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Jan 15, 2012 | 0 comments | View Post

Chrysler, Fiat CEO confirms Maserati SUV production for Detroit

Chrysler and Fiat CEO Sergio Marchionne, who has been successfully steering Chrysler since its emergence from Chapter 11 bankruptcy in 2009, confirmed Tuesday that Maserati will build a luxury SUV in Detroit. A concept version of the SUV called the Kubang made its North American debut Tuesday at the Detroit auto show.

Marchionne said the SUV will be exported worldwide from Detroit with an annual global sales target of 20,000.

Over the last two years Chrysler has launched the redesigned Jeep Grand Cherokee and Dodge Durango SUVS at its Jefferson North Assembly Plant in Detroit and both have become top-sellers for the company.

“Given what we have lived through in terms of the launch of the Grand Cherokee, and what’s happened with the Durango, we are getting a lot of confidence in the ability of that plant to make superb products, and to just really start making luxury, upper-end vehicles without necessarily having to apologize for the fact that it is Michigan based,” Marchionne said.

In fact, Marchionne argued that the decision to build the Maserati in Detroit has the potential to break myths about the kind of cars and trucks that U.S. automakers can produce.

“It sets a new benchmark for what the United States car industry can and should produce,” he said.

Last week Chrysler announced plans to add a third shift of 1,100 workers at the plant next year to support production of the Jeep Grand Cherokee, a new diesel version of the Cherokee and the Dodge Durango. Those numbers do not include the additional workers that will be needed to support production of the Kubang. Marchionne said the company is still calculating the number of additional jobs that production of the Kubang will generate for the plant.

The Kubang will have the same architecture as the Jeep Grand Cherokee and come from the same assembly plant on Detroit’s east side.

Maserati is owned by Fiat, which owns 58.5 percent of Chrysler.

The Kubang’s styling reflects Maserati’s history of building luxury cars. Despite SUV proportions and height, the trident badge, oval grille and bulging rear haunches would look at home on a Maserati sedan or coupe.

Maserati first showed the Kubang in September at the Frankfurt auto show.

The Kubang’s power will come from a new Maserati engine that Ferrari will build in Modena, Italy. An eight-speed automatic transmission will transmit power to all four wheels. Maserati says the suspension, steering, brakes and electronics are developed by Maserati engineers in Italy and will be unique to the brand.

http://www.chicagotribune.com/

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Jan 15, 2012 | 0 comments | View Post

Chrysler betting big on diesel, others wait

Chrysler’s plan to sell a diesel version of its Jeep Grand Cherokee SUV in North America shows the company is heading in a different strategic direction than most of its competitors.

In addition to the Grand Cherokee, Chrysler is likely to introduce diesel engines on the Jeep Wrangler, Dodge Durango and possibly other SUVs.

“We think that the market is ready to listen to a diesel story,” Chrysler and Fiat CEO Sergio Marchionne said last week.

Today’s improved diesel engines are more fuel efficient than gasoline engines, but they cost as much as $1,500 more.

Some automakers — such as Ford, General Motors, Honda and Toyota — have put more effort into developing hybrid or electric vehicles.

“To some extent, it’s a cultural thing,” said Mike Omotoso, senior manager for powertrain forecasts for LMC Automotive. “The Chrysler powertrain strategy is really being driven by Fiat, and Fiat is a European company specializing in small diesel engines.”

Marchionne said 90% of Jeep Grand Cherokees sold in Europe have diesel engines because gas prices in Europe are substantially higher than in the U.S. In Europe, Chrysler uses a diesel engine made by VM Motori, an affiliate of Fiat, which owns 58.5% of Chrysler.

In the U.S., Chrysler produces the Grand Cherokee and the Dodge Durango at the same plant in Detroit.

“Once we install a (diesel) in a Jeep Grand Cherokee, the installation on the Durango is rather easy,” Marchionne said.

Mike Manley, president and CEO of the Jeep brand, said Jeep enthusiasts have long clamored for a diesel version of the Wrangler.

“Off-roaders like diesel because of the torque that it brings to the vehicle,” Manley said. Ford, in contrast, is pressing forward with its direct-injected, turbocharged engines marketed under the EcoBoost name for cars, crossovers and SUVs.

Ford expects to build about 560,000 EcoBoost engines this year and 1.5 million annually by 2015. On F-150 pickups, about 40% of Ford buyers have opted for these smaller engines.

“Our diesel strategy is focused on (larger) trucks,” said Mark Fields, Ford president of the Americas, referring to Super Duty pickups, 60% of which are sold with diesels.

John Krafcik, president and CEO of Hyundai North America, said he would rather spend the additional money it takes to develop and build diesel engines on improving gasoline engines.

Over the last several years, Hyundai has launched four cars that get 40 m.p.g. on the highway with direct-injected gasoline engines (Veloster, Elantra, Accent and Sonata). In 2011, Hyundai sold 214,132 of those models.

“If you can get your gas engine within 13% of the efficiency of a diesel engine, it makes it worthwhile,” Krafcik said.

Historically, American consumers have been reluctant to buy cars with diesel engines because they remember the smelly, loud cars automakers sold in the 1970s and 1980s.

Also, diesel fuel costs more than gas in the U.S. According to AAA, diesel fuel is selling for an average of $3.87 a gallon in the U.S. compared with an average of $3.39 for unleaded regular and $3.66 for premium.

But a diesel engine is about 30% to 35% more fuel efficient than a gas engine in the same vehicle.

Joe Bakaj, head of Ford powertrain engineering, expects more diesels in North America after 2016 when European emissions standards change to become closer to U.S. regulations.

Europe regulations are aimed at carbon-dioxide emissions while the U.S. regulations center on smog-producing nitrogen oxides, making it expensive to create different systems in each region.

Next year, GM plans to add diesel versions of its Chevrolet Cruze and Cadillac ATS, a compact car revealed this week at the Detroit auto show.

Volkswagen began selling cars with diesel engines in the mid-1980s. Today, the German automaker offers five cars and crossovers with diesel engines. Last year, about 70,000, or 21% of the 324,000 cars and crossovers sold by Volkswagen in the U.S., came with diesel engines.

Audi will offer a choice of gasoline or diesel in the Audi Q3 Vail compact crossover to be in the U.S. in 2014, said Audi of America President Johan de Nysschen.

http://www.freep.com/

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Jan 15, 2012 | 0 comments | View Post

Chrysler Group LLC’s Mid-Atlantic Business Center Presents Toys for Tots Foundation With $150,000

AUBURN HILLS, Mich., Dec. 22, 2011 — /PRNewswire/ – Today, the Mid-Atlantic Business Center (MABC) presented representatives from the Toys for Tots (TFT) Foundation with a check for $150,000. This represents a $100 donation for every Town & Country, Grand Caravan and Journey sold since Nov. 14 when the program commenced. In fact, the MABC is STILL making a $100 donation for every 2011 and 2012 minivan or Dodge Journey sold through Mon., Dec. 26, so the total donation to the foundation will amount to more than the $150,000 presented today! This donation will be put toward purchasing holiday gifts for families in need within communities in the Mid-Atlantic (VA, WV, PA, DE, MD, Southern NJ).(Photo: http://photos.prnewswire.com/prnh/20111222/DE27139 )In addition to making donations to the TFT Foundation, Chrysler dealers in the Mid-Atlantic region served as Toys for Tots toy drop-off locations. Since early November, our dealers have worked diligently with their communities to collect hundreds of toys for children in need this holiday season. Customers can still visit their local Chrysler & Dodge dealers to make toy donations through Mon., Dec. 26. Customers can also get incremental $750 Holiday Bonus Cash toward the purchase of a 2011 or 2012 Chrysler Town & Country, Dodge Grand Caravan or Dodge Journey through Jan. 3, 2012. About Chrysler Group LLC Chrysler Group LLC, formed in 2009 to establish a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar, SRT and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat’s complementary technology that dates back to its founding in 1899.Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world’s most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler, Dodge Durango, Ram 1500, Jeep Grand Cherokee SRT8 and Fiat 500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

http://www.sacbee.com/

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Dec 24, 2011 | 0 comments | View Post

2011 sales are heavy on light trucks

DETROIT — Nearly two of every three vehicles the Detroit Three have sold this year are light trucks, but more fuel-efficient engines, smaller crossover models and seasonal patterns indicate this isn’t a return to the bad old days, say analysts and dealers.

Pickup trucks, SUVs, crossovers and, in Chrysler’s case, minivans accounted for 65.8 percent of General Motors, Ford and Chrysler 2011 sales through November, according to Autodata. That’s up from 64 percent last year and the domestic automakers’ heaviest truck concentration since 66.3 percent in 2004.

“What is different than in the past for the domestic automakers is that they’re selling a lot of smaller SUVs — Ford Escape was the best-selling compact SUV in November,” said Jessica Caldwell, a sales analyst with Edmunds.com. “Jeep Compass has done really well for Chrysler, as has Equinox for Chevrolet.”

For perspective, light trucks made up 46.7 percent of Honda’s U.S. sales through November; 45.3 percent of Toyota’s; 34.4 percent of Nissan’s and only 20.3 percent of Hyundai’s.

Does this matter?

Not much when gas is selling for less than $3.50 a gallon, said Jesse Toprak, an analyst with TrueCar.com.

“There is a risk if gasoline climbs back above $4 a gallon,” Toprak said.

Pickups and SUVs sell well in the winter, especially in northern states. But the other factor driving this light-truck surge is pent-up demand.

“What is different than in the past for the domestic automakers is that they’re selling a lot of smaller SUVs — Ford Escape was the best-selling compact SUV in November,” said Jessica Caldwell, a sales analyst with Edmunds.com.

“Small businesses, who are a big part of the market for pickups and vans, tend to wait longer for the dust to settle in the economy before they make their purchase decisions,” Toprak said. “But when they see signs of life, these buyers tend to start a bit of a chain reaction.”

Some pundits argue that Detroit is falling into old habits.

“For all of the talk of cutting costs to eke profits out of sedans and compacts, trucks are still the profit center,” wrote Jordan Weissman, a blogger at the Atlantic Monthly.

That overlooks some major innovations.

First, GM actually increased the percentage of sales from passenger cars this year, thanks largely to its compact Chevrolet Cruze. Second, the powertrains of pickups and SUVs have changed dramatically.

Ken Czubay, Ford vice president of U.S. marketing, sales and service, boasted that 51 percent of the F-150 pickups sold in November were powered by a V6 engine. As recently as a year ago, nearly all F-150s had V8 engines under the hood. Ford also offers a 2.0-liter four-cylinder engine as a choice on its hot-selling Explorer.

In addition, certain types of trucks have attractive rebates or discounted financing.

“You can get a decently equipped GMC Sierra for less than $300 a month,” said Todd McCallum, operations director for LaFontaine Automotive Group.

What happens if gas prices approach $4 a gallon again?

“The domestic companies have small car options that are very competitive where they weren’t in the past,” said Jeff Schuster, head of forecasting for LMC Automotive.

http://www.lvrj.com/