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.

 

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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.

 

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Chrysler Mobile Showroom hits road for national tour



Employees, suppliers and affinity partners of the Chrysler Group will get the chance to check out the all-new and significantly-refreshed lineup of 2011 models during the 2011 Chrysler Road Tour, which kicks off this week. With 95 stops on the extensive 19-week tour that provides employees the opportunity to talk, where they work, with product specialists about the 2011 Chrysler, Jeep, Dodge, and Ram Truck models, as well as the 2012 Fiat 500 model.

 Chrysler Mobile Showroom hits road for national tour

“This is a terrific way to discover everything you want to know about our 2011 models without leaving work and in a no-pressure environment,” said Reid Bigland, president/CEO for Dodge and head of U.S. Sales. “After employees examine our new 2011 models in this unique mobile showroom experience, they can visit their local dealers to purchase or lease their favorite vehicle.”

The one day at each stop event includes vehicle demonstrations, complimentary food, beverages and prizes plus event souvenirs. As an added bonus, the tour includes a photo op with Kurt Busch’s No. 22 NASCAR Dodge Charger. Where space allows, employees will have a chance to test drive certain vehicles. The product specialists will explain discount programs available to employees. They need only ask to receive explicit instructions on how to find their local dealer and take advantage of those discounts.

Admittedly the real stars of the 2011 Chrysler Road Tour are the vehicles. From popular family haulers like the Chrysler Town & Country and Dodge Durango MPV, to the rugged 1500 Ram pickup and all-new Jeep Grand Cherokee – the 2011 Chrysler Road Tour has a vehicle for every need.

Other models featured include the Chrysler 200 sedan, star of the Imported from Detroit Super Bowl commercial, and the thoroughly refreshed Chrysler 300 luxury sedan. For those seeking fuel efficiency, the new 2012 Fiat 500 deliver just that, along with timeless functionality, efficient design and up-to-date technology – is also on this tour. Of course, no slight is meant the new Dodge Charger or Jeep Wrangler Unlimited, along for the ride as well.

The tour, which opened June 6 at Continental Automotive Systems in Auburn Hills, MI., has also visited well-known suppliers as Delphi, Valeo, HP Enterprise Services and Inteva Products this week.

 

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2011 Dodge Durango R/T Hemi AWD – Short Take Road Test



Through its first two generations, the Dodge Durango was sort of an enthusiast secret, a quietly competent and unusually fun-to-drive SUV. After shepherding a last-gen truck for 40,000 miles, we concluded, “Does it get better than this? Maybe. But not much.” Sales of the Durango certainly didn’t get any better. After moving 137,148 of the trucks in 2004, Dodge watched Durango sales nosedive to barely half that just two years later and a mere 21,420 in 2008, after which point the Durango disappeared.

Now it’s back. If you studied only the critical dimensions, which are nearly dead-on with the old truck’s, you’d be forgiven for thinking Dodge spent the interim working on a mere face lift. But you’d be wrong. For starters, there’s the small matter of the absentee frame. The formerly body-on-frame Durango now rides on a unibody platform it shares with the Jeep Grand Cherokee, and which Mercedes-Benz will employ under its next ML and GL.

Durango Tango

While its Jeep cousin perpetuates that brand’s dirt fetish, the Durango pursues sport in a different discipline. The two trucks’ suspension layouts are the same, but the Dodge is longer than the Jeep by a full 10 inches, with an extra five between its axles. Additionally, the Durango’s shock and spring rates are stiffer and it has larger anti-roll bars. The R/T further stiffens the shocks and springs, and lowers the ride height by 0.8 inch. Like the Heat and Citadel trims, the R/T includes 20-inch wheels.

All that stiffening paid off. The Durango is a handler, with minimal body roll—particularly for something so tall. It’s also very well balanced: Note that its 51/49-percent front-rear weight distribution is the sort of figure that gets us excited about sports sedans. There’s just a touch of understeer at the limit, and a delightful enthusiasm for rotation, which is easy to control and rein in with the all-wheel-drive system. We recorded 0.81 g of stick on the skidpad, better by 0.06 than the non-R/T ’Rango we tested.

Steering like this is a treat in an SUV. It’s slow off center—all the better for relaxed highway tracking—but effort builds as the limit nears and the wheel offers a good amount of feedback. And the R/T’s hero brakes need just 169 feet to stop the big bruiser from a freeway tempo. The brakes also exhibited tremendous resistance to fade: Five back-to-back-to-back-to-back-to-back panic stops varied in length by only three feet. The downside to the R/T package is serious tromp from the 20s. They crash over bumps and potholes, and the stiffer suspension sends hefty tremors through the body shell and steering column. It’s an expected trade-off in a performance vehicle, but not one we anticipated finding in an SUV. The complaints might be quieter, however, were our roads smoother.

Superb Seats, Sub-Par Seats

With the tilting/telescoping steering wheel standard on all Durangos, it’s easy to find the perfect driving position, and the front seats fit the sporty persona. They are comfy and supportive, with the right amount of bolstering for a sporty family vehicle—enough to let you know they care, but without encouraging the sort of driving that’ll have the rugrats screaming in their child-safety seats. The Magnum-esque window line and thick C- and D-pillars (necessary to meet rollover standards) do hinder visibility, however.

The rearview camera, part of a $695 package that also includes navigation, is a worthwhile investment. The vehicle we tested also came with the rear-seat DVD entertainment package ($1695), which, interestingly, requires the sunroof ($850)—a ceiling-mounted entertainment system and a sunroof often are an either/or proposition. Another $695 netted the towing package—with the Hemi, the Durango is rated to tow up to 7400 pounds—and $750 was wasted on the adaptive cruise control. A base, two-wheel-drive Durango Express starts at $30,045, while pricing for the all-wheel-drive R/T begins at $38,715. Our total was $43,400, eye-watering but not totally unreasonable for a workhorse family vehicle with a stonking V-8.

Every Durango except the two-row-only Heat comes with standard seating for seven. The second- and third-row seats both fold flat, but, in order to do so, they are very thin, with hard cushions. And, while they flop with simple one-handle actuation, the effort required to raise them is substantial. Maybe Dodge is trying to help American moms tone their arms. Also, third-row volume shrinks nine cubic feet compared to the last Durango’s. This used to be one of very few SUVs that could comfortably haul three rows of adults, but no more. At least with the second row folded, access for the kids is easy.

This is all the more reason to sit in the left-front seat, where your right foot gets to conduct the Hemi underhood. It’s standard on the R/T, and optional on the Citadel and Crew—$1495 for rear-drivers, $1895 with all-wheel drive. (The Heat and Express only get the V-6.) With an iron block, pushrods, a 5800-rpm redline, and port fuel injection, the Hemi seems out of date compared to today’s high-tech mills, but high tech is hardly a prerequisite for great sound. The audio argument might be the best reason to upgrade to the barrel-chested V-8.

Hemi Hardship

Satisfying as the Hemi sounds, though, fuel-economy ratings drop from a (not particularly) high of 16/23 mpg city/highway for the rear-drive V-6 to 13/20 for an all-wheel-drive V-8. We got 15. And we hoped the Hemi Durango would be fleeter, but its 7.4-second 0-to-60 time only bested the rear-drive sixer by one second. There are two factors conspiring against the Durango: its tremendous weight (5512 pounds of proof that unibody does not mean light) and odd gear spacing. Fuel economy is the goal of the latter, and a tall fifth gear is crucial to achieving it, but there are better ways to get there than this. First is so tall that, driving around town, we initially believed the Durango was starting off in second—it’s not out of first until almost 50 mph, and second stretches nearly all the way to 90. Oddly, third—more of a “two-and-a-halfth”—only gets you another 10 mph before redline looms again.

We understand that most buyers won’t be experiencing many redline 90-mph shifts in their Durangos, but this annoyance manifests in other, more mundane ways, particularly when passing. This is Dodge’s dual-second-gear transmission, so there are two ratios for second: one used for upshifts, and an even taller one used during kickdowns. If you’re caught behind a FedEx truck trundling along at 50 mph and pull out to pass, the downshift puts the Hemi around 3300 rpm, a long pull from the 5150-rpm power peak. Instead of two-and-a-halfth, what this trans really needs is a one-and-a-halfth. Manually actuated shifts do bring rewarding rev-matched downshifts, though, reminding us of the hot-rod Jeep Grand Cherokee SRT8. Still, we’re looking forward to the imminent arrival of a transmission with at least one more ratio.

We’re not surprised by how much the powertrain reminds of the SRT8 Jeep, but what really surprised us is how much the chassis does, too. With its engaging dynamics on top of sharp looks and a satisfying engine, the Durango is relatively rewarding from the driver’s seat. But could it get better than this? With comfier seats for the rest of the crowd and a more-modern transmission, yes it could.


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Chrysler Incentives Push Hemi V-8, Leasing In February



 Chrysler Incentives Push Hemi V 8, Leasing In February

Chrysler has added a few cash-back incentives to its new 2011 model lineup, including more cash on the hood for high-output V-8 Ram trucks. More importantly, this time around Chrysler is offering some attractive lease deals. However, most of the cash incentives on the 2010 models are gone with the lone exception of the 2010 Dodge Challenger, which has $2,000 cash back.

The 2011 Dodge Nitro gets another $500 tacked onto its cash-back plan, which now totals $3,000. There’s another $1,000 added on the Caliber, so buyers can get up to $2,500 cash back on that model. Most of the redesigned models like the Chrysler 300, Dodge Charger, Jeep Grand Cherokee, Dodge Durango and the Chrysler minivans don’t have any cash incentives, but they do have fairly attractive financing deals.

If you want to get a better deal on one of Chrysler’s newer models, there are lease deals to be had such as $199 a month for the Dodge Avenger or Chrysler 200 or $359 a month for the new 2011 Dodge Charger R/T.

Most of the incentives below expire Feb. 28.

Ram Trucks

* No Charge Hemi Incentive: 2011 Ram pickup trucks can choose a Hemi engine as a no-charge option
* Engine Bonus Cash: 2011 V-6 Rams get $500 bonus cash; V-8 and diesel engines get $1,000 bonus cash
* 2011 Dodge Ram 1500: $1,000-$2,000 cash back or 2.9% financing for 60 months
* 2011 Dakota Laramie crew cab 4X4: 0% financing for 72 months

Dodge

* 2011 Avenger (Mainstreet, Lux and Heat trims): $750 cash back or 2.9% financing for 60 months
* 2010 Challenger: $2,000 cash back or 0% financing for 60 months
* 2011 Caliber (all): $2,500 cash back
* 2011 Caliber (excluding Mainstreet): $1,500 cash back and 0% financing for 60 months
* 2011 Caliber (Mainstreet): $1,000 cash back and 0% financing for 60 months
* 2011 Challenger (R/T only): $1,000 cash back and 3.9% financing for 60 months
* 2011 Charger: 2.9% financing for 60 months
* 2010 Grand Caravan: 0% financing for 72 months
* 2011 Journey (Lux and Crew): $1,750 cash back or 3.9% financing for 60 months
* 2011 Journey (Express and R/T): $750 cash back or 3.9% financing for 60 months
* 2010 Journey: 0% financing for 72 months
* 2011 Dodge Nitro: $3,000 cash back or 0% financing for 60 months

Jeep

* 2011 Compass: $1,000 cash back or 2.9% financing for 60 months
* 2011 Liberty: $2,500-$3,500 cash back or $1,000 and 0% financing for 60 months
* 2011 Patriot: $1,000 or 2.9% financing for 60 months
* 2011 Grand Cherokee: 1.9% financing for 60 months

Chrysler

* 2011 Chrysler 200 (excluding LX trim): $750 cash back or 2.9% financing for 60 months
* 2011 Town & Country: 2.9% financing for 60 months
* 2010 Town & Country: 0% financing for 72 months

Lease Deals

Dodge

* 2011 Avenger Mainstreet: $199 per month for 36 months, $2,999 due at signing
* 2011 Charger R/T: $359 per month for 36 months, $2,499 due at signing
* 2011 Durango Express AWD: $359 per month for 36 months, $2,499 due at signing
* 2011 Grand Caravan Crew: $309 per month for 36 months, $2,799 due at signing
* 2011 Journey: $299 per month for36 months, $2,499 due at signing
* 2011 Nitro Heat 4X2: $239 per month for 36 months, $2,499 due at signing

Jeep

* 2011 Compass 4X2: $239 per month for 36 months, $2,499 due at signing
* 2011 Grand Cherokee: $369 per month for 36 months, $2,499 due at signing
* 2011 Liberty Sport 4X$: $329 per month for 36 months, $2,499 due at signing
* 2011 Patriot: $229 per month for 36 months, $2,499 due at signing
* 2011 Wrangler two-door Sport 4X4: $299 per month for 36 months, $2,499 due at signing
* 2011 Wrangler Unlimited Sport 4X4: $349 per month

Chrysler

* 2011 Chrysler 200 Touring: $199 per month for 36 months, $2,999 due at signing
* 2011 Chrysler Town & Country: $319 per month for 36 months, 2,799 due at signing

*Lease and finance deals vary by region and year/model/trim availability. Higher lease rates apply for lessees with lower credit ratings. Lease excludes taxes, titles and fees.


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Award finalists include electrics, Chrysler SUVs



Two Chrysler SUVs and two electric cars stood out as the most outstanding cars and trucks of the year, according to a panel of the nation’s top automotive journalists who are voting on this year’s North American Car and Truck of the Year.

The Dodge Durango and Jeep Grand Cherokee, both built in Detroit off the same truck platform, as well as the extended-range electric Chevrolet Volt and all-electric Nissan Leaf were among six finalists for the award.

Ford’s redesigned 2011 Explorer and Hyundai Sonata also were named finalists Dec. 16 at an event hosted by the Automotive Press Association in Detroit.

The North American Car and Truck of the Year awards are different from other industry awards because they are given by a jury of 49 veteran automotive journalists from Canada and the United States.

Winners of the contest will be announced Jan. 10 at the 2011 North American International Auto Show in Detroit.

This year, the jury considered more than 50 vehicles. Of those, the jurors voted to put 14 cars and 14 trucks on the ballot.

Here is a closer look at the finalists:

Dodge Durango: While the Durango is built on a unibody platform, rather than a SUV’s traditional body-on-frame platform, the stout truck pulls 6,200 pounds with a V-6 engine and 7,200 pounds with a V-8.

Pricing for the three-row SUV starts at $30,045 for the Express model with rear-wheel-drive and at $32,045 for the all-wheel-drive version, including an $850 destination charge.

Ford Explorer: Launched this month, the 2011 Explorer can handle the off-road demands of most weekend warriors and easily travels over deep sand ruts and steep hills even though it is built off of the same platform as the Ford Taurus sedan.

The new Explorer gets 25 miles per gallon on the highway, a 25 percent improvement over the outgoing model. It’s also loaded with safety features, including an industry first: optional inflatable rear seat belts.

Jeep Grand Cherokee: Introduced in July, sales of the redesigned Grand Cherokee have surged. In November, for example, sales increased 256 percent compared with the same month a year ago. Critics have applauded the Grand Cherokee for its vastly improved interior and new engine.

Chevrolet Volt: After nearly four years of anticipation, many car critics are saying the Volt’s performance is impressive. With a starting price of about $41,000, the Volt travels between 25-50 miles on an electric charge before a gasoline-engine switches on to generate more electricity.

Hyundai Sonata 2.0-liter: Sales of the Hyundai Sonata have surged 65.9 percent through November, making the redesigned midsize sedan among the most popular cars in America.

Nissan Leaf: The compact, battery-powered Leaf boasts zero emissions. The Leaf has an advantage over the Volt because its starts at $32,780 before federal tax incentives, or several thousand dollars lower than the Volt. However, it has an EPA-rated cruising range of just 73 miles on full batteries and a long charging time.


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2011 Dodge Durango Is A-Go-Go With All-New Look



2011dodgedurango 2011 Dodge Durango Is A Go Go With All New LookThe 2011 Dodge Durango is arising from the ashes of its truck-based platform to share the unibody design of the all-new Jeep Grand Cherokee.

Once a popular way to transport passengers in style, the truck-based Dodge Durango suffered the same fate as almost every other SUV on the market: Plummeting sales. The combination of a spike in fuel prices and a spiraling economy created a black hole for the large, thirsty vehicles that prowled malls and school parking lots.

2011 Dodge Durango Changes Platforms To Stay Relevant

Crossovers now dominate the market and Chrysler realized that in order to get with the times, it would have to update the Durango in a drastic way. To that end, the Durango nixed its platform mate the Dodge Dakota pickup and joined the unibody Jeep Grand Cherokee.

In order to set itself apart, the 2011 Dodge Durango will be able to haul seven passengers while the Grand Cherokee only carries five. The shorter Jeep will promote its heritage as an off road champ while the Durango will be the more practical, all-rounder that satisfies the needs of families.

Under the hood, the Cherokee’s 3.6 liter Pentastar V6 and 5.7 Hemi V8 will be available. Chrysler says in its press release that the 2011 Dodge Durango will offer consumers “offers consumers 45 safety and security features” and have up to a 500 mile cruising range on a tank of fuel. Chrysler also promises a vastly improved interior, but did not offer any interior shots other than a view of the steering wheel. However, based on recent Chrysler products such as the Ram trucks and Grand Cherokee, there is no reason to doubt them.

The new Dodge will appear in showrooms in the fourth quarter of this year.


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