Thursday, September 4, 2008

Simply put, the new '09 Ram is the best truck ever built.

Motor Trend Magazine - I could go on and on about all of the different features and reasons that support my statement, but I'm tired. And that would requires a seriously long post!

Two areas really stand out in the new Ram. First, the ride and handling is absolutely amazing. NVH is way down compared to the '08 Ram and all the competition. I even had the chance to compare the new Ram to a Mercedes E350. Honestly, the Ram proided a ride equally as smooth, even though it obviously has much more work capability. The coil-spring rear axle is no gimmick. Go test drive a new Ram and try not to be impressed with how it feels.

Second, the interior is a giant step forward for Dodge and all light-duty trucks. The entertainment/GPS system is the best in the business (complete with a 10 speaker Alpine system), the seats are extremely comfortable, storage is a usual class-leading, and quality and appearance are top-knotch (such as the leather stiched dash). Once again, go hop in one for yourself and experience it.

Dodge didn't aim to make the Ram quicker down the 1/4 mile or able to haul a heavier trailer. (Buy a performance car if you're after speed and a diesel 3/4 ton if you need to pull over 10,000lbs!) However, Dodge did aim to make the Ram more comfortable, refined, and owner friendly. And they hit the bullseye.

If any of you have specific questions about the new Ram or how it stacked up against the competition, don't hesitate to ask for my opinion. Also, as I've stated, your best off experiencing it for yourself.




____________________________________________________________

New Chrysler executive James Press tries to jump-start the troubled auto company

Jim Press, Chrysler president and vice chairman.
Anne Cusack / Los Angeles Times
Jim Press, Chrysler president and vice chairman during an interview with Times reporters and editors.
By Ken Bensinger and Martin Zimmerman, Los Angeles Times Staff Writers
September 4, 2008
After 37 years at Toyota Motor Corp., during which time he rose to the top job in North America, James E. Press shocked the car world by jumping to Chrysler last year.

It was a dramatic transition, from being the only American on the board of the world's most successful car company to co-president and vice chairman of the smallest, and most troubled, of the Big Three U.S. auto manufacturers.

While Toyota soared, gobbling up market share and surpassing all but General Motors Corp. in U.S. sales, Chrysler slumped. A nearly decade-long merger with Daimler ended ungracefully; the German carmaker sold 80% of the company to private equity shop Cerberus for $7.4 billion last May -- a fraction of what it paid for Chrysler in 1998.

Newly private Chrysler, headed by former Home Depot Chairman Robert Nardelli, made Press its key industry hire. Since then, Chrysler has signed a cost-cutting major new contract with the United Auto Workers that will significantly reduce the high cost of manufacturing its vehicles. It also announced plans to cease production of four vehicles, cut production by more than 1 million vehicles and shrink its pool of dealerships.

The company also signed a pact with Nissan Motor Co. to produce trucks in exchange for small cars that it will sell in South America and, eventually, the U.S., and inked a deal with Chinese carmaker Chery Automobile Co. to make small cars that could make Chrysler the first company to bring Chinese autos to the U.S.

Meanwhile, Chrysler has fallen to No. 5 in U.S. vehicle sales and, according to Press, has no hopes to turn a profit until 2010 at the earliest.

A California native and an avid swimmer (he calls swimming his job and cars his hobby), Press has lived in Japan and New York but now calls Detroit home. He visited the Los Angeles Times this week to discuss the rebuilding of Walter P. Chrysler's auto company. The interview was edited for length and clarity.

Chrysler has had some pretty significant decreases in the volume of vehicles it sells. You've described that as a good thing. Can you explain?

Volume is vanity; gross profit is sanity. In an attempt to try and maintain a bigger market share and a higher sales volume, we were making decisions that economically weren't in the best interest of the company. Fleet sales are an example of that. There's no economic benefit, because the long-term effect of fleet is to deteriorate your residual values. That's a case where we could actually sell fewer cars but financially be in better shape and position ourselves for more retail business, which is really the key.

The old metric of volume doesn't really work anymore, because the more some companies sell, the more they lose.

What's the ideal number you want to get to in terms of U.S. sales volume?

We're closer to 2 million or 2.5 million per year as a car company (as opposed to a goal of 4.5 million previously). That's about where we're going to wind up. The market is going to recover in 2010, 2011 or 2012, and we've got some good new products coming and that growth should be attainable.

Do you see getting smaller not just by cutting back on fleet sales but also by trimming back the lineup?

Exactly. Our product portfolio has been brought down to where we're focusing more on profitable models. Vehicles that haven't been increasing profit we quit building.

The really profitable segments of trucks and SUVs aren't going to be there in the future. The profitable cars of the future are going to be environmentally friendly vehicles, socially responsible products. They're going to have smaller margins.

It's a much more competitive environment.

Making cars that are fuel efficient is not what Chrysler is perceived as being strong at. Is Chrysler in a strong enough financial position to bring those products to market?

Absolutely. The small car has been an entry-level, low-equipment, low-margin vehicle. This transition of customers into smaller, more fuel-efficient vehicles doesn't mean they're giving up their desire to have comforts and luxuries. If you can maintain the margins, you could make money on those vehicles.

We have accelerated our alliance partnership program to be able to introduce those platforms much faster than if we had to develop them ourselves. An example of that is our partnership with Nissan. We don't have a lot of low-cost, entry-level sedans. But it's a segment we'll be in by 2010.

Ford is going to make their Fiesta in Mexico and then focus on building their F-series trucks in the US. Is it possible that Chrysler will build its small cars outside the U.S. and its trucks in the U.S.?
We produce vehicles in Mexico, but we also just announced a $1.8 billion investment in our Jefferson North plant in downtown Detroit. Our new agreement with the union has given us much better parity in terms of labor costs. The value of the dollar has declined, which has given us a more competitive position in terms of sourcing components. We're not in an environment any longer where this is such a high-cost country. I think that through some creative innovative engineering and design we can continue to become more efficient here.

What do you see as your biggest challenge in helping the company through these turbulent times?

Our biggest issue is credit. Getting people financed that could have been financed before is difficult and the cost of that credit is substantially higher. A lot more people are being turned away. That's why we switched our financing to allow our customers to buy a car rather than lease it.

Instead of leasing a car and turning it in after 36 months, they get to keep the car.

Why are carmakers asking for $50 billion in loan guarantees from the government?

This wasn't the auto industry's request. It was in the energy bill that was passed last year. When they cranked up fuel economy requirements, in that bill they provided $25 billion worth of loan guarantees to help auto manufacturers and suppliers retool to produce vehicles that could achieve those levels. When you take a look at the broader section of potential customers that might draw on that line of credit, it becomes apparent that maybe $50 billion might be an appropriate number. It accelerates the introduction of technology in the market to help reduce our dependence on foreign oil and improve greenhouse gas emissions. The longer it takes to transition to that technology, the further behind we are. It's not a loan bailout, and it's not because the U.S. car companies are distressed.

What are your plans for the product line?

We just introduced the Journey, which is a four-cylinder crossover SUV, seven passengers, 25 mpg, under $20K starting price. We're also investing $3 billion in the Phoenix engine.

It's an investment in a revolutionary new technology that will give us high fuel efficiency and really good performance.

What are you doing to address quality problems?

In the last year, we've made substantial improvementsto our vehicles. By focusing on fewer models, we can make sure that those we develop have a lot more robust quality in testing and development. The commitment of the people and the focus on quality has been improved by adding the first-ever chief customer officer. And we have quality teams which manage quality by vehicle system, across all vehicle lines, powertrain, brakes, all areas. This way if you take people who just know brake systems, they can pick up problems through all car lines.

Now that you're selling the Viper brand, are you thinking of selling other assets?

We've been selling assets. Now that we're a private company, we don't have to worry about disposition of idle assets. We just sold a plant down in Italy that has been unused for a number of years that they couldn't move off the books because they didn't want to take a hit on the balance sheet. But we're not selling the whole company off. Cerberus said it's a long-term investment for them.

What's the biggest difference between Toyota and Chrysler?

Toyota has been focused on the market, on the customer. The decisions drive up from the marketplace to the customer. What I found at Chrysler, before Cerberus ownership, was it was primarily manufacturer driven, where they decide what the manufacturer wants and they try to move that out to the customer. That paradigm might have worked in the past, but in today's age it doesn't. That's Cerberus' main desire, to achieve a customer-driven model. We've invested a half a billion dollars in changing the vehicles. You can't charge more for it, but the customer is going to know it sounds better, it smells better, it feels better. It's an enhancement of what the customers want.

Any regrets about leaving Toyota?

I had 37 great years at Toyota. I had a great career. Toyota does so many things right and to apply those lessons to a company that has a shot of making it and transitioning has been very rewarding. It's a different world, it's a different business. In the beginning [at Toyota], we were begging gas station owners to take three cars and enough parts to repair one. They were our first dealers. It was a completely different world. They were really smart.

Jeep Liberty or Dodge Nitro to be phased out, officials say

Nameplates will be merged by 2012 model year

Photo
A Dodge Nitro moves down the line at Chrysler's Toledo North Assembly plant. With sales down 44 percent from last year, experts expect the Nitro nameplate to be dropped.
( THE BLADE )

Chrysler LLC officials yesterday confirmed that they will phase out either the Toledo-made Jeep Liberty or the Dodge Nitro sport utility vehicle by the 2012 model year.

Steven Landry, vice president of North American sales, told industry analysts that the slow-selling Nitro and its near-twin, the Jeep Liberty, would be merged behind one nameplate within three years.

"If you put sales of Liberty and Nitro together, it's doing what we want it to do," Mr. Landry said while discussing the poor August sales of the two vehicles.

"As we move toward 2012, we won't have this dual branding," Mr. Landry said, citing a previously announced effort to scale back the automaker's offerings. "That's when we'll just come back with one branded body of those particular vehicles, instead of two."

Experts generally expect the Nitro would be the vehicle to be dumped and, in the past, said they anticipated it would happen before 2012.

Liberty's 4,654 sales were down 14 percent from August, 2007, but up 24 percent from July. Nitro's 1,991 sales fell 71 percent in August from the same period a year ago, but were 21 percent higher than in July. For the year, Chrysler has sold 49,330 Libertys, down 20 percent from a year ago, and 27,540 Nitros, down 44 percent from last year.

Chrysler officials this year rolled out Project Genesis, an effort to eliminate duplicate vehicles within their product lineup to focus each of the company's three brands: Jeep, Chrysler, and Dodge. The project would trim its dealer network to get them to sell all three brands.

Denny Amrhein, co-owner of GroganTowne Chrysler-Dodge, said the Nitro is far more likely to be eliminated than the Liberty, but the effect will be muted if Chrysler is successful in its efforts to combine dealerships.

"I think 2012 is a pretty good time frame for what they plan to do with those two cars," he said. "It's going to be fine as long as you have the dealers with all three lines, but it will be hard if you don't, because you can't sell the vehicles if you don't have the product."

Officials with United Auto Workers Local 12 could not be reached for comment yesterday. About 2,200 UAW members work at the Toledo Jeep Assembly plant producing the Liberty and Nitro. It is unclear what ending one of the vehicles would do to the plant or to employment, as UAW leaders have pushed for making another vehicle at that location.

Introduced in late 2006 as the brainchild of Chrysler's former German owners, the Dodge-badged Jeep knockoff received a disappointing welcome from consumers, selling just 74,285 units in 2007. It is built on the same line as its sister SUV, the Liberty. Chrysler had accumulated a 224-day supply of the vehicles through July 1, versus the 60 to 80-day supply typically desired by automakers.

Yesterday, Mr. Landry said that the inventory of unsold Nitros had fallen to 12,408 units, a number that would translate to about a 194-day supply.

After the conference call, Chrysler spokesman Stuart Schorr verified what Mr. Landry had said, but sought to clarify the comments.

"That means we could take out products that overlap, add products where we don't compete today, and make sure new products and new generation of current products have distinct customer targets," he told The Blade. "We have not made any announcements specific to eliminating vehicles or nameplates."

Also yesterday, Chrysler reported that sales of the Toledo-built Jeep Wrangler declined 32 percent during August to 6,469 units, and were down 30 percent for the year to 59,005.

Like other automakers struggling with car sales this summer, Chrysler sweetened incentives at dealerships to lure potential customers to purchase vehicles or to lease them through third-party lenders.

Contact Larry P. Vellequette at:

Chrysler banks on vehicles' quality

Automaker tucks away less for warranty fixes

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER

Chrysler LLC is so confident in the quality of its new vehicles that it has set aside less money to pay for future warranty repairs, a top executive tells the Free Press.

Internal numbers at the Auburn Hills automaker show a 29% decrease in the rate of warranty claims in new vehicles since February -- when a new quality program was instituted -- compared with a year ago. This allows the company to save "hundreds of millions of dollars" in money reserved to pay for problems, said Doug Betts, Chrysler's chief customer officer.

Betts was hired almost a year ago from Nissan Motor Co., after Cerberus Capital Management acquired a majority stake in Chrysler, and given the task of improving quality -- something that has eluded the automaker in third-party studies of its Chrysler, Dodge and Jeep brands.

"When you ship a car, you reserve the money for its whole lifetime of warranty. Based on where you think you're at, that's how much money you reserve," Betts said. A decrease of "30% ... is hundreds of millions of dollars."

Since becoming private, Chrysler has placed greater attention on cash management. The company said it has $11.7 billion in cash and marketable securities on hand, and that in the first half of this year, it earned $1.1 billion before interest, taxes, depreciation, amortization and certain restructuring charges.

Betts said Chrysler is measuring quality by the rate of warranty claims within a new vehicle's first 3 months in service, a reliable bellwether for predicting total problems for the life of a vehicle's warranty. "We can see the trend," Betts said.

Chrysler set up 18 teams to address key systems of a vehicle -- such as brakes, air-conditioning, engine and transmission -- breaking down the automaker's old way of doing things. "Before, we were functionally oriented," Betts said. "Before, you'd have a group of design engineers working on what they believed to be design engineering's responsible problems. Manufacturing was working on manufacturing's responsible problems. The trouble is, you can't look at a problem and know with certainty whether it's design or manufacturing or supplier, so lots of problems don't get solved efficiently because there's some debate over whose problem it is."

The new system allows for the automaker to more quickly address problems, he said. "We're finding that not only are we solving the problems faster, but the solutions are more likely to hit the mark. There's a higher percent of actually solving the problem," Betts said.

Frank Ewasyshyn, Chrysler executive vice president of manufacturing, told the Free Press that seeing the warranty expense per unit sold decrease by 29% is "a sign of improvement in process quality." He added: "As we go forward, we're going to continue to see more improvement. What we've got to get at are the perceived quality" issues, he said.

A recent J.D. Power and Associates survey of long-term quality showed Chrysler's three brands ranking below the industry average. Another J.D. Power survey, this one of new-car quality, released in June, ranked the Jeep brand last among 36 brands. Chrysler and Dodge, which showed some improvements over last year, lagged behind the industry average.

Betts said there's a new goal at Chrysler: to rack up red dots in Consumer Reports. Car shoppers are heavily influenced by the magazine.

"There's a long wait on Consumer Reports," Betts said. "We're really using Consumer Reports as our way of setting a target for ourselves."

"It will take awhile," he added, noting it will take a few years for improvements made now to show up in that study.

Chrysler to stop making Nitro or Liberty

http://abclocal.go.com/wtvg/story?section=news/consumer&id=6368646

Wednesday, September 3, 2008

2004 Dodge Viper SRT-10


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Chrysler LLC Reports August 2008 U.S. Sales; Continues 'Shop 'Til You Drive' Campaign With Up to 40 Percent Off MSRP

- Dodge Grand Caravan and Chrysler Town & Country minivans have strong sales month, up 7 percent over last year - Dodge Ram light-duty truck and Jeep(R) Liberty performance improves versus July - Dodge Journey gains momentum; buyers coming out of larger SUVs - Dodge Charger sales continue to grow - Up to 40 percent off MSRP available in September


Last update: 3:50 p.m. EDT Sept. 3, 2008
AUBURN HILLS, Mich., Sept 03, 2008 /PRNewswire via COMTEX/ -- Chrysler LLC today reported total August 2008 U.S. sales of 110,235 units, down 34 percent from the same period last year. Total August sales reflect an industry-wide slowdown, segment shifts and reduced fleet sales. Compared with July 2008, Chrysler's August sales increased 12 percent supported by enhanced financing offers, efforts to shift lease-oriented customers to purchasing, leasing availability from independent financial institutions and better demand for key vehicles. Although Chrysler Financial is no longer offering leasing options to Chrysler customers, customers are still able to lease Chrysler, Jeep and Dodge products through independent financial institutions and qualify for available discounts.
"The industry is changing rapidly in terms of what vehicles and features customers want and the leasing and financing options available to them," Jim Press, Chrysler LLC Vice Chairman and President, said. "To help consumers, we are offering some of our most popular vehicles at significant savings. In August, we saw this formula generate new signs of momentum on vehicles like our Chrysler and Dodge minivans, Dodge Ram light-duty trucks and Jeep(R) Liberty. In September, we will continue to offer competitive values and showcase dynamic new vehicles like the 2009 Dodge Challenger, and hybrid Dodge Durango and Chrysler Aspen SUVs."
September Incentives
Chrysler's 'Shop 'til You Drive Sales Event' continues through Sept. 30, offering up to 40 percent off MSRP on select vehicles, and zero percent APR for 72-months on the 2008 Dodge Ram, Dodge Durango, Chrysler Aspen, Jeep Grand Cherokee and Jeep Commander. Especially strong values are available on Dodge Ram pickup trucks, with up to $9,000 discounts in select markets.
In September, customers can continue to take advantage of consumer bonus cash of $2,000 on select retail purchases when financed through Chrysler Financial. For those customers who still wish to lease a Chrysler, Jeep or Dodge vehicle through an independent financial institution, they can take advantage of Chrysler's Customer Cash Allowance on select vehicles up to $2,000.
Returning lease customers will receive a Lease Loyalty incentive up to $750 for use towards the retail purchase of an eligible new Chrysler, Jeep or Dodge vehicle. The disposition fee, up to $425, will be waived by Chrysler Financial.
August Sales Highlights
Total Chrysler LLC minivan sales were up 7 percent compared with a year ago. The Dodge Grand Caravan posted sales of 9,422 units, nearly flat when compared with August 2007 sales. However, when compared with July 2008, Grand Caravan sales were up 54 percent. The all-new Chrysler Town & Country posted increased sales of 10,182 units in August, up 15 percent compared with August 2007 sales, and up 26 percent when compared with July 2008 sales.
Total Dodge Ram light-duty truck sales have doubled in the last 60 days, (June sales 9,172 units vs. August sales 18,774 units). Although sales were down 7 percent when compared with August 2007, sales increased 16 percent when compared with July 2008 sales. The 2009 model year Dodge Ram will begin arriving in Dodge dealerships in September.
The all-new 2008 Dodge Journey continues to gain momentum in the expanding mid-size crossover segment by capturing more than 35 percent of its buyers from owners of larger SUVs who are looking for efficiency and versatility. More than half of all Dodge Journey sales were first-time customers to the Dodge Brand. Journey posted sales of 4,587 in August, a 33 percent increase when compared with July 2008 sales of 3,449 units.
Chrysler LLC sold 4,654 units of the Jeep Liberty in August, a decrease of 14 percent when compared with August 2007. However, the vehicle picked up some momentum in August increasing sales 24 percent when compared with July 2008 sales.
Sales for the Dodge Charger continue to grow. In August, 8,102 Dodge Chargers were sold, a 3 percent increase versus 2007 sales, and a 48 percent increase compared with July 2008 sales.
The Company finished the month with 380,560 units of inventory, or a 93-day supply. As part of a planned reduction in manufacturing and capacity, inventory is down 15 percent compared with August 2007 when it totaled 446,249 units.
About Chrysler LLC
Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. Total sales worldwide in 2007 were 2.7 million vehicles. Sales outside of North America were the highest ever with an increase of 15 percent over 2006. Its product lineup features some of the world's most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler and Grand Cherokee and Dodge Challenger and Ram. The Chrysler Foundation, the company's philanthropic arm, annually supports hundreds of charitable organizations in the United States and throughout the world. In 2007, the Foundation gave approximately $21 million in charitable donations.
               Chrysler LLC U.S. Sales Summary Thru August 2008

Month Sales Vol %
Model Curr Yr Pr Yr Change
Sebring 4,140 7,659 -46%
300 3,688 9,016 -59%
Crossfire 162 372 -56%
PT Cruiser 3,808 10,938 -65%
Aspen 1,922 3,599 -47%
Pacifica 435 3,228 -87%
Town & Country 10,182 8,838 15%
CHRYSLER BRAND 24,337 43,650 -44%
Compass 1,602 3,625 -56%
Patriot 4,019 5,081 -21%
Wrangler 6,469 9,464 -32%
Liberty 4,654 5,387 -14%
Grand Cherokee 4,736 12,265 -61%
Commander 1,996 5,890 -66%
JEEP BRAND 23,476 41,712 -44%
Caliber 4,022 9,320 -57%
Avenger 3,557 5,989 -41%
Charger 8,102 7,846 3%
Challenger 2,077 0 0%
Viper 104 1 N/A
Magnum 148 1,087 -86%
Dakota 1,032 4,620 -78%
Ram P/U 24,974 32,309 -23%
Journey 4,587 0 0%
Caravan 9,422 9,548 -1%
Durango 1,430 3,284 -56%
Nitro 1,991 6,931 -71%
Sprinter 976 1,906 -49%
DODGE BRAND 62,422 82,841 -25%

TOTAL CHRYSLER LLC 110,235 168,203 -34%

TOTAL CAR 26,016 42,308 -39%
TOTAL TRUCK 84,219 125,895 -33%
Selling Days 27 27


Sales CYTD Vol %
Model Curr Yr Pr Yr Change
Sebring 55,978 62,220 -10%
300 47,520 81,020 -41%
Crossfire 1,453 7,789 -81%
PT Cruiser 39,935 71,243 -44%
Aspen 16,368 18,593 -12%
Pacifica 5,077 38,691 -87%
Town & Country 86,058 90,453 -5%
CHRYSLER BRAND 252,389 370,009 -32%
Compass 21,396 28,421 -25%
Patriot 44,154 23,367 89%
Wrangler 59,005 83,944 -30%
Liberty 49,330 62,035 -20%
Grand Cherokee 52,768 82,827 -36%
Commander 21,064 45,615 -54%
JEEP BRAND 247,717 326,209 -24%
Caliber 67,940 74,004 -8%
Avenger 49,328 50,830 -3%
Charger 72,102 80,225 -10%
Challenger 6,067 0 0%
Viper 786 324 143%
Magnum 6,742 18,714 -64%
Dakota 21,004 37,188 -44%
Ram P/U 175,246 246,878 -29%
Journey 30,767 0 0%
Caravan 91,342 120,055 -24%
Durango 16,723 34,661 -52%
Nitro 27,540 48,745 -44%
Sprinter 10,477 9,704 8%
DODGE BRAND 576,064 722,806 -20%

TOTAL CHRYSLER LLC 1,076,170 1,419,024 -24%

TOTAL CAR 309,002 386,195 -20%
TOTAL TRUCK 767,168 1,032,829 -26%
Selling Days 206 205



SOURCE Chrysler LLC