Captain Kirk, Please Report To The Bridge

Forbes
Jerry Flint, 02.23.07, 2:45 PM ET

As I read these stories about Chrysler, I cannot help thinking of Mark Twain's famous cable to the Associated Press 110 years ago: "The reports of my death are great exaggerated."

Yes, things look bad for Chrysler.

The Germans on the ruling Supervisory Board at DaimlerChrysler (nyse: DCX - news - people ) seem determined to get rid of the U.S. company, the bankers are eyeing the fees and all the momentum points to a sale. The old saying applies here; once these things get started, they tend to have a life of their own.

If the crew in Europe sells Chrysler, the chances are strong that whoever buys the company will dismember it. The jewels at Chrysler are the Jeep and minivan business and, to a lesser extent, some of the Dodge trucks. That is the part of the business worth owning, or trying to resell at a premium. It is not hard to see new owners closing down all or most of Chrysler's passenger car operations. This could be the end of the business started by Walter P. Chrysler during the Roaring Twenties.

The sad thing is that Chrysler really is not in horrendous shape. OK, a $1.5 billion loss sounds scary, unless you remember the $12 billion loss of Ford last year and the $10 billion loss at GM the year before. The auto industry is a cyclical business. I figure that DaimlerChrysler lost at least $5 billion on its silly little Smart car, and it has yet to bail out of that boondoggle. Remember, too, that as recently as 2005, the Chrysler group reported an operating income of $1.8 billion, excluding the profits of the financing arm, which came largely from American Chrysler.

On a relative basis, Chrysler is not doing that badly. Through Feb. 12, Chrysler group production was 298,714 cars and trucks, which was up 4% from 287,319 the year before. Heck, Honda (nyse: HMC - news - people ) production here is up only 2%, Toyota (nyse: TM - news - people ) production here is up 2% and Nissan (nasdaq: NSANY - news - people ) is down 9%. What about Chrysler's Detroit rivals? Ford Motor (nyse: F - news - people ) is down 17% and General Motors (nyse: GM - news - people ) is down 16%. Chrysler's 4% increase looks darn good by comparison.

Chrysler's sales in the first month of the year (February figures will not come out until early in March) were a nudge ahead of the year before. Excluding Mercedes vehicles, Chrysler posted sales of 156,308 units versus 155,465 the year before. That is better than GM and Ford. Chrysler group's market share was 14.3%, up from 13.6% a year ago.

A few caveats are in order: Chrysler's production is up more sharply than its sales because the company has several new models and it is building dealers' stocks on that new stuff. It is these newer vehicles that are helping to pump up the sales figures. Sales are down on some important oldies like those Chrysler 300 and Dodge Charger sedans and the Jeep Grand Cherokee and Liberty sport utility vehicles. Let us not forget that Chrysler is giving up too much money in sales incentives in order to entice buyers.

Still, up is better than down. In this market, how much would GM and Ford give to see sales this year running one half of one percent ahead of last year? Not only is Chrysler right in the midst of launching some new models, such as the Chrysler Sebring convertible and the Dodge Avenger sedan, but the company has finally worked off its bloated inventories from last fall. This means that the dealers may be more receptive to taking on greater numbers of the new vehicles.

A redone minivan is on its way, too, and with Ford and General Motors giving up on this market segment, Chrysler could make some gains in this segment. A new sport coupe, the Dodge Challenger, is also on the horizon. It will not be a big seller, but it will get on the car magazine covers--if Chrysler lives to build it, of course.

Even Chrysler's recent cutback announcements--13,000 employees over a couple of years--are relatively mild. The company plans to shutter just one assembly plant and to eliminate a few factory shifts. The other strategy in Chrysler's latest recovery plan is to cut costs by reducing the number of vehicle platforms while still rolling out a slew of new models in the coming years. In this business, new product is the key to success.

If you wanted to, you could make a case that Chrysler already is in a recovery mode. Of course, that is what happened years ago when French Renault (other-otc: RNSDF - news - people ), under pressure from its left-leaning, anti-American unions, sold American Motors just as AMC was turning around.

Chrysler, the buyer of American Motors, did well with Jeep but gave up on AMC cars. Chrysler could suffer a similar fate in a sale, despite all the facts in its favor.

One more advantage of Chrysler over GM and Ford: It has fewer divisions and more focus.

GM still has many nameplates and dealer organizations to support. Ford domestically only has Ford, Lincoln and Mercury, which is akin to Chrysler's three U.S. brands. Ford also has to deal with Volvo, Jaguar, Land Rover and, to date anyway, Aston Martin. Plus, Ford owns a big chunk of Mazda. Right now, Chrysler's North American market share is not that different from Ford's.

Of Chrysler's three brands, both Jeep and Dodge have distinct images and positions in the market. But all this wouldn't save the company from dismemberment.

Will it happen? If the buyer is not one of the auto companies, there are still plenty of scavengers and vultures looking to make some money by breaking up the company. Right now, General Motors may be the only car company seriously looking at possible deal with Chrysler.

Chrysler has faced more than one crisis in its history, and something always comes along to save the company.

Ah, where is Captain Kirk, meaning Kirk Kerkorian, when we need him?

Parent Plans Select Sharing on Chrysler

Associated Press

By SVEN GUSTAFSON 02.23.07, 9:42 AM ET- - DaimlerChrysler AG, which is examining options for its struggling American arm, will offer detailed financial information on the Chrysler Group on a selective basis to potential buyers, a senior company official close to the situation said Friday.

The automaker and its investment bank, J.P. Morgan Chase & Co., plan to offer company information judiciously in order to avoid divulging sensitive information and to focus negotiations only on qualified buyers, the official told The Associated Press on the condition of not being identified by name because the information is confidential.

"It's not an auction," said the official. "There will be some firms that will be allowed in to look at it and there will be a prospectus that will be presented to them."

The official said the automaker was assembling a list of potential suitors but would not identify them. Details about the prospectus were reported Friday in The Wall Street Journal.

At least four private-equity groups have had preliminary talks about buying Chrysler, according to a report Friday in the Financial Times newspaper.

Apollo Management, the Blackstone Group, Carlyle Group and Cerberus Capital Management, along with several European private-equity groups, were contacted about a potential buyout before DaimlerChrysler announcement, the newspaper said, citing unnamed people familiar with the matter.

Meanwhile, Volkswagen AG spokeswoman Christine Ritz said Europe's biggest automaker was not interested in acquiring money-losing Chrysler if it is put up for sale. The Renault-Nissan auto alliance and Hyundai Motor Co. said earlier they were not interested in acquiring Chrysler.

DaimlerChrysler's U.S. shares rose 45 cents to $70.43 in morning trading on the New York Stock Exchange.

Chrysler last week announced it lost $1.475 billion in 2006 and said it expects losses to continue through 2007. DaimlerChrysler earned $4.26 billion in 2006.

The news was accompanied by plans to shed 13,000 jobs, including 11,000 production workers and 2,000 salaried employees as it trims expenses and factory capacity to match declining sales. The automaker also announced the closure of one plant and layoffs at several others.

In announcing the cuts, DaimlerChrysler Chairman Dieter Zetsche said the German-American automaker would "not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler." But the automaker had remained mum on any possible sale.

DaimlerChrysler trucks business sees 2007 profit

Reuters / February 23, 2007 - 9:00 am

STUTTGART (Reuters) -- DaimlerChrysler's market-leading trucks business will make an operating profit this year despite a sharp U.S. market contraction, division head Andreas Renschler told reporters today.

"Earnings before interest and tax will be positive, even in the United States," he told reporters, although he acknowledged his business would not be able to match the record $2.65 billion (2.02 billion euros) in operating profit it made in 2006.

He said his division would hit its target of generating an 11 percent pretax return on net assets this year.

The U.S. market for heavy trucks is expected to drop as much as 40 percent this year as fleet operators scale back purchases they made before tough new emissions standards came into force.

Still, the group's U.S. arm Freightliner is set to post its third-best results ever this year after the boom years of 2005 and 2006, he said. It will cut up to 4,000 jobs there to help absorb the slowdown, he said.

He forecast the European truck market would remain stable this year, which would be better than first thought given the pull-forward effect that new emissions standards had in this region as well.

Renschler said the inflow of new orders for commercial vehicles in Europe and the high volume of road transport made him optimistic.

DaimlerChrysler expects Chinese officials to give a green light by year's end to its plans for a stake in Chinese truckmaker Beiqi Foton Motor Co., Renschler said.

DaimlerChrysler agreed in November to pay around $104 million for a 24 percent stake as a way to expand in the world's fastest-growing major market.

Renchsler said that from 2008 the group's trucks business aimed to generate an average return on sales of 7 percent in the notoriously cyclical business. The margin was a record 6.3 percent in 2006.

He said profitability could rise by increasing the cooperation among its Freightliner, Mercedes-Benz and Fuso truck businesses.

Chrysler sale prospectus to be ready soon, source says

Private equity firms eyeing automaker; VW joins list of those saying no thanks

Reuters / February 23, 2007 - 9:00 am UPDATED: 2/23/2007 1230 P.M.

---

---

DETROIT (Reuters) -- A "very detailed" sales prospectus for the Chrysler group will be ready for potential buyers of the automaker soon, a source close to the process said today.

Private equity firms are expected to be among the potential bidders for the Chrysler group, the source said.

But information on the Chrysler group will be offered selectively to potential buyers as parent company DaimlerChrysler AG avoids an outright auction in favor of a more flexible sale process that leaves open the prospect that no bid may be strong enough to complete a deal, the person said.

At least four private equity groups have been in preliminary talks with DaimlerChrysler about buying the Chrysler group, the Financial Times reported today on its Web site.

Apollo Management LP, the Blackstone Group, the Carlyle Group, and Cerberus Capital Management LP, as well as several European firms, were contacted about their potential interest in buying the company's loss-making U.S. arm, the paper said, citing people familiar with the matter.

The buyout firms were contacted before last week's announcement by DaimlerChrysler that "all options are on the table" for the unit, the paper said, adding that the discussions continued after the announcement.

In New York Apollo, Blackstone, Carlyle and Cerberus could not immediately be reached.

Meanwhile, Volkswagen AG has no interest in acquiring the Chrysler group or expanding cooperation accords, a VW spokeswoman said today.

"There is no such consideration here," she said.

VW joins a growing list of companies to rule themselves out as a strategic partner for the Chrysler group.

Hyundai Motor Co. Ltd., Mitsubishi Motors Corp., Fiat and the alliance between Renault SA and Nissan Motor Co. Ltd. have all rejected a tie-up.

The Mercedes Pullman Limo is back

Friday 23 February 2007

Mercedes has announced that it’s working on the next generation Pullman limousine, which is based on the long version of the S600 with a substantially extended wheelbase length. Pullman limos have transported some of the world’s most important leaders across the decades and this all-new model should continue the tradition. Behind the partition, there is space for four passengers in the rear compartment with face-to-face seats, like the Pullmans of old.

In terms of technology, the new Pullman Limousine is based on the flagship Mercedes Benz S600L Guard model. Power comes courtesy of a 5.5L V12 biturbo engine developing 380kW/517 hp and a massive peak torque of 830Nm. Both the chassis and the body have also been strengthened, since simply adding on an extension would not have ensured the required overall stability, given the extra-long wheelbase.

Buyers can also option the Pullman with the same security systems found in the S600 Guard, which is based on a S600L platform. Its armour resists military-standard small-arms projectiles and provides protection against fragments from hand grenades and other explosive devices. Additional safety features include run-flat tyres, a self-sealing fuel tank and a fire-extinguishing system.

The first editions of the new Mercedes-Benz State Limousine are due to be delivered in late 2008, so until then you’ll have to use the armoured S600 Guard.

Van Buren may get Chrysler engine plant

Kevin Hill
Staff Writer

DaimlerChrysler AG may have good news for western Wayne County.

Amid a major restructuring announcement and sale speculation for troubled Chrysler Group, representatives from DaimlerChrysler said Thursday that a site in Van Buren Township is the preferred Michigan location to build a new V-6 engine plant.

The manufacturing facility would be one part of the automaker’s new Phoenix engine program, a total $3 billion investment in a new line of V-6 engines, to debut in 2010 models of Chrysler, Dodge and Jeep vehicles.

The plant, which would disrupt roughly five acres of regulated wetlands, was the subject of a Michigan Department of Environmental Quality (MDEQ) public hearing Thursday at Van Buren Township Hall.

The 300-acre site is bounded by Van Born Road to the north, Belleville Road to the east, Ecorse Road to the south and Beck Road to the west. A site plan given to the MDEQ shows the building situated closest to Van Born.

Christine Estereicher, manager of state relations for the company, said DaimlerChrysler “routinely considers” several sites and performs due diligence work, and that an application for a DEQ permit at the site was not an endorsement of the Van Buren site. The final choice is contingent on permits and state and local incentives, she said.

“What I can say this evening is that Van Buren Township is being seriously considered for this investment,” said Estereicher, manager of state relations for DaimlerChrysler.

The company had been expected to detail a new southeast Michigan plant along with its restructuring efforts Feb. 14, but needed more time to finalize plans, according to a source familiar with the project.

It would have been a drop of hope in a sea of bad news for ailing Chrysler Group and the state’s dwindling manufacturing base. In the restructuring announcement, Chrysler announced it would cut 13,000 positions, including 5,500 in southeast Michigan.

Estereicher and spokeswoman Curtrise Garner would not comment about how many the new plant would employ, but the source familiar with the project said 1,000 production positions would be brought to the township.

DaimlerChrysler CEO Dieter Zetsche’s now-famous statement that “all options are on the table” concerning Chrysler led to speculation the Germany-based automaker was looking to sell its American arm. That apparently hasn’t derailed the Phoenix project in Michigan, though.

Chrysler also intends to expand operations at a Dundee plant that produces a new four-cylinder engine.

The company approached Van Buren last summer, said Bryce Kelley, planning and economic development director for the township. Like many local officials, Kelley is keeping his fingers crossed.

“The package is not just us,” said Kelley. “It’s the county and the state as well, and I can assure you that the biggest share of it is the state.”

According to the permit application on file with the MDEQ, the company looked at 27 Michigan sites during its site selection process and narrowed the field to six, including a different property near Willow Run Airport in Van Buren, as well as Pinnacle Park in Huron Township, and property close to Metro Airport in Romulus.

Chrysler would construct 8.18 acres of wetland to compensate for areas disrupted construction of the facility on the preferred site, which is owned by Farmington-based Ecorse Belleville, LLC. Ecorse Belleville bought the land from General Motors Corp. in 2005.

Donald Tilton, of Environmental Consulting & Technology, said the site plan calls for relocating part of the Apple Run Drain, which runs diagonally across the site. Residents can review the application, file number 07-82-0012-P on the web at http://www.deq.state.mi.us/ciwpis. The period to make public comments on the application, in writing or by e-mail or phone, lasts until March 5, according to David Dortman of the MDEQ, who added the agency would make a decision whether to approve or deny the permit within 150 days.

Chrysler Plant Update: 23 February

February 23, 2007

2007* DaimlerChrysler Cars RED Indicates changed or new information
The lead time represents the estimated order to delivery period under normal conditions and does not take into consideration holds or delays. Extended lead times (when available) are noted under the Key Production Hold or Delay column. *All models and constraints are for the 2007 MY unless noted otherwise. ** Orders should be placed at least 30 days prior to the option’s final build date for all DaimlerChrysler vehicles. Due to various assembly plant assignments for specific model lines or ordered options; the DaimlerChrysler constraints listed below may or may not apply at the time an order is placed.
MODEL	ESTIMATED LEAD TIME IN WEEKS	KEY PRODUCTION HOLD OR DELAY

Chrysler 300/300C, Dodge Magnum, Dodge Charger	12-14	(WPC) 18” aluminum wheels have a Job #1 of 4/2/07 (LXE***)
Chrysler Pacifica	14-16	AWD models have a 18-20 week lead time The following paint colors have a final build date of 3/23/07**: (PYG) Linen Gold (PPK) Magnesium Pearl (PB6) Marine Blue (PVJ) Cognac Crystal Pearl
Chrysler PT Cruiser	14-16	None
Chrysler Sebring Sedan	16-18	(XRV) Rear seat video system has a Job #1 of 2/26/07 (XWS) Driver sunglass holder has a Job #1 of 3/1/07
2008 Dodge Avenger	TBD	(XRV) Rear seat video system has a Job #1 of 2/26/07 (XWS) Driver sunglass holder has a Job #1 of 3/1/07 (JSEX41) Avenger R/T AWD model has a Job #1 of 4/23/07

Dodge Caliber	22-24	(CJ1) Front seat side airbags have a Job #1of 3/12/07 (PM**49)
Jeep Compass	16-18	Compass 4x4 models have a 24-26 week lead time (CJ1) Front seat-mounted side airbags have a Job #1 of 3/12/07 (MK**49, MK**74)

2007* DaimlerChrysler Trucks RED Indicates changed or new information
The lead time represents the estimated order to delivery period under normal conditions and does not take into consideration holds or delays. Extended lead times (when available) are noted under the Key Production Hold or Delay column. *All models and constraints are for the 2007 MY unless noted otherwise. ** Orders should be placed at least 30 days prior to the option’s final build date for all DaimlerChrysler vehicles. Due to various assembly plant assignments for specific model lines or ordered options; the DaimlerChrysler constraints listed below may or may not apply at the time an order is placed.
MODEL	ESTIMATED LEAD TIME IN WEEKS	KEY PRODUCTION HOLD OR DELAY
Chrysler Town & Country Dodge Grand Caravan/Caravan	14-16	None
Dodge Dakota	14-16	(PJC) Light Khaki paint has a final build date of 3/9/07** (PBT) Patriot Blue paint has a final build date of 3/16/07**
Dodge Durango	10-12	None
Chrysler Aspen	8-10	None
Dodge Nitro	12-14	None
Dodge Ram Pickup DR 1500, 2500, 3500 and Mega Cab	10-16	The following options have a Job #1 of 3/5/07: (LBN + DG3) Power take off (ETH) 5.9L HO Cummins Turbo Diesel engine w/(NBA) Underground Calibration (AR9) Single Rear Wheel Group with (SKS/SKT) heavy duty front springs (ETJ) 6.7L Cummins turbo diesel engine w/ (XBC) pickup box delete
Jeep Grand Cherokee	14-16	(EXL) 3.0L V6 turbo diesel engine has a Job #1 of 2/22/07 (TBB) Full-size spare has a Job #1 of 3/8/07 (PXR) Black paint has a Job #1 of 3/19/07 (HAF) Dual zone control A/C w/ (RSP) Uconnect has a Job #1 of 4/2/07 (WK*X74)
Jeep Commander	14-16	(WPN) Platinum aluminum wheels have a Job #1 of 3/12/07 (PXR) Black paint has a Job #1 of 3/19/07
Jeep Liberty	8-10	Liberty 4x2 models have a 12-14 week lead time
Jeep Wrangler	16-18	(DRY) Next gen. Dana 35 solid rear axle has a Job #1 of 2/26/07 (GCH) Half doors for 4DR models have a Job #1 of 2/28/07 (GWK) Sunrider soft top with 2-Door has a Job #1 of 3/19/07
Jeep Patriot	8-10	None

Private equity groups eye Chrysler

By James Politi in New York and John Reed in London

Published: February 23 2007 00:26 | Last updated: February 23 2007 00:26

At least four private equity groups have been in preliminary talks with DaimlerChrysler about buying Chrysler, and could emerge as bidders in the auction for the German carmaker’s US subsidiary.

According to people familiar with the matter, Apollo Management, Blackstone, Carlyle, and Cerberus Capital Management - as well as several European firms - were contacted about their potential interest in acquiring Chrysler before last week’s announcement by DaimlerChrysler that “all options are on the table” for the unit. Those discussions continued after the announcement, these people said.

Jeep Commander Overland at Geneva

Text & Photos edited by Frank de Leeuw van Weenen
Source: DaimlerChrysler AG
February 23, 2007

European premiere for Jeep Patriot

• Jeep_® grows model lineup to seven vehicles in 2007
• All-new Jeep Patriot delivers classic Jeep design at new entry-level price
• New Jeep Commander Overland offers a higher level of refinement

The 77th International Motor Show in Geneva will be a stage for the Jeep_® brand to display its major product offensive, expanding globally from three models in 2005 to seven in 2007 — the most available to retail consumers at one time in the 65-year history of Jeep vehicles. No other automotive manufacturer in the world has the range of sport-utility vehicles (SUVs) that Jeep offers.

By the end of 2007, the Jeep brand lineup will include Jeep Commander, Grand Cherokee, Cherokee (Liberty in North America) and Wrangler, plus the all-new Compass, Patriot and four-door Wrangler Unlimited. These seven vehicles — all of them powered by both petrol and diesel engine options — provide the opportunity to grow the Jeep brand by offering a variety of products that will excite current customers and attract new ones.

“The Jeep brand is on a product offensive and will continue to grow with new offerings that leverage Jeep’s legendary 4x4 leadership,” said Thomas Hausch, Executive Director – International Sales and Marketing, Chrysler Group. “We have solidified the Jeep brand’s foundation with the all-new Jeep Wrangler and Wrangler Unlimited, while also stretching the brand to reach new customers in the growing compact SUV segment with Jeep Compass, the segment’s most fuel-efficient vehicle, and Jeep Patriot.”

All-new Jeep Patriot Has European Premiere in Geneva

The Jeep brand continues its expansion into new territory with the Jeep Patriot — an all-new compact SUV that delivers fun, freedom, utility and Jeep 4x4 technology. Patriot represents the new, competitive entry-level price point for the Jeep brand and will be available outside North America in both left-hand and right-hand drive.

The new Jeep Patriot is a modern interpretation of classic Jeep styling. It combines the packaging and interior flexibility of an SUV with the performance, handling, fuel economy and price of a C-segment car. Patriot outside North America features a standard 2.4-litre petrol World Engine and an optional 2.0-litre turbo diesel engine. As standard, Patriot is loaded with many safety features, including side-curtain air bags, anti-lock brakes (ABS), Electronic Stability Programme (ESP) and Electronic Roll Mitigation.

Two Jeep Patriot models, Patriot Sport and Patriot Limited, will become available in Europe and other international markets during the second quarter of this year. All Patriot models sold outside North America will feature Jeep’s highly capable Freedom Drive I™, a full-time, active four-wheel-drive system with Lock mode.

The all-new Jeep Patriot joins the Jeep Compass in extending the Jeep brand to compete for the first time in the compact SUV segment and draw new customers to the brand. By offering the two distinctive interpretations of the Jeep design theme, Patriot and Compass complement each other and offer distinct alternatives to customers seeking entry-level vehicles for the brand. These two vehicles each deliver a competitive package of size, performance and fuel economy, all at a great value. They are also the Jeep brand’s first products with a fully independent suspension for comfortable on-road ride and handling.

Jeep Commander Overland: New, More Refined Level Outside North America

• New range-topping Jeep Commander Overland model delivers more premium features and refinement
• Commander Overland embodies the ultimate expression of Jeep “Classic” design, inside and out

The Jeep Commander lineup outside North America gets a new range-topping addition in 2007. The Commander Overland model, with premium interior and platinum-accented exterior, takes the Commander to new heights. The Overland model is one of many new vehicles contributing to the ongoing Jeep product offensive, and it makes its European premiere today at the 77th International Motor Show in Geneva.

All-new Interior Provides Next-generation Sophistication

The interior of the Jeep Commander Overland delivers an up-market ambience, with enhanced trim materials including:

• A leather-wrapped steering wheel with Vavona Burl wood rim insert
• Vavona Burl wood trim on upper instrument panel, front door switch bezels and centre floor console bezel
• Real wood inlay on lower centre stack bezel
• Leather-trimmed centre armrest, door grab handles and gear shifter

Two-tone seats with Preferred Suede Microfiber and leather trim are embroidered with an Overland logo on the front seatbacks. Available colours include Dark Slate Gray and Dark Khaki with contrasting Light Graystone. Additional interior features include front and rear berber floor mats and a cargo net.

Fresh Interpretation of Classic Exterior Styling

The stylish exterior of the Jeep Commander Overland model is an inspired adaptation of the signature Jeep design heritage — including platinum accents round the vehicle:

• Honeycomb mesh front grille and lower front fascia
• Bodyside mouldings
• Roof rack side rails
• Rear tailgate badge and license plate brow

Jeep Commander Overland rides on 18-inch, seven-spoke machine-faced aluminium wheels with all-season performance tyres.

“Jeep Commander is the first seven-passenger 4x4 that is as capable as it is distinctive. It is also the only SUV in its class to offer two V-8 petrol engines, as well as a class-leading diesel V-6,” said Thomas Hausch, Executive Director – International Sales and Marketing, Chrysler Group. “Now with the understated luxury of the new range-topping Overland model, Jeep Commander becomes the ultimate expression of Jeep ‘Classic’ design and an even more compelling package for customers in Europe and other international markets.”

Produced to Meet Global Demand

The Overland model is available with the same 5.7-litre HEMI^® V-8 petrol and 3.0-litre V-6 turbo diesel engines and Quadra-Drive II^® 4x4 system as on the Jeep Commander Limited. The new Commander Overland is built for Europe at the Magna Steyr manufacturing facility in Graz, Austria, and will be available in select markets outside North America in the second quarter of 2007.

TECHNICAL SPECIFICATIONS

The information shown is based on data available at the time of publication (Feb. 20, 2007) and is subject to change without notice. Specifications are valid for Europe and may vary in other markets.

General Information

• Body Style: Five-door sport-utility vehicle
• Assembly Plant: Graz, Austria (Magna Steyr)

Engines

5.7-litre HEMI V-8 Petrol

• Availability: Standard for Overland model
• Type and Description: Eight-cylinder, V-type, 90-degree — with cylinder deactivation through the Multi-displacement System (MDS)
• Displacement: 5.7 litres (5654cc / 345 cu. in.)
• Bore x Stroke: 99.5 x 90.9mm (3.92 x 3.58 in.)
• Compression Ratio: 9.5:1
• Maximum Power: 240 kW (326 hp DIN) @ 5000 rpm
• Maximum Torque: 500 Nm (369 lb.-ft.) @ 4000 rpm
• Emission class: Euro 4

3.0-litre V-6 Turbo Diesel

• Availability: Optional for Overland model
• Type and Description: Common-rail high-pressure direct injection, six-cylinder, V-type, 72-degree
• Displacement: 3 litres (2987cc /182.3 cu. in.)
• Bore x Stroke: 83 x 92mm (3.27 x 3.62 in.)
• Compression Ratio: 18:1
• Maximum Power: 160 kW (218 hp DIN) @ 4000 rpm / 155 kW (211 hp DIN) @ 4000 rpm (for Belgium & other EU upon request)
• Maximum Torque: 510 Nm (376 lb.-ft.) @ 1600-2400 rpm
• Emission Class: Euro 4

Transmissions

Five-speed Automatic

• Availability: Standard with 5.7-litre HEMI engine
• Description: 5-45RFE: Five-speed, electronically controlled torque, Electronic Range Select (ERS)

Five-speed Automatic

• Availability: Standard with 3.0 CRD engine
• Description: W5A580: Five-speed, electronically controlled torque, Electronic Range Select (ERS)

Drivetrain

• Transfer Case: NV245: Active full-time four-wheel drive with electronically controlled clutch pack
• Torque Split: Variable up to 100 per cent with 48/52 front/rear default split
• Axles: Front: DAP 200mm; rear: DAP 213mm
• Quadra-Drive II 4x4 System
• Type: Active full-time system with two speeds and neutral, electronically controlled clutch pack coupling in centre of differential with industry-exclusive front and rear Electronic Limited Slip Differentials (ELSD)
• Operating Ranges: 4WD on demand, 4WD Low
• Low Range Ratio: 2.72:1

Chassis and Running Gear

• Front Suspension: Short/long arm (SLA) independent configuration with gas charged twin-tube coil-over shock absorbers, stabiliser bar
• Rear Suspension: Live solid axle and five-link suspension (twin upper and lower trailing tubular linking arms plus lateral track bar, coil springs, twin monotube shock absorbers, coil springs, stabiliser bars)
• Steering Type: Rack-and-pinion with hydraulic power assist
• Wheels and Tyres: 18 x 7.5 in. with P245/60R18 all-season performance tyres
• Brakes: Four-wheel disc brakes with ABS, TCS, ESP

Dimensions and Accommodations
Dimensions are in millimetres (inches) unless otherwise noted.

• Overall Length: 4787 (188.5)
• Overall Width: 1899 (74.8) without mirrors
• Overall Height: 1919 (75.5) with roof rack and cross bar
• Wheelbase: 2780 (109.4)
• Track, Front: 1590 (62.6)
• Track, Rear: 1590 (62.6)
• Seating Capacity: Two front, three middle, two rear
• Cargo Compartment Volume: 212 litres (7.5 cu. ft.) with third row seats upright, 1028 litres (36.3 cu. ft.) with third row folded

More Photos

Chrysler CEO urges workers, dealers to focus on their jobs [PM]

DETROIT -- Chrysler Group Chief Executive Tom LaSorda has spent the past few days soothing the nerves of employees and dealers as stories swirl about a possible sale of his company.

In a conference call Thursday, LaSorda told the company's U.S. and Canadian dealers that Chrysler will make it through the current tough times.He said the company will continue to invest $5.7 billion to $6 billion per year on future products, rolling out 20 all-new vehicles during the next three years and 12 updated ones between now and 2009. It also will invest more than $3 billion in new powertrains, including a new clutch system for better fuel economy, new axles and a new family of V-6 engines, he said.

"Do these sound like the actions of a company uncertain about its future?" he asked. "Obviously not."On Wednesday, LaSorda sent an e-mail message to workers saying that he knows there have been a "frenzy of rumors" since last week's announcement that German parent DaimlerChrysler AG is seeking partners and strategic options for its U.S. operations.Chairman Dieter Zetsche wouldn't rule out selling Chrysler, and late last week, reports surfaced that General Motors Corp. was among the entities interested in buying the company.In his e-mail, LaSorda said he couldn't respond to the reports because of legal requirements, but said the DaimlerChrysler Board of Management has a duty to consider all options."It may take weeks or months before official comments can be made on some issues," the e-mail said, adding that the DaimlerChrysler board has strongly endorsed the struggling Chrysler's recovery plan.

"Meanwhile, our job is very clear. Our mission is to produce great cars and trucks, to take care of our customers and to restore profitability," he said in the e-mail. "Whatever fork in the road we may take, we first have to make sure we're on the road _ and the recovery and transformation plan is that road."Last week the company announced plans to shed 13,000 jobs, including 11,000 production workers and 2,000 salaried employees as it trims expenses and factory capacity to match declining sales. It also announced the closure of one plant and layoffs at several others.LaSorda said in the e-mail, first reported Thursday in The Detroit News and later confirmed by the automaker, that information on voluntary separation and early retirement programs will be communicated to employees in the next few days.Speaking to the dealers, LaSorda said he knows that many of them have concerns, but he encouraged them to keep investing in their businesses just as Chrysler will continue to invest.

He said he is a fourth-generation Chrysler employee, working for a company that has been around 80 years."History and heritage both in dealerships and a company mean a lot, and it's something we need to keep for the future," he said."The Chrysler Group will return to profitability. We need you. You are our customers. You're the only avenue that brings in revenue," LaSorda told the dealers.DaimlerChrysler's U.S. shares fell 86 cents, or 1.21 percent, to $69.98 on the New York Stock Exchange. GM's shares also dropped, by 74 cents, or 2.09 percent, to $34.63.GM won't comment on reports that it is interested in buying Chrysler, calling them speculation. But officials haven't denied the reports, either.
Chrysler last week announced a 2006 operating loss of $1.475 billion and said it expects to show losses through 2007. DaimlerChrysler earned $4.26 billion in 2006.

This Day in Auto History: 23 FEBRUARY

	This Day in Auto History: 2.23.1891 Edward Francis Fisher, a cofounder of the Fisher Body Company, is born in Norwalk, OH 2.23.1914 The first Saxon is sold and shipped to its new owner 2.23.1939 Edward F. Hallock of the Socony-Vacuum Oil Company dies at age 50 2.23.1954 The 500,000th post-World War II Jeep is produced 2.23.1960 Racer Peter Kox is born in the Netherlands

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

DaimlerChrysler to Be Selective in Sharing Chrysler Information

By Jeff Bennett

Feb. 23 (Bloomberg) -- DaimlerChrysler AG said it will be selective in sharing financial information with potential purchasers of its U.S. Chrysler unit.

The German automaker plans to vet candidates through investment bank JPMorgan Chase & Co. instead of giving out information to any interested buyer, Chrysler spokesman Jason Vines said late yesterday.

DaimlerChrysler Chief Executive Officer Dieter Zetsche said Feb. 14 all options are ``on the table'' when it comes to the future of Chrysler, which lost $1.5 billion last year. Zetsche said he wouldn't rule out a sale of the No. 3 U.S automaker, which he led for five years through mid-2005.

General Motors Corp., the world's largest carmaker, and DaimlerChrysler are discussing several options, including joint development of vehicles and an outright purchase of Chrysler, people with knowledge of the talks said last week.

News of those discussions and other scenarios prompted Chrysler CEO Tom LaSorda to urge employees to focus on the automaker's restructuring instead of speculation the company may be sold.

``We have an obligation to each other, to our shareholders, to our dealers and to our customers to make this plan successful,'' LaSorda said in an e-mail. ``Your support and best effort have never been more important.''

Chrysler, based in Auburn Hills, Michigan, last week announced plans to eliminate 13,000 workers and close a plant over the next two years to return to profitability by 2008.

DaimlerChrysler's strategy for dealing with prospective bidders was reported earlier by the Wall Street Journal.

U.S. shares of Stuttgart-based DaimlerChrysler fell 86 cents to $69.98 in New York Stock Exchange composite trading. The shares have risen 24 percent over the past 12 months.

LaSorda: Chrysler 'here to stay'

The CEO tries to comfort tense dealers with Chrysler's commitment to invest billions on new products, powertrain.

Josee Valcourt / The Detroit News

Chrysler Group CEO Tom LaSorda told U.S. and Canadian dealers riled by reports of a possible sale of the automaker that Chrysler will return to profitability and plans major investments to strengthen its product line.

In a 10-minute conference call Thursday, LaSorda acknowledged the concerns rising from DaimlerChrysler AG's announcement last week that it was considering strategic options and wouldn't rule out a sale of its struggling Auburn Hills unit.

"We have a strong future and we are determined to bring the company to profitability as soon as possible," LaSorda said. "The Dodge, Jeep and Chrysler brands are here to stay."

LaSorda has been working to soothe the anxiety of dealers and workers amid reports that General Motors Corp. or another bidder could buy Chrysler.

LaSorda's message to dealers came one day after the executive sent an e-mail addressing similar concerns to Chrysler's roughly 80,000 employees.

In that note, first reported Thursday by The Detroit News, he said information about buyouts and early retirement packages "will be communicated in the next few days" but more information about Chrysler's fate could be months away. Salaried workers are expected to learn more about buyout packages as early as today.

LaSorda reiterated to dealers the company's commitment to spend between $5.7 billion and $6 billion annually on future products, reminded them of the company's planned $3 billion powertrain investment to improve fuel efficiency, and touted 20 new and 13 refreshed products slated for the next three years.

"Do these sound like the actions of a company uncertain about its future? Obviously not," LaSorda said.

One dealer, who asked not to be identified, said LaSorda "needed to do (the conference call) but I was hoping he would say something more like 'the company's not for sale.' "

LaSorda has a huge job trying to maintain employee and dealer morale as the company executes a restructuring plan that calls for slashing 13,000 jobs and steep production. A shift will be eliminated at several factories, including the Newark, Del., plant where the Dodge Durango and Chrysler Aspen SUVs are built. The Newark plant will be closed in 2009. Chrysler, which lost $1.2 billion last year, expects the plan to restore profits by 2008.

"My job is to deliver this company back to profitability and that is 100 percent of my focus," LaSorda said. "And that's where the focus will stay."

LaSorda, whose father, grandfather and great-grandfather all worked for Chrysler, cited his own deep roots with the automaker and the company's 80-year history as representative of a legacy that still matters.

"History and heritage both in dealerships and a company mean a lot, and it's something we need to keep for the future," he told dealers.

While acknowledging that many retailers have concerns about the future, LaSorda said the automaker would continue to invest in its operations and urged them to do the same.

"The Chrysler Group will return to profitability," LaSorda said. "We need you. You are our customers. You're the only avenue that brings in revenue."

Ken Zangara, a Dodge dealer in Albuquerque, N.M., said the CEO's message was "uplifting" and "reassuring."

Since last week's announcement, some dealers -- particularly those near Chrysler's Auburn Hills headquarters or its factories -- have suffered a drop in showroom traffic.

Steven Landry, vice president of sales and field operations, said during the conference call that the automaker is "actually getting some momentum back after last week."

Chrysler, Dodge and Jeep dealers are trying to rebound from a difficult 2006, when Chrysler failed to cut production amid slumping demand and angered dealers by pushing them to take vehicles they could not sell.

For February, Edmunds.com projects Chrysler will sell 173,000 units, down 9.2 percent compared to the same month in 2006 but up 10.6 percent from January this year.

Chrysler's incentives fell in January compared to the same month last year, although the automaker still leads the pack with an average discount of $3,855 versus the industry's $2,286, reports Edmunds.com, a research Web site for car buyers.

"It's not a phenomenal start but it's a positive start," said Jesse Toprak, executive director of industry analysis for Edmunds.com.

Still, Chrysler cars and trucks sat on dealers' lots an average 108 days between Nov. 1 and Feb. 11, compared to an industry average of 66 days, according to data compiled by J.D. Power and Associates' Power Information Network, or PIN.

"They're selling vehicles that have come in last summer or fall," said Tom Libby, PIN's senior director of industry analysis. "So basically they're now working through the units that have been accumulated over this whole six or eight month period."

Watchwords at Chrysler Are Hurry Up and Wait

By MARK LANDLER and MICHELINE MAYNARD

Published: February 23, 2007

FRANKFURT, Feb. 22 — One week after DaimlerChrysler signaled its plans to put the Chrysler Group on the auction block, the company indicated on Thursday that it might be weeks or months before the future of the ailing American automaker can be determined.

That word came in an e-mail message sent to employees by the Chrysler chief executive, Thomas W. LaSorda, which the company posted on a media Web site.

Last week, DaimlerChrysler’s chief executive, Dieter Zetsche, said the company was keeping all options open for Chrysler, including a sale or spinoff. DaimlerChrysler has hired JPMorgan Chase to explore strategic alternatives for Chrysler.

In his message, delivered on Wednesday, Mr. LaSorda counseled employees to stay focused on revamping efforts, which include closing all or part of four plants and eliminating 13,000 jobs.

“We are a good company with great talent and a clearly defined plan,” Mr. LaSorda said, adding, “It may take weeks or months before official comments can be made on some issues.”

The prospect of more uncertainty is not likely to sit well with employees on either side of the Atlantic, company insiders and analysts said.

Morale is already sagging in Stuttgart, where DaimlerChrysler has its corporate headquarters, and is even lower in Auburn Hills, Mich., where Chrysler is based, according to several people with ties to the company.

The prospect of a protracted auction, resulting in significant job losses or even the dismantling of Chrysler, could further discourage a work force that has already slogged through waves of layoffs in Europe and North America, these people said.

While the anxiety in Auburn Hills is understandable, it is deepening in Stuttgart, where some employees view Chrysler’s woes as a growing threat to the group’s flagship Mercedes-Benz division.

“There has been a general belt-tightening in Stuttgart,” said an executive who advises DaimlerChrysler, and who spoke on condition of anonymity because of his ties to the company. “People, rightly or wrongly, assume that this is a function of funneling money to Chrysler.”

The problems at Chrysler have overshadowed a rebound at Mercedes, which had also suffered from poor sales, as well as quality concerns. Mercedes reported a $3.1 billion operating profit in 2006, compared with a loss of $661 million in 2005.

The turnaround at Mercedes is the result of popular new models, like the redesigned S-class sedan, as well as a rigorous cost-cutting program. Among other moves, Mr. Zetsche moved his top lieutenants out of their modern campuslike headquarters in Stuttgart to drab, aging offices overlooking a big Mercedes assembly plant.

The seesawing fortunes of Chrysler and Mercedes have been a recurring theme since the 1998 merger that created the company. In 2005, when Mercedes was bleeding, Chrysler made a $2 billion profit.

The difference this time, analysts said, is that Chrysler’s problems may not be fixed soon. Last week, Mr. LaSorda said Chrysler would lose money again this year, though less than the $1.5 billion last year.

That could jeopardize the long-term prospects of Mercedes by distracting senior executives like Mr. Zetsche, who oversees Mercedes in addition to his DaimlerChrysler duties.

“Daimler is beginning to wonder whether it will ever pay off,” said Garel Rhys, director of the Center for Automotive Industry Research at Cardiff University in Wales. “A great deal of management time has gone into it. The question is, are they looking at a permanent black hole?”

For those trying to handicap a sale of Chrysler, DaimlerChrysler’s experience in Europe may be instructive in another way. In April 2005, faced with mounting losses at its Smart minicar unit, DaimlerChrysler announced that it would cancel two models and lay off 700 employees.

Mr. Zetsche considered selling Smart but received no acceptable offers. Last year, the company settled for yet another overhaul of the unit, and it now plans to sell the Smart two-seater in the United States in 2008.

Analysts said such a situation could happen again, though with the stakes much greater. This time, failing to sell Chrysler would impose a heavier penalty on the stock price and the credibility of the management.

Already, a series of car companies, including Hyundai of South Korea, Nissan of Japan and Volkswagen of Germany, have said they are not interested in bidding for Chrysler, which DaimlerChrysler wants to sell in one piece.

But a British newsletter, SupplierBusiness, said this week that there was speculation that a potential buyer for Chrysler could be Magna International, the big Canadian parts supplier. According to one possibility, Magna would buy Chrysler and install Wolfgang Bernhard, the former Chrysler executive who recently left V.W., to run it, the newsletter said.

A spokeswoman for Magna said the company had no comment. But there are several connections between Magna and Chrysler. In 2002, Magna’s European subsidiary bought the Chrysler assembly plant in Graz, Austria, where Chrysler began building minivans in 1991. Magna assembles European versions of the Jeep Grand Cherokee and Commander as well as the 300C sedan.

Moreover, Mr. LaSorda and Magna’s president, Mark Hogan, worked together at General Motors, whose name has also been raised as considering a Chrysler purchase. G.M. executives have refused to comment.

As JPMorgan prepares to circulate an investment book to would-be bidders, the company has to be mindful of something else, analysts and people close to the company said.

The social cost of deals comes under far greater scrutiny in Germany than in the United States. Siemens, the German industrial conglomerate, sold its cellphone unit in western Germany to a Taiwan firm, BenQ. The unit later went bankrupt and BenQ laid off the former Siemens workers, resulting in harsh criticism for the German company.

That example will weigh on the minds of DaimlerChrysler executives, analysts said, particularly if they receive offers for Chrysler from Chinese carmakers, which are thought to be interested.

Smart's Brabus twins

23 February 2007

AUTOCAR | UK - - It was only earlier this month that we got our first taste of Smart's new Fortwo city car, but today, DaimlerChrysler issued the first pictures of that car's simmeringly hot, bountifully equipped Brabus spin-offs.

That's spin-offs not spin-off, because this time around (for Europeans at least) there will be two hot Fortwos – the Brabus and a new, more expensive and more generously equipped Brabus Xclusive.

Even the 'ordinary' Brabus should be something pretty remarkable. Mercedes' Bottrop tuners have found 30 per cent more power than they did last time; that means this rear-engined 780kg city car will have 98bhp to call upon, giving it as strong a power-to-weight ratio as a Ford Fiesta ST.

The Fortwo Brabus will major on dynamic appeal. It'll do 62mph in less than 10 seconds, and is electronically limited to a maximum speed of 96mph. It also sits on a chassis that's cradles it more firmly than the standard car, and 15mm closer to the tarmac.

The Xclusive model will get the same mechanicals as the standard Brabus, but on top of the standard Brabus' wider rear arches, bigger monoblock alloy wheels, sports exhaust and extended rear apron, it will get a bigger front spoiler, side skirts, 'tinted headlights', and it'll come in a choice of silver or black paint. Inside it gets heathed leather seats, a unique three-spoke steering wheel, Brabus floor mats and side airbags as standard.

There's bad news if you wanted to save a few quid by opting for the cheaper, stealthier version though; DaimlerChrysler UK is only going to off the Brabus Xclusive model here, likely just badged 'Brabus'. It'll be on sale late in the autumn, probably for an eye-watering £13,000