Magna's Stronach sees deal on Chrysler over next few weeks

05.10.07, 2:23 PM ETOTTAWA (AFX) - Canadian auto parts firm Magna International is hoping 'over the next few weeks' to announce an agreement to buy Chrysler, the loss-making US unit of DaimlerChrysler AG, Magna chairman Frank Stronach said.

Magna, which has teamed up with Toronto-based investment giant Onex Corp, has been reported to be readying a 5 bln usd offer for 80 pct of Chrysler. The Canadian firm also today obtained a big investment from a Russian group.

Under the plan believed to be in the works, DaimlerChrysler (nyse: DCX - news - people ) would retain a 20 pct stake in the Detroit-based carmaker.

'Well, of course we have an interest in Chrysler for the simple reason we have thousands of jobs involved,' the Austrian-born Stronach told public broadcaster CBC.

'Over the next few weeks, we hope that we can play a constructive involvement in the future of Chrysler,' he said. 'We do not like to compete with our customers, so we would not have a majority in there.'

DaimlerChrysler is one of Magna's largest customer, purchasing almost 25 pct of its annual sales, while unit Chrysler accounts for 15 pct of Magna's sales.

'We have teamed up with Onex. We have a financial partner and financially we have a very viable concept. We have major banks which are lined up,' Stronach told the Globe and Mail.

But Chrysler, which is in the midst of chopping 13,000 jobs and closing plants in North America as part of a restructuring move, could expect more cost-cutting measures under Magna's stewardship, Stronach said.

'Sometimes when you're sick, you've got to take some drastic measures and that's unfortunate,' Stronach said of Chrysler. 'What do we have to do to create a healthy patient?'

Earlier today, Russian metals firm Basic Element, owned by oligarch Oleg Deripaska, announced it will buy a stake in Magna for 1.54 bln usd (1.13 bln eur).

Separately, Magna reported a first-quarter profit of 218 mln usd, up 2.8 pct from a year ago, on revenues of 6.4 bln usd.

PSA: Carjacking Rule #213 - Pick A Subtle Target

WINDING ROADS

We’re not up on proper carjacking tips and etiquette, but we’re guessing that selecting the most conspicuous car on the street for a target is probably a recipe for disaster.

So it is for a pair of men in Tampa, who have been charged with armed carjacking after they lifted a lime-green 2006 Dodge Charger. The suspects also didn’t count on the plucky owner hanging on to his car as the driver attempted to get away, aiming the Charger at parked cars in an attempt to get him off the car. The episode has also cost one of the carjackers an attempted murder charge.

How were they caught? Why, the Dodge’s beacon-like Sublime paint was spotted behind a fence where the car was being stripped for parts.

Brilliant.

+ St Petersburg Times: Lime-green car points men in blue to suspects

Divorse of Equals

Edward Lapham is the executive editor of Automotive News. He writes commentaries for Automotive News online every business day. His commentaries also can be found here.

EDWARD LAPHAM

Edward Lapham | Automotive News
May 10, 2007 - 11:37 am

One of the great truths in the automobile business is that it's cyclical. What goes around, comes around.

Every market has its ups and downs, and so does every automaker, although the downs never seem to be as deep or as long for some companies.

For some time, there has been bad stuff coming around for the Detroit 3 -- especially in North America, where sales have been sluggish and where from time to time they've used incentives to sell cars and trucks.

But General Motors, Ford and Chrysler aren't the only automakers having problems in their home markets.

The Mercedes-Benz car group -- which seems eager to jettison the struggling Chrysler group -- is itself battling a dramatic sales decline in Germany. Some of it is due to sluggishness. Some of it may be residual damage from the recent days of lousy quality. Some of it is due to marketing blunders.

Our German-language sister publication, Automobilwoche, reports that Mercedes has told its dealers to work harder at selling dealer demos, to push vehicles already in inventory and to take advantage of the factory's marketing promotions.

Dealers say the problem is that Mercedes has screwed up the market for its cars by buying too much business with rebates.

That sounds a lot like the issues facing Chrysler in the United States.

It has been three months since DaimlerChrysler CEO Dieter Zetsche declared that Chrysler is for sale, and a deal seems imminent. But if a deal isn't consummated soon, it may be time for plan B.

Given the problems facing Mercedes in Germany, wouldn't it make sense for Chrysler to dump Mercedes?

In a marriage, either partner can file for divorce. So why not, in what the prenuptial agreement billed as a merger of equals?

After all, in the global car biz, was umhergeht, kommt herum.

What goes around, comes around.

DaimlerChrysler Trademark Update

	Serial Number	Reg. Number	Word Mark	Check Status	Live/Dead
1	78922017		722 EDITION	TARR	LIVE
2	78938156		OPTIRESOURCE	TARR	LIVE
3	78789255		COMPASS	TARR	LIVE

Team Mopar Drifters Hübinette, Cook and Hogan Present a Triple Threat at Road Atlanta

by Darren Jacobs, Team Mopar Racing CENTER LINE, Mich. -- Team Mopar drifter and two-time Road Atlanta event winner Samuel Hübinette will have some company this weekend as he looks to notch his third win at the track. When Hübinette gazes out the window of his Mopar Dodge Charger SRT8 drift machine, he’ll see Snake eyes — the Dodge Viper SRT10s of fellow Team Mopar drifters Chris Cook and Nick Hogan. Cook made his debut last month in the Formula Drift season opener on the Streets of Long Beach in California. He came up just short in his bid to make the Top 16 in his Mopar/BFG/ShiftIntoGear Dodge Viper SRT10, impressing fans and judges alike in his inaugural Formula Drift event. Hogan, son of professional wrestling legend Hulk Hogan, will make his Formula Drift debut at Road Atlanta. Cook and Hogan will be anchored by Mopar veteran Hübinette, the two-time and defending Formula Drift champion, as the drifting trio takes aim at the top spot on the Atlanta podium. • Hübinette hungry for first solo win in his Mopar Dodge Charger SRT8 • Cook debuts new Dodge Viper SRT10 and looks to crack the Top 16 • Hogan takes over the Dodge Viper SRT10 Hübinette piloted to 2006 title • Event details Hübinette hungry for his first solo win in his Mopar Dodge Charger SRT8 A track record that includes eight career wins, two Formula Drift championships and one runner-up championship finish has garnered Samuel Hübinette a well-deserved reputation as one of the elite drifters in the sport. Hübinette, along with Formula D drivers Rhys Millen and Tanner Foust, has already captured a Team Drift win in his Mopar Dodge Charger SRT8. However, a seventh place finish in the Long Beach main event has left Hübinette with the hunger of a rookie as he seeks his first solo win since switching from a Mopar Dodge Viper SRT10 to his new Mopar Dodge Charger SRT8 machine. “My goal is to always be on the podium,” said Hübinette. “I’ve never been content with second-place. After bringing out [the Charger] at Long Beach, we found things we had to fine-tune. With help from BFGoodrich, we’ve been working with getting some more traction in the rear. We have the power already from our Mopar 392 HEMI engine, that’s not the issue. We need to keep the momentum throughout the course, and that’s where you need to rely on your tires. So, we’ve made some changes, and I’m really excited to try out those changes at Atlanta.” Hübinette’s two prior wins at the facility have created a loyal following at Road Atlanta for the Swedish native, who became an American citizen last year. “It’s been a successful place for Team Mopar and me,” Hübinette observed. “We’re excited to come out to Atlanta in our fresh new Mopar Dodge Charger SRT8. It’s always fun to come back to Atlanta. There’s a lot of support for Mopar there, a lot backing there, and the Road Atlanta crowd is one of the best of all the tracks we visit.” Hübinette’s Charger SRT8 has been well-received by competitors and fans alike. “The fact that we had a good finish at Long Beach with not a lot of development time on the car is awesome,” said Hübinette. “People are surprised at what we have achieved, compared to all the much lighter cars we are competing against. The cool thing is the buzz around this car. It’s a pure, American muscle monster drifter, and people just love it.” Cook debuts new Dodge Viper SRT10 and looks to crack the Top 16 Team Mopar drifting rookie Chris Cook will break in a new car at Road Atlanta, as the veteran NASCAR Busch Series and Nextel Cup driver will pilot a brand-new Dodge Viper SRT10, sporting a retro-green muscle car paint scheme and race prepped by Shaun Carlson and his NuFormz Racing team (Carlson is the owner and Team director for all three Team Mopar drifters). With one event under his belt and with plenty of testing time in the new Mopar/BFG/ShiftIntoGear Dodge Viper SRT10 in his pocket, Cook will look to break into the Top 16 in only his second drift event. “You have to run your own race, so to speak,” said Cook on his approach for the upcoming event. “I’m not going to hold back. They’re going to see smoke, they’re going to see speed, they’re going to see angle. The green hot rod is going to put on a show.” With an attitude like that, it’s no surprise Cook was known as “Wild Thing” back in his days as a Late Model competitor. “I guess I got that nickname running in the Late Model series in Nashville years ago,” Cook recalled. “Part of it was dealing with a car that was extremely loose. Smoke would be coming off the tires at a serious angle. People were saying, ‘That’s wild, that’s wild.’ Pretty soon [the track] was playing the song ‘Wild Thing’ before qualifying.” Although he is a newcomer to the motor sport, emboldened by recent test sessions, Cook is ready to show the drifting world that he has the talent to match up with the elite of the sport. “I’m very thankful to be running on BFGoodrich tires with a Mopar hot rod, with Shaun Carlson and all the guys making it possible,” said Cook. “We tested my new car recently, and it’s just really fantastic. It’s a new car from the ground up. I’m kind of the new guy on the block, and I’ve got something to prove.” Hogan takes over the Dodge Viper SRT10 Hübinette piloted to 2006 title Nick Hogan has some big shoes to fill, as the young drifter will take the wheel of the Dodge Viper SRT10 that Hübinette steered to the Formula Drift championship last year. Chris Cook competed in the car at the Long Beach event while his new Dodge Viper SRT10 was completed, with Hogan taking the wheel for a NOPI Drift event in Miami in April. Hogan put together a very solid professional debut at the Miami event, qualifying seventh and making the Top 16 before taking a first round loss. The youngest licensed Formula D drifter at age 16, Hogan will gain valuable seat time and drifting experience when he makes his Formula Drift professional debut in Atlanta. Event Details Hübinette, Cook and Hogan will aim to bring home the first 2007 Formula Drift win for Mopar at the Round Two event, scheduled for Saturday, May 12. The media day and practice is May 11. For ticket and event information, visit Formula D’s new Web site at http://www.formuladrift.com. 70 Years of Mopar When Chrysler bought Dodge in 1928, the need for a dedicated parts manufacturer, supplier and distribution system to support the growing enterprise led to the formation of the Chrysler Motor Parts Corporation (CMPC) in 1929. Originally used in the 1920s, Mopar (a simple contraction of the words MOtor and PARts) was trademarked for a line of antifreeze products in 1937. It was also widely used as a moniker for the CMPC. The Mopar brand made its mark in the 1960s – the muscle car era. The Chrysler Corporation built race-ready Dodge and Plymouth “package cars” equipped with special high-performance parts. Mopar carried a line of “Special Parts” for super stock drag racers and developed its racing parts division called Mopar Performance Parts to enhance speed and handling for both road and racing use. Today, the Chrysler Group’s Global Service & Parts division is responsible for the manufacturing and distribution of nearly 250,000 authentic Mopar replacement parts, components and accessories for Chrysler, Jeep® and Dodge vehicles sold around the world. To assure quality, reliability and durability, all Mopar parts and accessories are designed in strict adherence to DaimlerChrysler engineering standards.

Magna, Onex after Chrysler

Stronach warns job cuts will be needed if money-losing auto maker is to survive

May 10, 2007 04:30 AM

Tony Van Alphen
Business Reporter

Magna International Inc. chair Frank Stronach says Chrysler faces job cuts if his company and Onex Corp. take control of the ailing auto maker.

In confirming a formal bid with Onex for the first time, Stronach told reporters yesterday money-losing Chrysler Group will need changes to become profitable again and that will mean fewer jobs and an overhaul in labour relations.

"I think that will be unavoidable," he said about job cuts, speaking after the annual shareholders meeting of Magna Entertainment Corp. "Sometimes, when you are sick, you've got to take some drastic measures. And that's unfortunate."

Chrysler, an arm of DaimlerChrysler AG, employs more than 81,000 workers in Canada, the U.S. and Mexico.

Earlier this year, the company announced it would cut 13,000 production and office jobs before the end of 2009, including 2,100 in Canada.

Stronach, who controls Aurora-based Magna, did not reveal how much employment levels would need to drop or whether Chrysler would close more plants. Chrysler has 11,000 employees in Canada.

At the same time, Stronach noted Chrysler could eventually grow again and create jobs.

Buzz Hargrove, president of the Canadian Auto Workers union, said he didn't anticipate any further cuts here because Chrysler's operations are efficient and productive.

The CAW and the United Auto Workers have said they want German-based DaimlerChrysler to keep Chrysler but if it sells the company, a group including Magna would be a preferable suitor.

The unions fear major U.S.-based equity firms that are considering bids for Chrysler would "strip and flip" the auto maker for a quick profit at the expense of thousands of jobs.

Stronach also said if his company and Onex succeed in a bid he would insist on profit sharing, a hallmark of Magna's culture, and other changes to boost innovation and productivity.

"That would be automatic," Stronach said of profit sharing. "You must create an attitude, you must create an environment. We want them to be part-owners and we want them to be competitive."

He stressed that improvement in labour relations "will determine" if Chrysler survives.

Stronach also repeated the need for a "framework of fairness" between management and labour at Chrysler. Magna and its unions are currently working on such an arrangement at the company's Canadian and U.S. plants.

As part of that deal, the CAW and the UAW would get easier access to Magna plants by eliminating divisive organizing drives. Instead, the company would allow workers to vote immediately on first contracts that foster co-operation for more innovation and efficiencies.

Regarding the bid for Chrysler, Stronach would not disclose the size of Magna's stake under a new ownership structure but said it would not increase the company's debt.

"Keep in mind, we've got $2 billion (U.S.) in cash in the bank," he said. "I will not gamble Magna away for Chrysler."

He described the bid as "financially, a very viable concept" with backing from major banks in addition to Toronto-based Onex.

"Everyone knows how averse I am to debt," he said, reflecting on Magna's brush with bankruptcy in the early 1990s.

Stronach noted Magna would not need to be in control of Chrysler "as long as the framework for corporate governance is solid."

Magna and Onex would also welcome other partners in the buyout group, he said.

Reports have suggested that suitors would start bidding at $4.5 billion to $5 billion while DaimlerChrysler values the North American arm of the company at between $8 billion and $9 billion.

Stronach said Magna, the world's third-largest auto parts maker, does not want to compete against its customers. But there are many joint ventures between major auto makers now, he added. "I think as the world evolves, it's more crucial to have strategic partners."

Magna already operates a paint shop for a Chrysler assembly plant in the U.S. The company also assembles models at a plant in Austria for some auto makers in the European market.

It has sought a deal with an auto maker to build complete vehicles in North America for several years.

An overview of Chrysler Group's suitors, options

DaimlerChrysler AG is not talking about the companies supposedly interested in buying the Chrysler Group. But here is the state of industry thinking:

Potential investors

• Magna International Inc. and Onex Corp.: The Canadian team of auto-parts supplier and investment company is considered the front-runner by a KeyBanc Capital Markets analyst, and a German industry newspaper has said the group is the lone serious bidder. The Canadian Auto Workers union prefers this tandem over the other bidders.

• Cerberus Capital Management: A private equity firm that might hold an edge with some Chrysler workers, having hired former Chrysler Chief Operating Officer Wolfgang Bernhard, who helped orchestrate the automaker's previous turnaround along with current DaimlerChrysler Chairman Dieter Zetsche. Bernhard has been seen recently at Chrysler headquarters in Auburn Hills.

• Blackstone Group: A private equity firm with experience in the auto industry. Some experts say Blackstone's offer might be helped by the fact that because so little is known of its bid, plans or leadership team, no one has anything to criticize.

• Kirk Kerkorian: The billionaire's investment company Tracinda Corp. has made its $4.5-billion bid public. but it supposedly was not looked upon favorably, in part because of Kerkorian's contentious history with DaimlerChrysler. In the 1990s, he attempted to buy Chrysler but failed. Some experts have praised Tracinda's idea of giving the UAW an ownership stake in Chrysler in exchange for health-care concessions, an idea they expect others to follow.

• Employee Ownership Committee: The group of hourly workers from Toledo appears to be a long shot. It says its offer is not taken seriously.

• General Motors Corp.: The Detroit automaker was one of the first names to emerge as an interested party. The crosstown rival had talks with DaimlerChrysler about a potential deal that effectively would have GM taking Chrysler off Daimler's hands. Talks fell to the side when DaimlerChrysler sought a better deal on the open market.

Wild cards

• The UAW: Union President Ron Gettelfinger has made his position clear: DaimlerChrysler should stay together. Whenever he speaks publicly about the issue, that's what Gettelfinger says. His office, meanwhile, has received numerous telephone calls from prospective buyers seeking support.

• Long-term liabilities: Analysts estimate the long-term value of promised health-care and pension benefits to Chrysler employees at $16.5 billion to $19.2 billion. Who pays for these and how?

• Option to keep: Zetsche and other DaimlerChrysler officials have said repeatedly that "all options are on the table." By definition, that would include the option not to sell Chrysler.

Queries about Chrysler likely at Magna meeting

TOEDOBLADE.COM | DETROIT — Executives of Magna International Inc. are likely to face questions at today’s annual shareholder meeting about Chairman Frank Stronach’s pursuit of a stake in DaimlerChrysler AG’s Chrysler Group, according to some analysts who follow the company.

But if Mr. Stronach decides to buy into the struggling automaker, no shareholder will be able to stop him. Mr. Stronach controls a vast majority of the company’s Class B shares that carry 500 votes each.

Magna has confirmed its interest in buying Chrysler, and many U.S. analysts have named the Canadian company the front-runner in the bidding, along with partner Onex Corp., a Canadian investment conglomerate.

Workers say their DCX bid rebuffed

Toledo group eyes a shot at Chrysler

May 10, 2007

BY TIM HIGGINS

FREE PRESS BUSINESS WRITER

All options may not be on the table for the Chrysler Group after all.

Chrysler hourly workers trying to put together an employee-led buyout of the U.S. unit of DaimlerChrysler AG say they're not being taken seriously -- "hitting a wall" -- even though they have assembled a team of advisers and investment bankers.

A representative from the group said Wednesday it has been in contact with JPMorgan, DaimlerChrysler's investment bank, only to be told that talks with other bidders are far along.

"They said they are instructed by Germany not to hand out any information to anyone," Richard Caires, a Connecticut investor retained by the Chrysler Employee Ownership Committee to help put together a deal, told the Free Press. "He also said they're far along in the process and what you read in the papers is not far off from the mark -- meaning Magna."

A person familiar with the matter confirmed that the employee group's representatives have had contact with DaimlerChrysler's representatives.

An offer by Canadian auto supplier Magna International Inc. and its investment partner Onex Corp. has been generating the most buzz lately as a likely front-runner among bids to buy the Chrysler Group. Other bidders are believed to be private equity firms Blackstone Group and Cerberus Capital Management.

Magna Chairman Frank Stronach is sure to receive questions about the Chrysler bid during Magna's annual meeting today in Toronto.

The Chrysler Group's future was thrown into uncertainty in February when DaimlerChrysler AG Chief Executive Dieter Zetsche indicated the U.S. division might be sold.

While several interested groups have emerged publicly, DaimlerChrysler officials seem to be taking the Magna-Onex, Cerberus and Blackstone groups the most seriously.

The employee group emerged during the DaimlerChrysler annual meeting in Berlin in April, when a shareholder, wearing an orange T-shirt that read: "You are leaving the American sector" out of what she called solidarity for the UAW, read a letter from the Toledo-based group asking for consideration.

Since then, Michele Mauder, the head of the employee group, has worked to put something together.

The group formed a limited-liability corporation and signed up Morpheus Capital Advisors of New York City. The group is trying to make the case that it is the best choice for the future of the employees.

"We've been asking for the financial books. Now that we have committed ourselves to an investor and got our financial banking from New York banks, Daimler and JPMorgan will not let us see the books. We are hitting a wall," said Mauder, a UAW member who works at the Chrysler Jeep plant in Toledo. "There are a few they are letting in. Doctor Z has said numerous times that all options are on the table, but if that is true, we need to know what's going on behind the scenes."

DaimlerChrysler's practice has been not to comment on prospective bidders.

UAW President Ron Gettelfinger has said repeatedly that the union's goal is to keep DaimlerChrysler together. He has referred to the Toledo group's proposal as sketchy.

Mauder's group, which she says has about 50 people on the committee, has met with officials from Kirk Kerkorian's Tracinda Corp., she said.

Kerkorian, who tried a Chrysler takeover in the 1900s, has offered $4.5 billion to buy Chrysler, but the offer apparently has been pushed to the sidelines because of his contentious history with the company.

KeyBanc Capital Markets has said the Magna-Onex offer is about $5 billion, but its true value could be much more to DaimlerChrysler if the buyer took on its pension and health-care liabilities, which have been estimated to be worth as much as nearly $20 billion.

Kerkorian has proposed that the UAW be given an ownership stake in Chrysler in exchange for union concessions on health care.

"Whatever the unions are going to negotiate for givebacks ... has to be voted on by the rank and file. Well, the rank and file are sitting here saying we are interested in pursuing this," said Caires.

He said the group will be able to put together financing. "We are confident that we can raise the necessary capital," he said. "What Michele's group is going to need is getting Daimler to say, 'OK, let's see what you got.' That's it, that's all she needs. What she has been getting is polite lip service from the union and from Daimler. They don't want this to happen."

He added: "They are hoping this goes away."

Report: Magna boss sees 'drastic' steps at Chrysler

Magna Chairman Frank Stronach expects a decision regarding the potential purchase to be made during the next few weeks.

Reuters |
May 10, 2007 - 5:00 am
UPDATED: 5/10/07 8:47 A.M.

MONTREAL (Reuters) -- Frank Stronach expects drastic measures at the Chrysler group if Magna International Inc. succeeds in buying the automaker, a newspaper reported today.

"Sometimes when you're sick, you've got to take some drastic measures and that's unfortunate," said Stronach, chairman and founder of the Canadian auto parts maker, about Chrysler, according to the Globe and Mail.

"What do we have to do to create a healthy patient?" he added.

Stronach said Magna wants to acquire Chrysler, with backing from financial partner Onex Corp. Magna also would like DaimlerChrysler to retain a stake in Chrysler, he said.

Today, Magna said a company controlled by Russian billionaire Oleg Deripaska would invest some $1.54 billion in Magna to help the Canadian company's growth prospects in Russian and other markets.

Ex-DCX engine unit, bought by private-equity firm, is still standing

Photos from MTU Detroit Diesel

MTU Detroit Diesel President and CEO Ulrich Kemnitz says its owner, EQT Partners, a Swedish private-equity firm, is continuing to invest in its business.

Christine Tierney / The Detroit New

In the year since DaimlerChrysler AG sold its off-highway engine unit, the operation has increased its sales and headcount, belying the notion businesses sold to private equity firms inevitably get savaged.

EQT Partners, the Swedish private-equity firm that bought the unit and renamed it Tognum Group, announced last month it was acquiring a generator-set maker in Minnesota.

"It's a testament of our owner wanting to further invest in our business," said Ulrich Kemnitz, CEO of MTU Detroit Diesel, a Detroit-based off-highway manufacturer formerly owned by DaimlerChrysler and now part of Germany-based Tognum.

MTU Detroit Diesel is also doubling its salaried work force in Detroit, where it builds big engines for power generators, mining trucks, boats and other large vehicles, to more than 200.

DaimlerChrysler officials point to Tognum and other successful private-equity deals as the company studies offers for Auburn Hills-based Chrysler Group, which the German automaker put up for sale earlier this year.

"In deals we've done in the past with private-equity groups, the main criteria were, 'What does the investor want to do with the company? What is the strategy?' " said a DaimlerChrysler official, speaking on condition of anonymity.

Among the leading candidates bidding for Chrysler are private-equity firms Blackstone Group and Cerberus Capital Management and Canadian supplier Magna International Inc. Top General Motors Corp. officials also have spoken with DaimlerChrysler about a deal.

DaimlerChrysler's labor representatives, including United Auto Workers President Ron Gettelfinger, who sits on the automaker's supervisory board, are wary of private-equity bidders. They view them as inclined to break firms apart for a quick profit, a perception hardened by the UAW's difficult wage negotiations with Cerberus, a possible buyer of bankrupt supplier Delphi Corp.

But Joe Phillippi, president of AutoTrends Consulting Inc., said private-equity firms are not usually harsher owners. "For the most part, it's not necessarily more brutal. The worst scenario is GM buys Chrysler -- there, you'd see a veritable bloodbath over time."

Although DaimlerChrysler does not have equity in Tognum, it retains close ties. "It's a very amicable relationship," said Bryan Mangum, marketing manager at MTU Detroit Diesel.

MTU Detroit Diesel's 100 or so hourly workers are employed by DaimlerChrysler and represented by UAW Local 163 under the terms agreed to when the automaker sold the off-highway activities in March 2006. "We reimburse Detroit Diesel," the engine business still owned by DaimlerChrysler, "for their expense," Kemnitz said.

MTU Detroit Diesel leases space in a 3 million-square-foot DaimlerChrysler site that straddles Detroit and Redford.

Tognum has about $3.3 billion in annual sales, and business is growing worldwide. In the United States, it has won contracts to supply engines to the U.S. Coast Guard, which is renewing its fleet.

EQT is contemplating an initial public offering for Tognum but hasn't disclosed the timing.

Track DaimlerChrysler's stock

Chrysler exceeds buyout projections

Josee Valcourt / The Detroit News - -

DaimlerChrysler AG's Chrysler Group -- amid a turnaround effort that calls for shedding 9,000 U.S. hourly positions over three years -- received more buyout applications than it needed at affected plants.

"Corporate wide, we have exceeded our original projections," said Chrysler spokeswoman Michele Tinson. She declined to elaborate.

Workers in Detroit had until April 16 to determine if they wanted to take the automaker up on the buyout offer. Deadlines varied at other sites, with the latest on April 23 for St. Louis North and South employees.

Chrysler, which posted a $680 million loss in 2006, offered U.S. blue-collar workers at certain plants a retirement package that includes a $70,000 lump sum plus health care and pension benefits. Workers with less seniority were also offered buyout packages worth $100,000 and six months of limited health benefits.

Both programs were made available in early March after Chrysler revealed its comeback strategy on Feb. 14.

Chrysler isn't providing an update on the number of applications it received to date from workers ready to leave the company. But by early April, Chrysler was well on its way to reaching its target of 5,875 reduced hourly positions for the year.

Some 4,312 hourly employees represented by the United Auto Workers in the U.S. and in Canada -- where Chrysler hopes to shave 2,000 blue-collar jobs -- submitted paperwork to accept the buyouts. Among them are 1,600 Michigan workers.

In total, the automaker wants to eliminate 11,000 union-represented positions by 2009 in the U.S. and Canada as it also moves to cut 400,000 units of production as part of its restructuring. Some 2,000 salaried jobs also will be trimmed.

In addition, Chrysler plans to cut third shifts from Warren Truck plant and its St. Louis factory, and idle its Newark, Del. factory.

Blue-collar workers will learn when they will be let go between April 30 and June 30.

"Our manufacturing facilities will determine when the accepted programs will be activated," said Tinson, based upon the manpower needs of each targeted factory.

This Day in Auto History: 10 MAY

This Day in Auto History: 5.10.1906 Charles Baillairge dies in Quebec, PQ, Canada at age 79 – among his many varied accomplishments was the construction of a steam-powered automobile in 1844 at age 19 5.10.1927 E. L. Cord purchases the Lexington Motor Company and Arnsted Engineering Company, both located in Connersville, IN 5.10.1931 Automotive parts manufacturer and electomotive automobile advocate Lowell Sherman Bain is born in Chicago, IL 5.10.1949 Sam Breadon, a St. Louis, MO car dealer 1903-1949 and the owner of the St. Louis Cardinals baseball team, dies at age 72 5.10.1967 Racer Lorenzo Bandini dies at age 31 three days after his Ferrari 312/67 had crashed during the Monaco Grand Prix in Monte Carlo

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

Deposits Placed for 12,600 Smart Cars

© 2007 The Associated Press DETROIT — United Auto Group Inc., the nation's second largest auto retailer, Wednesday said that in just over five weeks it has received $99 deposits from 12,600 people eager to be among the first buyers of DaimlerChrysler AG's two-seat Smart mini car when it hits U.S. showrooms in 2008.

United Auto Group, which owns the Smart USA division of DaimlerChrysler's Smart unit, kicked off a program in March that offers people the opportunity to be a Smart "insider" and get on a waiting list in return for a refundable $99 deposit. United Auto Group Vice President Tony Pordon said the company has seen considerable interest in the product due to a growing demand for fuel-efficient cars and a continued interest in unique cars.

"With fuel prices escalating and this car promising 40 miles per gallon, they're looking at it as an economical way to be able to adapt to changes in the marketplace," Pordon said. Smart vehicles are slated to have a base price below $12,000.

Smart cars are about the size of golf carts but more technologically advanced than many of the cars already on U.S. roads. While Smart products are dwarfed by most vehicles, they are certified with four-star crash worthiness.

Edmunds.com auto analyst Michelle Krebs noted that DaimlerChrysler was going to put Smart cars on sale earlier in the decade, but that effort stalled due to financial problems DaimlerChrysler had at the Smart division. Now, "with gas prices looking at $4 a gallon this summer, this is perfect timing," said Krebs.

Pordon said the company does not know how many people who have given deposits will follow through and actually buy a Smart two-seater, but he expects the retention rate to be high. The company only plans to sell 16,000 Smarts next year in three configurations _ the base "Pure" model, the upgraded "Passion" model and the "Passion" cabriolet.

While consumers are given a shot at getting in line for what might be a hot product, United Auto Group sees the $99 deposit scheme as an ideal way to do consumer research. Essentially, the company is getting a fairly accurate snapshot of what kind of models its buyer-base is interested in, so it can order pools of cars from DaimlerChrysler that they can actually sell in North America. Pordon said the most popular Smart model has proven to be the Passion edition.

Pordon said that the company could conceivably sell out of the first year's expected volume before the vehicle goes on sale. United Auto Group, which primarily sells luxury models and import brands in the United States, in addition to operations in Europe, is kicking off a 50-city road show this month in order to drum up more demand.

United Auto Group is currently weeding out 50 to 60 dealers from an initial field of more than 1,000 interested dealers that will be selected as exclusive outlets for the vehicles starting in 2008. Pordon said the company has seen considerable consumer interest in California, New York, Washington, D.C., and even in Michigan, where the Big Three Detroit auto makers dominate.

The initial popularity of Smart comes at a time when mini cars are not even on sale in the United States. The so-called sub-compact, or B-segment, currently represents the smallest vehicle class in the United States and most major manufacturers have a product in the sub-compact class or plans to enter it by decade's end. BMW AG sells a line of Mini Cooper vehicles in the United States, but those vehicles are much larger than DaimlerChrysler's Smart cars.

Mini cars have taken off in other established markets, including Western Europe, as high energy prices have driven popularity of smaller models. Domestic U.S. auto makers have long stayed away from investing too heavily in manufacturing smaller cars because they offer little or no profit potential and Americans continue to prefer larger cars.

General Motors Corp., however, is eyeing the embryonic U.S. mini car segment as a potential frontier worthy of exploration. At the New York auto show, GM showed off three mini cars built and designed by the company's Korean unit.

Cruise Nights and Concept Vehicles Drive the Fun at the Walter P. Chrysler Museum this Summer

Posted : Thu, 10 May 2007 13:06:00 GMT Author : Walter P. Chrysler Museum Category : PressRelease

AUBURN HILLS, Mich., May 10 /PRNewswire-FirstCall/ -- The fun will be at full throttle this summer as Cruise Nights return to the Walter P. Chrysler Museum in Auburn Hills, from 6 - 9 p.m. Thursdays, June 14 and 28, July 12 and 26 and Aug. 9 and 23.

Cruisers with vehicles of all makes and models -- and enthusiasts who simply enjoy the chrome and steel landscape -- can feast on the automotive eye-candy that will adorn the Museum's spacious grounds, including a must-see array of spectacular Chrysler Group concept vehicles.

Cruise Nights at the Walter P. Chrysler Museum will celebrate car culture -- rain or shine -- with music, free Museum tours and food concessions. A variety of Chrysler Group's most popular concept vehicles will be thematically displayed in the Museum's front circular drive each evening:

-- Dodge Challenger Night, June 14: Dodge Challenger, ACR Viper, Mopar SS Drag and Chrysler Nassau -- Classic Cruiser Night, June 28: Chrysler 300 Hemi(R) C, Chrysler Imperial, Chrysler Phaeton, Dodge Super Hemi -- Extreme Performance Night, July 12: Dodge Demon, Chrysler Firepower, Chrysler ME Four-Twelve and Dodge Tomahawk -- Radical Night, July 26: Akino, Expresso, Slingshot and Trio -- Jeep(R) Night, Aug. 9: Jeep(R) Gladiator, Jeep Hurricane, Jeep Jeepster, Jeep Rescue and Jeep Trailhawk -- Hot Truck Night, Aug. 23: Jeep Gladiator, Dodge M80, Dodge Power Wagon and Dodge Rampage

Product specialists will be on hand to answer questions about each Chrysler Group concept.

The Walter P. Chrysler Museum will award plaques each Cruise Night to participants with outstanding vehicles in three categories:

-- Museum Choice; -- Best Wheels for Wooing; and -- Best Challenger, Best Classic Cruiser, Best Performance Vehicle, Most Radical Ride, Best Jeep(R) and Hottest Truck, in keeping with Cruise Night themes. Revving up Cruise Nights fun will be: -- Cruis'news, on June 14, to individually photograph owners with their vehicles. Owners can pick-up their complimentary framed photo from the Museum during subsequent Cruise Nights. -- 94.7 WCSX, on June 28, with the Classic Rock Cruisers. Weekend jock KT will be on-hand to emcee and Focus Hope will sell raffle tickets for this year's WCSX Stone Soup project -- a 1968 Dodge Charger. -- 101 WRIF, on July 12 and 26, with the WRIF Muscle Car Club. A WRIF air ace will host the party both evenings, complete with station giveaways.

The Walter P. Chrysler Museum is located at the corner of Featherstone and Squirrel Rds. on the DaimlerChrysler complex in Auburn Hills. From I-75, take exit 78 (Chrysler Dr.) and follow the Museum signs.

Buyer Backs Out Of $10 M Bid For General Lee

May 9, 2007 03:09 PM

Dukes of Hazzard fans upset that the most famous car in the world was up for sale can rest at ease - the General Lee is still owned by Bo Duke.

John Schneider, the actor who played Bo Duke, put up his own 1969 orange Dodge Charger up for sale on eBay. Schneider had owned the vehicle since before the TV series began in 1979.

The "General" was made famous by Bo and Luke Duke's several high-speed escapes from Sheriff Roscoe P. Coltrane.

Now it seems an eBay buyer has pulled a fast one on Schneider.

The Ventura County Star reported that William Fisher of Laguna Hills, Calif., made the winning bid of $9,900,500 for the General Lee. Fisher has reportedly failed to make a deposit for the car.

---

Bo Duke's General Lee For Sale On eBay
Bo Duke, General Lee Visit Nashville

---

The paper reported that Schneider's estate manager said the actor would pursue legal action against Fisher.

Schneider had already left negative feedback for Fisher on his eBay account.

"This is the guy that for fun, decided to bid on the General Lee. Thanks....," it reads.

Prospective buyers had to register through eBay before placing bids so the online auction could verify the winner's ability to pay.

Fisher's bid was only $100 more than the second-highest bid, according to the VenturaCountyStar.com.

Schneider was selling the General Lee to finance an upcoming film.

For now, the famous car sits in the garage of its longtime owner.

Fisher's bid was only $100 more than the second-highest bid, according to the VenturaCountyStar.com.

Schneider was selling the General Lee to finance an upcoming film.

For now, the famous car sits in the garage of its longtime owner.

Chrysler Patent Updates

PAT. NO.		Title
1	7,216,096		Integrated inventory management system
2	7,216,011		Concurrent modeling technique for a part and its tooling
3	D542,192		Automobile grille
4	D542,181		Automobile body
5	D542,180		Automobile body
6	D542,179		Automobile body
7	D542,178		Automobile body

DaimlerChrysler Trademark Updates

1	78938156		OPTIRESOURCE	TARR	LIVE
2	78789255		COMPASS	TARR	LIVE
3	78701675		PIONEERS OF INDEPENDENCE	TARR	LIVE

Chrysler to make 5,000 Mercs/yr in India

REUTERS

Posted online: Wednesday, May 09, 2007 at 1536 hours IST

PUNE, MAY 9: DaimlerChrysler will produce 5,000 Mercedes Benz cars a year in its new plant in India, a senior official said on Wednesday.

The 2.75 billion rupee ($67 million) plant will begin production in 2009, Joachim Schmidt, chairman of the board of DaimlerChrysler India, said at a foundation-laying ceremony for the plant in the Western state of Maharashtra.

S&P: Chrysler Rating Would Resemble GM

Associated Press 05.08.07, 3:03 PM ET - - A separate Chrysler Group spun off or sold by DaimlerChrysler AG would likely have a credit rating similar to that of U.S. peers General Motors Corp. and Ford Motor Co., Standard & Poor's Ratings Services said Tuesday.

"It's quite comparable ... but Chrysler is less diversified than GM and Ford," S&P's credit analyst Maria Bissinger told reporters in Frankfurt, without commenting further.

S&P currently gives both GM and Ford a long-term rating of B, with a negative outlook. Their short-term ratings are both at B-3. It gives DaimlerChrysler a better rating, BBB for the long term with a stable outlook, and a short-term rating of A-2.

As for the parent company excluding Chrysler, Bissinger said that the "business profile would likely improve if the weakest link is removed."

She noted that it remains to be seen how a split-up of the group's financial services division - a key contributor to earnings, and a sector to which Chrysler contributes - would be achieved.

DaimlerChrysler Chairman Dieter Zetsche announced in February that the company was considering all options for the struggling Chrysler unit and has been holding talks with likely bidders.

Chrysler lost $1.5 billion in 2006 and is undergoing a recovery plan that will cut 13,000 jobs in Canada and the U.S. and pare back production.

Several industry analysts view Canadian auto parts supplier Magna International Inc. as the front-runner in bidding to grab at least a significant stake in Chrysler. Aurora, Ontario-based Magna has acknowledged its interest.

Among other companies reportedly interested in Chrysler are private equity firms Cerberus Capital Management LLC and a consortium of investors led by Blackstone Group, although neither has confirmed its interest.

Billionaire investor Kirk Kerkorian, who tried to take control of Chrysler in the 1990s, has made a $4.5 billion bid.

Shares of DaimlerChrysler fell 0.8 percent at 59.77 euros ($81.38).

Chrysler buyouts are idled

Early-retirement packages too popular

May 9, 2007

BY TIM HIGGINS

FREE PRESS BUSINESS WRITER

The Chrysler Group has put on hold the buyout and early retirement packages for Detroit-area hourly workers after it was flooded with more interested people than it expected, the Free Press has learned.

Buyouts still are expected to go through, but the company is deciding on a plant-by-plant basis when workers can leave. Many expected to be out by early this month.

The hold-up is causing frustration for some who had expected to be done working at Chrysler -- but now can't move forward with plans, workers said. Amid all of the uncertainty about the Chrysler Group, morale has turned low and many thought it time to leave, workers said on the condition of anonymity.

"The company has informed the union that the amount of applications in the Detroit Labor Market Area (LMA) have exceeded their expectations," UAW Local 51 told workers in a recent notice. "As of May 2, 2007, all movement relative to the" buyout and retirement "packages is now on hold in the Detroit LMA."

In April, Chrysler reported that more than 1,600 Chrysler hourly workers in Michigan had signed up for the packages. A person familiar with the process said that 57% of the people eligible for the packages in Detroit accepted them.

The packages are part of the company's turnaround plan to reduce 13,000 employees, including a total of about 5,300 in Michigan, over the next three years.

The April announcement said that 4,312 hourly workers in Canada and the United States have accepted the packages -- about 1,500 shy of the company's goal for 2007.

On Monday, the company declined to give an updated number. "We did exceed our original projections," Chrysler spokeswoman Michele Tinson said. "We are still in the middle of the process. Each manufacturing location will determine when the accepted programs can be activated."

A spokesman for the UAW declined comment.

"The International Union and the company are in negotiations concerning how and/or when the members in the Detroit LMA will be released and backfilled," the notice to workers at the Mack Engine plant said.

The company had set an internal goal of May for people to leave the company but each facility has the discretion to decide when workers can be let go.

The company is shooting to get people out in a window that stretches from April 30 to June 30, but it could be longer if market demands warrant it, the Free Press learned.

Concerns about job cuts first emerged last fall when it became clear Chrysler was not doing so well.

The company, struggling with a truck-heavy lineup, posted a $1.5-billion operating loss in 2006, a figure that was revised to $680 million recently because of accounting changes.

On Feb. 14, Chrysler CEO Tom LaSorda announced the company's second turnaround plan in a decade but it was overshadowed by the indication that the division was up for sale.

In April, DaimlerChrysler chief executive Dieter Zetsche announced that the company was in talks with interested parties about Chrysler's future.

Several interested parties have emerged, most notably: two private equity firms, Blackstone Group and Cerberus Capital Management, and Canadian auto supplier Magna International Inc.

Experts have warned that a private equity firm would likely cut more jobs.

Not everyone was eligible for the buyout and early retirement packages. The company has set goals for each facility to reduce headcount.

The early retirement package includes a single payment of $70,000 and the buyout package includes a $100,000 lump sum.

When Ford Motor Co. offered UAW buyouts nationwide related to its turnaround plan, the take rate was about 45%. Among salaried employees, in some departments too many workers accepted buyouts but those conditional offers were rescinded.

Toledo Jeep has future, expert says

Ohio complex expected to survive Chrysler sale

From Beacon Journal wire services

TOLEDO - If Chrysler is purchased by a Canadian auto parts manufacturer, the impact on the Toledo Jeep Assembly complex and other local DaimlerChrysler AG operations won't be felt immediately, an auto industry analyst said.

Chrysler's Summit County operations consist of a stamping plant in Twinsburg.

Magna International Inc. has emerged as a top contender in the possible separation of the struggling Chrysler Group from Daimler. Magna is vying with private equity firms and others to take over or obtain a large stake in Chrysler.

David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., said Toledo Jeep likely would have a significant role in a restructured company.

There is a high level of uncertainty as to the future of local Chrysler operations, but the Jeep plant will be part of it, he said.

George Magliano, an auto analyst at consulting company Global Insight, said Magna is the ``suitor du jour'' in the bids for Chrysler.

``They are obviously very serious,'' he said. ``They seem to have the inside track.''

The United Auto Workers, who have opposed the sale of Chrysler, are thought by some to favor Magna over the private equity groups that have expressed interest in the automaker.

Magna operates the shop that paints Jeep Wranglers at Toledo Jeep, and it operates a Chrysler plant making Jeeps and other vehicles in Austria.

Its workers at Toledo Jeep are expected to be represented by the UAW. Magna has about 50,000 production workers in the United States, Canada and Mexico.

The Toledo complex makes Jeep Libertys and Dodge Nitros as well as Wranglers. Chrysler also operates a machining plant in Perrysburg Township and has a joint-venture engine plant in Dundee, Mich.

Magna was founded in 1957 by Frank Stronach and is a major parts supplier to Daimler and other global automakers.

Daimler officials said this year that Chrysler was for sale, after the U.S. unit lost nearly $1.5 billion last year. But a suitor such as Magna might invest money but not have a majority interest in the firm.

Daimler is reported to be talking with some suitors. Onex Corp., a Canadian investment firm, is working with Magna on the deal, published reports have said.

Other bidders include the Blackstone Group and Cerberus Capital Management, private equity firms that the UAW fears may sharply cut costs and possibly break up Chrysler.

The secrecy of the sale talks and Daimler's interests make it difficult to speculate on the outlook for Chrysler's current operations, analysts said.

By itself, Chrysler likely cannot survive and prosper globally and needs an alliance outside North America, Cole said.

``Until this actually comes down, there is not much that anybody will know about what could happen,'' he said.

Magnitude 5.2 - OFFSHORE NORTHERN CALIFORNIA

Earthquake Details

Magnitude	5.2
Date-Time	Wednesday, May 9, 2007 at 07:50:05 (UTC) = Coordinated Universal Time Wednesday, May 9, 2007 at 12:50:05 AM = local time at epicenter
Location	40.376°N, 125.014°W
Depth	9 km (5.6 miles)
Region	OFFSHORE NORTHERN CALIFORNIA
Distances	62 km (38 miles) W (275°) from Petrolia, CA 67 km (42 miles) WSW (251°) from Ferndale, CA 77 km (48 miles) WSW (253°) from Fortuna, CA 85 km (53 miles) WSW (238°) from Eureka, CA 365 km (227 miles) NW (305°) from Sacramento, CA
Location Uncertainty	horizontal +/- 0.7 km (0.4 miles); depth +/- 1.7 km (1.1 miles)
Parameters	Nst=250, Nph=250, Dmin=58 km, Rmss=0.19 sec, Gp=245°, M-type=regional moment magnitude (Mw), Version=3
Source	California Integrated Seismic Net USGS/ Caltech/ CGS/ UCB/ UCSD/ UNR
Event ID	nc51181705

Big Three can't play defense anymore

DETROIT NEWS - - Sen. Barack Obama's finger-wagging lecture this week to Detroit's automakers shouldn't come as a surprise to anyone who's paying attention.

It's the future if maligned Motown doesn't start playing aggressive offense. Doesn't matter that an Illinois Democrat from the industrial Midwest, a man who would be president, shows scant understanding of the technology, market realities and human limitations of his remedies -- and then jumps on the campaign plane.

It's the formula: Whack Detroit, ignore details and draw praise from most any corner outside of, say, three Great Lakes cities, meaning Obama understands very well the times in which he's running for the nomination.

Judging by the climatic grandstanding so common now in Washington, he's not alone. Be it Republican or Democrat, be it a vote in Congress or a position on the campaign trail, the times are ripe for policies purported to slow climate change and improve national energy security.

Play offense, not defense

And if they undermine companies struggling to survive? That's our problem.

The path of least resistance runs right through Detroit's weakened automakers and over the United Auto Workers, presumed to back Democrats no matter how inimical their proposed policies may be to the union's future.

Doesn't matter that the union and its members are stalwarts of the Democrats. Doesn't matter that Rep. John Dingell, D-Dearborn, remains the industry's protector on Capitol Hill. Doesn't matter how communities could be impacted, most of them Midwest backwaters to party elites.

None of it much matters because big, bad Detroit isn't so big or bad anymore. General Motors Co., Ford Motor Corp., Chrysler Group and even Toyota Motor Corp. cannot play defense in Washington on fuel economy, climate change and energy security. It won't work.

Viewed from the crumbling ruins of industrial America, Washington has reached an inflection point: There will be political movement on climate change and fuel economy, as the Senate Commerce Committee votes Tuesday on tougher federal fuel economy rules showed.

Step on the gas

Change will come quickly, too, even if some of it makes little sense. Take Obama's suggestion to pick up 10 percent of Detroit's crushing retiree health care costs, provided that fully half of the annual federal spending goes into improving fuel efficiency.

For DaimlerChrysler AG's Chrysler Group, which spends $1.56 billion on retiree health care, the federal help would amount to $78 million a year or $29 per vehicle, according to company calculations. Yippee.

Put aside the political risk of using taxpayer money to bail out GM, Ford and Chrysler, never a popular play in the "Detroit-is-for-losers" zeitgeist. The dough is piddling, proving how poorly politicians understand the enormity of the burden Detroit is shouldering.

It's past time for Detroit to step on the gas in Washington. Tired of Toyota getting all the props for being so fuel-efficient when its V-8 trucks are anything but? Then help drive the debate on fuel-efficiency, or it will drive you.

Worried that Democrats in Congress will stall a comprehensive environmental package to wait for a Democrat in the White House? Push for a broad deal now, as some of Detroit's automakers are doing, while Dingell is active, Detroit's balance sheets are iffy and you've got a decent technology story to tell.

Convinced that a 4 percent annual improvement in fuel economy starting in 2011 cannot be achieved? Start lining up your bankruptcy counsel; write the surrender-and-blame speeches; and remind the Pension Benefit Guaranty Corp. (and their friends in Congress) just how massive your pension obligations are -- and how heavily they'd weigh on American taxpayers.

Doesn't need to end that way, or Obama's way. But doing nothing and hoping is not an option.

This Day in Auto Histroy: 09 MAY

This Day in Auto History: 5.9.1892 Warren Lowe Baker of the Socony-Vacuum Oil Company is born in Washington, DC 5.9.1907 Nova Scotia issues the province’s first automobile license plate to W. M. Black of Wolfville 5.9.1928 The Borg-Warner Corporation is organized in Illinois through the merger of the Borg & Beck Company, the Marvel Carburetor Company, and the Warner Gear Company 5.9.1941 Walter S. Cochrane, a design engineer with Buick 1913-1926 and a diesel engine designer with the Chrysler Corporation since 1926, dies in Detroit, MI at age 55 5.9.1960 The last Volvo PV445 chassis is produced

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

Several owners of 2001 Dodge Rams are reporting that the dashboards on their vehicles are mysteriously collapsing or cracking, possibly putting their lives in danger, according to a Local 6 News investigation.

Dodge Dashboard Report

• Problems In PT Cruisers
• Daimler Chrysler Requests Photos
• Company Responds To Local 6
• Dodge Owners Seek Help
• E-Mails Flood Local 6
• Dashboards Collapsing, Cracking

ORLANDO, Fla. -- A flood of viewers have come forward with complaints that the dashboards on their P.T. Cruisers are cracking and collapsing similar to photos shown in a recent Local 6 investigation into apparent problems with Dodge Rams.Since Local 6 aired the original report on dashboards, the station has received hundreds of e-mails from people who said they are having problems with their Dodge Rams."Consumers are wondering why they're driving the automotive equivalent of a sinkhole," Local 6's Steven Cooper said.

he report featured Lucy Perez, who is one of many P.T. Cruiser owners claiming they have defective dashboards."My concern is that we are driving and something happens and this whole thing goes and collapses and we have an accident," Perez said.

The P.T. Cruiser is made by Daimler Chrysler -- the same manufacturer of the Dodge Ram.

In an earlier report, Cooper spoke with a driver who said she lost all power to her headlights when her Dodge Ram dash collapsed while driving at night.

Another man said his dashboard fell apart and pieces fell inside and jammed the gas pedal while he was driving.

Cooper said the dashboard reports have circulated across the country.

The latest dashboard complaints have come from Texas, Missouri, South Carolina, Ohio, Georgia, North Carolina, Illinois, New York, New Jersey and Utah."As for Daimler Chrysler, the company has not been consistent in its dialogue with us," Cooper said. "Some days they respond to our inquiries and some days they do not. And it seems the consumers are having the same experience."Cooper said he is looking into how Daimler Chrysler is handling the complaints.

The National Highway Traffic Safety Administration will not comment on the record, except to say it is monitoring the situation.Anyone with a P.T. Crusier, Dodge Ram or another Daimler Chrysler with dashboard problems should call 800-992-1997 and file a complaint with government regulators at safercar.gov.Watch Local 6 News for more on this story.

http://www.local6.com/news/13282447/detail.html

Dodge Debuts One-of-a Kind Fantasticar in Summer Blockbuster 'Fantastic Four: Rise of the Silver Surfer,' and Reveals Movie-Inspired Paint Scheme on N

-- New Dodge spot airs on May 12 in theaters across the country
-- No. 19 Dodge Charger of Elliott Sadler to carry special paint scheme at
                              Coca-Cola 600

   AUBURN HILLS, Mich., May 8 /PRNewswire-FirstCall/ -- The newest Dodge
brand vehicle will debut on the silver screen this summer in an action
adventure movie with four superheroes who pilot this one-of-a-kind vehicle.
Starting May 12, movie goers across the country will be among the first to
see this vehicle on the silver screen when Dodge debuts its new ad in
cinemas.
   The Fantastic Four meet their greatest challenge yet, as the enigmatic
intergalactic herald, the Silver Surfer, comes to Earth to prepare it for
destruction in "Fantastic Four: Rise of the Silver Surfer." Twentieth
Century Fox releases the film on June 15.
   The vehicle of choice for the Fantastic Four is the one-of-a-kind
Fantasticar, which can reach speeds of up to 550 mph and an altitude of
30,000 ft. The Fantasticar also can separate into three sections. Each one
has deployable wings and can maintain the same speed and performance as the
entire craft. And yes, it has a HEMI(R).
   Among the Dodge cues on the Fantasticar are the brand's signature
crosshair grille with ram's head logo and the Dodge name on the front and
rear fascias. A red ram's head logo also appears on the seat headrests.
   "Opportunities to be involved with the cultural icon like the
Fantasticar don't come around very often, so we jumped at the chance to
work with Marvel Comics and 20th Century Fox," said Michael Curmi, Senior
Manager - Entertainment Marketing, Chrysler Group. "Dodge is a great
American car brand teaming up with a great American superhero team. We both
have great heritage that appeal to people around the world, so it was only
natural for us to partner on this new Fantastic Four movie with the debut
of the ultimate superheroes vehicle."
   Another limited edition Dodge vehicle making its debut on May 27 is the
No. 19 "Fantasticar" Dodge Charger of Elliott Sadler at the NASCAR Nextel
Cup Series' Coca-Cola 600 at Lowe's Motor Speedway. The No. 19 car will
feature a stunning paint scheme that showcases the ghost-like Silver Surfer
shooting across the hood, while flames explode over the nose and up the
fenders of the Fantasticar. The familiar Fantastic Four logo will also
adorn both rear quarter panels.
   "The No. 19 "Fantasticar" Dodge Charger is a great new look for
Elliott's car, and we expect his race car's performance will rival that of
the Fantasticar in the movie," said Mike Accavitti, Director, Dodge Brand
and SRT Marketing and Communications. "Our motorsports program is an
integral part of Dodge's overall marketing strategy, and with the
Fantasticar Dodge Charger, we're able to generate further awareness and
interest with both general consumers and NASCAR fans."
   Other elements of the Dodge partnership with 20th Century Fox and its
partners are a toy Dodge Fantasticar by Hasbro; Dodge Fantasticar inclusion
in the Fantastic Four: Rise of the Silver Surfer video game; and in-theater
and national television promotions.
   In addition to the Fantasticar, the other Dodge vehicles getting screen
time in the "Fantastic Four: Rise of the Silver Surfer" are the Dodge Ram
Mega Cab(R) and Durango.
   "The Dodge brand is always looking forward to new bold design
directions, so it is inspiring to see the Fantasticar with the Dodge
brand's signature crosshair grille and Ram's head logo in a completely
futuristic vehicle," said Mark Spencer, Senior Manager - Dodge Brand
Communications, Chrysler Group. "We hope people around the world have as
much fun watching the Fantasticar as Dodge Marketing is having promoting
the out-of-this-world vehicle."

SOURCE Chrysler Group

Dodger Charger gaining favor with police

EDMUNDS STRAIGHTLINE - - I don't know about you, but I've been seeing more and more Dodge Chargers being used as police cars. It seems that many police departments around the country are phasing them in, and phasing out the old Crown Vics.

The Idaho State Police is one of those switching to the Charger. Lieutenant Eric Dayley states that the Charger has a "muscle-car engine," and that it's better able to deal with speeders going 100+ mph.

Full story here.

Chrysler to highlight fuel economy in new round of dealer ads

May 8th, 2007

Chrysler has created three new ads for their dealers to use that promote their more fuel-efficient vehicles such as the PT Cruiser, Dodge Caliber and Avenger. Chrysler, Jeep and Dodge each get their own ads and all of the vehicles that achieve at least 30 mpg on the EPA ratings is featured. Chrysler is also providing hints to drivers on how to maximize their fuel economy with all the usual stuff like checking tire pressures, replacing air filters, avoiding jack rabbit starts and driving a little slower. In addition, they recommend getting rid of extra weight removing unused items from roof racks and removing empty bike racks and other carriers. The press release and the Jeep commercial are available after the jump.

>
/>
/>>

Chrysler Group Highlights Fuel Economy in New Dealer Advertising Campaign

Just in time for the summer travel season, Chrysler Group is launching a new dealer advertising campaign highlighting the fuel efficiency of its new cars and small SUVs.

Called “Maximize Your Miles,” the ads from the Chrysler, Jeep(R) and Dodge brands feature vehicles that achieve around 30 mpg, including the Chrysler Sebring, PT Cruiser and 300; Jeep Compass and Patriot; and Dodge Charger, Caliber and Avenger. The Jeep spot was available on May 1 for dealers to air. The Dodge and Chrysler versions will start running on May 7 and May 8, respectively.

“We created this campaign because consumers were looking for more information about our fuel economy ratings,” said George Murphy, Senior Vice President - Global Marketing, Chrysler Group. “As people spend more time traveling in theirs cars during the summer, it made perfect sense to remind them that with Chrysler, Jeep and Dodge products, you don’t need to sacrifice design, style or features to get a good fuel economy.”

In addition to the television spots, Chrysler Group’s fuel economy message will be supported by print and radio advertising, as well as point of purchase and targeted direct mail pieces.

The Spots
The Chrysler brand ad, called “Import,” opens with a voiceover that says, “Chrysler proves you don’t need an import to get great mileage.” The spot then cuts to beautiful, romantic footage of the Chrysler Sebring, PT Cruiser and 300, with supers highlighting the fuel economy rating for each vehicle. The voiceover returns with, “Fuel efficiency never looked so good.”

In the Jeep brand spot, called “Self Serve,” a group of friends are on a road-trip in a Compass and Patriot. After several hours of driving, they stop at a gas station and one of the drivers heads inside to the “squishee” machine. His friends take a few minutes to stretch and play around as they wait. After what seems like a very long time, we see that the driver has filled a 5-gallon gas can from the “squishee” machine. As the vehicles drive off, the voiceover says, “With gas mileage this good, they’ll change the way you think about filling up.”

“Drive Responsibly,” the Dodge brand spot, opens on what appears to be alcohol sloshing into a glass. But as the camera pulls back, a gas pump is revealed and the liquid is gasoline, not alcohol. The voiceover says, “It’s highly refined. It’s imported by the barrel. It’s something you shouldn’t guzzle while driving. Now Dodge goes the distance with our most fuel-efficient line-up ever.” Footage of the Dodge Charger, Caliber and Avenger is interspersed with images of the features available on these cars, including the Boston Acoustics Sound System, ChillZone[TM] beverage cooler and the MyGIG[TM] Infotainment System.

The Jeep brand spot will be available soon. The Dodge ad will be available for viewing on May 4 and the Chrysler version will be posted on May 7.

Get the Most Out of Every Tank
While Chrysler Group is continuing to work to improve the fuel economy of its vehicles through technologies such as Multi-displacement System, more efficient engines and diesel technology, there are additional measures customers can take to enhance their fuel economy.

Modifying Driving Habits

• Slow down - every 5 mph over 65 mph can decrease fuel economy by as much as 7 percent
• Use modest acceleration when possible, minimizing “jack rabbit” starts
• Moderate use of air conditioning and other accessories such as fog lamps and heated seats
• Use cruise control to help maintain a steady speed
• Limit idle and warm up periods - don’t leave vehicles idle while running in for the cup of coffee in the morning

Check Vehicle Condition

• Ensure proper vehicle maintenance
  • Replace dirty air filters - a clogged air filter can reduce fuel economy as much as 10 percent
  • Check tire pressures - tires under inflated by just 2 psi can reduce fuel economy as much as 1 percent
• Remove extra weight from vehicles - an extra 100 pounds in the trunk or pickup box can lower fuel economy 1 to 2 percent
• Reduce aerodynamic drag on vehicle by taking empty cargo carriers, bike racks, ski racks, etc. off - at highway speed, 50 percent of the engine power is used to overcome aerodynamic drag
• Remove unused items from roof racks as a loaded roof rack can reduce fuel economy at highway speeds by as much as 5 percent
• Keep vehicle engine tuned up as a noticeably out of tune engine can reduce fuel economy as much as 4 percent
• If vehicle engine light is on, have the vehicle serviced - faulty components such as an oxygen sensor can reduce fuel economy as much as 40 percent