Mercedes-Benz: 100 Years of AWD

GERMAN CAR SCENE | Warren M - - Mercedes-Benz and the all-wheel drive - a success story: 4MATIC for everyone: comfort and driving dynamics attain a new level of perfection.

Mercedes-Benz has consistently been expanding its all-wheel drive line-up, setting new trends in a rapidly growing market segment. Mercedes-Benz offers no fewer than 48 models with permanent all wheel drive in seven vehicle classes, fulfilling the wishes of drivers for effortless motoring in all weather conditions. The new flagship is the S-Class 4MATIC. Developed entirely in-house for the luxury saloon, this all-new drive system combines perfect traction, first-class ride comfort and impressive driving dynamics with good fuel economy. The new technology leader likewise carries on the tradition with its roots in the so-called “Dernburg Wagen” from 1907, one of the first Mercedes-Benz vehicles with all-wheel drive. The vehicle designed 100 years ago by Paul Daimler paved the way for all the all-wheel drive vehicles sporting the Mercedes star – the Unimog, the G-Class, the first E-Class with 4MATIC, right through to the current model line-up with the new S-Class 4MATIC as its flagship.

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RECORD-BREAKING 2006 FOR CHRYSLER GROUP IN THE UK

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www.chauffeursnetwork.com

Chrysler Group has achieved record new car sales in 2006 with more than 20,000 cars sold for the first time in the UK.

The Chrysler 300C has proved to be a huge success with more than 2,000 registrations, beating all sales targets while retaining impressive residual values. The Voyager range has also had one of its best ever years in the UK selling more than 5,300 units, with the Stow ‘N Go seating system proving immensely popular.

For the Jeep^® brand the Grand Cherokee has been the big seller, with sales up 45 per cent on 2005 while the new Dodge Caliber has proved a sales success across the UK.

Peter Lambert, Managing Director of Chrysler Group, said: “When Chrysler launched in the UK in 1993 with just the Jeep Cherokee and Wrangler it sold 3914 vehicles. Since then sales have gone from strength to strength and the UK is now the second biggest market for Chrysler, Jeep and Dodge models in Europe.

“Driving through the 20,000 sales milestone for the first time is a significant achievement for our dealer network. 2006 was a challenging year for car sales across the UK, but the launch of six new cars has helped us buck this trend. We are one of only a handful of brands that have grown in the last 12 months with sales up 38 per cent compared to 2005.

“We are expecting an even bigger year for Chrysler Group in 2007 with seven new vehicles due to be launched. Sales of smaller SUV vehicles are predicted to grow significantly, and our new Jeep products will lead this growth. The new compact Jeep Patriot and Compass offer a class-leading
43.5 mpg, while the new Jeep Wrangler, with a diesel engine for the first time, is the only five-seat 4x4 cabrio on the market.

“The successful launch of the Dodge Caliber in 2006 puts us in great position to launch two new Dodge models next year – the stunning Dodge Avenger saloon and Dodge Nitro 4x4 will certainly stand out from the crowd. For Chrysler the 300C SRT-8 Touring offers incredible performance while the Chrysler Sebring saloon will herald our new approach to the company car market.”

This Day in Auto History: 05 JANUARY

This Day in Auto History: 1.5.1891 "Glenn Dale Angle, Chief Draftsman of the Welch Motor Car Company1909-1911 and for the Dort Motor Car Company 1916, is born in ImlayCity, MI" 1.5.1914 "The first Rayfield Cyclecar is completed amid great optimism, butonly one more car would be built" 1.5.1925 "Ralph DePalma drives a stripped down Chrysler Model B-70 touringcar 1,000 miles in 786 minutes at the Culver City, CA track to setnumerous stock car records" 1.5.1932 The Hupmobile 1931-1934 ``Stylized H'' mascot is patented bydesigner Raymond Loewy 1.5.1950 The 1950 Chryslers are introduced

Source: Automobile History Day By Day, by Douglas A. Wick

This Day in Auto History:

Chrysler meets Chery

Is there another rebadge vehicle coming to the US....AWD V6 sedan

DaimlerChrysler To Debut In-Vehicle Video Streaming

Posted on 4th January, 2007 by Warren M

Filed in DaimlerChrysler

WiMedia TechZone will be showcasing solutions and building blocks required for enabling WiMedia based solutions, at next week’s CES International event in Las Vegas.

Included in the WiMedia TechZone is a demonstration from DaimlerChrysler Research, Engineering and Design North America Inc. (DC REDNA), who will be exhibiting a Mercedes-Benz R500 enabled with the ability to stream high-definition video live from a consumer electronic device using ultra-wideband (UWB) to a rear system entertainment (RSE) system. This demonstration of WiMedia UWB in an automobile is the first of its kind research prototype and sets the stage for technology and content development that capitalizes on the growing popularity of RSE systems in family vehicles.

In this prototype demonstration, DC REDNA uses UWB technology provided by Intel in the vehicle. The Intel UWB solution incorporates the Intel® Wireless UWB Link 1480 MAC (Media Access Controller) silicon and an Alereon AL4000 WiMedia RF Transceiver to create the wireless USB connection. The demonstration will illustrate the streaming of high-definition videofrom a handheld mobile device to the RSE system inside the Mercedes-Benz R500 viewable othe factory installed monitors in the headrests for the middle and third row passengers.

“We appreciate Intel’s work to enable UWB in automobiles as we strive to enhance the comfort and convenience features for all our passengers,” said Dr. Wieland Holfelder, Vice President and Chief Technology Officer of DaimlerChrysler Research, Engineering and Design North America Inc. “As more and more wireless devices and wireless options will find their way into future DaimlerChrysler vehicles, standardization is essential and we look forward to collaborating with the WiMedia Alliance and their members to open up new innovations for drivers and passengers.”

The CE, PC, mobile device and automotive marketplaces have many applications that require high bandwidth wireless connectivity over a short range personal area network. With more than 250 members, the WiMedia Alliance is committed to promoting and enabling UWB technology that allows consumers to utilize rich and compelling content between devices within a wireless personal area network (WPAN).

“As more companies develop products based on the WiMedia UWB Common Radio Platform, consumers will reap the benefits of owning devices that work together and stream content that can be shared with others in their personal area networks,” said Stephen Wood, president of the WiMedia Alliance. “Consumers’ needs and wishes for enhanced technology continue to drive the members of the WiMedia Alliance to envision new ways of utilizing PC, CE and mobile devices in the home, office, and even in the car.”

[Source: Wimedia]

Chrysler expects restructuring plan by February

Reuters / January 4, 2007 - 3:00 pm DETROIT (Reuters) -- The Chrysler group should have a restructuring plan ready by February as it aims to recover from a loss expected to be near $1.3 billion for 2006, the automaker said today.

It has set a target of doubling its sales outside North America over the next five years to roughly 400,000 units.

"That's the overall plan that we will take to the marketplace. It will probably be by the end of the second month of the year," Chrysler group CEO Tom LaSorda told reporters on a conference call.

He added: "It will outline what we need to do on a wide scope of business, and I'm not providing any details until that day."

LaSorda also said the Chrysler group would remain open to product-focused alliances like the one it has clinched with China's Chery Automobile Co. to produce a new small car for export to Europe and the United States.

"The opportunities outside the U.S. are becoming more and more important," LaSorda said.

The Chrysler group announced a partnership with Taiwan's China Motor Corp. to export cargo vans to Mexico.

Under the deal, China Motor, which now makes a Chrysler-branded minivan for sale in Taiwan, would produce a Dodge-branded cargo van at its assembly plant in Yangmei, Taiwan, for the Mexican market, the Chrysler group said.

The automaker said it would also license China Motor and Fujian Motor Group of Fuzhou, China, to make a minivan for the Chinese market.

"There are ways to capture growth in different ways rather than putting a lot of your own capital out there," LaSorda said. "So we'll look at those kinds of opportunities."

The Chrysler group's U.S. sales slipped 7 percent in 2006, although sales outside the United States were up almost 7 percent. On a global basis, vehicle sales fell 4.5 percent.

In the U.S. market, DaimlerChrysler, which includes the parent company's Mercedes-Benz brand, slipped to become the No. 4 player, behind Toyota Motor Corp., which saw its own U.S. sales rise 13 percent.

Like other automakers, the Chrysler group is expected to face a flat to weaker market for vehicles sales in the United States this year, and LaSorda said the company would increasingly look for growth outside North America.

The company has previously said that its restructuring plan would look to cut $1,000 from the cost of each vehicle produced. Analysts have expected it to consider shutting a plant and asking the United Auto Workers for concessions on health care costs.

The Chrysler group has said it expects to report a 2006 loss of some $1.3 billion. Inventories of unsold pickups and SUVs have piled up and strained relations with U.S. dealers.

The Chrysler group is moving toward offering smaller vehicles to lessen its reliance on SUVs, trucks and minivans and target a segment of the market expected to be boosted by the consumer concern over high fuel prices.

The new small car that Chery is to build for the Chrysler group would allow the automaker to compete for young buyers and those for whom a cut-rate price is the most important consideration, the Chrysler group said in a statement.

Trademark Update: HORNET

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Current Status: Final review prior to publication has been completed, application will be published for opposition.

Date of Status: 2007-01-02

Filing Date: 2005-12-23

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Chrysler's focus swivels to minivan interiors

2008 Dodge Grand Caravan

NORTH AMERICAN INTERNATIONAL AUTO SHOW

Bradford Wernle | | Automotive News / January 4, 2007 - 12:19 pm
DETROIT -- With its current-generation minivan, the Chrysler group cemented its market leadership in the segment with an innovation: Stow 'n Go seating.

Now, for the fifth generation of its bread-and-butter vehicles, Chrysler has come up with Swivel 'n Go.

With Swivel 'n Go, the second-row seats can rotate to face the third-row seats. A table pops up in the middle so occupants can play cards, backgammon or whatever, almost as if they were traveling on a commuter train.

The feature is an option on versions of the 2008 Dodge Grand Caravan and Chrysler Town & Country, to be unveiled here next week at the Detroit auto show.

The name of the game in the minivan business is features. Because many minivans look so similar on the outside, the features inside count when dealers go to make a sale.

This time Chrysler took the best features from its major competitors and incorporated them into its own minivans, says Trevor Creed, Chrysler's chief designer.

"On top of that, we added our own unique features," he says.

Chrysler is billing the new minivans as "family rooms on wheels."

For the first time, passengers will be able to choose different entertainment programs because the minivans have separate DVD players. Chrysler will offer a MyGIG infotainment system, which is like having an iPod in the instrument panel. It also will offer an Infinity surround-sound system with nine speakers, a subwoofer and 506 watts.

Chrysler is upping the powertrain ante. For the first time, the automaker will offer a 4.0-liter V-6 engine, producing 240 hp and 253 pounds-feet of torque. That will be mated to an available six-speed transaxle, an industry first. Two other engines will be available: a 3.8-liter V-6, also with the six-speed, and a 3.3-liter V-6 with a four-speed automatic.

For the first time, the Chrysler group will offer only long-wheelbase versions in both brands. That means the Dodge now comes only in a Grand Caravan version. The wheelbase has been extended for 2008, to 121.2 inches from 119.3 inches in the current long-wheelbase model.

Chrysler will build Sebring for China in China

Bradford Wernle | | Automotive News / January 4, 2007 - 11:21 am The Chrysler group will start assembling the Sebring sedan for China this year at Beijing-Benz DaimlerChrysler Automotive Co., CEO Tom LaSorda said today.

The Chinese-assembled Sebrings will get engines from the Global Engine Manufacturing Alliance plant in Dundee, Mich.

The factory in Beijing is a joint venture of DaimlerChrysler AG and Beijing Automotive Industry Holding Co.

LaSorda also said Chrysler has signed an agreement with China Motor Corp. in Yangmei, Taiwan, to begin exporting a cargo van to Mexico. It will be sold as a Dodge.

The two announcements came just after Chrysler said it hired Chery Automobile Co. to build small cars in China for export to North America, Europe and possibly other markets.

The plan awaits approval from the DaimlerChrysler supervisory board and the Chinese government.

Chrysler Global Sales down by 4.5% for 2006

DETROIT, Jan 4 (Reuters) - DaimlerChrysler AG's (DCXGn.DE: Quote, Profile, Research) (DCX.N: Quote, Profile, Research) Chrysler Group said on Thursday that worldwide vehicle sales fell 4.5 percent in 2006 to a total of 2,698,429 vehicles.

In the United States, Chrysler sales declined 7 percent to 2,142,505 vehicles last year.

The company also said it plans to export Taiwan-built cargo vans to Mexico and launch production of the new Chrysler Sebring sedan in China for the local market.

2008 Chrysler Town & Country / Voyager unveiled

LEFTLANENEWS.COM - - Chrysler will use the Detroit auto show to reveal its all-new 2008 Chrysler Town & Country (a.k.a. Voyager) minivan. Specific details of the new model are not known, but the new van gets a completely revamped exterior, plus an all-new interior. The Town & Country will be offered with a new 4.0-liter V6 in the range-topping U.S. model. More details are expected in the coming days. 21-image gallery after the jump….

Fleets prop up minivan sales

Detroit 3 retail numbers crumble as segment shrinks

Rick Kranz | | Automotive News / January 1, 2007 - 1:00 am

DETROIT -- Simply put, Detroit 3 minivan sales are even worse than you thought. The Detroit 3 are relying on fleet customers -- both corporate customers and daily rental companies, such as Hertz -- to prevent a minivan sales debacle. In the first 10 months of 2006, fleet sales accounted for about 65 percent of Ford Freestar sales, about 62 percent of Chevrolet Uplander sales and about 42 percent of Dodge Caravan and Grand Caravan sales. By comparison, fleets accounted for 1 percent of Honda Odyssey sales in the same period. Overall, fleets accounted for about 27 percent of all minivan sales. The estimates were generated by the Automotive News Data Center, which compared its own overall sales data to retail vehicle registrations provided by R.L. Polk. Fleet sales involve the purchase of 10 or more vehicles. The data explain why Ford Motor Co. and General Motors are bailing out of traditional minivans. The Chrysler group, on the other hand, is defending its turf. The company has restyled and re-engineered the 2008 Dodge Caravan and Grand Caravan and Chrysler Town & County, which will debut at the Detroit auto show next week. Meanwhile, the import brands generally have avoided a meltdown. Retail sales of the Odyssey and Toyota Sienna remain steady, although the Nissan Quest continues to struggle. Among the imports, only the Mazda5 and Kia Sedona generate significant fleet sales. Through October, fleet customers purchased 28 percent of all Mazda5s and 17 percent of all Sedonas.

---

Slump Consumers are bailing out of minivans. Here are annual retail registrations. 2001: 969,342 2002: 906,036 2003: 807,059 2004: 836,868 2005: 818,823 2006: 611,191* * First 10 months Source: R.L. Polk

---

OK isn't good enough

The minivan segment is getting tougher because many retail customers are switching to crossovers to haul families and their gear. Through October, retail buyers purchased 621,594 minivans, down 12.7 percent compared with the year-ago period.

As retail demand declines, overall minivan sales could fail to top 1 million units in 2006, their worst result in 13 years.

"We are basically looking at roughly 700,000 in retail registrations this year," says Ford sales analyst George Pipas. "As the sales volume trails off, the first thing that happens is that the domestics turn to the daily rental business."

The Ford Freestar and Aerostar were "OK" vehicles, Pipas says, despite a significant Freestar re-engineering for the 2004 model year.

GM did not invest heavily to upgrade its minivans, and sales suffered.

"You just can't be OK when you are competing against Honda and Toyota," Pipas says. "The segment is getting too small to try to be an Odyssey wannabe. It will take you years to get a reputation to get up to that level. That accounted for our kind of just taking a whole different tack on this people-mover category."

Chrysler thinks the sales slide is temporary. Ann Fandozzi, director of global product markets for the Chrysler group, blames the tightening economy and the spike in gasoline price in 2006 for the minivan sales slide.

Chrysler sees overall minivan sales increasing "and stabilizing at about the 1.2 million-unit mark," she said at a press event in December.

No mommymobiles

The Detroit 3 are at an interesting crossroads for the segment.

Chrysler invested heavily in the 2008 Dodge Caravan and Grand Caravan and Chrysler Town & Country, with a conventional exterior and an innovative interior.

But sources say General Motors will phase out its traditional minivans -- the Chevrolet Uplander, Buick Terraza and Saturn Relay -- by 2010 and replace them with mid-sized crossovers. The first of these crossovers are the 2007 Saturn Outlook and GMC Acadia.

Meanwhile, Ford is producing an eight-passenger crossover for the 2009 model year. The vehicle, inspired by a recent concept called the Fairlane, will try to provide the minivan's family-hauling functions in a more stylish package. It lacks, for instance, the traditional minivan's sliding doors.

The Fairlane-inspired vehicle will be pitched to post-baby boom adults, generations X and Y, who likely spent a good portion of their childhoods scooting around in minivans and now don't want a mommymobile.

These younger adults simply aren't buying traditional minivans, says Jim Hall, vice president of AutoPacific, a consulting firm in Southfield, Mich.

He adds: "The minivan market is collapsing."

Chrysler continues US incentives through January

CHICAGO, Jan 3 (Reuters) - DaimlerChrysler AG's (DCXGn.DE: Quote, Profile , Research) Chrysler Group will offer consumer incentives of up to $5,000 on some 2007 Dodge Ram light duty pickup trucks through January to maintain sales momentum, executives said on Wednesday.

Chrysler will also offer low-rate financing and consumer cash incentives of $1,000 to $1,500 on some vehicles including the Charger and Chrysler 300, executives said in a conference call with analysts and reporters.

Executives also said Chrysler reduced the number of unassigned vehicles in inventory to below 10,000 at the end of December, exceeding a target to cut the "sales bank" to the low five-digits. It had swelled to 100,000 at one point in 2006.

Chrysler Group, which includes the Chrysler, Dodge and Jeep brands, said U.S. sales rose 1 percent in December. The results were supported by incentives offered to reduce inventories, analysts said.

In December, Chrysler Group spent $4,400 on incentives per vehicle, their highest level ever, mainly to get rid of excess 2006 inventory, including more than $6,400 per large truck, said Alex Rosten, an industry analyst with Edmunds.com.

Chrysler Group ended 2006 with inventory of 538,000 vehicles, a 74-day supply, down about 10 percent from the end of 2005, meeting a target to reach the low- to mid-500,000 range by the end of the year, it said.

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This Day in Auto History: JAN 04

1.4.1893 - "Mason M. Roberts of General Motors is born in Anderson, IN" 1.4.1930 - The 1930 Auburns are introduced at the New York Automobile Show 1.4.1944 - "David W. Rodger, Vice President and Secretary of the Federal-MogulCorporation and an employee of the firm since 1915, dies at age 50" 1.4.1955 - "The 1955 Packards are introduced, featuring the marque's first V-8engines and the ``cathredral'' taillights designed by Richard A. Teague" 1.4.1974 - "Yves Boisset, an Argentine Peugeot official, is kidnapped byguerillas"

Source: Automobile History Day By Day, by Douglas A. Wick

Chrysler World Sales Up 6.6 Pct. in '06

Associated Press | FORBES - - DaimlerChrysler AG's Chrysler Group said Thursday that sales in non-U.S. markets increased 6.6 percent in 2006 on strong sales of new vehicles such as the Dodge Caliber and Jeep Compass.

The Auburn Hills, Mich.-based arm of the German-American automaker said it sold 555,924 vehicles outside of the U.S. last year. Sales rose 15 percent outside North America to nearly 207,000 units, while sales in Mexico grew by 3.3 percent and sales of DaimlerChrysler (nyse: DCX - news - people ) Canada rose 1.7 percent on five consecutive months of sales growth.

Sales in the United States dropped 7 percent during 2006 to roughly 2.14 million units.

Oil continues slide, nears $57

Futures lose almost another one percent on top of Wednesday's big loss as warm weather continues; inventories on tap.

January 4 2007: 9:40 AM EST

NEW YORK (CNNMoney.com) -- Oil continued its selloff Thursday, losing more than 1 percent in premarket trade after sliding more than 4 percent Wednesday as the Northeast U.S. continued to bask in warm weather despite what should be the coldest time of the year.

U.S. crude for February delivery fell 80 cents to $57.52 a barrel in pre-market trade.

Traders are awaiting inventory numbers from the U.S. government, due at 10:30 a.m. ET.

Analysts are looking for a decline in crude supplies of 800,000 barrels, while distillates should increase by 900,000 barrels and gasoline supplies are expected to gain by 1.5 million barrels, according to Reuters.

But a staffer on Reuters' energy desk warned that actual numbers could be far from these estimates, saying EIA made a mistake in a recent previous survey.

The resumption of crude shipments to the Houston area could also effect EIA numbers. Fog had prevented several tanker deliveries for the last few weeks, and the reopening of ports could swell inventories.

Oil prices have fallen over 25 percent from highs reached in July and have been range-bound near $60 for the last few months.

Stocks of oil majors, including BP (Charts), ExxonMobil (Charts), ConocoPhillips (Charts), Chevron (Charts) and Royal Dutch Shell (Charts), stopped mirroring crude prices in mid-September and rebounded as traders bet on rising oil prices and looked for deals in a sector many saw as undervalued.

But over the last few weeks the traditional relationship with oil stock prices tracking the cost of crude has been reestablished.

Chinese-built Wrangler possible?

The Dodge Hornet concept is the vehicle that many think a Chery-built Chrysler could resemble. Zoom | Photo Reprints

Even though DaimlerChrysler AG insists that Toledo-built Jeeps will not be among the small vehicles its new Chinese partner will build, industry experts disagree.

Analysts said it is quite possibly Chery Automobile Co. could make a Jeep Wrangler version for the Chinese market, much as another automaker there produces Jeep Grand Cherokees and other Chrysler vehicles.

"That would actually be kind of a logical thing to do," said David Cole, an analyst with the Center for Automotive Research in Ann Arbor.

"If I were Chery that would be quite a plum. One of the reason to do a small car deal would be if you could get access to some of Chrysler's other products, like the Wrangler. It would really not surprise me if those discussion were taking place. It would be very logical."

But Chrysler spokesman Jason Vines told The Blade, "That's just crazy speculation. … There's only one place in the world building the quintessential Jeep, and everyone knows where [Toledo] that is."

The Chrysler-Chery deal was announced Friday, with the news that the Chinese automaker would develop a small car for sale in the United States and elsewhere. It called for Chery to make a car priced under $10,000, a model Chrysler has said it can't produce domestically.

Chrysler showed off a small-car concept last year that some think the Chery vehicle could resemble, the Dodge Hornet, a hatchback smaller than the Dodge Caliber, Chrylser's smallest vehicle. The deal is still subject to approval of the Chinese government and the supervisory board of DaimlerChrysler, Chrysler's corporate parent.

United Auto Workers officials representing workers at Chrysler's Toledo Jeep Assembly Plant could not be reached for comment yesterday.

The announcement of the deal with Chery led to speculation that it might make other Chrysler vehicles as well.

But two auto analysts said it wasn't far-fetched to think Chery might produce a Jeep model.

Toledo factories make most of the Wranglers and Libertys worldwide, although the Liberty is called a Cherokee overseas.

Greg Gardner, an analyst with Harbour Consulting, said a cheaper, small car is the primary objective of the deal, "but I wouldn't rule out the eventual possibility that Chery and Chrysler might work out some derivative of the Wrangler."

Chery is an established Chinese automaker without sport-utility-vehicle expertise, but it could ask Chrysler for help, he said.

Still, he noted, Chrysler could use its Beijing Automotive Industry Holding Co. Ltd. partner to build a Wrangler in China, if it wanted.

There are no plans, said Chrysler's Mr. Vines, for that plant to produce other Jeep vehicles. - Jon Chavez

CHINA: DaimlerChrysler gets green light for van plant

CHINA: DaimlerChrysler gets green light for van plant

http://www.just-auto.com/article.aspx?id=90020>
just-auto.com
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Dpa-AFX news reported that the new factory will built the Sprinter, Vito and Viano models in Fuzhou, the capital of Fujian province, from the start of 2009. ...

Chrysler throws in free Hemi

Automaker hopes deals on popular $1,700 engines, $1,000 DVD systems will spark rebound after a tough 2006.

Josee Valcourt / The Detroit News

Want a Hemi? You can get one at no extra charge later this year.

DaimlerChrysler AG's Chrysler Group plans to launch a first-ever national marketing campaign in March that will let consumers buy a Chrysler, Dodge or Jeep truck equipped with a powerful eight-cylinder Hemi for no additional charge. The popular engine typically costs an extra $1,700. Then in April, Chrysler will offer DVD entertainment systems valued at nearly $1,000 for no additional fee on every minivan it sells, George Murphy, Chrysler's vice president of marketing, told dealers in a Web cast Wednesday.

"It's something that GM and Ford don't have," Murphy told dealers. "It's going to be a conquest program for us."

Chrysler representatives would not provide additional details on the offers.

"We don't discuss these issues between our dealers and us," said Chrysler spokesman Markus Mainka. "But our general marketing approach is that we focus on key vehicles, highlighting their product features and benefits."

The company also told dealers it is launching a new incentive program for January that includes low-rate financing on high-volume products such as the Dodge Ram pickup and minivans. The program also includes up to $5,000 consumer cash on select 2007 models, including the Chrysler 300C and Dodge Charger. The new campaign is tagged "America's Hottest Product."

"I think it's going to be a most exciting year for us," Murphy said. "We don't have that monkey on our back of this big wholesale challenge so we can get focused and put all our energy into retail."

Chrysler is trying to get off to a fast sales start after a difficult 2006. The automaker's inventory was bloated for much of last year, which led the automaker to drastically cut vehicle production in the second half of 2006.

Chrysler riled dealers by pushing them to take cars and trucks they feared they couldn't sell. The controversy was a factor in the resignation last month of sales and marketing chief Joe Eberhardt.

In a move to rebuild rocky relations with dealers, executives plan to meet with Chrysler's dealer council next week in Auburn Hills to discuss retailers' top 10 concerns, Steve Landry, Chrysler's vice president of sales, said on the Web cast.

"We are going to eradicate each of those (concerns) so we can put our relationship back on track," Landry told dealers.

And Chrysler CEO Tom LaSorda is planning a road trip to meet with dealers nationwide in March and April.

Some dealers remain skeptical about Chrysler plans, particularly the Hemi deal.

"It won't fly unless they make adjustments on other cars that don't have Hemis," said Dan Frost, who owns several dealerships in Metro Detroit, including a Chrysler Jeep store in Southfield.

It's likely that Chrysler will present the marketing plan to its dealer council later this month to get retailers' input, Frost said.

Jim Sanfilippo, an auto analyst with Automotive Marketing Consultants Inc., called the planned campaign "different forms of incentives" but "sound thinking" because it gets certain vehicles on consumers' consideration list.

"It's probably less expensive for Chrysler to do it this way than offer some giant rebate that nobody notices," he said. The risk is the Hemi's value diminishes and "everybody waits until the next sale to buy them," he said.

The moves come as Chrysler is trying rebound after losing $1.5 billion in the third quarter last year and projecting a $1.2 billion full-year loss for 2006 stemming from lackluster sales.

Murphy told dealers the Auburn Hills automaker would take a more strategic approach to launching marketing programs and "periodically during the year, when it makes sense, bang hard on national sales events."

Separately, during its monthly sales conference call with media, Chrysler reported a 0.5 percent gain in December sales compared to a year ago and said it had reduced its sales bank -- vehicles that are not built to meet dealer orders -- to below 10,000 units, down from about 140,000.

"Our dealers are facing a brutally competitive marketplace and our goal as a manufacturer as part of that relationship is to provide them with the great products to sell and, as importantly, the tools to sell those products efficiently," Mike Manley, Chrysler's vice president for sales strategy and dealer operations, said during the sales call.

Daimler plans another factory in subcontinent

DaimlerChrysler AG plans to set up a new car factory in western India.

The German-based auto maker plans to sign an agreement with the government of Maharashtra state today. Demand for automobiles is rising in India with an expanding economy and higher incomes.

Last year, auto makers including Volkswagen AG and General Motors Corp. announced a combined $5 billion (U.S.) of investments in new factories in India by 2012.

DaimlerChrysler currently assembles E-class, C-class and S-class models at a factory in Pune in Maharashtra.

from star staff and wire services

German Automakers Post Record Production

Associated Press | STUGARTT - German automakers posted record production figures and exports in 2006 and enjoyed a booming domestic market as the economy picked up and buyers rushed to beat a tax increase, an industry association said Thursday.

Car exports, a mainstay of Europe's largest economy, rose to 3.9 million vehicles, an increase of 2.5 percent over 2005, the VDA auto industry association said in a statement.

That included a 6 percent jump in sales of light vehicles to the United States to a total of 921,000, despite a shrinking market there. The association, whose members include DaimlerChrysler AG (nyse: DCX - news - people ) and Volkswagen AG, gave no 2005 figures.

At home, the number of new cars registered - including cars made outside Germany - last year rose 4 percent to 3.47 million, the highest since 1999 as consumer demand broke out of a long period of stagnation.

Overall, the number of cars rolling out of German car plants rose 1 percent to a record 5.4 million.

Registrations skyrocketed in November and December, by 18 percent and 17 percent respectively, as buyers rushed to avoid an increase in value-added tax, which rose from 16 percent to 19 percent on Jan. 1.

Germany's strengthening economy, technical innovations and discounting also helped drive demand, association president Bernd Gottschalk said.

In anticipation of a domestic slowdown at the start of 2007, orders placed in December dropped sharply, he said.

"There was a roaring trade at the end of the year, stocks have been cleared. Now there is the hope that the New Year won't start too bumpily," Gottschalk said.

Higher tax on auto insurance from Jan. 1, as well as a cut in tax breaks for commuters, could also damped demand.

The outlook for exports remains stronger. December orders from abroad were up 9 percent compared with the last month of 2005.

Trademark Update: SRT8

Mark


(words only): SRT8

Standard Character claim: Yes

Current Status: Registered.

Date of Status: 2007-01-02

Filing Date: 2006-02-17

Transformed into a National Application: No

Registration Date: 2007-01-02

Register: Principal

Law Office Assigned: LAW OFFICE 108

If you are the applicant or applicant's attorney and have questions about this file, please contact the Trademark Assistance Center at TrademarkAssistanceCenter@uspto.gov

Current Location: 650 -Publication And Issue Section

Date In Location: 2007-01-02

---

LAST APPLICANT(S)/OWNER(S) OF RECORD

---

1. DAIMLERCHRYSLER CORPORATION

Address:
DAIMLERCHRYSLER CORPORATION
CIMS 483-02-19 1000 CHRYSLER DRIVE
AUBURN HILLS, MI 48326
United States
Legal Entity Type: Corporation
State or Country of Incorporation: Delaware
Phone Number: 248 944-6511
Fax Number: 248 944-6537

---

GOODS AND/OR SERVICES

---

International Class: 012
Class Status: Active
Motor vehicles, namely, passenger cars, sport utility vehicles, and structural parts and engines therefor
Basis: 1(a)
First Use Date: 2005-12-31
First Use in Commerce Date: 2005-12-31

---

ADDITIONAL INFORMATION

---

Prior Registration Number(s):
3093770
3098722
3098724

---

MADRID PROTOCOL INFORMATION

---

(NOT AVAILABLE)

---

PROSECUTION HISTORY

---

2007-01-02 - Registered - Principal Register

DaimlerChrysler to sign deal for India car plant

Reuters / January 3, 2007 - 8:00 am MUMBAI -- DaimlerChrysler will sign an agreement with the western Indian state of Maharashtra on Thursday, Jan. 4, for a new plant to make its premium Mercedes-Benz cars, a company spokesman said.

He declined to comment on the size of the investment or the capacity of the plant, which would be located near Chakan, 110 kilometers, or 70 miles, east of Mumbai.

Local media reports have indicated the company would invest about $56 million (2.5 billion rupees) in the plant.

The German-based company presently makes about 2,000 cars annually in a facility leased from Tata Motors Ltd. in Maharashtra.

Daimler sold 2,121 units in India in 2005, nearly doubling sales from the previous year, it said. It sells its Mercedes-Benz S-class, E-class and C-class sedans in India.

Annual passenger vehicle sales in India are forecast to nearly double to 2 million units by 2010 on rising incomes and new launches

Chrysler bets minivans have long road ahead

Reuters / January 3, 2007 - 8:00 am DETROIT -- Can the "parent mobile" ride to the rescue for the Chrysler group again?

The Chrysler group is betting that its minivans can reconnect with a new generation of families and help pull the No. 3 U.S. automaker out of a slump, just as its first-ever minivans in 1984 marked Chrysler's return from the brink of financial collapse.

The stakes are high for the Chrysler group as it prepares to unveil next-generation versions of its Chrysler Town and Country and Dodge Grand Caravan minivans at the Detroit auto show on Sunday, Jan. 7, launches seen as key once again to the company's turnaround, analysts say.

Even as rivals abandon slow-selling minivans, the Chrysler group is betting it can revive the segment it created and show critics have been wrong to write off a family-friendly class of vehicles that first took off with suburban "soccer moms" two decades ago.

"No one will ever take a minivan and make it anything more than a parent-mobile, but that doesn't mean they're not important -- especially for Chrysler which has dominated," said Eric Noble, president of The Carlab, a California-based consulting firm.

The Chrysler group, the U.S. unit of DaimlerChrysler AG, has forecast a 2006 loss of some $1.3 billion after failing to respond to the shift from high-margin pickups and SUVs in the face of higher gasoline prices.

With sales down 8 percent as of end-November, Chrysler is readying a cost-cutting program for the first quarter with the goal of cutting $1,000 from the cost of each vehicle produced.

CEO Tom LaSorda told employees in a year-end message that the planned minivan launch this summer would be part of the turnaround. "We invented (the minivan), and we're going to wow the industry one more time," he said.

Expectations are high that the Chrysler group could look to close an assembly plant, a prospect the company has declined to discuss.

The automaker also is certain to go back to the United Auto Workers union to try to get health care concessions similar to deals the union granted to General Motors and Ford Motor Co. but rejected last year for the Chrysler group.

"They have some very important work to do as a matter of survival," said David Cole, director of the Center for Automotive Research. "They have a new minivan and some other new products coming, but everyone does. It's going to be a very competitive race."

BIG EXPECTATIONS ON BOARD

The Chrysler group has more riding on minivans than other automakers. Its Chrysler and Dodge models are the company's top-selling vehicles and account for almost 20 percent of its U.S. sales.

The Chrysler group also sells more than twice as many minivans as the combined total for Toyota Motor Corp.'s Sienna and Honda Motor Co.'s Odyssey, its closest competitors.

"The Chrysler minivan has really dominated its genre almost akin to what the Mustang has been to muscle cars and for Ford," said Noble. "These are remarkable exceptions in the history of these companies."

The Chrysler group will take the wraps off its new minivans on Sunday, and analysts expect the redesigned vehicles to offer bolder styling and refinements intended to be parent-pleasers, such as more flexible seating and lighting.

The Chrysler group, which has about 30 percent of the segment, expects a stable market for minivans as the children of Baby Boomers begin to buy for their own families. Minivan sales peaked at 1.37 million units in 2000 and are on track to be near 1 million units for 2006.

GM and Ford think buyers will shift to car-based crossover vehicles that offer the handling characteristics of a car but with the roomier interior and higher ride of a SUV.

GM's product chief Bob Lutz recently said minivans carried a "soccer mom stigma." Ford's North American design chief Peter Horbury said while Americans liked riding high in the saddle, minivan drivers are left feeling like they are astride a cow.

None of that sniping will matter, analysts say, if Chrysler group management gets costs under control and its new minivans extend the company's winning streak.

"Purely from a sales perspective you will see things start to improve," said IRN Inc. analyst Erich Merkle. "The new minivans are the big guns they have coming."

Mercedes-Benz Rings in the New Year with Record Sales

MBUSA Achieves All-Time Sales Record with Sales of 248,080 for 2006

MONTVALE, N.J., Jan. 3 /PRNewswire/ -- December sales of 28,115 boosted Mercedes-Benz USA (MBUSA) to its 13th year of sales increases and the highest annual volume in its history. MBUSA sold 248,080 vehicles in 2006, a 10.5 percent increase over the 224,421 units sold in 2005.

The company introduced six new SUV models in 2006, including the highly acclaimed GL-Class -- the first European seven-passenger SUV which was recently voted Motor Trend's SUV of the Year -- and diesel versions of its ML- Class, R-Class and GL-Class, offering higher gas mileage to luxury SUV buyers. The Mercedes-Benz SUVs were so well received that the company saw a 67.7 percent jump in sales of its light trucks as a group (ML-, R-, G-, and GL- Classes) compared to 2005 (69,163 vs. 41,252).

Sales at the high-end were equally impressive. As a group, the S-, SL- and CL-Classes rose by 48.2 percent compared to last year (40,660 vs. 27,436), boosted by the introduction of the flagship S-Class in February. Sales of the S-Class model line nearly doubled in 2006 with a 92.6 percent increase.

Sales of vehicles in the Mercedes-Benz diesel portfolio -- both CDI and BLUETEC models -- grew from 4,299 units in 2005 to 6,941 units in 2006, posting a 61.5 percent increase. Known for being a leader in diesel innovation and engineering, Mercedes-Benz expanded its diesel offerings in the fourth quarter of 2006 to include SUVs (ML-Class CDI, R-Class CDI, and GL- Class CDI), and also introduced the cleanest diesel technology available in a passenger car through the E320 BLUETEC. The company plans to expand its BLUETEC range to bring 50-state diesels to the U.S. market in 2008.

DECEMBER SALES

MBUSA sold 28,115 vehicles in December 2006, marking the second-highest sales month in MBUSA history -- second only to December 2005, the best MBUSA sales month ever.

The top-of-the-line vehicles -- the S-Class sedan and CL-Class coupe -- each recorded impressive gains in sales volume for the month. Sales of the ninth generation S-Class rose 56.2 percent (2,987 vs. 1,912 units) and the CL- Class jumped 77 percent (347 vs. 196 units).

The sales volume leader for the month, the E-Class model line, gained 12.3 percent with 7,116 units sold compared to December 2005's 6,334 units.

MERCEDES-BENZ CERTIFIED PRE-OWNED SALES

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 4,374 vehicles in December, an increase of 19.9 percent over last December and marking the program's best sales month this year. This boosted the MBCPO year-end total to 47,737 units, an 8.3 percent increase over 2005.

ABOUT MERCEDES-BENZ USA

Headquartered in Montvale, N.J., MBUSA is responsible for the sales,
marketing and service of all Mercedes-Benz products in the United States.
More information on MBUSA and its products can be found on the Internet at
http://www.mbusa.com.



Model Dec '06 Dec '05 Monthly % YTD 2006 YTD 2005 Yearly %

C-CLASS 5,197 9,806 -47.0% 50,187 60,658 -17.3%

E-CLASS 7,116 6,334 12.3% 50,195 50,383 -0.4%

S-CLASS 2,987 1,912 56.2% 30,886 16,036 92.6%

CL-CLASS 347 196 77.0% 1,312 1,320 -0.6%

SL-CLASS 539 1,098 -50.9% 8,462 10,080 -16.1%

CLK-CLASS 1,509 1,748 -13.7% 16,415 18,227 -9.9%

SLK-CLASS 664 976 -32.0% 10,410 11,278 -7.7%

CLS-CLASS 966 1,230 -21.5% 10,763 14,835 -27.4%

R-CLASS 1,546 2,430 -36.4% 18,168 4,959 266.4%

M-CLASS 3,889 5,340 -27.2% 31,632 34,959 -9.5%

G-CLASS 18 122 -85.2% 587 1,334 -56.0%

GL-CLASS 3,337 n/a n/a 18,776 n/a n/a

SLR 141 200 -29.5%

Maybach 146 152 -3.9%

GRAND
TOTAL 28,115 31,192 -9.9% 248,080 224,421 10.5%

Chrysler Group December 2006 U.S. Sales Rise 1 Percent, Carried by 10

New Product Introductions in 2006
Wednesday January 3, 2:54 pm ET

- Jeep Wrangler sales rise 61 percent, a new December sales record- Jeep Compass sales increase 36 percent; the highest sales total since introduction- Dodge Ram Pickup sales increase 6 percent- Dodge brand sales rise 5 percent on the strength of Nitro, Caliber and Charger sales- The Dodge Nitro powers to a 36 percent increase over November 2006 sales

AUBURN HILLS, Mich., Jan. 3 /PRNewswire-FirstCall/ -- On the strength and momentum provided by the 10 product introductions in 2006, Chrysler Group reported that unadjusted sales in December 2006 rose 1 percent to 190,415 units (4 percent adjusted), compared to December 2005 sales of 189,449 units. For the entire year, Chrysler Group sales totaled 2,142,505 units, a decrease of 7 percent over 2005. All figures are reported as unadjusted.

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"The 10 new products the company introduced in 2006 generated customer and media praise and laid the foundation for strong sales in 2007," said Steven Landry, Vice President, Sales and Field Operations - Chrysler Group. "We've got an aggressive retail sales plan for 2007 that is expected to drive showroom traffic and provide our dealers the best opportunity to sell vehicles."

The all-new, iconic Jeep Wrangler continues to solidify its segment dominance in the marketplace and deepen its loyalty with customers. Sales of the Jeep Wrangler rose 61 percent to 8,623 units in December. December 2005 sales totaled 5,363 units.

Sales of the all-new Jeep Compass rose 36 percent month-over-month, posting sales of 5,066 units in December 2006. November 2006 sales were 3,723 units.

For the Dodge brand, the Dodge Ram pickup continues to lead the way for the brand, with sales rising 6 percent to 32,875 units. December 2005 year sales were 30,978 units. Sales for the Dodge brand totaled 88,489 units, an increase of 5 percent over December 2005 sales of 84,023 units.

Sales of the Dodge Nitro, the newest SUV for the Dodge brand, and the first mid-sized SUV continues to gain momentum, totaling 7,491 units in December 2006, or an increase of 36 percent over November 2006 sales of 5,489 units.

Sales of the first SUV for the Chrysler brand, the all-new Chrysler Aspen, totaled 3,033 units, an increase of 28 percent over November 2006 sales of 2,365 units. Sales of the Chrysler Aspen continue to exceed expectations as the vehicle continues arriving at dealerships and customers respond to its unique looks and features.

Chrysler Group finished the month with 538,438 units of dealer inventory, or a 74-day supply. That figure is 58,568 units and 11-days fewer than December 2005 and in-line with earlier guidance of projected year-end inventory levels.

On Thursday, January 4, 2007, Chrysler Group President and CEO, Tom LaSorda will host a teleconference to deliver worldwide sales results for the Chrysler Group and its global growth initiatives. Details about the teleconference are available on the Chrysler Group media web site.

      DaimlerChrysler Corporation U.S. Sales Summary Thru December 2006

                                              Month Sales      DR %   Vol %
                   Model                   Curr Yr    Pr Yr   Change  Change
   Sebring                                 12,157     5,634    124%    116%
   Concorde                                     0         0      0%      0%
   300                                     16,250    12,202     38%     33%
   Crossfire                                   10     1,054    -99%    -99%
   PT Cruiser                               8,215    10,167    -16%    -19%
   Aspen                                    3,033         0      0%      0%
   Pacifica                                 5,297     7,228    -24%    -27%
   Town & Country                          10,877    15,923    -29%    -32%
     CHRYSLER BRAND                        55,839    52,208     11%      7%
   Compass                                  5,066         0      0%      0%
   Wrangler                                 8,623     5,363     67%     61%
   Liberty                                 11,979    17,665    -30%    -32%
   Grand Cherokee                          12,853    21,732    -39%    -41%
   Commander                                7,566     8,458     -7%    -11%
     JEEP BRAND                            46,087    53,218    -10%    -13%
   Neon                                         0     4,378   -100%   -100%
   Caliber                                  9,425         0      0%      0%
   Stratus                                    459     3,853    -88%    -88%
   Intrepid                                     0         0      0%      0%
   Charger                                 10,567     7,137     54%     48%
   Viper                                       68       163    -57%    -58%
   Magnum                                   2,735     2,901     -2%     -6%
   Dakota                                   5,144     7,309    -27%    -30%
   Ram P/U                                 32,875    30,978     10%      6%
   Caravan                                 14,095    19,039    -23%    -26%
   Durango                                  4,322     6,415    -30%    -33%
   Nitro                                    7,491         0      0%      0%
   Ram Van/Wagon                                0         0      0%      0%
   Sprinter Van                             1,308     1,850    -27%    -29%
     DODGE BRAND                           88,489    84,023      9%      5%

     TOTAL CHRYSLER GROUP                 190,415   189,449      4%      1%

             TOTAL CG CAR                  49,698    35,334     46%     41%
             TOTAL CG TRUCK               140,717   154,115     -5%     -9%
   Selling Days                                26        27
   Global Sales Reporting & Analysis
   January 3, 2007



      DaimlerChrysler Corporation U.S. Sales Summary Thru December 2006

                                               Sales CYTD        DR %   Vol %
                   Model                    Curr Yr     Pr Yr   Change Change
   Sebring                                   69,357     90,294   -23%   -23%
   Concorde                                       0        210  -100%  -100%
   300                                      143,647    144,068     0%     0%
   Crossfire                                  8,216     14,665   -44%   -44%
   PT Cruiser                               138,650    133,740     4%     4%
   Aspen                                      7,656          0     0%     0%
   Pacifica                                  78,243     85,557    -8%    -9%
   Town & Country                           159,105    180,759   -12%   -12%
     CHRYSLER BRAND                         604,874    649,293    -7%    -7%
   Compass                                   18,579          0     0%     0%
   Wrangler                                  80,271     79,017     2%     2%
   Liberty                                  133,557    166,883   -20%   -20%
   Grand Cherokee                           139,148    213,584   -35%   -35%
   Commander                                 88,497     17,048   421%   419%
     JEEP BRAND                             460,052    476,532    -3%    -3%
   Neon                                      17,239    113,332   -85%   -85%
   Caliber                                   92,224          0     0%     0%
   Stratus                                   51,393     99,648   -48%   -48%
   Intrepid                                       0        298  -100%  -100%
   Charger                                  114,201     44,804   156%   155%
   Viper                                      1,455      1,652   -12%   -12%
   Magnum                                    40,095     52,487   -23%   -24%
   Dakota                                    76,098    104,051   -27%   -27%
   Ram P/U                                  364,177    400,543    -9%    -9%
   Caravan                                  211,140    226,771    -7%    -7%
   Durango                                   70,606    115,439   -39%   -39%
   Nitro                                     16,990          0     0%     0%
   Ram Van/Wagon                                  0        405  -100%  -100%
   Sprinter Van                              21,961     19,578    13%    12%
     DODGE BRAND                          1,077,579  1,179,008    -8%    -9%

     TOTAL CHRYSLER GROUP                 2,142,505  2,304,833    -7%    -7%

             TOTAL CG CAR                   510,234    526,823    -3%    -3%
             TOTAL CG TRUCK               1,632,271  1,778,010    -8%    -8%
   Selling Days                                 306        307
   Global Sales Reporting & Analysis
   January 3, 2007

The Bluetec poster child: Mercedes Vision GL420 concept

MOTOR AUTHORITY | Wednesday 3 January 2007

Mercedes has been banging the diesel drum for some time now and is keen to showcase its latest Bluetec technology to the American market. It’s even teamed up with rival automakers Volkswagen and Audi to bring Bluetec to the market. To help boost recognition, Mercedes will be showing a modified GL-class SUV at the upcoming Detroit Auto Show. Under the hood is a powerful V8 diesel engine that develops 216 kW (290hp) and a whopping 700Nm of torque, but still manages to get a fuel economy rating of only 9.8L/100km (24 mpg). With a full tank, the Vision GL420 can travel almost 1000km.

The revised, distinctively sculpted front with the dominant radiator grille sets this GL apart from the others, and is complemented by the flared wings, imposing 21 inch wheels and running boards.

As far as concepts go, the Vision GL420 is as weak as they come. Mercedes has already announced that we’ll see a Bluetec SUV in the near future, and the styling cues may be put into production for a GL-class facelift.

December Auto Sales: DaimlerChrysler

NEW YORK | BUSINESSWEEK - - German and American automaker DaimlerChrysler AG on Wednesday said its December sales in the U.S. fell 1 percent, due mostly to softness at its Mercedes-Benz luxury division.

The company said it sold 218,530 vehicles last month, compared to 220,641 vehicles during the same period a year ago. Adjusted to reflect one fewer selling days this December than last, sales rose 2.9 percent.

DaimlerChrysler said sales at its Chrysler Group rose 1 percent to 190,415 vehicles from $189,449 vehicles last year, while sales at Mercedes-Benz USA declined 9.9 percent to 28,115 vehicles from 31,192 vehicles a year ago. On an adjusted basis, Chrysler sales advanced 4.4 percent and Mercedes sales fell 6.4 percent.

For the year, DaimlerChrysler sales fell 5.5 percent to 2,390,585 vehicles from 2,529,254 vehicles in 2005. Adjusted for one fewer selling days this year, sales fell 1.9 percent.

Shares of DaimlerChrysler hit a new 52-week high of $62.67 before slipping back to $62.57, up $1.16, in midday trading on the New York Stock Exchange.

The buzz is wrong: LaSorda says no Hornet from China

AUTOBLOG.COM | Chris Tutor

Despite early assumptions, it looks like the Dodge Hornet has been swatted down for now. The news comes out of a talk Chrysler's media-only Firehouse blog recently had with Chrysler Group President and CEO Tom LaSorda.

• Q – Will this car mean the death of the Hornet, the muscular small car concept that we saw at the Geneva auto show this year?

• Tom – "The Hornet is a great statement of our design. It is also a statement that it's something that we're going to continue to take a look at, and depending on the business case going, we'll look at that independently from this particular project."

So that puts us back into the guessing game as to what the Chinese Chrysler product from Chery will be. Or even if it will be a Dodge.

LaSorda confirms, however, that the Chery-built car will be B-Class-sized. He goes on to address concerns about the level of quality we can expect from Chinese-built cars as well as political repurcussions of choosing to build a new car in a foreign country instead of the U.S.

Here is the entire interview from Chrysler's The Firehouse blog:

Chrysler Group President and Chief Executive Officer Tom LaSorda spoke with TheFirehouse about the deal reached with Chery Automobile Co. of China to distribute Chery-made small cars in North America and other markets.

"If you look at the U.S. market, or even in NAFTA, all the B-segment vehicles are being imported from the Asia region. The major reason is their cost structure and their ability to engineer and design in those segments. And we really cannot compete, nor can any one else, making it in this region," he said.

Question – Why partner with Chery, or any Chinese car company for that matter, instead of building the car here in North America or at a DaimlerChrysler plant in China?

Tom – "Well, first of all, we're talking about a B-segment, which is a very small compact car, and if you look at the U.S. market or even in NAFTA, all the B-segment vehicles are being imported from the Asia region. The major reason is their cost structure and their ability to engineer and design in those segments. And we really cannot compete nor can anyone making it in this region."

Q – This being an election year, will this be used as a political statement about more jobs going to China?

Tom – "Well, first of all, I can't control what people say politically. What I can control is the fact that we are already exporting cars into China – the Chrysler Group. We're also producing locally the 300, the minivan into China, and most people don't know that we're exporting a large percentage of the componetries of these cars – the engines, the transmissions and major high-cost parts that are made by Americans and Canadians primarily – are being shipped over to these markets for us in China. I tell you, there are a lot of jobs being preserved by our growth in China and our exports there. And this (the Chery deal) will have no impact because we're not even involved in the B-segment today."

Q – Can China build a quality car that will satisfy North American consumers?

Tom – "Well, absolutely, and our role here is to ensure that our engineering and design and quality teams are working with Chery along the way to meet the stringent standards, not only in North America but around the world. And that teamwork will continue throughout this project."

Q – Will this car mean the death of the Hornet, the muscular small car concept that we saw at the Geneva auto show this year?

Tom – "The Hornet is a great statement of our design. It is also a statement that it's something that we're going to continue to take a look at, and depending on the business case going, we'll look at that independently from this particular project."

Q – How will this help the Chrysler Group's attempts here in the United States to shift some of the mix away from pickup trucks, minivans and SUVs with gas prices high right now?

Tom – "Well, the consumers are, quite frankly, just looking for choice, and the fact that the Chrysler Group doesn't even play in this segment, it's very important that we do. This is important for our growth here, but not only here in the NAFTA region - and I'm talking Canada, Mexico and the United States - but the European markets and other growth areas, where the growth is going. We need to follow with a cross-section of great cars and trucks across our whole portfolio. That's why we need this in this region as well. Our attempt here will help us in this region because the gas mileage of this car will be exceptionally good and we're looking forward to this coming in to help us as this segment is growing in this region and we just need to play a part."

Chrysler sales gain, but falls to No. 4

Chrysler December sales show unexpected gain, but it's not enough to stop Toyota from passing DaimlerChrysler in full-year U.S. sales.

January 3 2007: 12:01 PM EST

NEW YORK (CNNMoney.com) -- Chrysler Group reported an unexpected rise in sales in December, although it wasn't enough to stop its parent company from falling to fourth place in full-year U.S. sales for the first time.

Chrysler reported its U.S. sales gained 1 percent to 190,415 vehicles in the month, up 1 percent from year-earlier sales. Auto sales tracker Edmunds.com had been looking for a 6.7 percent decline in sales for the period.

Photo Gallery See more photos

Video More video Toyota could soon be the number one car maker in the world. CNN's Ali Velshi is 'Minding Your Business'. (December 26) Play video

But Mercedes-Benz, the luxury brand which like Chrysler is owned by DaimlerChrysler (Charts), reported a 10 percent drop in sales, leaving the overall company with a 1 percent drop in U.S. sales in December from a year earlier.

Even with better than expected November results, Chrysler ended the year with U.S. sales of 2.1 million, off 7 percent from 2005, while Mercedes gained 11 percent for the year. That left DaimlerChrysler's sales here down 5 percent to 2.4 million vehicles.

The result almost certainly will drop DaimlerChrysler into fourth place in U.S. sales for a full year for the first time, behind General Motors (Charts), Ford Motor (Charts) and Toyota Motor (Charts), which is likely to move past DaimlerChrysler. Toyota's sales through November were already at 2.3 million, and Edmunds is forecasting its December sales gained 7 percent from the 203,279 it sold in December 2005.

GM and Ford also are likely to report lower 2006 sales later in the day Wednesday, along with Japanese automaker Nissan (Charts). Honda Motor (Charts) is likely to join Toyota in reporting improved sales, although Edmunds expects its December sales to be below year-earlier results.