A Chrysler Sebring sits in front of the Chrysler logo at the New York International Auto Show in New York in this April 1, 2010 file photograph. Chrysler Group LLC on Tuesday paid back $7.6 billion in U.S. and Canadian government loans from its 2009 bailout, a move that allows the U.S. automaker to distance itself from an unpopular bailout and deepen its ties with Italian automaker Fiat SpA. REUTERS/Jessica Rinaldi/Files (UNITED STATES – Tags: BUSINESS TRANSPORT)
It’s official. Chrysler Group LLC today confirmed the wire transfers have gone through, and the automaker has repaid loans from the U.S. and Canadian governments.
The automaker has repaid $5.1 billion in loans, as well as $1.8 billion in interest and other fees, releasing Chrysler from all monetary commitments to the governments less than two years after the bailouts kept them in business. Chrysler went to the capital market for lower-interest financing to get out from under the government loans that carried interest rates as high as 20 percent. The refinancing — which is much like refinancing a home mortgage — will save more than $300 million annually.
Today, Chrysler repaid the U.S. Treasury more than $5.9 billion; Canadian governments received $1.7 billion to retire their loans to the automaker.
At a celebration attended by 1,100 workers this afternoon at Chrysler’s Sterling Heights plant, Chrysler CEO Sergio Marchionne wore a pin that said “Paid” on his customary black sweater.
What will Chrysler name it’s new commercial lightweight van? Don’t know yet but it should look real similar to this Fiat Doblo spotted in Michigan!
From Automobile:
One of our sharp-eyed readers managed to snap a few photos of something peculiar while on his way home from work — a European-market Fiat Doblo van wearing Michigan manufacturer plates.
Given the tie-up between Chrysler and Fiat, seeing the Doblo on U.S. roads isn’tthat strange; especially since there’s a chance this exact van may eventually be sold through Chrysler’s U.S. dealer network. Rumors have long swirled that the Doblo could join the Ram Trucks portfolio, providing the company with a light commercial van that can battle Ford’s Transit Connect here in North America.
European-spec Doblos are offered with the choice of five engines paired to either a five- or six-speed manual transmission. Diesel options range from a 90-hp, 1.3-liter, turbocharged inline-four cylinder to a 135-hp, 2.0-liter turbodieselI-4. The two gasoline-powered options use a 1.4-liter, naturally aspirated inline-four good for 95 hp (120 hp when powered by CNG). If the Doblo crosses the pond, a gas offering may be the only engine choice — but we think Fiat may have to upsize what’s found underhood in order to appease power-hungry American buyers.
It’s been long overdue for the interior of a vehicle to get the attention to detail and design investment as the exterior would get. When you look at what Chrysler has done with their exterior designs then go into that new Chrysler car or truck and see a gorgeous interior you can see real progress has been made. Ford, Nissan and Chrysler have catapulted into three of the top main car lines when it comes to overall interior design including fit and finish.
From the Detroit News:
Dearborn — The outside draws potential buyers to take a closer look, but a car’s or truck’s interior seals the deal and determines whether satisfaction with the vehicle, the brand and the automaker lasts its lifetime.
“The exterior is the fall-in-love part and the interior is the stay-in-love part of the equation,” Scott Strong, global director of interior design for Ford Motor Co., said Tuesday at a conference on automotive interiors.
If the inside doesn’t meet the driver’s needs and expectations, he said, the initial infatuation can end quickly.
Speakers at the conference, sponsored by Ward’s Automotive, agreed that quality is the price of entry for any new vehicle in the fierce, post-recession market where annual sales are forecast to hit 13 million this year. To win over the savvy buyer, a car’s beauty must be more than sheet metal deep.
“The level of importance placed on the interior is far higher than it has ever been,” said Mike VanNieuwkuyk, executive director of global vehicle research for J.D. Power and Associates.
“We’re drawn to the exterior, but the interior determines how well we like the vehicle.”
A Chrysler logo is seen atop a New York City car dealership in this April 27, 2009 file photo. Chrysler Group LLC plans to sharply increase its advertising spending and is on track to complete its Project Genesis restructuring and product development initiative by the end of the year, dealers and company executives said on Sunday. REUTERS/Mike Segar/Files (UNITED STATES – Tags: TRANSPORT BUSINESS)
The “Road to Literacy” campaign is a Facebook-based campaign committed to improving literacy in schools across the country. Chrysler is enlisting the help of consumers to participate in the program via Facebook and test drives of the 2011 Chrysler Town & Country minivan at their local dealer. When you participate in a test drive, five books will be sent to the school of your choice and five books will be sent to a school in need. It’s that easy!
How Can You Get Involved: To participate, visit the “Road to Literacy” Facebook page and click on the “Donate Books” tab. Each participant will be asked to enter the school they would like to receive the book donation. Once the school has been selected, consumers can choose a local dealer to complete a test drive of the 2011 Chrysler Town & Country. Once the test drive at the local dealer is complete, the participant will be given a “unique donation dealer code” to be entered on the Facebook site. Once the code is entered by the participant, five books will be sent to their school of choice and five books will be sent to a school in need. The Chrysler Town & Country Facebook page offers a tracking tool to monitor the book donation progress and see which school is logging the most donations.
The Chrysler Brand will donate up to 150,000 books, and we would love to see your favorite schools be a part of this wonderful program! The program runs through June 1 and any school (pre-school – high school) in the U.S. is eligible and encouraged to join. To see promotion rules or to learn more about the program, please visit our Facebook page.
Fiat logo is shown at the opening of a new dealership in Istanbul, in this May 6, 2010 file photo. Fiat Industrial, through its affiliate CNH, will set up a plant in Argentina to manufacture powerful combines and specialty tractors destined for the Latin American market. The plant will create some 600 direct and 1,500 indirect jobs, CNH said in a statement on April 26, 2011. REUTERS/Osman Orsal/Files (TURKEY – Tags: TRANSPORT BUSINESS)
DETROIT (Bloomberg) — Fiat S.p.A. has options to increase its stake in Chrysler Group LLC to more than 70 percent as the U.S. government seeks to exit its investments in the auto industry.
Fiat has an option for 12 months to buy the U.S. Treasury’s remaining stake after it repays debts to the government, Chrysler said today in a filing with the U.S. Securities and Exchange Commission. Chrysler said in April it would issue new debt to repay the government loans, allowing Fiat to exercise an option to increase its stake to 46 percent from 30 percent.
The Treasury holds an 8.6 percent stake in Chrysler, the company said April 12. That amount would be reduced when Chrysler meets the final of three performance milestones that each give Turin, Italy-based Fiat an additional 5 percent stake. The final goal, to build a vehicle that gets 40 mpg in the U.S., should be met this year, Sergio Marchionne, CEO of both automakers, has said.
Fiat and Chrysler LLC Chief Executive Officer Sergio Marchionne gestures during a news conference after the Fiat Group’s annual shareholder meeting in Turin March 30, 2011. Marchionne said on Wednesday he wanted to raise the Italian carmaker’s stake in Chrysler to 51 percent this year. REUTERS/Giorgio Perottino (ITALY – Tags: TRANSPORT HEADSHOT BUSINESS)
Chrysler is back in the black with a Q1 profit of over $100 million!
From the Detroit Free Press:
Chrysler said today it earned $116 million during the first three months of the year, giving the company its first profit since emerging from bankruptcy in 2009, as well as details about its debt refinancing plans.
The profit compares to a $197-million loss for the same January-March period last year and represents a major milestone for a company that filed for Chapter 11 bankruptcy almost two years ago.
Chrysler and Fiat CEO Sergio Marchionne said the results boosted the morale of the company’s management team when he announced them at an 8:30 a.m. internal meeting.
“I think it’s fair to say that the mood is one of pride and I guess comfort in knowing that we are executing according to the plan,” Marchionne said during a conference call with analysts and journalists. “I can’t even put a price on that kind of stuff … but success is incredibly temporary. The first quarter is done, but we have a lot of quarters to do.”
The logo of a 2009 Fiat 500 vehicle is seen outside Chrysler Headquarters during the Chrysler Group LLC 2010-2014 Business Plan Presentation in Auburn Hills, Michigan in this November 4, 2009 file photo. Fiat is poised to increase its stake in Chrysler Group LLC to 30 percent within the next two months, CEO Sergio Marchionne said on April 7, 2011. REUTERS/Rebecca Cook/Files (UNITED STATES TRANSPORT BUSINESS)
Chrysler Group LLC is bolstering its lineup of fuel-efficient powertrains, thanks to initiatives under Fiat SpA management.
Many of the advances involve Fiat technology; the Italian automaker is known as a small-car and small-engine specialist.
Paolo Ferrero, the former Fiat executive who now heads Chrysler powertrain, said work is under way on a variety of propulsion systems, ranging from improved gasoline engines to diesels, hybrids and electric vehicles.
And new transmissions will further improve fuel efficiency, he said Thursday after a presentation at the 2011 Society of Automotive Engineers World Congress.
Chrysler’s new Pentastar V-6 is proliferating across the lineup and is being considered for the Ram 1500 pickup as well, Ferrero said. That would allow the Ram to compete more directly with the new Ford F-150. The Ram currently has an older version V-6 as well as a V-8.
The Auburn Hills automaker also is improving its four-cylinder engines with Fiat’s MultiAir technology, which improves combustion. The engine in the Fiat 500 has MultiAir, and it will be expanded to more engines in Chrysler vehicles. Turbocharging also is expected in the future.
Chrysler is debuting its S-Concept 300 models at Spring Festival of LXs. Autoblog.com has the details.
Chrysler has a hardcore group of owners who have taken their Chrysler 300, Dodge Charger and Challenger models to the next level of aftermarket bliss. For those Mopar super fans, Chrysler throws a little party called the Spring Festival of LXs. The event draws owners from all over eager to show off their customized rides, and this year, Team Pentastar had a little something special for those in attendance.
Chrysler unveiled the 300 S-Concept models, modded versions of its already hot-looking 2011 Chrysler 300. In the case of the featured video car, the big rear-drive Chrysler receives updates ranging from bigger, more audacious wheels, body-color moldings and an a new grille that looks like the outline of a brick wall. The interior has also received some custom touches, including a sea of red leather just about everywhere one’s body touches, along with an italic ‘S’ on each throne. Hit the jump to watch video of the unveiling, and be sure to click the gallery below for images of the 300 S-Concept at the event.
