Chrysler Group Reports November 2006 U.S. Sales Rise 3 Percent

* Sales in November establish five-year November record
* Jeep(R) Wrangler sales surge 95 percent year-over-year; Dealers place
 orders for 62,000 units of Jeep Wrangler
* Dodge Nitro sales increase 80 percent over October 2006 sales; Dealer
 orders exceed 50,000 units
* Sales of Dodge Ram Pickup rise 8 percent

AUBURN HILLS, Mich., Dec. 1 /PRNewswire-FirstCall/ -- Chrysler Group
reported that unadjusted sales in November 2006 rose 3 percent to 164,556
units, compared to November 2005 sales of 159,898 units. November 2006
sales establish a five-year November record.
  "Chrysler Group sales in November were up 3 percent over last year,
marking the best November in five years," said Steven Landry, Vice
President, Sales and Field Operations - Chrysler Group. "Our new product
lineup continues its customer appeal as they arrive at our dealerships and
drive a big part of the sales improvement for the Chrysler Group."
  The company has launched nearly all of the 10 new products that were
announced at the beginning of the year, and those products are generating
customer and media praise while driving traffic into Chrysler, Jeep(R) and
Dodge showrooms.
  Sales of the Jeep Wrangler, a direct descendant of the original Jeep
vehicle, rose 95 percent to 8,735 units, setting a new November sales
record. Previous year sales of the Jeep Wrangler totaled 4,482 units. The
Jeep Wrangler has received in excess of 62,000 dealer orders, which exceeds
three- quarters of total Jeep Wrangler sales in calendar year 2005.
  The all-new Dodge Nitro, the first mid-sized SUV for the Dodge brand
continues to distinguish itself in the retail marketplace with consumers.
Sales of the Dodge Nitro totaled 5,489 units for November 2006, 80 percent
higher than October 2006 sales of 3,044 units. Customer response to the
Dodge Nitro has been very strong and Dodge dealers nationwide are
responding by placing orders for more than 50,000 units.
  Sales of the Chrysler Group's best selling product, the Dodge Ram
Pickup, rose 8 percent in November, posting sales of 27,826 units. Previous
year sales totaled 25,667 units.
  Chrysler Group finished the month with 499,036 units of dealer
inventory, or a 76-day supply.
     DaimlerChrysler Corporation U.S. Sales Summary Thru November 2006
                                             Month Sales     DR %   Vol %
                  Model                 Curr Yr    Pr Yr    Change  Change
  Sebring                                  7,582     6,538     16%     16%
  Concorde                                     0         0      0%      0%
  300                                     10,772    12,647    -15%    -15%
  Crossfire                                   62     1,009    -94%    -94%
  PT Cruiser                              13,629    11,193     22%     22%
  Aspen                                    2,365         0      0%      0%
  Pacifica                                 6,483     5,306     22%     22%
  Town & Country                          11,507    13,224    -13%    -13%
      CHRYSLER BRAND                      52,400    49,917      5%      5%
  Compass                                  3,723         0      0%      0%
  Wrangler                                 8,735     4,482     95%     95%
  Liberty                                  7,360     7,815     -6%     -6%
  Grand Cherokee                           7,944    13,733    -42%    -42%
  Commander                                8,023     3,825    110%    110%
      JEEP BRAND                          35,785    29,855     20%     20%
  Neon                                         0     4,103   -100%   -100%
  Caliber                                  7,008         0      0%      0%
  Stratus                                    287     7,501    -96%    -96%
  Intrepid                                     0         0      0%      0%
  Charger                                  7,247     6,827      6%      6%
  Viper                                       76       178    -57%    -57%
  Magnum                                   2,138     3,949    -46%    -46%
  Dakota                                   4,538     5,898    -23%    -23%
  Ram P/U                                 27,826    25,667      8%      8%
  Caravan                                 14,240    13,324      7%      7%
  Durango                                  5,935    11,143    -47%    -47%
  Nitro                                    5,489         0      0%      0%
  Ram Van/Wagon                                0         0      0%      0%
  Sprinter Van                             1,587     1,536      3%      3%
      DODGE BRAND                         76,371    80,126     -5%     -5%

      TOTAL CHRYSLER GROUP               164,556   159,898      3%      3%

            TOTAL CG CAR                  33,760    39,375    -14%    -14%
            TOTAL CG TRUCK               130,796   120,523      9%      9%
  Selling Days                                25        25

                                              Sales CYTD       DR %   Vol %
                  Model                   Curr Yr     Pr Yr   Change Change
  Sebring                                   57,200     84,660   -32%   -32%
  Concorde                                       0        210  -100%  -100%
  300                                      127,397    131,866    -3%    -3%
  Crossfire                                  8,206     13,611   -40%   -40%
  PT Cruiser                               130,435    123,573     6%     6%
  Aspen                                      4,623          0     0%     0%
  Pacifica                                  72,946     78,329    -7%    -7%
  Town & Country                           148,228    164,836   -10%   -10%
      CHRYSLER BRAND                       549,035    597,085    -8%    -8%
  Compass                                   13,513          0     0%     0%
  Wrangler                                  71,648     73,654    -3%    -3%
  Liberty                                  121,578    149,218   -19%   -19%
  Grand Cherokee                           126,295    191,852   -34%   -34%
  Commander                                 80,931      8,590   842%   842%
      JEEP BRAND                           413,965    423,314    -2%    -2%
  Neon                                      17,239    108,954   -84%   -84%
  Caliber                                   82,799          0     0%     0%
  Stratus                                   50,934     95,795   -47%   -47%
  Intrepid                                       0        298  -100%  -100%
  Charger                                  103,634     37,667   175%   175%
  Viper                                      1,387      1,489    -7%    -7%
  Magnum                                    37,360     49,586   -25%   -25%
  Dakota                                    70,954     96,742   -27%   -27%
  Ram P/U                                  331,302    369,565   -10%   -10%
  Caravan                                  197,045    207,732    -5%    -5%
  Durango                                   66,284    109,024   -39%   -39%
  Nitro                                      9,499          0     0%     0%
  Ram Van/Wagon                                  0        405  -100%  -100%
  Sprinter Van                              20,653     17,728    16%    16%
      DODGE BRAND                          989,090  1,094,985   -10%   -10%

      TOTAL CHRYSLER GROUP               1,952,090  2,115,384    -8%    -8%

            TOTAL CG CAR                   460,536    491,489    -6%    -6%
            TOTAL CG TRUCK               1,491,554  1,623,895    -8%    -8%
  Selling Days                                 280        280


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SOURCE Chrysler Group

Chrysler weighs moving vs. staying

Newark facility vies with michigan plant By LULADEY B. TADESSE, The News Journal

Dodge Durango

Newark-made Dodge Durango,
shown here, and Chrysler Aspen share
their platform with the Dodge Dakota
pickup, which is assembled at the Warren, Mich., plant.
The News Journal file/FRED COMEGYS

A month after rumors circulated of Chrysler's possible plans to shutter its Newark plant, analysts remain divided on the fate of the plant and its workers.

Auto analysts agree Chrysler is under intense pressure to slash costs and make its North American plants more efficient. They also agree the company will continue production of the Dodge Durango and Chrysler Aspen, both of which are assembled in Newark.

Chrysler expects to report a loss in 2006 totaling $1.3 billion and has yet to figure out how it plans to restructure its operations and trim costs. Company officials have said that everything, including closure of the Newark plant, is a possibility.

The question is whether Chrysler can justify keeping a plant open with only one shift. Higher gas prices and a shift in consumer tastes away from large SUVs to smaller, more fuel-efficient trucks have shrunk Durango sales by double digits virtually every month for most of this year.

Chrysler needs to determine whether it is more cost effective to shut down its Newark plant, which employs about 2,100 people, and transfer production elsewhere, or keep it operating.

"It is too premature to make any conclusion because it is not the end of the world for the Durango and the Aspen yet," said Guido Vildozo, auto analyst at Global Insight in Lexington, Mass. "Chrysler is still reviewing what their strategy is going to be."

But some analysts already have begun making forecasts.

"Newark will close and we have that production transferring to the Warren truck plant," said Erich Merkle, director of forecasting at IRN Inc. in Grand Rapids, Mich. He predicts the change will occur in 2009.

If Chrysler decides to move production of the Durango and Aspen to another plant, the most likely candidate is the Warren, Mich., which makes the Dodge Ram, Dodge Dakota and Mitsubushi Raider. The Dakota pickup uses the same platform, or underbody, as the Durango and Aspen, making it easy to assemble in Warren.

Merkle said the transfer makes sense because the Warren plant, which added a third shift more than a year ago, has had to idle the plant for more than four months this year because of sagging sales for its pickups. The 3,712 workers there could use the extra work from the Newark plant.

"Clearly, they could take the volume, because it has becomes so much smaller in Delaware," Merkle said.

Still, other analysts are doubtful the transfer of the Durango and Aspen would be smooth.

The Warren plant would have to reconfigure its paint and body shops -- the two most expensive sections of an auto plant -- to accommodate the Durango and Aspen. That could take a couple of years and cost Chrysler hundreds of millions of dollars.

The paint shop typically makes up 30 percent to 50 percent of an assembly plant's total cost, according to Ward's Auto World, an industry publication. A brand new paint shop can cost up to $500 million.

In addition to the costs associated with the move, Chrysler would have to deal with the cost of closing the plant, including possibly offering buyouts to workers.

Under its current United Auto Workers contract, which is up for negotiation next year, the company cannot shutter a plant before next September, when those discussions will reopen. Unlike General Motors or Ford, Chrysler hasn't openly announced any plant closings and buyout offers.

"What is the least expensive, best decision to make?" said David Cole, chairman of the Center of Automotive Research in Ann Arbor, Mich."It's a tough decision."

Cole said the fact that the Warren plant requires a lot of time and investment to handle Durango production works in favor of Newark. Chrysler historically has gotten along well with the local union and praised the quality of its work, he said. The company also has recently invested more than $180 million in the plant and would rather keep production here, he said.

"It would be a mistake for the community to sit on their hands and say, 'This is going to go somewhere else,'" Cole added. "This is not a foregone conclusion."

Analysts said there is still room for the state, labor and the local community to offer Chrysler incentives to stay in Newark.

Jim Fisher, president of UAW Local 1183, which represents most of the workers in Newark, did not return calls.

State officials and Delaware's congressional delegation said they are continuing to hold behind-the-scenes discussions with Chrysler to see what needs to be done to keep it here. State officials said they have not offered financial incentives to the automaker, but they are reviewing legislation including workers compensation and the gross receipts tax which would help lower Chrysler's operating costs in Delaware.

"Clearly, we have our work cut out for us," said Lt. Gov. John C. Carney Jr., who spoke about the Newark plant at a chamber breakfast last week. "This is a very serious situation and we are taking it seriously."

Chrysler is expected to unveil some of its restructuring plans in the first quarter. But analysts don't expect any important plant closing announcements until next fall. Until then, Chrysler will continue to weigh whether Newark is worth keeping.

"A lot really depends on cost," said Vildozo, the Global Insight analyst. "If some other state were to throw out a nice incentive package, then Newark is going to go."

Daimler to Help Drive Trucks in China

The mainland's need for commercial fleets is leading a surge in truck sales. Interest from foreign makers may improve quality

BUSINESS WEEK NEWS | Brian Bremner | CHINA - - It's no secret that China's rapidly expanding passenger car market has global automakers engaging in a historic build-out of plant capacity and new models for the mainland. Yet China's commercial truck market is also enjoying double-digit gains. That's why DaimlerChrysler (DCX), the world's biggest truck maker, on Nov. 30 agreed to spend $104 million to acquire a 24% stake of Beijing-based Beiqi Foton Motor.

Beiqi Foton is China's biggest light truck manufacturer, with about a 30% share of that market and 10% of the heavy truck segment, according to data compiled by Citigroup (C) analyst Charles Cheung based in Hong Kong. In October, truck sales in China cruised along at a 28.5% year-on-year clip, which was actually a slightly better performance than the 28% growth for sales in the mainland passenger car market.
Improved Emissions Needed

China's construction boom in anticipation of the 2008 Beijing Olympics, and double-digit economic growth, have attracted investment from overseas truck makers, including Volvo AB (VOLV). Yet, unlike the foreign brand-dominated passenger car market, overseas vehicle makers are still trying to make inroads in the truck market.

That said, the mixed quality of Chinese-made trucks—and the need for better engine technologies as Beijing demands improved emission performance—is creating interest in tie-ups with foreign players who have expertise in this segment. Daimler is the industry leader globally and actually earned more from turning out trucks and buses last year than from its marquee Mercedes division.
Three Million Mark

"It's a smart move" for Daimler, says Lubo Li, senior director for Business and Market Development at J.D. Power Asia Pacific, given the long-term growth dynamics of the mainland's truck market. Demand is being driven by Chinese corporate investment in "large commercial fleets, and then there are small businesses and private enterprises, and a large rural market as well."

China's truck and bus sales are expected to hit 3 million units this year, and the mainland likely will overtake Japan as the world's second biggest vehicle market by yearend or in early 2007, most analysts predict.

The just-completed 2006 Beijing Auto Show pulled in a record number of visitors. Foreign multinational auto companies showcased 10 car launches, while domestic players unveiled more than 90 new models, points out Citigroup's Cheung

Events consultant takes leap with DCX buyout

Former executive uses exit money to publish book after launching company in Southfield.

Maureen McDonald / Special to The Detroit News

Ricardo Thomas / The Detroit News

"The actual spider web has an overriding practical purpose -- to acquire food. An event marketer attempts to 'capture' imaginations," says event consultant Lou Bitonti, who penned "The Cosmic Spiderweb." See full image

Lessons

Problem: How can a seasoned, former events executive from Daimler Chrysler Corp. get his name known as an entrepreneur?

Solution: Lou Bitonti, now owner of LD3 Event Management Inc. in Southfield, self-published a book: "The Cosmic Spiderweb, How to Capture Any Customer through Event Marketing."

Contact: www.cosmicspiderweb.com.

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SOUTHFIELD -- At Camp Jeep, an annual owner-loyalty retreat for 10,000 Jeep owners and family members sponsored by DaimlerChrysler, Lou Bitonti gave the impression he could be 100 places at once, checking and rechecking to assure everything worked.

Bitonti ran events for Jeep, Dodge and Chrysler brands that involved a multimillion dollar budget and thousands of vendors, contractors and employees. Then came a lucrative buyout offer, bringing excitement and unease for the DaimlerChrysler executive, former advertising manager and once restaurant owner.

Faced with marketing himself as a solo consultant to events, Bitonti formed LD3 Event Management LLC in Southfield. He used $8,000 in exit money to self publish a book, "The Cosmic Spiderweb."

"The image of the cosmic spider web perfectly captures the complexity, variety and yet the interconnectedness of the various components that come together to create the contemporary special event," Bitonti said. "The actual spider web has an overriding practical purpose -- to acquire food. An event marketer attempts to 'capture' imaginations."

The ability to capture loyal customers for hours or days of product messages, surveys and family-oriented fun helped garner numerous honors for Bitonti. Dan Hanover, editor and publisher of Event Marketer Magazine in Norwalk, Conn., named him to its dream team of professionals.

"Lou is one of the event industry's pioneers," Hanover said. "He literally helped invent experience-based engagement marketing. The lessons he's learned over an impressive marketing career need to be told."

In the book, Bitonti defines an event as "an experience" and event marketing as a "specific focus on the lifestyle experiences of customers and integrating those experiences with buying preferences."

But even with the best laid plans and super team, nothing is more important than onsite supervision, says Bitonti who created the P.T. Cruiser Block Party, the Jeep Collegiate Health and Fitness Tour and a Jim Henson Muppets auto-safety tour. What can go wrong, may go wrong, so extra preparations and emergency funds are key.

"I'm a devotee of the Weather Channel, it is essential to know what is happening in all directions when you have a large-scale event," Bitonti said.

His book tells of the hurricane that blew into Florida's east coast, threatening to destroy a $250,000 concept car set up on Daytona Beach for a spring break rally one year. He awoke to a raging storm, left his hotel, ran to the beach and rescued the car before the tide sent it drifting.

The former DaimlerChrysler executive plans to distribute copies of the book to the heads of major corporations and coordinate his own lecture series on proper event staging.

He cites a 2002 study by Intellitrends, a Clarkston-based research organization that found 47 percent of companies feel that event marketing provides the greatest return on investment when compared with other marketing and communications tactics -- advertising, direct mail, sales promotion and Internet. Vendors of Bitonti's events say leadership is critical.

"The guy (Bitonti) is smart. He made a lot of contacts over the years and now it is time to contact them," said Jay F. Gordinier, Sr., owner of the Gordinier Group in Highland.

Maureen McDonald is a Metro Detroit freelance writer.

EADS Shares Jump on A350 Report

Associated Press | BERLIN GERMANY - - Shares of Airbus parent EADS rose on reports that the company's board will agree to launch a new mid-sized jet to rival Boeing Co.'s 787 Dreamliner at a meeting Friday in Amsterdam.

European Aeronautic Defence and Space Co. stock rose as much as 4.3 percent to euro23.16 (US$30.57) in Paris after the Financial Times said its main shareholders had agreed on how to fund the new plane, which is badly needed to fill a gap in the Airbus product line and stem a loss of business to Chicago-based Boeing (nyse: BA - news - people ) Co.

The Franco-German dominated defense group had pledged to announce a decision by the end of November, but a board meeting scheduled for Nov. 24 was called off amid disagreements over funding for the planned A350 XWB program, expected to cost at least euro8 billion (US$10.5 billion).

The French state owns a 15 percent stake in EADS, while Paris-based Lagardere SCA owns 7.5 percent. The two main French shareholders are balanced by Germany's DaimlerChrysler AG (nyse: DCX - news - people ), which owns a 22.5 percent stake.

EADS officials could not immediately be reached for comment.

Chrysler offers $1,000 incentives through Jan. 2

AUBURN HILLS, Mich. - DaimlerChrysler AG's Chrysler Group is offering $1,000 incentives for the purchase or lease of most of its 2006- and 2007-model vehicles through Jan. 2.

Chrysler is mailing the incentive offers to 3.4 million people. The offer is in addition to existing incentives on Chrysler, Dodge and Jeep vehicles.

"This is the largest mailing we've ever done," Chrysler spokesman Kevin McCormick told the Detroit Free Press. "The mailing is being sent to customers who've previously bought from Chrysler or who have identified themselves as potential customers."

Chrysler inventories rose this year when high gas prices shifted demand to cars from the pickups and sport utility vehicles on which Chrysler depends.

The offer does not apply to the 2007 Chrysler Sebring sedan, Dodge Viper sports car, Dodge Nitro and Jeep Wrangler SUVs or Jeep Patriot, or to the 2006 and 2007 Grand Cherokee SRT-8, The Detroit News said.

China: TRW opens new plant to supply Beijing Benz-DaimlerChrysler

By Automotive World staff writer (SS)
30 November, 2006
Source: Automotive World

Livonia, Michigan-based components manufacturer TRW Automotive has announced that its Changchun-based subsidiary, TRW Fawer Automobile Safety Systems (TFASS), has set up a manufacturing plant to produce chassis modules for Beijing Benz-DaimlerChrysler Automotive (BBDC).

The new facility, to be built in Tongzhou, an industrial suburb of Beijing, will be spread out over 4,500 sq m and is expected to employ up to 100 local workers within the next five years. Initially, the plant will supply rear axles, brake assemblies, front struts and knuckle assemblies to the Chrysler 300 sedan series and another future locally-built sedan. The 300 recently had its Chinese premiere at the Beijing motor show.

According to Steve Lunn, executive vice president and chief operating officer of TRW Automotive, the facility's proximity to the BBDC plant will allow for sequenced, just-in-time production.

A joint venture between TRW and the Chinese automotive manufacturer First Auto Works, TFASS recently added the production of airbags and steering wheels to its traditional portfolio of braking and steering systems.

Chrysler losses mount

Pressure grows for restructuring as profits slip

By JOSEPH SZCZESNY
Press Automotive Editor

The Chrysler Group faces a major restructuring in the wake of mounting losses flowing from a combination of high labor costs and a truck-oriented product portfolio that has lost appeal for consumers.

Advertisement
Mike Aberlich, Daimler-Chrysler spokesman, said seven separate studies, covering every facet of the Chrysler Group's operation, are now under way. The results are to be announced in early 2007.

"We're studying everything," Aberlich said. "We wouldn't expect anything to break until we complete the studies. The studies were launched last month shortly after Chrysler reported a $1.5 billion operating loss for the third quarter.

With sales slowing, Chrysler is expected to post another large operating loss for the fourth quarter.

Laurie Harbour-Felax of the Royal Oak-based Harbour-Felax Group said Wednesday that the Chrysler Group's losses are mounting.

"The fourth quarter is going to be a killer," said Harbour-Felax, who estimated that the Chrysler Group has gone from making a profit of $150 a vehicle last year to losing $1,144 a vehicle through the first three quarters of 2006.

Another analyst, who asked not to be identified, suggested that the Chrysler Group's losses could reach $2 billion in the fourth quarter.

Harbour-Felax said the losses are putting enormous pressure on Chrysler to launch a major restructuring similar to those already under way at GM and Ford. "They have got to do something," she said.

Sean McAlinden, vice president of research at the Center for Automotive Research in Ann Arbor, said the speculation is that Chrysler could be forced to close three and possibly more plants as part of the restructuring. The company's assembly plants in Newark, Del., and the St. Louis North truck plant as well as the Detroit Axle plant could all be on the chopping block, said McAlinden. He suggested Chrysler may have to eliminate as many as 10,000 jobs.

The Mount Elliott tool and die plant and Detroit transportation hub also could be targeted by DaimlerChrysler cost cutters, he said.

Meanwhile, Daimler-Chrysler AG has made little progress in its efforts to win health-care concessions from the United Auto Workers. In September, UAW president Ron Gettelfinger vetoed concessions at Chrysler, saying it was impossible to get them approved by union members.

Gettelfinger said last month that the union planned to take another look at the company's financial data. So far there has been no indication the union has changed its position.

McAlinden said the impasse leaves Chrysler with high labor costs. "Chrysler's got to make a move. Clearly they have the most expensive labor in the auto industry," he said.

Dale Hunt, president of UAW Local 7 in Detroit, said the last word from union headquarters was no concessions.

In addition, the UAW's council, which is made up of local union presidents and bargaining chairs, sent a clear and unambiguous message to company management when it selected Bill Parker, president of UAW Local 1700, as chairman of union bargaining for 2007 negotiations.

Parker, whose local represents workers at Chrysler's Sterling Heights assembly plant, was one of the leaders who shot down the healthcare concessions. A long-time union activist, Parker has been an outspoken critic of company policies and clashed frequently with the late Nate Gooden, who ran the UAW Chrysler department until last summer.

Gooden had been noted for reaching an accommodation with Chrysler's management. There is no way that Parker would have become chairman of the bargaining committee if Gooden were still running the UAW Chrysler department, said one activist.

Gooden's replacement, UAW Vice President Major Holifield, was quite comfortable with Parker's election.

Harbour-Felax said one of the problems Chrysler faces is that it had done a lot of things right in the past few years to no great change. The product line has been improved substantially and more new products are due out in 2007.

"It's going to be interesting to see what DaimlerChrysler does," she said.

Chrysler losses mount

Pressure grows for restructuring as profits slip

By JOSEPH SZCZESNY
Press Automotive Editor

The Chrysler Group faces a major restructuring in the wake of mounting losses flowing from a combination of high labor costs and a truck-oriented product portfolio that has lost appeal for consumers.

Advertisement
Mike Aberlich, Daimler-Chrysler spokesman, said seven separate studies, covering every facet of the Chrysler Group's operation, are now under way. The results are to be announced in early 2007.

"We're studying everything," Aberlich said. "We wouldn't expect anything to break until we complete the studies. The studies were launched last month shortly after Chrysler reported a $1.5 billion operating loss for the third quarter.

With sales slowing, Chrysler is expected to post another large operating loss for the fourth quarter.

Laurie Harbour-Felax of the Royal Oak-based Harbour-Felax Group said Wednesday that the Chrysler Group's losses are mounting.

"The fourth quarter is going to be a killer," said Harbour-Felax, who estimated that the Chrysler Group has gone from making a profit of $150 a vehicle last year to losing $1,144 a vehicle through the first three quarters of 2006.

Another analyst, who asked not to be identified, suggested that the Chrysler Group's losses could reach $2 billion in the fourth quarter.

Harbour-Felax said the losses are putting enormous pressure on Chrysler to launch a major restructuring similar to those already under way at GM and Ford. "They have got to do something," she said.

Sean McAlinden, vice president of research at the Center for Automotive Research in Ann Arbor, said the speculation is that Chrysler could be forced to close three and possibly more plants as part of the restructuring. The company's assembly plants in Newark, Del., and the St. Louis North truck plant as well as the Detroit Axle plant could all be on the chopping block, said McAlinden. He suggested Chrysler may have to eliminate as many as 10,000 jobs.

The Mount Elliott tool and die plant and Detroit transportation hub also could be targeted by DaimlerChrysler cost cutters, he said.

Meanwhile, Daimler-Chrysler AG has made little progress in its efforts to win health-care concessions from the United Auto Workers. In September, UAW president Ron Gettelfinger vetoed concessions at Chrysler, saying it was impossible to get them approved by union members.

Gettelfinger said last month that the union planned to take another look at the company's financial data. So far there has been no indication the union has changed its position.

McAlinden said the impasse leaves Chrysler with high labor costs. "Chrysler's got to make a move. Clearly they have the most expensive labor in the auto industry," he said.

Dale Hunt, president of UAW Local 7 in Detroit, said the last word from union headquarters was no concessions.

In addition, the UAW's council, which is made up of local union presidents and bargaining chairs, sent a clear and unambiguous message to company management when it selected Bill Parker, president of UAW Local 1700, as chairman of union bargaining for 2007 negotiations.

Parker, whose local represents workers at Chrysler's Sterling Heights assembly plant, was one of the leaders who shot down the healthcare concessions. A long-time union activist, Parker has been an outspoken critic of company policies and clashed frequently with the late Nate Gooden, who ran the UAW Chrysler department until last summer.

Gooden had been noted for reaching an accommodation with Chrysler's management. There is no way that Parker would have become chairman of the bargaining committee if Gooden were still running the UAW Chrysler department, said one activist.

Gooden's replacement, UAW Vice President Major Holifield, was quite comfortable with Parker's election.

Harbour-Felax said one of the problems Chrysler faces is that it had done a lot of things right in the past few years to no great change. The product line has been improved substantially and more new products are due out in 2007.

"It's going to be interesting to see what DaimlerChrysler does," she said.

Police to get 57 new cars for $1.2M

Dodges, Fords to be purchased

By Brittany Butcher,
Staff Writer

Twenty-two new Dodge Chargers will be added to the Wilmington Police Department fleet.

Hitting the streets with the muscle cars will be 35 new Ford Crown Victorias.

Sixteen of the Chargers and all of the Crown Victorias will be outfitted as patrol cars, while six Chargers will be unmarked cars used in the police department's take-home program.

City Fleet Manager Ed Thorpe said the police department will be replacing 48 vehicles this year and adding a few to the 239-vehicle fleet.

The total cost for the 57 new cars is $1,210,065.

Thorpe said the cars are paid for through the fleet replacement fund. Money in the fund comes from fees charged by Fleet Management, which owns the vehicles and leases them to the city, with a portion set aside for new vehicles.

Lt. Kathy Cochran, who heads the vehicle replacement program for the police department, said the Chargers have been well received by the officers.

"Officers' comments have been positive about the handling of the vehicle," she said. The Chargers have tested well according to other law enforcement agencies around the nation, she noted.

Chief Ralph Evangelous is also a fan of the car and was looking to add more to the fleet, Thorpe said.

Wilmington City Council member Jason Thompson expressed concerns at last week's meeting about purchasing two different types of cars. His basis for hesitation comes from general maintenance and upkeep costs. If one type of car is a proven a better choice, then why not buy all of the same car, he said.

Cochran said the department is testing the new technology Dodge is offering, adding a little bit of variety to the fleet.

She also mentioned that Ford, possibly feeling the sting of losing money to Dodge through law enforcement contracts, upped the ante this year with an improved warranty.

Both auto makers offer a 3-year, 36,000 mile warranty. Ford's extra incentive in 2006 came with a 5-year, 60,000 mile power-train warranty - a bet Dodge didn't match.

Putting all the cards on the table, though, Ford plans to phase out the Crown Victoria in the next four to six years.

Consumer Guide Automotive's Web site confirms that fact, and opines that the Dodge Charger is a better-handling car: "Large-car traditionalists may have lingering affection for the Crown Victoria and Grand Marquis. But these cars are ancient in design terms, so they're far less nimble and efficient than the Chrysler 300, Dodge Charger, Toyota Avalon, and Ford's own Five Hundred and Mercury Montego."

Cochran said the department wasn't necessarily phasing in Chargers, just giving the cars a good test run. The department previously purchased some Chevy Impalas for the same purpose but found the cars weren't holding up to the standards patrol cars need to meet.

Union vote canceled at Mercedes supplier

April Wortham | | Automotive News /NASHVILLE -- A union organizing vote set for Friday, Dec. 1, at a supplier to Mercedes-Benz U.S. International Inc. in Vance, Ala., has been canceled after the United Auto Workers accused the company of unfair labor practices.

About 380 employees at Ai3, a supply-chain management company that assists Mercedes in its just-in-time sequencing, were scheduled to vote on whether to organize under the UAW.

Doug Marshall, resident officer of the National Labor Relations Board’s Birmingham, Ala., office, said the UAW filed an initial complaint on Nov. 15 along with a request to allow the vote to proceed.

The first complaint listed eight separate allegations against Ai3, beginning Sept. 29 when the union says Ai3 management ordered employees to remove UAW stickers and pins from their uniforms.

Under NLRB regulations, a charge of unfair labor practices automatically cancels a pending vote unless the union petitions otherwise.

But the UAW late Tuesday, Nov. 28, filed an amendment to its initial complaint that adds 21 allegations. Because the amended complaint does not include a request that the vote take place as scheduled, it has been canceled, Marshall said.

Ai3 is a joint venture of trucking and logistics company Averitt Express Inc., of Cookeville, Tenn., and i3 Logistics Group, of Atlanta. Workers are employed by Averitt Express and Team One Contract Services, of Alpharetta, Ga.

The amended complaint added Averitt Express, i3 Logistics and Team One Contract Services as defendants.

Mercedes leases space in the 400,000-square-foot Ai3 warehouse, which opened in July 2004 and sits within a half-mile of the automaker's assembly plant in Vance, Ala.

The UAW has tried unsuccessfully to organize the Mercedes plant in Alabama and is awaiting word from an AFL-CIO arbitrator to determine whether the UAW or the International Association of Machinists and Aerospace Workers should have exclusive rights to try to organize the plant.

Golden Corral 500 results

Thursday, November 30, 2006

Golden Corral 500

Race No. 002 - CALIFORNIA SPEEDWAY - 11/29/06
Golden Corral 500
Clear, 70 °F, North 0 mph
Pos.	No.	Driver	Make	Interval	Laps	Led	Pts.	Status	Earnings
1	58	T Caldwell	Dodge	132.918	88	44	210	Running	187,500
2		5 Busch		-0.23	88	19	185	Running	155,000
3	31	J Burton	Chevrolet	-4.16	88	1	165	Running	142,500
4	21	K Schrader	Dodge	-4.74	88	0	155	Running	135,000
5	99	C Edwards	Ford	-6.16	88	0	155	Running	127,500
6		D Blaney		-6.60	88	0	150	Running	120,000
7	11	S Riggs	Chevrolet	-7.78	88	0	146	Running	120,000
8	88	D Jarrett	Ford	-8.37	88	0	142	Running	110,000
9	6	M Martin	Ford	-8.59	88	0	138	Running	105,000
10	4	M Wallace	Chevrolet	-8.96	88	0	134	Running	100,000
11	55	M Waltrip	Chevrolet	-9.31	88	4	135	Running	75,000
12	07	C Bowyer	Chevrolet	-9.42	88	0	127	Running	82,500
13	5	K Busch		-9.66	88	0	124	Running	70,000
14	18	J Yeley	Chevrolet	-16.84	88	0	121	Running	74,500
15	38	E Sadler	Ford	-1L	87	0	118	Running	65,000
16	20	T Stewart	Chevrolet	-1L	87	1	123	Running	60,000
17	12	R Newman	Dodge	-1L	87	0	118	Running	57,500
18	40	D Stremme	Dodge	-1L	87	0	118	Running	60,000
19	40	S Marlin	Dodge	-2L	86	0	118	Running	52,500
20	17	M Kenseth	Ford	-13L	75	6	123	Header	50,000
21	42	C Mears	Dodge	-15L	73	0	118	Valve	35,000
22	45	K Petty	Dodge	-16L	72	0	118	Accident	32,000
23	26	J McMurray	Dodge	-22L	66	0	0	Accident	29,000
24	96	T Raines	Chevrolet	-23L	65	0	0	Accident	26,000
25	24	J Gordon	Chevrolet	-23L	65	0	0	Accident	23,000
26	25	B Vickers	Chevrolet	-23L	65	1	5	Accident	19,000
27	82	G Caldwell	Dodge	-43L	45	5	5	Puncture	16,000
28	48	J Johnson	Chevrolet	-46L	42	0	0	Retired	13,000
29	11	D Hamlin	Chevrolet	-46L	42	0	0	Retired	10,000
30		W Burton		-46L	42	0	0	Tire	7,000
31	66	D Caldwell	Dodge	-47L	41	0	0	Accident	5,000
32	29	K Harvick	Chevrolet	-47L	41	0	0	Retired	5,000
33	1	M Truex Jr.	Chevrolet	-47L	41	0	0	Retired	5,000
34	01	J Nemechek	Chevrolet	-47L	41	0	0	Accident	5,000
35	16	G Biffle	Ford	-49L	39	7	5	Camshaft	10,000
36	9	K Kahne	Dodge	-60L	28	0	0	Piston	5,000
37	23	K Wallace	Chevrolet	-63L	25	0	0	Ignition	5,000
38	43	B Labonte	Chevrolet	-63L	25	0	0	Retired	5,000
39	8	D Earnhardt Jr.	Chevrolet	-63L	25	0	0	Header	5,000
40	41	R Sorenson	Dodge	-65L	23	0	0	Retired	5,000
41	7	R Gordon	Chevrolet	-65L	23	0	0	Accident	5,000

Caution Flags/Laps

7/28

Lead Changes/Leaders

14/9

Source: http://cmsraceresults.blogspot.com/2006/11/golden-corral-500.html