Fleets prop up minivan sales

Detroit 3 retail numbers crumble as segment shrinks

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

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

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

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OK isn't good enough

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

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

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

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

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

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

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

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

No mommymobiles

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

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

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

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

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

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

He adds: "The minivan market is collapsing."

Chrysler continues US incentives through January

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

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

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

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

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

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

Market View

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Change:	-0.68 (-1.43%)
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This Day in Auto History: JAN 04

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

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

Chrysler World Sales Up 6.6 Pct. in '06

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

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

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

Oil continues slide, nears $57

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

January 4 2007: 9:40 AM EST

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

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

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

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

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

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

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

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

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

Chinese-built Wrangler possible?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CHINA: DaimlerChrysler gets green light for van plant

CHINA: DaimlerChrysler gets green light for van plant

http://www.just-auto.com/article.aspx?id=90020>
just-auto.com
(subscription) - Bromsgrove,Worcs,UK

Dpa-AFX news reported that the new factory will built the Sprinter, Vito and Viano models in Fuzhou, the capital of Fujian province, from the start of 2009. ...

Chrysler throws in free Hemi

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

Josee Valcourt / The Detroit News

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

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

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

Chrysler representatives would not provide additional details on the offers.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Daimler plans another factory in subcontinent

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

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

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

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

from star staff and wire services

German Automakers Post Record Production

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

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

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

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

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

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

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

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

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

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

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

Trademark Update: SRT8

Mark


(words only): SRT8

Standard Character claim: Yes

Current Status: Registered.

Date of Status: 2007-01-02

Filing Date: 2006-02-17

Transformed into a National Application: No

Registration Date: 2007-01-02

Register: Principal

Law Office Assigned: LAW OFFICE 108

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

Current Location: 650 -Publication And Issue Section

Date In Location: 2007-01-02

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

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1. DAIMLERCHRYSLER CORPORATION

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

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GOODS AND/OR SERVICES

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

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ADDITIONAL INFORMATION

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Prior Registration Number(s):
3093770
3098722
3098724

---

MADRID PROTOCOL INFORMATION

---

(NOT AVAILABLE)

---

PROSECUTION HISTORY

---

2007-01-02 - Registered - Principal Register

DaimlerChrysler to sign deal for India car plant

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

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

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

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

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

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

Chrysler bets minivans have long road ahead

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

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

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

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

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

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

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

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

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

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

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

BIG EXPECTATIONS ON BOARD

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

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

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

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

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

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

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

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

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

Mercedes-Benz Rings in the New Year with Record Sales

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

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

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

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

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

DECEMBER SALES

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

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

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

MERCEDES-BENZ CERTIFIED PRE-OWNED SALES

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

ABOUT MERCEDES-BENZ USA

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



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

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

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

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

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

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

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

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

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

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

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

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

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

SLR 141 200 -29.5%

Maybach 146 152 -3.9%

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

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

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

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

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

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

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

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

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

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

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

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

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

      DaimlerChrysler Corporation U.S. Sales Summary Thru December 2006

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

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

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



      DaimlerChrysler Corporation U.S. Sales Summary Thru December 2006

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

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

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

The Bluetec poster child: Mercedes Vision GL420 concept

MOTOR AUTHORITY | Wednesday 3 January 2007

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

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

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

December Auto Sales: DaimlerChrysler

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

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

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

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

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

The buzz is wrong: LaSorda says no Hornet from China

AUTOBLOG.COM | Chris Tutor

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chrysler sales gain, but falls to No. 4

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

January 3 2007: 12:01 PM EST

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

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

Photo Gallery See more photos

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

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

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

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

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

Mercedes-Benz Recalls Some 2006 Models - Daily Auto Insider

The Daily Auto Insider Wednesday, January 3, 2007 January 2007

Mercedes-Benz is recalling A- and B-class vehicles and C-class station wagons produced between May 2005 and May 2006 due to a possible malfunction in their windshield wipers, the Dow Jones Newswires reported, citing a company spokesman.

A possible lack of insulation in the switch could cause the front and back wipers to fail. It can be fixed by replacing a switch.

The majority of the vehicles affected were sold in Germany but some may have come to the U.S.

Mercedes Benz Sprinter voted Semperit Irish Van of the Year 2007 ...

http://www.galwayindependent.com/motoring/9837.html

Galway Independent - Galway,Ireland - - The Mercedes Benz Sprinter with 26 points finished ahead of the Ford Transit on 24 points and the Fiat Ducato on 19 points. Mercedes Benz took the top van ..

Oil falls below $59 on mild U.S. weather

National Weather Service says demand for heating oil in the world's largest market could be nearly 33% below normal this week.

January 3 2007: 10:55 AM EST |LONDON (Reuters) -- Oil fell below $59 a barrel Wednesday, the lowest level since Nov. 24, as mild weather in the U.S. Northeast undermined demand for fuel in the world's biggest heating oil market.

DTN Meteorologists predicted temperatures in the Northeast would be up to 16 degrees Fahrenheit above normal this week. Other forecasters also saw warmer-than-average temperatures until next week.

Video More video China and India's fast growth helped the Asia stock market in 2006. CNN's Eunice Yoon reports. (January 1) Play video

The National Weather Service said Tuesday demand for heating oil in the week ending Jan. 6 would be about 33 percent below normal.

U.S. crude fell $2.14 to $58.91 on the New York Mercantile Exchange, having fallen as low as $58.77 earlier in the session.

U.S. oil on Friday - the last trading day of 2006 - settled at $61.05, 1 cent higher than the final day of trading in 2005. U.S. crude averaged $66.24 last year, well below a record high of $78.40 hit in mid-July.

Oil found some support from Iran's refusal to comply with a U.N. resolution to stop its uranium enrichment program.

President Mahmoud Ahmadinejad said the resolution imposing trade sanctions on Iran was "invalid."

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

BREAKING NEWS - - Chrysler U.S. sales up 1% in December vs. forecast for decline. Details soon.

CNNMONEY BREAKING NEWS - - Chrysler U.S. sales up 1% in December vs. forecast for decline. Details soon.

2006 Dodge Challenger Super Stock Concept

Roger Hart

Is this SEMA concept a glimpse at the Dodge Challenger SRT8?

By ROGER HART AutoWeek | Published 12/28/06, 1:15 pm et

AT A GLANCE:

2006 DODGE CHALLENGER SUPER STOCK CONCEPT ON SALE: Never BASE PRICE: If you have to ask… DRIVETRAIN: 6.4-liter, 525-hp, 510-lb-ft V8; rwd, three-speed automatic CURB WEIGHT: 3596 lbs QUARTER-MILE: 10.65 seconds (est.) FUEL MILEAGE: n/a

CLICK BELOW FOR MORE:

>> Click here to listen to the SEMA Challenger fire up and burn out.

The annual Specialty Equipment Market Association show in Las Vegas is much like the host city: It celebrates wretched excess. Not that we have anything against 24-hour all-you-can-eat buffets, silicone-enhanced “hostesses” or 500-hp Honda Civics riding on 20-inch wheels. Trust us, we don’t. The trick at SEMA is to find a real gem or two among all the glam. One of the models (the ones with four wheels, that is) that caught our eye at this year’s show was the Dodge Challenger Super Stock (“Red, White & Bad,” Nov. 6, 2006).

Sure, part of it was the see-it-from-a-mile-away Evel Knievel paint job adorning the latest version of the Challenger, the concept version of which was unveiled at last year’s Detroit show. But what really got our imagination in gear was the 6.4-liter Hemi under the hood cranking out 525 hp and 510 lb-ft of torque.

So naturally, we asked if we could drive it. Knowing Chrysler rarely builds a show car that isn’t a driver, we thought there would be a good chance to slip behind the wheel for some reconnaissance laps. Little did we know that prior to the car showing up in Las Vegas, it got a few shakedown runs by Ron Mancini at Mike Pustelny Racing in Almont, Michigan. MPR has a history of building NHRA Stock and Super Stock cars, as well as Sport Compact drag cars. So when our chance came to be the first journalists to get seat time—at the test track near company headquarters in Auburn Hills, Michigan—there were no restrictions.

In fact, just to make it clear, Ralph Gilles, vice president Jeep/Truck and component design for DCX and the man who had the car built for SEMA, climbed in and was the first to drop the hammer.

Make no mistake, the Challenger Super Stock is one tire-smoking machine. The fuel-injected 392 Hemi crate motor mated to an A999 TorqueFlite transmission with manual valve body and Turbo Action 3800 stall speed converter, easily transforms the 29x10.5 Goodyear Eagle drag slicks into great clouds of smoke.

“This is built to conform with NHRA standards, with a full roll cage, fuel cell, all the safety stuff,” Gilles said.

“Basically, we looked at what we wanted to do for SEMA and said, ‘What could an individual do if this were their car?’ ”

Roger Hart

Gilles’ team worked with the Mopar aftermarket parts group in putting together the show car that is based on the yet-to-be-released production Challenger, a descendent of the 1970-74 muscle cars. Even though the production car is still more than a year away, Gilles said this one-off concept’s dimensions are true to form with what customers will buy in 2008.

“All the proportions are correct,” he said. The chassis came from a cut-down Magnum SRT8 platform. The body panels were hand-built, working from the concept car dimensions. The fabrication was done in-house by DCX employees in Auburn Hills.

No word yet on what an SRT8 version of the Challenger would be, but our first drive of this show car gives us a hint at the possibilities.

Climbing behind the wheel of the Challenger Super Stock is just like getting into a race car. Pop the steering wheel off and then step in over the side roll bar and get comfortable in the race bucket. Hook up the Simpson five-point harness and begin the ignition sequence: Flip the power switch on, turn on the fuel pump and cooling fans and then hit the starter. The Hemi quickly roars to life, and with open exhausts coming right off the headers, it makes some serious muscle-car noise.

We took the car out on a short handling course, but in this configuration, with the drag racing rubber all around, the car had a lot of body roll. A road-racing car this is not.

Get to a straightaway and mash the throttle and all hell breaks loose. The noise is somewhere between a Top Fuel dragster and F-16 fighter jet: exhilarating and scary all at the same time. With the first hit of the throttle, it literally takes your breath away. The noise lasts just a few seconds as the car quickly accelerates up through the gears.

Roger Hart

On a couple of runs we bumped up against the rev limiter as the tachometer wasn’t working and the revs come real fast, especially so in first and second gears.

The burnouts would quickly fill the car with smoke, and we could only stand a few minutes at a time behind the wheel as the cabin quickly filled with exhaust fumes. The plexiglass windows didn’t roll down, and there was no ventilation system to speak of, but with big grins on our faces, we hardly noticed.

Marine Receives Car, Gifts in Mail

by 1st Lt. Lawton King

The magi are stirring with envy.

Lance Cpl. Jordan Richards, a turret gunner with Regimental Combat Team 5"s Team Gator, examines the gifts, which included a note announcing a car was awaiting his return to California, he received from Operation Gratitude. His package was the 200,000th Operation Gratitude has mailed to troops in Iraq. (photo by 1st Lt. Lawton King)

Lance Cpl. Jordan Richards, a turret gunner with Regimental Combat Team 5's "Team Gator," received a belated Christmas package in the mail from donors at Operation Gratitude here Dec. 29. The real present, though, is still awaiting his return to California.

"This Dodge Caliber is yours," announced the first document he removed from the package after knifing it open in front of his fellow Marines.

"I was not expecting that whatsoever," said the 19-year-old M-2 .50 caliber gunner from St. Louis. "It was actually a car!"

"Don't lose it," one of the Marine said.

Richards continued to rifle through the contents of the box and methodically produced cigarettes, autographed hats, a DVD player, a flash drive, batteries, phone cards and scores of letters and notes from the home front.

"You have a lot of thank-you notes to write, my friend," another Marine bystander joked.

One of the notes informed him that several other gifts in addition to the automobile would be lavished upon him when he redeploys to the United States.

"Wait 'til the fiancee hears about this one," he said.

Operation Gratitude, an organization devoted to promoting the wellbeing of U.S. troops abroad by mailing them care packages, sent Richards their 200,000th package and celebrated the landmark by showering with gifts ranging from a car to tickets to a Los Angeles Lakers basketball game.

"We're excited for the Marine," said 1st Sgt. Mark Massey, the 40-year-old company first sergeant from Lansing, N.C. "This is a once-in-a-lifetime thing."

Massey earlier remarked that the package apparently endured "some trial and tribulations coming over here," though it remained intact and unopened.

The observation seemed apt and layered in meaning, for the Marines themselves had returned from a mounted patrol earlier without incurring any casualties.

"It was a cold one, too," Richards said.

Richards said he went from patrolling a combat zone to receiving a car in addition to other gifts, including a personalized gift signed by a U.S. Senator from Virginia.

After he had emptied the box of all its surprises, Richards expressed his appreciation, which was echoed by Team Gator's leadership, and the Marines scattered in all directions.

"These packages make deployments livable," he said. "The support is worth more than anything else."

"A young enlisted Marine got something for keeps. That's awesome," Massey said.

Capt. Eric Dominijanni, the 34-year-old company commander of Team Gator from Queens, N.Y., discussed the impact of the gesture and how it registered with the Marines present.

"It really means a lot to know that people are thinking about us during the holidays," he said. "You've seen the look on his face; he was in complete shock."

His befuddlement aside, Richards was sure of one thing.

"Morale as a whole is definitely high, but this sends it through the roof."

2007 Chrysler Town & Country

Fenton plants rumors swirl in chancy auto industry

By David Nicklaus | ST. LOUIS POST-DISPATCH

01/03/2007

David Nicklaus [More columns] [David's Biography]

As 2006 began, Chrysler Group was everyone's favorite domestic automaker.

The U.S. unit of DaimlerChrysler had gained market share in 2005, and executives talked about running their plants at full capacity even as Ford and General Motors began the painful process of deciding which plants to close. Local officials beamed when, in December 2005, DaimlerChrysler announced plans to invest $1 billion in modernizing its two Fenton plants.

What a difference a year makes. Several plants, including both Fenton buildings, are on extended shutdowns because Chrysler needs to reduce its inventory of unsold cars and trucks. And according to recent reports, executives are working on a restructuring plan that may include job cuts and plant closings.

Here's the shocker: Some people are saying that Fenton, which seemed so secure a year ago, is one of the places where jobs are at risk.Chrysler hasn't even confirmed that a restructuring is in the works, let alone given any hints about what it might entail. But analysts have said the company might have one or two more plants than it needs.

In trying to identify which plants are at risk, analysts look at how Chrysler's various vehicles are selling. Some put a plant in Newark, Del., at the top of the hit list because it makes the slow-selling Dodge Durango.

But the Dodge Ram pickup isn't doing so well, either. Catherine Madden, an auto-industry analyst at Global Insight in Lexington, Mass., points out that the Ram, which was last redesigned in 2001, is the oldest full-size pickup design on the market. It has lost market share to newer trucks from Toyota and GM. And the Ram is made in three places: Fenton; Saltillo, Mexico; and the Dodge City plant in Warren, Mich.

Of those, Madden says Saltillo "is the most secure. Between St. Louis and Dodge City, it's really tough to say which would be more vulnerable."

Published reports in Canada have speculated that the Fenton minivan plant, which is next door to the pickup plant, also might be at risk of closing. Madden thinks that's less likely. Chrysler is due to introduce a next-generation minivan at next week's North American International Auto Show in Detroit.

"They're still the leader in that segment," she said. "I think they can be incredibly successful."

Chrysler makes its Dodge Caravan and Chrysler Town and Country minivans in both Fenton and Windsor, Ontario. Much of the billion-dollar investment here, which Chrysler is just beginning to spend, is to retool the minivan plant.

It's much too early for the workers in Fenton, or anyone else in St. Louis, to panic. Various wild and unfounded rumors also preceded restructuring announcements by Ford and GM earlier this year. But some of the rumors turned out to be true, as Ford's former employees in Hazelwood well know.

Patrick McKeehan, executive director of the Leadership Council Southwestern Illinois, has developed a stock response for people who ask him about possible auto-plant closings. "I think any auto plant in the country is vulnerable, based on demand, products and competition," said McKeehan, who formerly directed the St. Louis Regional Automotive Partnership and the Ford Hazelwood Task Force. "I'm not aware of any Ford, GM or Chrysler plant in the U.S. that can say for sure it will be here in 10 years

Belvidere lessons help Chrysler

AMY J. VAN HORN | ROCKFORD REGISTER STAR

An employee at Chrysler’s Belvidere assembly plant watches as a line of Dodge Calibers crawls along the assembly line last February. DaimlerChrysler trained employees at the Belvidere site to use the Japanese-style team concept of manufacturing.

Published: January 2, 2007

Conversion to flexible manufacturing plant had its troubles

By Alex Gary | ROCKFORD REGISTER STAR


BELVIDERE — Chrysler’s Belvidere assembly plant has met “about 94 percent” of expectations heading into 2007, according to Frank Ewasyshyn, the Chrysler Group’s head of manufacturing.

The 41-year-old, 3.9-million-square-foot plant was in the spotlight all year because the company spent $419 million retraining its work force under the Japanese-style team concept and retooling the plant, including adding 700 robots to its body shop.

Still, there were growing pains as DaimlerChrysler plunged into flexible manufacturing, where workers can ramp up production of one model and cut another based on demand without excessive downtime or expensive retoolings. Lessons learned in Belvidere will help the company incorporate the new “flexible” system in its other 13 North American assembly plants.
After a quick start with the Dodge Caliber from January through May, software issues led to shutdowns in the plant’s now fully robotic body shop as workers moved the Jeep Compass into production.

Sales of the Caliber plunged more than 40 percent from June to July because the plant couldn’t keep up with demand.

Ewasyshyn, who talked to the Register Star in a telephone interview in late December, said the company learned some tough lessons in the Belvidere rollout it’s already putting to use at its Sterling Heights, Mich.-plant, which received a $500 million investment a few months after Belvidere.

“We’re ahead of schedule at Sterling Heights because of what we learned in Belvidere,” he said. “We did a better job of integrating the software at Sterling Heights.

“For one thing, we have a different supplier integrating the software than we did at Belvidere,” he added. Global robotics leader ABB Robotics of Switzerland installed the robots and software in Belvidere. Ewasyshyn said ABB did not install the software for Sterling Heights. “We also put a lot of effort early on (in Sterling Heights) of integrating all of the models. In Belvidere, our primary focus was on the Caliber and getting that going. We did a lot of the Compass work on the fly.”

Workers at the Sterling Heights plant put together the Dodge Stratus Sedan, Chrysler Sebring Sedan and Chrysler Sebring Convertible.

Although the Patriot is now in production in Belvidere, it doesn’t mean the launch is over for the more than 3,600 people working on three shifts. Ewasyshyn said the plant has only integrated 66 percent of the Caliber, Compass and Patriot models.

The Caliber is fully integrated, but workers haven’t started producing diesel versions of the Compass, which is key for the European market, and so far only the left-hand drive Patriot is coming off the line. They still need to introduce the right-hand drive and diesel versions.

Even when those are up and running, change will be a constant.

“The beauty of the system is you can run Pilots at the same time you are producing retail versions of other models,” he said. “That’s going to cut millions in cost in the future. In Belvidere, they are always going to be working on Pilots. In fact, they’ve already seen one.”

The plant is set up to produce four different models. Last February, the company unveiled the 300-horsepower Dodge Caliber SRT4 at the Chicago Auto Show and said it would be built at Belvidere. Officials haven’t mentioned the muscle-car Caliber version since.

Ewasyshyn refused to talk about when dealers would begin seeing Caliber SRT4s. Instead he wanted to focus on the Belvidere work force.

“The biggest learning curve was the team structure, what the workers showed us about building cars,” he said.

For decades, U.S. automotive production was based on assembly line system Henry Ford set up in 1908, the same year the Chicago Cubs last won the World Series, where workers install the same part or execute the same process hour upon hour.

In the team concept, workers decide as a group how best to accomplish the tasks they have signed up for and how to make the process more cost-effective. Instead of doing one job every day, team members handle a variety of tasks.

“That was more important than any piece of hardware. They were the first U.S. plant to grab it and run with it. I’m extremely proud of them.”