DaimlerChrysler AG Centric News Blog: 2007-02-11

Friday, February 16, 2007

Report: Chrysler to recall some 2006 Dodge Ram trucks

The Detroit News - -

DaimlerChrysler AG's Chrysler Group unit is recalling some 2006 Dodge Ram pickup trucks because their front- wheel bearings may not have enough grease, Bloomberg News reported today.

The recall affects as many as 86,333 of the pickups built between Nov. 7, 2005, and April 27, 2006, the company told the National Highway Traffic Safety Administration. The problem can cause noise and vibration that if not addressed could lead to a loss of control and a crash, the agency said on its Web site.

Production Dodge Challenger will be unveiled one year from today

AUTOBLOG.COM | Posted Feb 15th 2007 5:24PM by John Neff

The Chrysler Group has announced that the production version of the Dodge Challenger will be unveiled at the 2008 Chicago Auto Show exactly one year from now. We have 356 days to wait until the first official challenger, so to speak, to the Ford Mustang's dominance will enter the ring. Until then, the current Challenger Concept vehicle will be accompanied by a countdown clock at every auto show it attends this year, just to remind Challenger fans how many more saving days, minutes and seconds are left. We're extremely eager see to what changes will be made on the production version of the Challenger since the concept looks almost ready to go right now. It will be the first coupe built on Chrysler's LX platfrom and, as we reported yesterday, will be built alongside its siblings, the Chrysler 300, Dodge Charger and Magnum, at the company's Brampton, Ontario plant.

[Source: Chrysler Group]

Mercedes and McLaren to finally build open-top SLR

AUTOBLOG.COM | Posted Feb 16th 2007 9:04AM by Sam Abuelsamid

Click the photo for a gallery of high-res shots of the 1999 Vision SLR concept

Mercedes Benz originally showed off the Vision SLR coupe at the 1999 Detroit Auto Show, followed by the roadster version of the same car in September of that year in Frankfurt. In 2004 a production version of the SLR coupe finally arrived courtesy of Mercedes' F1 partner, McLaren. Yesterday, The Car Connection reported that Mercedes has now confirmed that they will finally introduce a open-top version of the SLR beginning this summer. No further details are available yet, although something might be announced at the Geneva Auto Show next month.

[Source: The Car Connection]

Gallery: Mercedes-Benz Vision SLR roadster

Chrysler CEO seeks deals to boost sales abroad

Reuters / February 16, 2007 - 9:26 amNEW YORK (Reuters) -- Chrysler CEO Tom LaSorda said he wants to use new alliances to more than double sales outside North America, the Wall Street Journal reported today.

The unit's previous goal, of doubling Chrysler sales outside North America from the current level of about 200,000 vehicles, was "not acceptable" and should be ratcheted up, the paper said, quoting from an interview with LaSorda.

Alliances with other automakers could cut the costs of that expansion, the paper said, citing LaSorda.

Chrysler is exploring partnerships to jointly develop vehicles, powertrains, axles and other aspects of auto making, the paper said.

One possible alliance is with U.S. rival General Motors, the paper said, citing people familiar with the matter. An agreement is far from certain, the paper said, and added that the sources discounted the potential that a possible GM-Chrysler alliance based on specific vehicles would develop into something deeper.

Officials for Chrysler and GM could not immediately be reached.

Chrysler spinoff seen as likely option, analysts say

Reuters / February 15, 2007 - 10:00 am

FRANKFURT (Reuters) -- Spinning off the Chrysler group on the stock market may be easier and faster than finding someone to buy the loss-making North American arm of DaimlerChrysler, analysts said today.

Indian or Chinese carmakers eager to expand into the world's biggest car market might find Chrysler an attractive opportunity, and a handful of European carmakers could use some of its spare capacity.

But Chrysler's unionized workforce, unfunded health and pension liabilities, and hefty losses will make investors think twice about taking on any financial exposure, they said.

Analyst Christoph Stuermer at Global Insight suggested DaimlerChrysler could float up to a quarter of the Chrysler group, thus raising funds while winning back some of the U.S. investors who departed after the 1998 Chrysler merger with Daimler-Benz.

Arndt Ellinghorst at Dresdner Kleinwort envisaged nursing the Chrysler group back to health and then floating it with the goal of creating the kind of alliance that France's Renault SA has with separately listed Nissan Motor Co. Ltd.

In a research note, Dresdner said separating Chrysler from its German parent seemed possible because the official German document for reporting the legal obligations of DaimlerChrysler AG makes no mention of Chrysler's health care liabilities.

"The absence of Chrysler's 15.8 billion euros ($20.78 billion) in unfunded health care obligations would thus not weigh on Daimler post a de-merger. We believe the remaining 2.6 billion euros ($3.42 billion) pension obligations would not hinder a de-merger decision," it added.

One investment banker who follows the auto sector closely named Volkswagen, Renault, PSA/Peugeot-Citroen and Fiat as likely partners for the Chrysler group.

"There are lots of synergies with Chrysler given no U.S. presence and not much product overlap," he said. "Daimler could keep a share of 30 to 51 percent and the other manufacturer have between 25 and 70 percent. You could even involve private equity."

But Carlos Ghosn, CEO of Renault and Nissan, has lost much of his appetite for a U.S. partner after talks on an alliance with General Motors fell apart.

"The focus of management at Renault and Nissan is on restoring profits and as long as performance has not taken off I think it would be dangerous to extend the alliance," he told reporters this month.

Fiat declined comment.

Morgan Stanley analysts pointed out in a research note that the Chrysler group had a lot to offer, including flexible manufacturing capacity, three brands including the Jeep, purchasing scale, distribution, technology, and leadership in key segments such as minivans and pickups.

"There happens to be a queue of companies that could use some of this capacity on a plant-by-plant basis," they said, citing China's Chery, VW, Renault and Nissan.

Daniel Howes: Zetsche's about-face feels like betrayal in Detroit

Photo by Charles V. Tines / Detroit News photo ill

DaimlerChrysler AG Chairman Dieter Zetsche poses with models during the 2004 auto show.

Daniel Howes: Dr. Z: Hero to Zero?

Charles V. Tines / The Detroit News

The Ask Dr. Z poster hung on the DaimlerChrysler headquarters in Auburn Hills until the company dumped the campaign. See full image

This Day in Auto History: 16 FEBRUARY

This Day in Auto History:

2.16.1880
Charles Thomas Fisher is born in Sandusky, OH
2.16.1920
Racer Anthony “Tony” Crook is born in Manchester, England
2.16.1928
Pioneer British motoring enthusiast Alexander Siemens dies at age 81
2.16.1950
The new Kaisers designed by Howard A. “Dutch” Darrin are introduced as 1951 models
2.16.1965
S. C. van Pantheleon Baron Van Eck, founder of the Shell Oil Company, dies in Santa Barbara, CA at age 84

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

Chrysler, CAW reach buyout deal

Package covers 2,000 autoworkers; talks with UAW continue for additional 11,000 employees.

Louis Aguilar / The Detroit News

Canadian Auto Workers secured extensive buyout packages Thursday for many of its 2,000 members who will lose their jobs at DaimlerChrysler AG due to the automaker's restructuring plan.

The company and the United Auto Workers are still negotiating buyout packages for the 11,000 Chrysler workers in the United States -- including some 3,600 in Michigan -- about to lose their jobs.

Chrysler has promised the terms of the buyouts would be "socially responsible" but would not provide details or a timetable. The UAW issued a sharply worded statement Wednesday and promised to continue to fight for workers' jobs and benefits.

"Tough negotiations lie ahead," said Harley Shaiken, labor expert at the University California-Berkeley.

Unlike the sweeping cuts under way at General Motors Corp. and Ford Motor Co., Chrysler is not expected to offer buyouts and early retirements to its entire unionized work force. Instead, Chrysler is likely to offer retirement incentives at select assembly plants and other manufacturing locations in the U.S. where layoffs will occur.

Chrysler said it's shutting its Newark, Del., plant by 2009 and eliminating shifts at its Warren Truck Assembly plant and a factory in St. Louis. Several other plants in Metro Detroit also will lose jobs between now and 2009.

The Chrysler agreement ranges from up to $100,000 ($85,900 U.S.) payment for workers with eight years or more service; and $85,000 ($73,000 U.S.) for skilled trade workers eligible for retirement plus a $30,000 ($25,700 U.S.) voucher toward the purchase of a new Chrysler vehicle, according to the Canadian Auto Workers.

An estimated 1,600 of 2,000 Canadian workers will be offered one of the buyout packages, said CAW Local 444 president Ken Lewenza, which represents CAW workers at the Windsor Assembly Plant, where 1,300 jobs will be lost. About 5,500 people assemble Dodge and Chrysler minivans and the Pacifica crossover at Windsor Assembly.

Several Windsor Assembly workers said they would consider taking an offer.

"We all have to think about it, but, you know it's not that easy to put the brakes on your life," said Len Eng, 39, a materials handler at Windsor Assembly, who is eligible for an early retirement offer.

Jeff Smith, 45, said he wanted to see workers with less experience get buyout offers.

"I don't know what choice I would make," Smith said. "People forget this is my career, my livelihood. You can imagine how tough it is to walk away from it."

There are 11,500 Canadians who work in Chrysler assembly plants in Windsor and Brampton, Ontario; at a casting plant in the Toronto suburb of Etobicoke and at Chrysler's head office operations in Windsor

CAW buyouts

Retirement-eligible production workers get up to $70,000 ($60,100 U.S). Skilled trade workers get up to $85,000 ($73,000 U.S.)
Retirement-eligible workers also get a $30,000 ($25,700 U.S.) voucher toward the purchase of a Chrysler vehicle.
Retirement-eligible workers who agree to give up all post-retirement benefits, except pension benefits, can receive an additional $40,000 ($34,300 U.S.)
For workers not eligible for retirement, offers range from $100,000 ($85,900 U.S.) for those with eight years or more seniority; $75,000 ($64,400 U.S.) for workers with five to eight years seniority; and $50,000 ($42,900 U.S.) for workers with one to five years seniority.
Source: Canadian Auto Workers

DaimlerChrysler to Start Selling Dodge Cars in China (Update3)

By Irene Shen |

Feb. 16 (Bloomberg) -- DaimlerChrysler AG, the world's fifth-largest carmaker, will start selling Dodge cars in China as it aims to expand in the world's fastest-growing auto market.

Chrysler will introduce its first Dodge model, three Jeep models and one Chrysler vehicle in China later this year, the company said in an e-mailed statement today.

DaimlerChrysler and its partners are spending 1.5 billion euros ($1.9 billion) in China on increasing capacity in a bid to win market share. Sales of the company's Mercedes-Benz sedans trail behind Volkswagen AG's Audi and Bayerische Motorenwerke AG, which have both built cars locally for at least two years.

The company plans to start producing Chrysler Sebring sedans at its joint venture in Beijing the end of this year, according to Trevor Hale, a DaimlerChrysler spokesman in China.

Mercedes-Benz car sales increased 64 percent to 2,700 units in January from a year earlier, the company said today. Chrysler Group's imported car sales increased 81 percent to 1,477 units from the previous year.

DaimlerChrysler opened a new plant with an annual capacity of 105,000 vehicles in Beijing in September. The factory will make as many as 25,000 Mercedes-Benz E-Class and C-Class sedans a year, as well as Chrysler and Mitsubishi Motor Corp. vehicles.

DaimlerChrysler sold 32 percent more Mercedes cars and 26 percent more imported Chrysler cars last year than in 2005.

The carmaker this week said it may sell or seek partners for its unprofitable Chrysler unit. ``All options are on the table,'' Chief Executive Officer Dieter Zetsche said on Feb. 13. Chrysler will cut 13,000 jobs, or 16 percent of the workforce, and close a factory in Delaware, he said.

Key dealer sees Chrysler holding pickup truck share

Reuters |Published: Friday, February 16, 2007

DETROIT (Reuters) - A major Chrysler Group retailer expects the struggling No. 4 U.S. automaker to maintain its share of the pickup truck market this year by offering generous discounts in the face of tough competition.

Sid DeBoer, chief executive of Lithia Motors Inc. , said Chrysler would have to maintain higher sales incentives on its Dodge line of trucks in the face of newer offerings from General Motors Corp. and Toyota Motor Corp. <7203.t>

"Dodge will have to have higher incentives until they get their new truck out," DeBoer said in a conference call to discuss Lithia's quarterly earnings. "That will drive and maintain their share. I don't see any decline in share for their truck volume

Chrysler, which this week announced a restructuring plan intended to cut 16 percent of its work force and restore the company to profitability by next year, has a lot riding on the continued success of its Ram pickup truck line.

The vehicle is the single best-selling model for Chrysler, a unit of DaimlerChrysler AG .

The pickup truck accounted for almost 17 percent of the automaker's sales last year at a time when Chrysler was reeling from a costly inventory build-up that drove it to a $1.48 billion operating loss.

But Chrysler has had to support its truck and SUV sales by offering the most aggressive discounts in the industry.

Auto tracking service Edmunds.com estimates Chrysler spent an average of $3,853 in incentives per vehicle last month to sell off its inventory -- more than three times the amount spent by Toyota.

DeBoer said those incentives gave the Ram pickup truck a price advantage Chrysler would need to maintain until it gets new models to showrooms, which is not expected until late next year.

"That's a great truck and it is way cheaper than everyone else's when they put the money on it and they'll keep the money on it," DeBoer said.

Chrysler's problems in 2006 were compounded by a near revolt from its dealership owners, who complained that the automaker was forcing them to take unwanted inventory and vehicles with the wrong combinations of features.

Chrysler CEO Tom LaSorda, who also took over as sales chief late last year, has made repairing strained relations with dealers one of his top priorities.

Lithia ranks as a major Chrysler retail outlet. Chrysler brand vehicles, including Jeep and Dodge, accounted for 40 percent of Lithia's fourth-quarter sales.

DeBoer also said he did not expect Toyota's full-size Tundra pickup to cut into sales for GM's recently launched Silverado in the increasingly competitive segment.

Toyota has called the launch of the Tundra, which debuts this year, the most important in the history of the company and its chance to move into the last segment of the U.S. auto market still dominated by domestic manufacturers.

"I think when it faces off against the new Chevrolet, the Chevrolet may end up being ranked above it," DeBoer said of the Tundra.

He added: "Toyota has a great truck. It will sell the production out. It will cost everyone a few units here and there, but I think overall it may be that people trade in smaller trucks on the new Tundra."

Reports: GM, Chrysler Talk SUV Alliance

Associated Press 02.16.07, 9:06 AM ET- - DaimlerChrysler AG's Chrysler Group and General Motors Corp. have held discussions for about six months about a possible alliance related to large sport utility vehicles, according to newspaper reports Friday.

The Wall Street Journal, citing people familiar with the matter that it didn't name, said the automakers had preliminary discussions to jointly develop a large SUV such as the Chevrolet Suburban, which Chrysler doesn't have in its lineup.

The New York Times, citing people with direct knowledge of the talks that it didn't name, said the companies are holding discussions about a project that would provide Chrysler with a version of the Chevrolet Tahoe large SUV.

GM and Chrysler also are looking at sharing small cars developed by GM Daewoo Auto & Technology, a unit of GM in South Korea that builds the Chevrolet Aveo compact car for GM, the Journal reported.

The automakers have declined to comment on reports of talks.

Chrysler already has alliances with GM, including one to develop gasoline-electric hybrid engine technology.

Last year, GM was in talks with Nissan Motor Co. and Renault SA on creating an automaking alliance, but those were called off in October. Those talks have nothing to do with the Chrysler talks, the Times reported.

DaimlerChrysler said Wednesday in announcing its restructuring that it was exploring all options for Chrysler, including strategic partners. DaimlerChrysler Chairman Dieter Zetsche would not rule out selling the troubled U.S. operation.

On Thursday, Chrysler Chief Executive Tom LaSorda told the Journal in an interview that he hopes uncertainty about whether Chrysler will remain part of the German automaker is resolved "sooner rather than later."

As part of the restructuring, Chrysler plans to eliminate 13,000 positions, including 11,000 production jobs and 2,000 white-collar posts, as it seeks to cut costs and return to profitability in 2008.

Chrysler to cut 100 at Kokomo in ’07

By Tom Krisher

Associated Press

DETROIT – The fallout from Chrysler’s big downsizing announcement will hit eight factories in addition to the three initially identified by the company.

The eight plants, in Indiana, Ohio and Michigan, make components that go into slower-selling midsized sport utility vehicles, pickup trucks and other large vehicles on which Chrysler plans to cut production through 2009.

The Chrysler Group, which had an operating loss of $1.475 billion in 2006 and expects to show losses through 2007, announced Wednesday that it would eliminate 13,000 positions, including 11,000 production jobs and 2,000 white-collar posts, as it seeks to cut costs and return to profitability in 2008.

Of the production job cuts, 9,000 are in the U.S. and 2,000 are in Canada.

Chrysler, part of Germany-based DaimlerChrysler AG, said one Indiana plant, Indiana Transmission Plant I in Kokomo, would lose 100 jobs this year, Chrysler spokesman Mike Aberlich said.

In Ohio, about 200 jobs will be eliminated at the Toledo machining plant and 110 at a stamping plant in Twinsburg, near Cleveland.

On Thursday, company officials said much of the cuts would be in southeastern Michigan, where 5,300 people will lose their jobs by 2009.

In Michigan, the hourly job cuts include 1,000 positions when the shift is eliminated at the Warren truck plant, plus 250 jobs at a Detroit axle plant.

About 200 more jobs would be lost at the Mack Avenue Engine Plant I in Detroit, an additional 100 at an engine factory in suburban Trenton, 65 more at a stamping plant in Sterling Heights and another 100 at a stamping plant in Warren.

An additional 1,000 Michigan jobs will go as Chrysler explores selling support businesses that don’t fit its core car-building mission, and 1,000 will be lost because of productivity improvements, company spokesman David Elshoff said. Where those job cuts will occur has not been determined yet, he said.

In addition, about 1,600 of the 2,000 white-collar layoffs will come at the company’s Auburn Hills, Mich., headquarters, Elshoff said.

The layoffs at the eight plants are part of the 11,000 production jobs that Chrysler announced it would cut on Wednesday. All the cuts will take place during the next three years and will be accomplished with buyouts and early-retirement packages that are under negotiation with the Canadian and U.S. autoworkers’ unions.

The closures and reductions announced by the company leave about 4,000 job cuts at yet-to-be determined plants, Aberlich said.

Also targeted are a Newark, Del., assembly plant, which employs about 2,100 people. The plant makes the slow-selling Dodge Durango and Chrysler Aspen midsized sport utility vehicles. Chrysler would not say where those products will be built, or whether they will be built, after the plant closes in 2009.

The SUVs are based on the Dodge Ram pickup platform and could be made at plants in Warren, Mich.; Fenton, Mo.; or Saltillo, Mexico, Aberlich said.

“The only scenario isn’t to cancel it,” he said.

SUVs in general have seen falling sales in the past year because of high gasoline prices as consumers shift to more fuel-efficient models, and analysts say auto companies would be wise to shift their efforts to new car-based vehicles that get better gas mileage. On the plus side, Chrysler plans to double capacity of its new four-cylinder engine plant in Dundee, Mich., north of Toledo this year.

About 480 people, including parts supplier employees, now staff the plant, Chrysler spokesman David Elshoff said.

That could grow to about 550 by 2009 as the plant grows to its capacity of making 840,000 engines, he said.

Chrysler Group joins stampede into China market

SHANGHAI, China - - Chrysler Group's Dodge nameplate will join Chevrolet and other American brands being sold in China later this year.

DaimlerChrysler A-G announced today that its Chrysler affiliate in China is preparing a dealership network to sell Dodge cars. The company says it also plans to launch another Chrysler vehicle and three new Jeep models in China in 2007.The German-American automaker did NOT say where the Dodge vehicles would be made or which models would be sold.Imports of Chrysler P-T Cruisers began earlier this month, and the Chrysler 300-C is made at the company's joint venture with Beijing Automotive.China last year became the world's second-largest vehicle market after the U-S.

Will 13 new models this year lift ailing Chrysler?

New York Times

Last year, Chrysler rolled out its smallest car, the Dodge Caliber compact. The automaker plans to introduce 13 new models this year.

Automaker wants to reduce reliance on light trucks and offer more fuel-efficient vehicles.

Christine Tierney and Bryce G. Hoffman / The Detroit News

The Chrysler Group is preparing a fresh product offensive, starting with 13 new or updated models coming out this year, as the ailing U.S. division of DaimlerChrysler AG embarks on its second restructuring in six years.

"Between 2007 and 2009, we'll launch more than 20 new products and 13 refreshed vehicles," Chrysler CEO Tom LaSorda said Wednesday.

Over time, the Auburn Hills automaker will prune individual nameplates -- which now number 32 under the Chrysler, Dodge and Jeep brands. But LaSorda said he did not envisage a dramatic downsizing of any of the three brands' lineups. "We'll want to keep a good balance between our Jeep, Dodge and Chrysler brands."

As Chrysler develops vehicles, it aims to reduce its reliance on light trucks, which account for nearly two-thirds of the automaker's U.S. sales, and offer more fuel-efficient vehicles.

The U.S. market's shift away from big vehicles last year hit Chrysler hard. The division lost $1.5 billion in 2006 as its share of the market shrank to 12.9 percent from 13.6 percent a year earlier.

Although gas prices have subsided, Chrysler is assuming fuel prices will rise over the long term. "We're looking at fuel above $3 a gallon," LaSorda said. "We need to align our portfolio as if there will be higher fuel prices."

As part of the restructuring, Chrysler is cutting shifts at assembly plants producing large vehicles such as pickups and sport utility vehicles and increasing its output of small engines. It plans to double capacity to produce four-cylinder engines at the Global Engine Manufacturing Alliance plant in Dundee.

John Schenden, owner of Pro Chrysler-Jeep in Denver and a member of Chrysler's dealer council, said the plans announced Wednesday seem logical. He said Chrysler had already taken action to balance its product offerings.

Its popular Chrysler 300 sedan, launched in 2004, revived Detroit's interest in the passenger car side of the business.

Last year, Chrysler rolled out its smallest car, the Dodge Caliber compact.

In December, it struck a deal to have Chinese automaker Chery Automobile Co. produce a subcompact for the company.

"We just have to be confident that they're going to continue with the product, and they say that they are," Schenden said.

Although small cars tend to be less profitable than larger vehicles, such as SUVs, Chrysler needs to bolster its small-car offerings to attract young buyers, said Jack Nerad, executive editorial director and executive market analyst at Kelley Blue Book's kbb.com auto research site. "You want to get them into your brands and graduate them along."

As Chrysler sets out to develop new vehicles, it is getting some assistance from its sister division luxury carmaker Mercedes-Benz. The two automakers will develop common architecture for vehicles in certain segments, such as compacts and large SUVs, and share more components.

DaimlerChrysler CEO Dieter Zetsche said the joint efforts between Mercedes and Chrysler would not be affected by the company's decision to consider other partnerships for Chrysler.

"We will continue to forge ahead with these projects -- as they benefit everyone involved and contribute to DaimlerChrysler's success," Zetsche wrote in a letter Wednesday to Chrysler workers that was obtained by The Detroit News.

Components-sharing between Mercedes and Chrysler has been a thorny issue from the outset of the 1998 merger. DaimlerChrysler executives have ruled out platform-sharing on the view that it might hurt the Mercedes brand -- and Zetsche reiterated that stance Wednesday.

Schenden dismisses that notion, however. "You don't hear anybody saying, 'I'm not going to buy a Lexus because it has Toyota parts,' " he said.

"It's working pretty well for Toyota and Lexus."

Dealers welcomed Chrysler's plans to cut back production. Last year, Chrysler pressed dealers to take more vehicles than they could sell, straining relations and leading to the departure of sales chief Joe Eberhardt.

Chrysler's restructuring plan calls for a 12 percent reduction in production capacity.

LaSorda, who is acting as Chrysler sales chief, spends a lot of time with dealers.

"I've just said, 'We're going to balance production with the marketplace.' "

Automaker's downsizing to affect 8 plants including Perrysburg Township

Article published Friday, February 16, 2007

Plants are in Ohio, Michigan and Indiana

ASSOCIATED PRESS | DETROIT - The fallout from Chrysler's big downsizing announcement this week will hit eight factories in addition to the three initially identified by the company.

The eight plants, in Michigan, Ohio, and Indiana, make components that go into slower-selling midsized sport utility vehicles, pickup trucks, and other large vehicles on which Chrysler plans to cut production through 2009.

The Chrysler Group, which had an operating loss of $1.5 billion in 2006 and expects to show losses through 2007, announced Wednesday it will eliminate 13,000 positions as it seeks to cut costs and return to profitability in 2008.

Chrysler, part of DaimlerChrysler AG, of Germany, said it will close the Newark, Del., assembly plant during the next two years and cut shifts at plants in Warren, Mich., and St. Louis.

A parts distribution center near Cleveland with 100 employees will close this year.

Company officials said yesterday much of the impact will be in southeastern Michigan, where 5,300 people will lose their jobs by 2009.

The hourly job cuts there include 1,000 positions when the shift is eliminated at the Warren truck plant, plus 250 jobs at a Detroit axle plant.

About 200 jobs are to be eliminated at the Mack Avenue Engine Plant I in Detroit, 100 at an engine factory in suburban Trenton, 65 at a stamping plant in Sterling Heights, and 100 at a stamping plant in Warren.

An additional 1,000 Michigan jobs will go as Chrysler explores selling support businesses, and 1,000 will be cut because of productivity improvements, said company spokesman David Elshoff. Where those job cuts will occur has not been determined, he said.

About 1,600 of the 2,000 white-collar layoffs will occur at the company's Auburn Hills headquarters, Mr. Elshoff said.

In Ohio, about 200 jobs will be eliminated at the suburban Toledo machining plant, which is part of about 800 jobs the Perrysburg Township factory will lose by 2011 when it converts into an engine plant. Also, 110 will be shed at a stamping plant in Twinsburg, near Cleveland.

The Indiana Transmission Plant I in Kokomo is to shed 100 jobs this year, said Chrysler spokesman Mike Aberlich.

All the cuts will take place during the next three years. After the announced closures and reductions, about 4,000 more cuts are to be made, Mr. Aberlich said. Company officials have said that about 475 of those will be in Ohio, mostly through productivity improvements.

On the plus side, Chrysler plans to double capacity of its new four-cylinder engine plant in Dundee, Mich., north of Toledo, this year. About 480 people, including parts supplier employees, now staff the plant, said Mr. Elshoff.

That could grow to around 550 by 2009 as the plant grows to its capacity of making 840,000 engines, he said.

Thursday, February 15, 2007

2009 Chrysler Cuda?

Posted on 02.15.2007 14:00 by Simona Alina, Source: GM Inside News
Filed in: Chrysler | muscle cars

GM Inside News found a photo of the 2009 Chrysler Cuda. They presume that Chrysler won’t produce a retro style car that is this awesome, but the idea of a Cuda reincarnated as a Chrysler can’t be too far off. The Cuda is a version of the Dodge Challenger.

If will be produced the 2009 Chrysler Cuda will be a big competitor for the Mustang.

Source:GM Inside News

Zeroshift Automated Manual Transmission

TOPSPEED.COM | Posted on 02.14.2007 02:00 by Simona Alina, Source: HBM

Zeroshift Ltd., a company based in the UK, has developed revolutionary new transmission technology that facilitates a completely instantaneous change in gear ratio with no interruption of torque to the driving wheels. Zeroshift has developed the system using HBMs MGCplus data logger in their development vehicles and with catman®Easy software as their data analysis tool.

In order to develop the system for its wide range of applications, a large number of driveline parameters variables need to be closely monitored during the gearshift; such as engine and vehicle speeds, driveline torques, actuator position and clutch and throttle pedal positions etc.

Therefore Zeroshift makes good use of the multi-channel MGCs. Working with OEMs and Tier 1s means that Zeroshift have access to the vehicles CAN (Controller Area Network) data, therefore the ability to read CAN channels directly into the logger is a big advantage.

The Zeroshift principle is relatively simple in concept: the new gear is engaged whilst the previous gear is still driving, eliminating the break in torque (head nod) experienced in conventional manual and automated manual transmissions during a gearshift. As the new gear takes up the drive the previous gear is automatically disengaged, leaving the vehicle to continue driving in the new gear.

How it works

Bullets in Neutral
Bullets in gear 1 position – giving minimal backlash
Bullets requested to move across (spring mounted), only the overdrive/ gear 2 acceleration bullet is free to move (red)
Gear 2 acceleration bullet (red) in position, Gear 1 acceleration bullet (blue) is held in under load due to retention angle on the dog
Second gear picks up drive.
Second gear overdrives first gear.
First gear acceleration/ second gear overdrive bullet (blue) shifts under spring preload.
Second gear overdrive bullet (blue) in position – giving minimal backlash.

Source:HBM

Bose Electromagnetic Suspension System

TOPSPEED.COM | Posted on 02.14.2007 22:00 by Simona Alina, Source: Bose

What is the point of the suspension system in a car? Passenger comfort and vehicle control. But many times a suspension system can’t achieve this two goals: in a luxury sedan the suspension is usually designed with an emphasis on comfort, but the result is a vehicle that rolls and pitches while driving and during turning and braking. In sports cars, where the emphasis is on control, the suspension is designed to reduce roll and pitch, but comfort is sacrificed. And what can we do to have both?

After more than 20 years of research, Bose come with a solution: the electromagentis suspension system. The Bose suspension required significant advancements in four key disciplines: linear electromagnetic motors, power amplifiers, control algorithms, and computation speed. Bose took on the challenge of the first three disciplines and bet on developments that industry would make on the fourth item.

The System

The Bose® suspension system includes a linear electromagnetic motor and power amplifier at each wheel, and a set of control algorithms. This proprietary combination of suspension hardware and control software makes it possible, for the first time, to combine superior comfort and superior control in the same vehicle.

Linear electromagnetic motor

A linear electromagnetic motor is installed at each wheel of a Bose equipped vehicle. Inside the linear electromagnetic motor are magnets and coils of wire. When electrical power is applied to the coils, the motor retracts and extends, creating motion between the wheel and car body.

One of the key advantages of an electromagnetic approach is speed. The linear electromagnetic motor responds quickly enough to counter the effects of bumps and potholes, maintaining a comfortable ride. Additionally, the motor has been designed for maximum strength in a small package, allowing it to put out enough force to prevent the car from rolling and pitching during aggressive driving maneuvers.

Power amplifier

The power amplifier delivers electrical power to the motor in response to signals from the control algorithms. The amplifiers are based on switching amplification technologies pioneered by Dr. Bose at MIT in the early 1960s — technologies that led to the founding of Bose Corporation in 1964.

The regenerative power amplifiers allow power to flow into the linear electromagnetic motor and also allow power to be returned from the motor. For example, when the Bose suspension encounters a pothole, power is used to extend the motor and isolate the vehicle’s occupants from the disturbance. On the far side of the pothole, the motor operates as a generator and returns power back through the amplifier. In so doing, the Bose suspension requires less than a third of the power of a typical vehicle’s air conditioner system.

Control algorithms

The Bose suspension system is controlled by a set of mathematical algorithms developed over the 24 years of research. These control algorithms operate by observing sensor measurements taken from around the car and sending commands to the power amplifiers installed in each corner of the vehicle. The goal of the control algorithms is to allow the car to glide smoothly over roads and to eliminate roll and pitch during driving.

Vehicle performance

Vehicles equipped with the Bose suspension have been tested on a variety of roads and under many different conditions, demonstrating the comfort and control benefits drivers will encounter during day-to-day driving. In addition, the vehicles have undergone handling and durability testing at independent proving grounds.

When test drivers execute aggressive cornering maneuvers like a lane change, the elimination of body roll is appreciated immediately. Similarly, drivers quickly notice the elimination of body pitch during hard braking and acceleration. Professional test drivers have reported an increased sense of control and confidence resulting from these behaviors. When test drivers take the Bose suspension over bumpy roads, they report that the reduction in overall body motion and jarring vibrations results in increased comfort and control.

Source:Bose

Mercedes-Benz C-class Estate: the lowdown

Mercedes C-class Estate


Mercedes has as much of a reputation for big, posh estates as Volvo, and it's a reputation it hopes to bolster this autumn when it launches the new C-class estate. Our spies caught Merc's smallest wagon testing in Germany and under that black disguise cladding lies a roomier version of the saloon - with a few surprises up its sleeve.

So how will the C-class Estate differ from the saloon?

Well, the obvious difference is the hulking big boot stuck on the back. Today's C wagon has 470 litres of luggage, expanding to 1384 with the seats folded flat, and the newcomer will best those figures. The saloon is 55mm longer than today's car, and we'd expect the estate to be bigger, too.

All the usual suitcase-swallowing gubbins will be offered, with hidden cubbies, a collapsible shopping crate, clever load covers and remote tailgate operation. Exact confirmation of the spec will have to wait until the covers come off the C estate at this autumn's Frankfurt Motor Show.

What'll the C-class Estate look like under the disguise?

Merc showed off its new compact exec last month and the estate will share its unusual front-end styling; Sport models, like the one pictured, get a coupe-style badge treatment, with a huge three-pointed star dominating the grille. Lesser SE and Elegance models get more chrome trim and a conventional Merc star on the bonnet. It's a more grown-up look and one that shares more than just a hint of the latest S-class.

Petrol engines range from a C180K with 156bhp 1.8-litre supercharged four-pot to a 231bhp 3.0 V6, and there'll be a new generation of direct-injection petrol engines coming in 2008. Fast estate fans might even want to hold on for the Suitcase Express, the 450bhp C63 AMG.

The saloon goes on sale in June 2007, but UK buyers will have to wait until early '08 to buy the new C-class estate.

We're driving the new C-class in mid-March, so come back to CAR Online to see if it's good enough to beat the 3-series at last.

Words: Tim Pollard

Chrysler to lean on Belvidere products to return to profitability

AMY J. VAN HORN | ROCKFORD REGISTER STAR

New Dodge Calibers sit on the lot Wednesday at the Belvidere assembly plant. Dealing with a 40 percent decline in companywide profit for the fourth quarter, DaimlerChrysler outlined 13,000 job cuts, about 16 percent of the work force.

Published: February 15, 2007

Business: Manufacturing

By Alex Gary
ROCKFORD REGISTER STAR
Click here for more information about Alex Gary

BELVIDERE — Mayor Fred Brereton was keeping close tabs as news came out Wednesday of cutbacks at DaimlerChrysler.

The news was bleak for many of the automaker’s workers. Company officials announced 13,000 job cuts, mostly in Delaware, Ohio, Michigan and Missouri.

For the Belvidere mayor — and the 3,600 workers at the Chrysler plant here — the news was better.“The two things that interested me were the fact that Chrysler wants to increase its share of the small-car market, and that’s what we build in Belvidere, the (Dodge) Caliber,” Brereton said Wednesday. “They also want to increase its international sales, and again, the Caliber is a big part of that.”

The Belvidere plant puts together the Dodge Caliber, Jeep Compass and Jeep Patriot. The company invested $419 million in the plant in late 2005 and early 2006 to make it the most flexible of all of its North American operations.

The Chrysler unit of the German-American automaker announced its long-awaited plan at its Auburn Hills, Mich., headquarters, saying it would cut 16 percent of the U.S. division’s worldwide work force, a move it hoped would return its U.S. operations to profitability by next year.

The plan came hours after Chrysler’s parent, DaimlerChrysler AG, said it was considering “far-reaching strategic options with partners” for Chrysler and that “no option is being excluded” as it reported a 40 percent drop in companywide profit for the fourth quarter.

DaimlerChrysler’s U.S. shares rose $5.33 or 8.3 percent to close at $69.78 on the New York Stock Exchange.

The plan calls for closing the company’s Newark, Del., assembly plant, and reducing shifts at plants in Warren, Mich., and St. Louis. A parts distribution center near Cleveland also will be closed, and reductions could occur at other plants that make components for those factories.

Under the plan, 11,000 production workers — 9,000 in the U.S. and 2,000 in Canada — will lose their jobs over the next three years, and 2,000 salaried jobs also will be cut — 1,000 each year.

The announcements were not a surprise. Stories earlier in the week correctly identified all of the plants to be targeted.

One small surprise — there was speculation DaimlerChrysler would offer buyout packages to reduce its number of workers in the United Auto Workers jobs bank as Ford and General Motors did in 2006. But buyouts were not included in the plan.

“Last night the guys were really looking to see if they were going to offer buyouts,” said Marvin Hightower Sr. of Rockford, who has worked at the Belvidere plant since 1994. “Maybe that is in their future plans after they get the other plants settled.”

The job losses are the latest in a yearlong series of devastating cuts in the ailing domestic auto industry, which likely will lose more than 100,000 jobs in all.

“Today’s action by DaimlerChrysler is devastating news for thousands of workers, their families and their communities,” United Auto Workers President Ron Gettelfinger and Vice President General Holiefield said in a joint statement. “While Chrysler Group’s recent losses are not the fault of UAW members, they will suffer because of the reductions announced today.”

The job cuts at Chrysler will reduce by 400,000 the number of vehicles that operations can produce each year.

Many northern Illinois workers know the pain being felt in Delaware, Ohio, Michigan and Missouri.

In 2001, the company cut 26,000 jobs because of weak sales, including rapidly declining sales of the Dodge Neon, which was built in Belvidere from 1993 to 2005.

As part of that cutback, the company eliminated a second shift, laying off 350, while 600 others from the Belvidere plant chose early retirement.

The plant marched along on one shift until last year when DaimlerChrysler brought back not just a second shift but added a third because of expected demand for the Caliber, Compass and Patriot.

The year started with about 1,650 working at the Belvidere plant and ended with about 3,600. More than 500 of the new workers were transferees in from other Chrysler operations.

Lawsuit Against DaimlerChrysler Rejected

Associated Press 02.15.07, 5:34 AM ETA German court on Thursday rejected a lawsuit brought by DaimlerChrysler AG shareholders who claimed that the company did not announce in proper time that former chief executive Juergen Schrempp planned to resign.

The Stuttgart court ruled that the July 2005 announcement had been made in a timely way.

Schrempp was replaced as CEO by Dieter Zetsche.

Kumho Tire Starts Shipments to Mercedes Benz

Korea Times - Seoul,South Korea - - Kumho Tire Co., the second-largest tire manufacturer in Korea, has started supplying its high-performance tires to German carmaker Mercedes Benz, ...

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This Day in Auto Histroy: 15 FEBRUARY