller, based on the bestselling author James McBride’s novel, will be released in theatres Fall 2008.
Lee will be the sixth entertainment trailblazer acknowledged by Chrysler. Previous honorees include pioneers such as producer and composer Quincy Jones (The Color Purple), directors Gordon Parks (Shaft), Melvin Van Peebles (Sweet Sweetback’s Baadasssss Song), John Singleton (Boyz N the Hood), and Hollywood casting veteran and producer Reuben Cannon (Madea’s Family Reunion).
The Behind the Lens Award was established in 2002 by Chrysler to recognize and celebrate the achievements of individuals who work behind the scenes in the entertainment industry. Since its inception, the star-studded awards event has featured approximately 400 invited guests to share in the recognition and the accomplishments of the honoree.
Award recipients are chosen by a selection committee comprised of entertainment industry professionals and Chrysler representatives.
About Spike Lee
Spike Lee is one of most respected and prolific filmmakers of the last 25 years. Since his debut film She’s Gotta Have It earned him the Prix de Jeunesse Award at the Cannes Film Festival, he has been at the forefront of American cinema. An Emmy® winner and two-time Oscar® nominee, Lee received an Honorary Cesar, the national film award of France and has been honored by the Chicago Film Critics Association, the Los Angeles Film Critics Association, the Image Awards, the Independent Spirit Awards, the Las Vegas Film Critics Society and the Satellite Awards, as well as garnering nominations for the top prizes at the Cannes, Venice and Berlin International Film Festivals.
Multi-talented and undaunted, Lee has established himself as one of the most influential filmmakers of his time, directing and producing a series of critically-acclaimed movies including Inside Man, Malcolm X, Clockers, Do the Right Thing and Summer of Sam. He has helped launch the careers of well known actors including Halle Berry, Samuel L. Jackson, John Turturro, Wesley Snipes, Mos Def, Rosie Perez and Giancarlo Esposito.
His achievements in documentary filmmaking have been equally successful, including the Emmy winning When the Levees Broke: A Requiem in Four Acts, an acclaimed HBO mini-series documenting the devastation of the city of New Orleans by Hurricane Katrina and its aftermath, and Oscar nominated 4 Little Girls.
In addition to his achievements in feature films, Lee has produced and directed more than three dozen
music videos for artists as diverse as Miles Davis, Chaka Khan, Tracy Chapman, Anita Baker, Public
Enemy, Bruce Hornsby and Michael Jackson. He has also directed commercials for Nike, American Express, Ben and Jerry’s Ice Cream, Snapple, Fox Sports, Levi's, Pepsi and more.
He is the author of nine books, including Please, Baby, Please, written with his wife Tonya Lewis Lee.
In 1997, Lee founded SpikeDDB, a minority-owned full-service advertising agency in partnership with DDB Worldwide.
Lee is the artistic director of the NYU Tisch Graduate Program in Film, the school from which he received his MFA in filmmaking.
Furthering his commitment to education, Lee visualized and supports the Morehouse College School of Sports Journalism, a program created to expand the very powerful and lucrative field of sports journalism to the small percentage of African Americans currently working in it today. The program, which began with seed money donated by Lee, launched its first course offerings in January 2007. A graduate of Morehouse, class of 1979, Lee is a 3rd generation Morehouse graduate and now serves on the school’s Board of Trustees. To date, his efforts have raised over $1,000,000 to benefit the program.
2008 will mark Lee’s Broadway debut when he directs a new production of “Stalag 17,” the 1951 comedy-drama about American prisoners of war written by two former P.O.W.s. Lee’s next feature film, “Miracle at St. Anna,” based on the bestselling author James McBride’s novel, will be released in theatres Fall 2008.
Source: Chrysler LLC
Chrysler Retains Access to Daimler Technology
GENEVA -- Chrysler LLC Vice Chairman Jim Press said his company has unfettered access to technology developed by its former parent, Daimler AG.
Mr. Press, speaking to reporters at the Geneva Motor Show, said Chrysler can take advantage of technology harnessed by its former German parent as it seeks solutions for meeting stricter fuel-economy regulations and meeting consumer demand for better-mileage vehicles. "We have access to their advanced technology," Mr. Press said.
Cerberus Capital Management LP bought an 80.1% stake in Chrysler last year after the auto maker's failed marriage of several years with Daimler. Daimler retained ...
Chrysler Says No Economic Recovery Until 2009
<http://djnewsplus.com/ge/article/SB120462873934066614.html?mod=RSS>
Chrysler's Vice Chairman Jim Press says he doesn't see a depressed US auto market recovering until 2009. Sales, especially those of Detroit's Big Three auto makers, have suffered for more than a year amid rising energy prices.