Breakthrough 2007 Jeep(R) Patriot Delivers Classic Jeep Styling, Best-in-class Capability All at an

Breakthrough 2007 Jeep(R) Patriot Delivers Classic Jeep Styling, Best-in-class Capability All at an Entry-Level Price Point of $14,985

Wednesday December 13, 2:00 pm ET

-- Jeep(R) Patriot combines packaging and functionality of a sport- utility vehicle (SUV) with the performance, handling, fuel economy (30 mpg) and price of a compact car or small pickup -- Classic Jeep styling and affordable price appeals to enthusiasts who have always wanted a Jeep -- Standard equipment includes Electronic Stability Program (ESP), Anti- lock Brakes (ABS) with rough-road detection, Brake Traction Control and Electronic Roll Mitigation -- Patriot completes Jeep brand's expansion from three to seven sport- utility vehicles in just two years

AUBURN HILLS, Mich., Dec. 13 /PRNewswire-FirstCall/ -- Chrysler Group today announced that the U.S. Manufacturer's Suggested Retail Price (MSRP) for its all-new 2007 Jeep® Patriot is $14,985 (including $560 destination). The Jeep Patriot is a classic-styled Jeep that delivers best-in-class capability, 30 miles per gallon (mpg) fuel economy, safety and interior flexibility.

Patriot, Jeep continues to expand globally by offering a fun-to- drive, fuel-efficient and affordably priced Jeep vehicle designed to appeal to youthful customers and people with active lifestyles who may have always wanted a Jeep vehicle but, until now, may not have been able to afford one," said George Murphy, Senior Vice President-Global Marketing, Chrysler Group. "Patriot has all the credibility and cachet of the Jeep brand at a very affordable price."

Jeep Patriot will compete in the compact sport-utility vehicle (SUV) segment, which is expected to grow considerably in the next decade, giving the Jeep brand the opportunity to grow with it. Annual compact SUV volume in the United States for the 2005 calendar year was 368,000 units, up from 297,000 units in 2004. The compact SUV segment is expected to almost double to approximately 600,000 units by 2010 and almost triple to more than 814,000 units by 2016.

The 2007 Jeep Patriot Sport and Jeep Patriot Limited models became available in U.S. dealerships in the fourth quarter of 2006 and will be available in global volume markets in both left- and right-hand drive starting in the first half of 2007.

Most Capable Vehicle in its Class

Jeep Patriot is available in three drive-train configurations. In addition to the standard front-wheel-drive system, Jeep Patriot also is available with Freedom Drive I and the Freedom Drive II Off-Road Package.

Freedom Drive I is an available full-time, active four-wheel-drive system with Lock mode designed to give drivers year-round assurance with the ability to handle rough weather and low-traction conditions. This active four-wheel- drive system is recommended for daily use, including slick conditions that come with rain and light snow. Freedom Drive I also features a lockable center coupling, giving drivers the ability to put the Jeep Patriot in four-wheel- drive Lock mode when navigating deep snow, sand and other low-traction surfaces.

The Freedom Drive II Off-Road Package is an available four-wheel-drive system that makes the 2007 Jeep Patriot a Trail Rated 4x4, creating the most capable vehicle in the crowded compact SUV class. The Freedom Drive II Off- Road Package includes a second-generation continuously variable transaxle with low range (CVT2L) that engages when the off-road mode is activated, 17-inch all-terrain tires and aluminum wheels, a full-size spare tire, skid plates, tow hooks, fog lamps and manual seat height adjuster. The available Freedom Drive II Off-Road Package is recommended for moderate off-road situations that include steep grades, occasional wheel lift and moderate rock or log climbing.

All-new Jeep technology includes the CVT2L's best-in-class 19.1:1 low ratio, which is ideal for crawling over obstacles. Off-road Brake Traction Control maintains forward mobility during heavy articulation or on split- friction surfaces where one wheel loses traction. Hill-descent Control modulates brake hydraulic pressure without driver intervention, providing downhill assistance at a safe and controlled rate of speed. Three-mode ESP and off-road anti-lock brakes (ABS) also add to the Patriot's inherent off-road capability.

The Trail Rated Jeep Patriot sits 1 inch higher than non-Trail Rated versions and meets Jeep off-road capability requirements for traction, water fording, articulation, maneuverability and ground clearance, including 9 inches of ground clearance, a 29.6-degree approach angle, a 34.2-degree departure angle and a 23.3-degree breakover angle. This version of the Patriot also has additional body sealing and high-mounted drivetrain vents to support 19-inch water fording capability. In fact, the body and chassis of the Jeep Patriot with the Freedom Drive II Off-road Group were developed and tested over numerous rugged off-road terrains to meet the requirements of the enthusiast Jeep customer.

All Jeep Patriot models available in the United States include standard Brake Traction Control, driver-controlled three-mode ESP, Brake Assist, Electronic Roll Mitigation and anti-lock brakes with rough-road detection.

Expanding the Lineup

Jeep Patriot is the gateway to the Jeep brand globally, priced less than Jeep Compass, Jeep Wrangler and Jeep Liberty. The newest Jeep vehicle on the market is available in Jeep Patriot Sport and Jeep Patriot Limited models. Both are available in the United States with a 4x2 front-wheel drive system, a Freedom Drive I 4x4 system and a Freedom Drive II Off-road Package.

The Jeep Patriot Sport has a starting U.S. MSRP of $14,985. The U.S. MSRP for the Jeep Patriot Sport with the available Freedom Drive I 4x4 system is $16,735. The U.S. MSRP for the Jeep Patriot Sport equipped with the available Freedom Drive II Off-road Package is $19,175. All prices include $560 destination.

The Jeep Patriot Limited 4x2 model has a starting U.S. MSRP of $19,985. A Jeep Patriot Limited with the Freedom Drive I 4x4 system has a starting U.S. MSRP of $21,735. The Jeep Patriot Limited equipped with the Freedom Drive II Off-road Package has a starting U.S. MSRP of $23,530. All prices include $560 destination.

Jeep Patriot Sport

With a starting U.S. MSRP of $14,985, the Jeep Patriot Sport is a 4x2 model that includes a standard 172-horsepower 2.4-liter World Engine coupled with a five-speed manual transaxle. Other standard equipment includes side- curtain air bags, Electronic Stability Program (ESP), Brake Traction Control, Electronic Roll Mitigation, anti-lock four-wheel disc brakes, Sentry Key theft-deterrent system, Vinyl Tech seats, rear 60/40 fold-flat seat, Ultra Floor vinyl load floor, fold-flat load floor storage, AM/FM single-disc CD radio with an auxiliary audio input jack, outdoor temperature display, rear defroster, variable intermittent windshield wipers, 12-volt power outlet, manual windows, locks and foldaway mirrors, tilt steering wheel, dome and cargo lights, rear window defroster and a center console sliding armrest that moves forward 3 inches to accommodate shorter drivers. The armrest lid features a unique flip pocket for storing a cell phone or an MP3 player.

On the exterior, the Jeep Patriot Sport features a standard body-color grille and fascias, accent-color bodyside molding, black door handles, accent- color liftgate applique, black side roof rails, 16-inch styled steel wheels and all-season tires.

Optional features on Jeep Patriot Sport include a second-generation continuously variable transmission (CVT2), four-wheel-drive capability, through either Freedom Drive I or the Freedom Drive II Off-road Package (which includes CVT2L with low range, a full-size spare tire, skid plates, tow hooks, fog lamps, cabin air filtration system and manual seat height adjuster), front-seat-mounted side air bags to supplement standard side-curtain air bags, premium cloth low-back bucket seats with YES Essentials® premium seat fabric, air conditioning, engine block heater, AM/FM radio with six-disc CD player and MP3 CD play capability, deep-tinted sunscreen glass, Tire and Wheel Group (which is required with Freedom Drive II and includes 17-inch all- terrain OWL tires and aluminum wheels), Power Equipment Group, (which includes power windows with driver one-touch down feature, power fold-away mirrors, remote keyless entry and speed-sensitive power locks) and a 458-watt nine- speaker Premium Sound Group (which includes six Boston Acoustics speakers with subwoofer and amplifier and two articulating speakers packaged in the liftgate.) When the liftgate is open, the speakers can swing down from the trim panel to face rearward for tailgating and other activities. A 2.0-liter four-cylinder World Engine coupled with CVT2 also is available on front-wheel- drive Jeep Patriot Sport models.

An available Special Equipment Group on the Jeep Patriot Sport model includes air conditioning, deep-tinted sunscreen glass, map and dome reading lamps, removable/rechargeable interior cargo lamp, 115-volt auxiliary power outlet and passenger assist handles, a recline features for standard 60/40 rear seats and a Power Equipment Group (which includes power windows with a driver's one-touch down feature, speed-sensitive power locks, power fold-away exterior mirrors and remote keyless entry). The U.S. MSRP for the Jeep Compass Sport 4x2 with this Special Equipment Group is $17,335. The Jeep Compass Sport 4x4 with this Special Equipment Group has a U.S. MSRP $19,085. Both prices include $560 destination.

Available options with Jeep Patriot Sport models with this Special Equipment Group, beyond those available on the Jeep Patriot Sport model, include a Premium Steering Wheel Group (which includes a leather-wrapped steering wheel, steering-wheel audio controls and speed control), heated cloth seats, fog lamps, SIRIUS Satellite Radio, a Popular Equipment Group (which includes a soft tonneau cover, cross bars, automatic-dimming rear-view mirror, Electronic Vehicle Information Center, Universal Garage Door Opener, Tire Pressure Monitoring System and security alarm) and a Trailer Tow Prep Group (which includes engine oil cooler and trailer tow wiring harness).

Jeep Patriot Limited

With a starting U.S. MSRP of $19,985, the standard Jeep Patriot Limited is a 4x2 model that features a 172-horsepower 2.4-liter World Engine coupled with a standard five-speed manual transaxle. An optional CVT2 or an optional CVT2L also are available on the Jeep Patriot Limited. The U.S. MSRP for the Jeep Patriot Limited with the Freedom Drive I is $21,735. The U.S. MSRP for the Jeep Patriot Limited with the Freedom Drive II Off-road Package is $23,530. Both prices include $560 destination.

In addition to the standard equipment on the Jeep Patriot Sport model and the Jeep Sport model with the Special Equipment Group, the Jeep Patriot Limited model features premium leather-trimmed bucket seats, heated front seats, driver's seat manual lumbar adjuster, leather-wrapped steering wheel with audio controls, speed control, soft-tonneau cover, security alarm and roof rack with cross bars.

On the exterior, the Jeep Patriot Limited model has body-color fascias with bright silver appliqués, body-color bodyside moldings, fog lamps, 17-inch aluminum wheels and all-season touring tires.

Beyond the options offered on the Jeep Patriot Sport, additional options on the Limited model include a power express open/close sunroof, UConnect Hands-free Communication System, navigation system, removable ash tray and cigar lighter and a Driver Convenience Group (which includes an automatic- dimming rearview mirror, Electronic Vehicle Information Center, Universal Garage Door Opener and Tire Pressure Monitoring System).

Jeep Brand

The Jeep brand's 65-year history of legendary capability has made it synonymous with freedom, adventure, mastery and authenticity. In 2006, the Jeep brand continues to deliver on its promise to provide versatile, innovative four-wheel-drive vehicles with the introduction of the all-new 2007 Jeep Patriot, Jeep Wrangler and Jeep Compass.

"The Jeep brand is on a product offensive and will continue to grow with new offerings that leverage Jeep's legendary 4x4 leadership," said John Plecha, Director-Jeep Marketing and Global Communications. "We're solidifying the Jeep brand's foundation with the bigger, more powerful all-new 2007 Jeep Wrangler - the most capable off-road vehicle in the world - while stretching the brand to reach new customers with the all-new Jeep Patriot."

Sales of Jeep brand vehicles increased 12 percent in 2005 to their highest total since 2000 to 476,532 units compared with 2004 sales of 427,329 units. The positive sales momentum for the brand has continued this year. Jeep brand sales in November of this year were up 20 percent from November of 2005.

Belvidere (Ill.) Assembly Plant

Production of the all-new 2007 Jeep Patriot will begin at the Belvidere (Ill.) Assembly Plant in the fourth quarter of 2006. Chrysler Group launched a second production shift at the Belvidere facility in March, which doubled the plant's production capacity, and began building all-new Jeep Compass models in May of this year. The addition of the second shift raised total employment at the facility from 1,650 to 2,650 employees.

    2007 Jeep Patriot Pricing
  (All prices include $560 destination.)

                        4x2       Freedom Drive I 4x4   Freedom Drive II 4x4
  Jeep Patriot Sport    $14,985   $16,735               $19,175
  Jeep Patriot Limited  $19,985   $21,735               $23,530

New luxury convertibles at the Detroit Motor Show

MOTOR AUTHORITY - - Mercedes and Rolls Royce will be vying for attention when both companies launch super-luxury convertibles at the Detroit Auto Show, confirms Automotive News. The Mercedes model will be based on the S-class sedan and will come with a soft-top. Unlike most convertibles, it’ll be able to seat four-people and is supposed to be more luxurious than the sedan upon which it’s based. Sources are reporting it’ll have the same 6.0L V12 as found in the S600 and develop 510hp. Click here for a possible rendering of the S-class convertible by German magazine Auto Motor und Sport.

The Rolls Royce convertible will essentially be a production version of the 100EX shown two years ago. We expect it to be very similar, and retain many of the same styling cues and technology.

Windows 2.4-Liter: McLaren and Microsoft Officially Team up on ECU for F1

When Formula One drivers round Hockenheim or Sepang or Bahrain in 2008, it'll be under the electronic wing of McLaren and Microsoft. As the two companies announced this week -- though the deal's been known since mid-year -- they've jointly bagged the contract to provide engine control units (ECUs) to all F1 teams starting in 2008. The venture's called "Microsoft MES," and it pairs the pasty geeks from Redmond with the 10-intelligence druids from Woking on the systems, which have the potential to gather 1GB of data during a typical Grand Prix run. It'll probably turn out fine, as long as no one winds up sitting on hold with customer support during a late-race shootout. All that faux-pleasantness can break a man's will in 30 seconds. – Mike Spinelli

McLaren, Microsoft confirm ECU supply [Autosport.com]

Diesel cars in EU to have particle filter from '09

Reuters / STRASBOURG, France -- All new-model diesel cars must be fitted with a particle filter from mid-2009 under proposals passed by European Union lawmakers today aimed at reducing emissions across the EU.

Under the rules, adopted by the European Parliament and due to be endorsed shortly by EU ministers, new diesel cars of an existing model should be fitted with a particle filter as of January 2011.

The regulation "will not hamper the competitiveness of the EU's car industry," European Enterprise Commissioner Guenter Verheugen said in a statement.

Reduced emissions from road transport are seen as an important factor to improve air quality, particularly because the share of diesel vehicles in the overall sales of light duty vehicles is increasing.

Information on repairs must also be easily available to independent repairers, because according to the new measures, a vehicle's environmental performance cannot be maintained properly without practical access to maintenance information.

Chrysler re-ups its deal to drive Time's 'Person of the Year'

Chrysler says the sponsorship coincides with vehicle launches. The automaker is introducing the 2007 Aspen SUV.

Jon Lafayette | | Automotive News / December 11, 2006 - 1:00 am The Chrysler brand is sponsoring Time magazine's "Person of the Year" promotion again this year.

Chrysler executives say the multiplatform advertising package worked well in the partnership's first venture last year.

"It seems to be a program that everyone here loves," says Susan Thomson, the Chrysler brand's manager of global brand communications. "It's a 360-degree program. It covers all media channels and then some."

Besides running ads in Time, Chrysler is working with CNN to promote the event on TV, the Internet and mobile devices. CNN, like Time, is owned by Time Warner.

Chrysler is paying about $5 million for the sponsorship, say people familiar with the deal.

CNN research shows that viewers were deeply engaged with the Chrysler messages during last year's "Person of the Year" promotion, says Greg D'Alba, the cable news channel's COO of advertising sales and marketing.

"They had greater familiarity with Chrysler," D'Alba says. "Chrysler had a higher brand rating (and viewers) had higher purchase intent for Chrysler cars after seeing the campaign."

The Chrysler package reflects auto advertisers' increasing insistence that digital elements accompany their purchases of TV ad time.

Chrysler's Thomson says the "Person of the Year" sponsorship coincides with the automaker's launch schedule.

Chrysler is introducing the redesigned 2007 Sebring mid-sized sedan and is rolling out its first SUV, the 2007 Aspen.

"There's a lot of media" in the promotion, Thomson says. "So we can not only talk about Sebring but showcase other vehicles like the Aspen, the Pacifica and the 300."

Chrysler has bought six ad pages in Time's year-end Person of the Year issue. It will sponsor a Dec. 16 CNN special announcing the magazine's selection. Spots during the broadcast will advertise Chrysler models.

Hyundai sales exec joins DaimlerChrysler

Kathy Jackson | | Automotive News | LOS ANGELES -- Mark Barnes, vice president of sales for Hyundai Motor America, left the company today to join DaimlerChrysler's Western region office as a senior sales executive.

Barnes, 47, joined Hyundai in August 2001. The company's sales have soared during his tenure.

Steve Wilhite, Hyundai's chief operating officer since August, said Barnes will be missed.

"Obviously, this is a significant loss to Hyundai," Wilhite said in a statement. "In my brief tenure at Hyundai, I developed a strong appreciation for his leadership values and level of trust he built with our dealers."

Oil gains as crude supplies plummet

Drop of 4.3 million barrels is far more than expected, could convince OPEC to hold off on production cut.

December 13 2006: 10:44 AM EST

NEW YORK (CNNMoney.com) -- Oil prices rose Wednesday after the government said supplies of crude oil fell far more than expected.

U.S. light crude for January delivery rose 68 cents to $61.70 a barrel on the New York Mercantile Exchange. Oil traded up 3 cents just prior to the report's release.

In its weekly inventory report, the Energy Information Administration said crude stocks slid by 4.3 million barrels last week. Analysts were looking for a drop of 600,000 barrels, according to Reuters.

Distillates, used to make heating oil and diesel fuel, fell by 500,000 barrels, while gasoline supplies slipped by 100,000 barrels. Analysts were looking for a 100,000-barrel decline in distillates supplies and a 1.2 million drop in gasoline stockpiles.

Oil prices have fallen more than 25 percent from highs reached in July and have been range-bound near $60 for the past several weeks.

Stocks of oil majors, including BP (Charts), ExxonMobil (Charts), ConocoPhillips (Charts), Chevron (Charts) and Royal Dutch Shell (Charts), stopped mirroring falling 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 recent weeks the traditional relationship, with oil stock prices tracking the cost of crude, has been re-established.

DaimlerChrysler won't blur brands or sell cheap car

Reuters / December 13, 2006 - 10:00 am | STUTTGART -- DaimlerChrysler will not let itself blur the sharp distinctions between its brands and will not enter the market for low-priced cars, its head of corporate development said today.

DaimlerChrysler's auto brands include Mercedes-Benz, Chrysler, Jeep, Dodge, Smart and Maybach.

"We will not use a vehicle platform for several brands" despite pressure to cut costs and boost productivity, Ruediger Grube told a labor union event in Stuttgart.

"A Mercedes will remain a Mercedes and may not share a platform with anyone," he said, for fear its sales and margins would suffer should buyers think they could get basically the same car for less money if sold under a sister brand.

The company, formed by the 1998 merger of Daimler-Benz and Chrysler, must instead seek cost savings from sharing parts such as water pumps that customers will never see or by pooling resources for purchasing or operating data processing systems, he said.

At an earlier industry conference in Frankfurt, he said the group would not venture into offering cheap cars, which analysts say is likely to be the fastest-growing market segment.

"We will leave this to the others," he said.

Formula D Champ Hubinette Revs up for D1GP

December 12th, 2006 - DriftLive.com

Center Line, Mich. — Team Mopar drifter Samuel Hübinette will revisit the site where he clinched his second Formula D championship, as the “Crazy Swede” returns to Southern California’s Irwindale Speedway this weekend for the D1 Grand Prix Series Finals and World All-Star events.

Hübinette secured his second Formula D title in three years in the Formula D “Final Fight,” held at Irwindale, known as the “House of Drift,” in October. His third-place finish in the event earned him the championship after waging a tight, season-long points battle. Hübinette led the series with three wins, and scored five podium finishes out of seven events.

When Hübinette takes the Irwindale track again this weekend for D1GP action in his NuFormz Racing Mopar Dodge Viper SRT10, he’ll face a stellar lineup packed with elite drifters from around the world.

HÜBINETTE IN D1 GRAND PRIX SERIES COMPETITION

Despite only competing in one 2006 D1GP event at Irwindale in March, Hübinette remains among the Top 16 in points, and is the highest ranking American-based driver in the points standings. At the March event, Hübinette finished fourth, the best of any U.S-based entry, and qualified No. 1 out of a field of 58 drifters. The performance was his best ever in D1GP competition, and the “Crazy Swede” is looking for even better results this weekend.

“It would be so important to grab a win,” said Hübinette, who competes with BFGoodrich G-Force T/A KDW tires. “These D1GP events have some of the most talented drifters in the world, not only from the U.S. and Japan, but from Europe and points all around the globe. I want to have a good outing, with the help of Mopar, NuFormz Racing and BFG, to show I can compete with the best drifters in the world.”

Morning Blurp....

The Chrysler Group has launched production of the new 2007 Dodge Ram 3500 Chassis Cab at its Saltillo Assembly Plant in Coahuila, Mexico. The plant takes on production of the new model as part of DaimlerChrysler's Flexible Manufacturing Strategy.

DaimlerChrysler recently invested an additional $48 million into the plant, expanding the facility by 120,000 sq. ft. The expansion allows the plant to produce commercial vehicles and will accommodate new frame configurations.

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Cummins Inc. is celebrating the shipment of the 1.5 millionth Cummins Turbo Diesel at its MidRange Engine Plant.

When launched in 1988 for the 1989 model year, the company expected to produce only 8,000 of the Cummins Turbo Diesel engines for Chrysler Group's Dodge Brand annually. That number quickly escalated to over 16,000 engines in the first year of production. The growth in diesel engine popularity has continued, with current record levels of production expected to reach over 165,000 engines for 2006.

Chrysler revival slips into reverse

Too slow to replace once hot-selling cars

By Rick Popely and Jim Mateja | Tribune staff reporters - - A year ago, Chrysler Group was riding high, the most profitable and trendiest U.S.-based automaker.

Now it is swimming in the same red ink as its domestic rivals, and its models have gotten long in the tooth, exposing the fragility of a revival based on sex appeal in the competitive auto industry.

While hot stuff draws consumers to the showroom, once the cooling begins, so does buyers' ardor.

"Chrysler tends to keep things too long before they do something new so that, down the road, the buyer is simply asked to buy the same car again," said Lake Forest Chrysler dealer Bill Knauz.

"The public wants something new and different and for their neighbors to see they have a new car and not just another one of the same car," said Knauz.

Sales are down 8.6 percent this year, to 1.79 million vehicles through October at Chrysler Group, the U.S. unit of DaimlerChrysler AG which includes the Dodge and Jeep brands.

Those sagging sales contributed to Chrysler Group's $1.5 billion third-quarter operating loss, in contrast with a $393 million profit the previous year. For the full year, Chrysler expects to swing to a $1.2 billion loss from a $1.8 billion profit in 2005.

"Chrysler sells well when its vehicles are new, but it does a bad job of keeping people interested in its product," said Art Spinella, president of CNW Marketing Research, which surveys monthly about 3,000 consumers shopping for cars.

Consumers who clamor for the latest styling make up 8 percent of buyers, Spinella says, but those who prize reliability and durability represent 45 percent. The latter are more likely to choose Toyotas and Hondas, giving models such as the Toyota Corolla and Honda Accord more staying power in the market.

"It's easy to sell an all-new, edgy design like the [Dodge] Magnum or [Chrysler] 300 for the first six months to those who have to be the first to have something different," Spinella said. "But that's not the mass market. After the initial introduction, the cars tend to fall off the sales charts."

Head-turning styling has helped sell models such as the Chrysler PT Cruiser and Dodge Ram pickup. More recently, the Chrysler 300 was a home run, but after nearly three years, sales are down 2 percent this year after rising 27 percent last year.

Sales typically wilt as vehicles age, and that's when automakers roll out incentives, so Chrysler isn't alone.

Nissan North America, which based its recent revival on catchy design, also hit a pothole this year as its products grew stale. Nissan's U.S. sales are off 6 percent.

Spinella says incentive dollars go further at brands like Toyota or Honda, where looks matter less than the reputation for quality.

Case in point: Toyota last redesigned the Corolla in 2002, but sales are up 13 percent this year. Toyota is offering a modest $500 rebate on the Corolla.

Chrysler has the industry's highest incentives, obliterating its slim profit margins, said Burnham Securities analyst David Healy.

"When margins are thin, it doesn't take much change in sales to go into the red," Healy said.

Chrysler's swing into the red comes about a year after Dieter Zetsche left Chrysler's headquarters in Auburn Hills, Mich., where he had engineered a successful turnaround effort that started in 2001, to become chief executive of parent DaimlerChrysler in Germany.

Chrysler's current CEO, Tom LaSorda, has to present a new turnaround plan to DaimlerChrysler's board in December, raising questions about his future with the company.

"Both LaSorda and Joe Eberhardt (Chrysler's sales chief) are being looked at differently today than they were two months ago," said George Peterson, president of industry forecaster Auto Pacific. "It might be that Eberhardt is at more risk than LaSorda because he's the sales guy."

When blame gets passed around, Peterson thinks Zetsche deserves some of it. Lead times on new products are usually three to four years.

"I don't think the problems were invisible to Dieter. He saw them coming before he left but hoped they wouldn't happen on his shift," he said.

Chrysler also made a misstep when it introduced the Jeep Commander, a large SUV, last year just as gas prices started to rise. Healy says the "unfortunate timing" made Commander "dead on arrival."

Chrysler also waited too long to refresh models such as the Dodge Ram. The full-size pickup is the group's best-seller, Healy said, but was last updated in 2002 and isn't slated to be freshened up until the 2009 model year.

Ram sales fell to 400,000 last year from 449,000 in 2003 and are down 12 percent this year, despite recent $5,000 rebates.

Ram sales could tumble more next year. That's because GM rolled out new full-size pickups this month, and Toyota will do the same in February.

But the Ram isn't the only problem at Dodge, the largest of the three Chrysler Group brands. Dodge sold 1.18 million vehicles last year, nearly 277,000 less than in 2000, the last time Chrysler slipped into a crisis. Sales are down 10 percent this year.

Six years ago, Dodge trailed only Chevrolet and Ford in sales but now is fifth, behind Toyota and Honda as well.

Gas prices and changing consumer tastes have dinged sales of the midsize Dakota pickup, down 27 percent this year, and the Durango sport-utility, down 38 percent.

"That's fair to say, because the segments that have been hit hardest by gas prices, big SUVs and trucks, are what Dodge sells," Jason Vines, Chrysler's vice president of communications, said.

Vines says Dodge will rely more on cars.

The recently introduced Caliber, a compact hatchback, and Charger large sedan are selling well, Vines said, and in the spring Dodge will add the Avenger midsize sedan. Dodge also is expected to get a subcompact car, possibly built in China, though probably not until 2010.

If the Chrysler Group depends on the freshness of its lineup, Vines added, then business should pick up in 2007.

"We should do well because we have the launch of several new 2006 models under our belt and add another seven new products next year," he said, including new versions of the Dodge Caravan and Chrysler Town & Country mini-vans.

Chrysler's Turbo Diesel Engine Wins Spot in Ward's 10 Best Engines Awards

CHRYSLER GROUP 5.7-LETER HEMI AND 3.0-LETER V-6 TURBO DIESEL TAKE TWO SPOTS IN WARD'S 10 BEST ENGINES AWARDS

-- HEMI wins for fifth consecutive year

-- DaimlerChrysler advanced diesel technology recognized by industry experts

-- Both Chrysler Group winning engines available in 2007 Jeep(R) Grand Cherokee

AUBURN HILLS, Mich., Dec. 12 -- For the fifth year in a row -- and every year since its 2003 re-introduction -- Chrysler Group's famous 5.7-liter HEMI(R) engine has earned a place on Ward's 10 Best Engines list. Joining the HEMI in winning the award is DaimlerChrysler's 3.0-liter V-6 Turbo Diesel, available in the 2007 Jeep Grand Cherokee.

"We are pleased that Chrysler Group has delivered two engines among Ward's 10 prestigious winners," said Bob Lee, Vice President -- Powertrain, Chrysler Group. "The HEMI continues to impress as an engine that offers the combination of power and fuel efficiency our customers demand, while the 3.0-liter V-6 CRD Turbo Diesel boasts an unsurpassed blend of acceleration, torque and fuel economy."

First introduced in the 2003 Dodge Ram, the 5.7-liter HEMI V-8 achieves power, fuel economy and emissions goals with a design that is elegant and cost effective. The engine is available in the Chrysler 300, Chrysler Aspen, Jeep Commander, Jeep Grand Cherokee, Dodge Charger, Dodge Durango, Dodge Magnum and Dodge Ram.

Standard equipment on all 5.7-liter HEMI applications (with the exception of the Dodge Ram 2500 and 3500) is Chrysler Group's innovative Multi- displacement System (MDS), which improves fuel economy by as much as 20 percent. MDS seamlessly alternates between smooth, high fuel economy four- cylinder mode when less power is needed, and V-8 mode when more power from the 5.7-liter HEMI engine is in demand.

"There's nothing more American than the V-8, and we think the modern HEMI is the best of the breed," said Bill Visnic, Senior Technical Editor, Ward's AutoWorld. "The HEMI is power-dense, perfectly sized and incorporates sophisticated-yet-straightforward efficiency-enhancing technology to help it stay relevant in a market that is becoming increasingly conscious of fuel economy. But above all else, the HEMI is just plain fun."

A high-performance 6.1-liter version of the HEMI V-8 is offered in many of Chrysler Group's SRT lineup of vehicles, including the Chrysler 300C SRT8, Dodge Charger SRT8, Dodge Magnum SRT8 and Jeep Grand Cherokee SRT8. The 6.1- liter HEMI features strengthened components -- including a reinforced engine block, forged steel crankshaft and high-strength connecting rods -- and generates additional power with more cubic inches, higher compression ratio, higher engine speed and enhanced engine breathing, courtesy of special cylinder heads and manifolds.

The HEMI V-8 engine is manufactured in Saltillo, Mexico.

Joining the 5.7-liter HEMI V-8 on Ward's 10 Best Engines list for 2007 is the new 3.0-liter V-6 common-rail diesel (CRD) Turbo Diesel. Available in the 2007 Jeep Grand Cherokee, the advanced diesel engine features more torque than most eight-cylinder engines, impressive acceleration and fuel economy that rivals a small six-cylinder gasoline engine.

The Mercedes-built 3.0-liter CRD is one of the most advanced powerplants available in the marketplace today. It is designed to be an efficient, smooth- running engine with up to 30-percent improved fuel economy without sacrificing performance.

Built in Berlin, Germany, the 3.0-liter CRD produces 215 horsepower and 376 lb.-ft. of torque.

Car And Driver Luxury Sedan Showdown: Mercedes Vs. BMW Vs. Audi Vs. Lexus Vs. Jaguar

Posted December 12th, 2006 At 10:45 AM CST

While going through our inbox this morning, our good friend Brad tipped us off to an article that attempts to answer a question weighing heavily on the minds of potential premium luxury sedan owners across the globe: what vehicle truly is the pinnacle of luxury engineering? To arrive at the answer, Car and Driver recently took their turn behind the wheel of five of the leading cars in this specific segment: the 2006 Jaguar Super V-8, the 2007 Mercedes-Benz S550, the 2006 Audi A8L Quattro, the 2007 Lexus LS460L, and finally, the 2006 BMW 750Li, all with the intention of laying to rest once and for all any questions or doubts that you, my affluent readers, may have. So what, you ask, was the outcome? Retaining its position high atop its preeminently-crafted perch, the Mercedes S550 once again emerged victorious, further adding to its marked list of accolades. And while I could dwell on the subject, basking in the glory that can only accompany being crowned king of the premium luxury sedan segment, instead I will take a moment to congratulate the newly-introduced, technology-laden and Consumer Reports-approved Lexus LS460L, which managed to earn not the second... not the third... not even the fourth... but rather, the fifth place spot on the list. Well done, Lexus; well done. To learn more, head over to Car and Driver for their full thoughts on each of the aforementioned models. And to Brand: thanks for the tip my good sir; we sincerely appreciate it.

Chrysler Production Update: 11 December

December 11, 2006

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

Chrysler 300/300C, Dodge Magnum, Dodge Charger	8-10	300 and 300C models have a 6-8 week lead time The following options have a Job #1 of 1/2/07: (AJM) SRT Design Group (2DZ) Pkg. w/o (XAA) ParkSense (LXCS48) (NHP) Adaptive speed control has a Job #1 of 1/8/07 (29R) Heritage Group has a Job #1 of 1/17/07 (LXCS48) (PJV+29R) Cognac Crystal paint with 29R Pkg. has a Job #1 of 2/1/07 (27P) Pkg. is on hold
Chrysler Pacifica	8-10	AWD models have a 10-12 week lead time (29P) Pkg. has a Job #1 of 2/1/07 (XAC) Parkview rear backup camera w/o (JRC) power liftgate is on hold
Chrysler PT Cruiser	6-8	None
Chrysler Sebring Sedan	18-20	(RER) AM/FM CD MP3 navigation radio has a Job #1 of 1/26/07 (XWS) Driver sunglass holder has a Job #1 of 1/24/07 (PV6) Sunburst Orange paint has a Job #1 of 1/29/07 (XRV) Rear seat video system has a Job #1 of 2/26/07

Dodge Caliber	16-18	Caliber R/T AWD models have a 20-22 week lead time (CJ1) Front seat side airbags have a Job #1of 1/29/07
Jeep Compass	14-16	Compass FWD models have a 16-18 week lead time (ECN) 2.0L engine has a Job #1 of 12/4/06 (MKTH49) (CJ1) Front seat-mounted side airbags have a Job #1 of 1/29/07

2007* DaimlerChrysler Trucks RED Indicates changed or new information
The lead time represents the estimated order to delivery period under normal conditions and does not take into consideration holds or delays. Extended lead times (when available) are noted under the Key Production Hold or Delay column. *All models and constraints are for the 2007 MY unless noted otherwise. Due to various assembly plant assignments for specific model lines or ordered options; the DaimlerChrysler constraints listed below may or may not apply at the time an order is placed.
MODEL	ESTIMATED LEAD TIME IN WEEKS	KEY PRODUCTION HOLD OR DELAY
Chrysler Town & Country Dodge Grand Caravan/Caravan	8-10	(29P) Pkg. has a Job #1 of 12/22/06 (RSKH53 and RSYP53)
Dodge Dakota	8-10	(DMH) 3.92 rear axle ratio w/o (DSA) limited slip differential has a Job #1 of 1/17/07 (DHU) Shift-on-the-Fly FT transfer case has a Job #1 of 1/31/07 (DHV) Shift-on-the-Fly FT transfer has a build out date of 1/31/07
Dodge Durango	8-10	(XBM) Remote starter system has a Job #1 of 12/11/06 (MRR) Accent color running boards w/ (2TF) Pkg. has a Job #1 of 12/11/06 (ANR) Night Runner Group Job #1 12/11/06 (TVC) P265/50R20 AS tires have a Job #1 of 1/29/07 (TV9) P265/50R20 AS tires are on hold (MRK) Tubular side steps with (2TF) Pkg. are no longer available for ordering
Dodge Aspen	8-10	(TVC) P265/50R20 AS tires have a Job #1 of 1/29/07 (TV9) P265/50R20 AS tires are on hold
Dodge Nitro	6-8	Nitro 4x4 models have a 10-12 week lead time (RER) AM/FM CD MP3 Navigation Radio has a Job #1 of 1/29/07 (DHZ) Full-time 4WD w/ (EGS) 4.0L V6 engine has a Job #1 of 7/10/07 (WP2) 20” Chrome clad aluminum wheels w/o (ASU) R/T Group Job #1 is TBD
Dodge Ram Pickup DR 1500, 2500, 3500 and Mega Cab	8-10	Ram 1500 4x2 and 2500 4x4 models have a 6-8 week lead time (TXE) LT265/70R17E BSW tires have a Job #1 of 12/11/06 (BAJ) 220 amp alternator has a Job #1 of 12/13/06 (ETJ) 6.7L Cummins turbo diesel engine has a Job #1 of 1/15/07 (ETJ) 6.7L Cummins turbo diesel engine w/ (XBC) pickup box delete has a Job #1 of 3/5/07 (ETH) 5.9L HO Cummins Turbo Diesel engine w/(NBA) Underground Calibration has a Job #1 of 2/7/07 (LBN + DG3) Power take off has a Job #1 of 2/12/07 (AR9) Single Rear Wheel Group with (SKS/SKT) heavy duty front springs has a Job #1 of 3/1/07
Jeep Grand Cherokee	8-10	Grand Cherokee 4x2 models have a 10-12 week lead time (EXL) 3.0L V6 Turbo Diesel engine has a Job #1 of 1/15/07 (AMA) Premium sound w/ (JPM) heated seats and w/ (JPR) 8-way power driver seat has a Job #1 of 2/1/07 (PXR) Black paint has a Job #1 of 2/26/07 (PX8) Black paint has a Job #1 of TBD (TBB) Full-size spare has a Job #1 of 3/8/07
Jeep Commander	8-10	Commander 4x2 models have a 16-18 week lead time (AGS) Sun & Sound Group w/ (JPM) heated seats w/ 8-way power driver seat has a Job #1 of 2/1/07 (PXR) Black paint has Job #1 of 2/26/07 (PX8) Black paint has a Job #1 of TBD (WPN) Platinum aluminum wheels have a Job #1 of 3/12/07 (AJP) Power Convenience Group is on hold
Jeep Liberty	6-8	Liberty 4x2 models have an 8-10 week lead time
Jeep Wrangler	12-14	(RER) Navigation radio has a Job #1 of 12/18/06 (SHG) Electronic front sway bar w/o Rubicon model has a Job #1 of 1/8/07 (GWK) Sunrider soft top with 2-Door has a Job #1 of 1/17/07 (GCH) Half Doors have a Job #1 of 1/31/07
Jeep Patriot	8-10	None

Airbus A380 Cleared for Takeoff

Associated Press |By VERENA VON DERSCHAU 12.12.06, 11:13 AM ET

The Airbus A380 received certification from European and U.S. aviation authorities Tuesday, clearing its last official hurdle before the first 555-seater superjumbo is scheduled to be delivered to Singapore Airlines Ltd. next October.

Officials from the European Aviation Safety Agency and U.S. Federal Aviation Administration signed airworthiness certificates for the much-delayed plane at a ceremony at Airbus headquarters in Toulouse, southern France.

Although the A380's clearance for commercial takeoff offered some much-needed good news for Airbus - which has fallen behind rival Boeing (nyse: BA - news - people ) Co. on orders this year - the celebration in Toulouse was dampened by developments in Paris.

Police in the French capital searched the headquarters of Airbus parent EADS and one of its main shareholders, stepping up their investigation into insider dealing linked to the A380 delays. Investigating magistrates Philippe Courroye and Xaviere Simeoni led the searches at the offices of European Aeronautic Defence and Space Co. and Lagardere SCA, said judicial officials who asked not to be named, citing French rules on the confidentiality of investigations.

Paris prosecutors opened an investigation last month into possible insider dealing in EADS shares, five months after it emerged that Noel Forgeard, the defense group's ousted co-chief executive, and dozens of his former colleagues sold off stock in the weeks before the company ordered an internal study of the A380 delays. Lagardere and Germany's DaimlerChrysler AG (nyse: DCX - news - people ) also announced they were reducing their EADS stakes at around the same time.

EADS shares lost more than a quarter of their value in one day after the production problems were announced June 13. Investigators from France's Financial Markets Authority opened their own investigation and carried out searches at EADS and Airbus offices later the same month.

The A380's certification completes a test-flight program in which five A380 planes have notched up 2,600 flight hours since the closely watched first flight in April last year.

In the final phase of the program last month, an A380 completed 70,000 nautical miles (128,000 kilometers) of so-called "route proving" - a series of long-haul flights with short stopovers, designed to simulate airline operations in extreme conditions. The exercise took the plane to 10 airports in the Asia-Pacific region and included takeoffs and landings at high-altitude and snowbound runways.

Airbus has fallen behind Boeing on orders after leading every year since 2001, and its market share by value also has fallen further in 2006 - after slipping to 45 percent last year from 54 percent in 2004 - as Boeing's 777 and planned 787 mid-sized planes steadily eclipsed the older, less fuel-efficient Airbus A330 and A340.

The accumulated delays to the A380, totaling two years, have wiped euro4.8 billion (US$6.3 billion) off forecast EADS profits - a figure that includes estimates for the compensation paid to angry customers. FedEx Corp. (nyse: FDX - news - people ), the world's largest express transportation company, last month canceled its order for 10 A380s, and Airbus said Dec. 4 that further cancellations were still possible.

EADS shares were little changed at euro24.18 (US$31.86) in Paris trading.

EADS Office Searched in Insider Probe

Associated Press

By VERENA VON DERSCHAU 12.12.06, 9:14 AM - - ETPolice searched the Paris headquarters of Airbus parent EADS and one of its main shareholders on Tuesday as part of an insider trading probe, judicial officials said. The search came just hours before the company's flagship Airbus A380 was expected to get final approval for commercial service.

Paris prosecutors opened an investigation three weeks ago into possible insider dealing in shares of European Aeronautic Defence and Space Co. Noel Forgeard, the defense company's ousted co-chief executive, and dozens of his former colleagues sold off EADS stock in the weeks before the company ordered an internal study of delays to the A380.

Paris-based Lagardere SCA, which was also searched Tuesday, and Germany's DaimlerChrysler AG (nyse: DCX - news - people ) announced they were reducing their EADS stakes at around the same time.

EADS shares lost more than a quarter of their value in one day after the production problems were announced in June. Investigators from France's Financial Markets Authority carried out searches at EADS and Airbus offices later the same month.

The judicial officials who described Tuesday's searches asked not to be named, citing French rules on the confidentiality of investigations.

The search came the same day that U.S. and European aviation authorities were expected to approve the Airbus A380 for commercial service, the last official hurdle before the much-delayed superjumbo is due to be delivered first to Singapore Airlines (other-otc: SGPJF.PK - news - people ) in October next year.

Representatives from the U.S. Federal Aviation Administration and the European Aviation Safety Agency were scheduled to hand over airworthiness certificates for the world's largest passenger plane at a ceremony hosted by Airbus at its headquarters in Toulouse, France, later Tuesday.

Airbus test pilot Claude Lelaie told reporters last week that the FAA and EASA had agreed to clear the plane for commercial service soon after one of the five A380 test planes completed 70,000 nautical miles of so-called "route proving" - a series of long-haul flights with short stopovers, designed to simulate airline operations in extreme conditions.

Completed Nov. 30, the 18-day final stage of the program took the test plane - serial number MSN002 - to 10 airports in the Asia-Pacific region, including takeoffs and landings at high-altitude and snowbound runways.

During the test program, which began in April last year with the closely-watched first flight, the A380 test planes have carried out more than 2,600 hours of flights in total.

Tuesday's ceremony provides some welcome respite for Airbus and for the A380 program, hit by a series of costly production setbacks that wiped 4.8 billion euros ($6.3 billion) off expected profits.

The increased delay - now totaling two years - led to the sacking of senior officials including Forgeard.

ASC Viper Diamondback design sketch

DaimlerChrysler Sees Freightliner Profit

Associated Press | By TERRY KOSDROSKY 12.11.06, 5:57 PM ET

The head of the DaimlerChrysler AG truck and bus group said Monday that the auto maker expects its U.S.-based Freightliner truck division to be profitable in 2007, despite an expected sharp downturn in heavy truck building next year that will lead to job cuts in the unit.

Andreas Renschler, head of DaimlerChrysler (nyse: DCX - news - people )'s truck group and a member of the management board, said that its North American plants are prepared for the downturn, which could mean an industry-wide reduction in heavy truck volume of nearly 40 percent compared with 2006.

Freightliner could see job cuts of up to 4,000 in 2007 due to the downturn, Renschler said. The company already said it would lay off 800 at a plant in Canada early next year.

The DaimlerChrysler Truck Group has about 25,300 employees in North America.

New environmental regulations go into effect next year and truck makers are pulling orders ahead this year.

"I think we have prepared very well," he said Monday in a meeting with journalists. "Based on this market development, we see at the moment we still will be profitable."

Renschler said he expects industry heavy-truck volumes to fall off dramatically in the second quarter before picking back up in the fourth quarter.

The truck group's performance has become an important part of DaimlerChrysler's overall earnings, especially with the struggles of Chrysler Group, the U.S.-based maker of passenger cars.

Third-quarter operating profit at the truck group division was up 57 percent to about $735 million, or 556 million euros, its best-ever third quarter from an operating standpoint.

Renschler said the company learned a lot during the last heavy-truck downturn earlier in the decade, and he added that suppliers also seem to be better prepared.

Overall, DaimlerChrysler's truck group, the largest maker of commercial trucks in the world, also expects to be profitable in 2007. The Japanese heavy-truck market is expected to be down about 25 percent next year but Europe is expected to be down only slightly.

DaimlerChrysler produces trucks under the Mercedes-Benz, Freightliner, Western Star, Sterling and Mitsubishi (other-otc: MSBHY.PK - news - people ) Fuso brands.

The company learned from the last downturn to prepare its plants for the "worst-case scenario" ahead of expected downturns, Renschler said.

Renschler said DaimlerChrysler will produce one global heavy duty truck engine in the coming years, down from the four it produces now. This will help save costs, he said.

DaimlerChrysler will begin producing the engine next year at its Detroit Diesel plant. It will take until 2014 to 2015 before the common engine hits all of DaimlerChrysler's trucks.

He also said the truck group is working on a common engine for its medium-duty commercial trucks.

Renschler wouldn't give details on the turnaround plan that Chrysler Group, the U.S.-based maker of cars and light trucks, is expected to unveil in the first quarter.

Asked if the board stands behind Chrysler Group Chief Executive Tom LaSorda, Renschler said, "Absolutely."

Chrysler Group lost $1.5 billion in the third quarter, as it struggled to stem a loss of market share and to rein in costs. The company is facing the same problems as its larger U.S. rivals - General Motors Corp. (nyse: GM - news - people ) and Ford Motor Co. (nyse: F - news - people )

DaimlerChrysler shares rose $1.06, or 1.8 percent, to close at $59.86 on the New York Stock Exchange.

2009 Chrysler Cuda

stockmopar.com - - How about a 2009 Chrysler 'Cuda? The possiblity of driving a brand new Cuda! Well the rumors are flying about a possible Chrysler Cuda concept that could see its debut at the 2007 SEMA show. When someone had inquired about the 'Cuda concept and the response that they got from Chrysler was:

We are pleased to read of your interest in the Chrysler Cuda concept vehicle. At this time, DaimlerChrysler has not released any plans that indicate the future production of the Chrysler Cuda. If built, The Chrysler Cuda concept vehicle would be built on the same platform as the upcoming 2008 Dodge Challenger, and would be production ready around the same time. We encourage you to stay in touch with the Chrysler.com website as well as your local Chrysler dealerships for future product updates.

So if this response is correct it appears that they are planning at least a Cuda Concept Car. Also that it would be ready about the same time as 2008 Dodge Challenger!

If they do produce the Chrysler Cuda it would probably have a similar range of engines to that of the 2008 Dodge Challenger. Which will probably include the 6.1L Hemi, or even the new 392 Hemi engines!

Do you think it would be right for Chrysler to produce the Cuda under the Chrysler name because the Plymouth company was dissolved a few years back. Discuss this and tell us what you think at our Cuda Forum!

Stay tuned as more developments come about the possible upcomming Chrysler 'Cuda!

Dealers felt Eberhardt tuned them out

Joe Eberhardt in 2004: He became a lightning rod for the Chrysler group's ballooning inventory and the resulting alienation of dealers.

Bradford Wernle | | Automotive News / December 11, 2006 - 1:00 am
DETROIT -- One blogger quipped on autoblog.com last week that "With Dodges, Chryslers, and Jeeps piling up and sales way down, (Joe) Eberhardt's departure is as needed as Donald Rumsfeld's."

The controversial Chrysler group's global sales, marketing and service chief had become a lightning rod for the company's ballooning inventories and the resulting alienation of many dealers.

Dealers felt the German-born executive had little understanding of their business or empathy for their problems.

Eberhardt, 43, left to run a Mercedes-Benz dealership at an unspecified location. Chrysler declined to make Eberhardt available for an interview.

Dealers' primary complaints about Eberhardt were that he did not listen to their concerns, and that he blamed them for not being able to sell cars they had never asked for in the first place.

Head-shaking

In dealer meetings, "Joe had made up his mind what the outcome was going to be," said one Detroit-area dealer. "I saw too many dealers at too many sessions, stand up and make a comment about their current state of affairs.

"Instead of empathizing with you, he'd tell you that you were wrong. People in the room would shake their heads."

Dealers in the Chicago area were angered when Eberhardt shouted down a prominent dealer who made a suggestion at an October sales meeting.

Problems peaked last June when Eberhardt clashed with Gary Dilts, Chrysler's senior vice president of sales. Eberhardt emerged from that conflict as the winner. Dilts and Ray Fisher, the popular veteran vice president of sales, service and parts, both resigned.

Many dealers blamed Eberhardt for the two executives' departure. Sources familiar with events at Chrysler say that some influential dealers even sought to have Eberhardt ousted, but failed.

Employee pricing

Dealers say Eberhardt insisted on a repeat performance -- against the advice of many of them -- of the employee pricing incentive Chrysler ran during the summer of 2005.

The second program, which ran during August, flopped when other manufacturers failed to join in and create the sales frenzy Chrysler hoped for.

What made it worse was that the incentive was tied to an ad campaign featuring popular DaimlerChrysler Chairman Dieter Zetsche. The ad campaign, called "Ask Dr. Z," was pulled after just two months. Sources say Eberhardt urged a reluctant Zetsche to do the spots.

But some dealers stick up for Eberhardt. Mike Jackson, CEO of AutoNation Inc., the country's largest dealer ship group, said Eberhardt has taken the blame for a wider problem: "People can talk about Joe's bedside manner, but the issue is over-production."

Jim Arrigo, owner of Arrigo Chrysler-Dodge-Jeep in West Palm Beach, Fla., said he had never had a problem with Eberhardt. "Nobody's ever told me that I had to do anything. Anybody that says Joe Eberhardt tried to push them out of their businesses" is wrong, he said.

But Arrigo did acknowledge that Eberhardt "ended up generating a lot of enemies" in the dealer community. "They're very smart people. Unfortunately, there's a lot of guys out there who thought the way he ran the company wasn't the right way."

The BRAND NEW Mercedes Maybach Coupe!!!

READY.... SET.... Drool......

As Seen on Jay-z's new video "Lost Ones"

Chrysler dealers: Fix sales quotas

All-or-nothing goals trigger price wars among dealerships

Bradford Wernle | | Automotive News / December 11, 2006 - 1:00 am DETROIT -- Now that Chrysler group sales chief Joe Eberhardt is gone, some of the nation's largest dealers are begging the automaker to replace a monthly sales incentive program that encourages price wars between Chrysler dealerships.

Dealers say the "Volume-based Performance Award," which earmarks up to $700 per vehicle for dealerships that meet monthly sales goals, has two big flaws:

1. Unlike other automakers' programs, it has little stairstepping that allows partial awards, so it's virtually an all-or-nothing proposition.
2. Sales targets are so high that dealerships must slash margins and wage brutal price wars with neighboring Chrysler dealers.

A dealer can find himself in big financial trouble if he tries and fails to meet those targets while a neighboring store succeeds.

Chrysler offers little to dealers who fall short. "You've got to make certain assumptions about whether you're going to hit your (quota) because it's an all-or-nothing deal," says Barry Frieder, president of Potamkin Auto Group, of New York.

"It's pretty risky," agrees Earl Hesterberg, chairman of Houston-based Group 1 Automotive Inc., the nation's fourth-largest dealership group. "This thing needs to be overhauled to get it in balance and within reason. It costs you market share. You lose to Toyota and Ford and to other (Chrysler) dealers."

Doug Alley, owner of Alley Chrysler-Jeep in Kingsport, Tenn., says the policy pits Chrysler group dealers against each other. "Scrap the whole damn system," Alley says.

"We don't need to compete against Chrysler, Jeep and Dodge. We need to compete against Chevrolet and Toyota."

A Chrysler spokesman steered clear of the controversy on Friday, Dec. 8: It "is an internal program and is not something we are prepared to discuss publicly."

What dealers want
Dealers want the Chrysler group to

* Revise its monthly dealer sales incentives
* Restore local dealer advertising associations
* Aggressively push 3-brand store consolidations

Mending relations

Chrysler used the incentive system to trim its huge inventory. But the chief architect of that system -- Eberhardt -- is gone. And Chrysler group CEO Tom LaSorda is trying to mend frayed relations with dealers.

Two weeks ago LaSorda announced incentives ranging up to $7,000 per vehicle to clear out unsold inventories of 2006 models. A few days after this new incentive was unveiled, Eberhardt, known for his abrasive treatment of dealers, suddenly resigned.

LaSorda met Friday, Dec. 8, with about 50 Detroit-area dealers to discuss their grievances. LaSorda admitted that Chrysler had made mistakes and promised to work with dealers in the future.

After his speech, dealers gave him a standing ovation.

"It was a very uplifting meeting," said Warren, Mich., dealer Carl Galeana, who describes himself as a LaSorda fan. "I feel a helluva lot better than I did a year ago."

But it will take more than speeches to pull Chrysler out of its troubles. Last week top dealers gave Automotive News a list of other actions LaSorda should take, including:

* Offering financial inducements to selected dealers to sell their stores, so that surviving dealerships can house all three Chrysler group brands under one roof.

* Allowing dealers more say in advertising decisions.

* Cutting vehicle production and maintaining a 60-day inventory of vehicles.

In recent months, Mike Jackson, CEO of AutoNation Inc., has conducted a public campaign to pressure Chrysler to cut production. The Fort Lauderdale, Fla., dealership group has 19 Chrysler franchises, 21 Dodge franchises and 19 Jeep franchises. "They absolutely have to change their inventory policy," says Jackson. "They have to embrace 60 days supply as a retail target. That hasn't happened."

Local ad groups

Another sore point: Several years ago, Chrysler reorganized its dealer advertising associations, combining them with its regional dealer councils. Dealers say they lost much of their input into Chrysler's national advertising.

"I'd like to see the (associations) return in their original capacity," says Galeana.

Chrysler said last week that Steven Landry, vice president of sales and field operations, and Michael Manley, vice president of sales strategy and dealer operations, will continue running the sales operation for now. Both will report to LaSorda.

Chrysler has declined to say whether a replacement for Eberhardt will be named.

DaimlerChrysler plans truck unit layoffs

Reuters / December 11, 2006 - 11:00 am UPDATED: 12/11/2006 11:35 A.M.

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DETROIT -- DaimlerChrysler AG could lay off up to 4,000 workers in North American truck operations next year due to a downturn in demand, the head of the automaker's truck operations said today.

Andreas Renschler, a member of DaimlerChrysler's board of management, said the cuts in the United States and Canada would include 800 layoffs that have already been announced and that will take effect in March in Canada.

Speaking to reporters in Dearborn, Mich., he said demand in the truck business, which is coming off a strong year, will slow in 2007 but will likely recover toward the end of the year.

He said he expects demand for heavy-duty trucks in the United States, Canada and Mexico to fall 39 percent in 2007. Demand for medium-duty trucks will likely slip 25 percent, he said.

"Our challenge is to manage the cycles and to come through the down cycles while preserving profitability," Renschler said.

The automaker's Detroit Diesel unit will begin producing a new heavy-duty truck engine in 2007, which will represent the company's move to a single-engine platform for its biggest trucks. The new engine will provide a 5 percent to 8 percent increase in fuel economy, based on current environmental standards, Renschler said.

"If you look to our customers, fuel costs are one of the biggest costs they have to pay," he said.

RESTRUCTURING PLAN

The Chrysler group, which posted a $1.5 billion loss in the third quarter, has tapped executives from its German parent's Mercedes division to work on a restructuring plan, including cutting $1,000 from the cost of each vehicle it makes.

Renschler said the Chrysler group's restructuring plan is being prepared, but he was unsure when it would be complete. Other Chrysler executives have said the plan will be announced in the first quarter.

The Chrysler group started its restructuring study, called "Project Refocus," in late July with teams of experts reporting to CEO Tom LaSorda and COO Eric Ridenour.

When asked if DaimlerChrysler's board has confidence in LaSorda, Renschler replied, "Absolutely."

Renschler also said the board still believed the company was better off having the Chrysler group as part of a more diversified portfolio of businesses.

Chrysler 300C SRT-8 Touring - Euro version

Mon 11 Dec, 2006, 14:01

LONDON | ENGLAND - - A right-hand drive, UK version of the 168mph Chrysler 300C SRT-8 estate will be launched in February 2007.

It's powered by the same 425bhp, 6.1-litre HEMI V8 seen in the saloon, so the big estate should be good for 60mph in 5 seconds. As we're blessed with bumpy, twisty roads in Britain, this version will feature revised suspension with specially tailored springs and Bilstein dampers. The new bodykit is designed to reduce lift and drag and incorporates two air vents that help cool the Brembo brakes. Other aesthetic touches include 20-inch wheels and twin-exhausts.

Justifying Chrysler UK's decision to launch the high-performance estate in GB, its Managing Director, Peter Lambert said 'The 300C range has enjoyed massive success in the UK this year... there will always be a place for a car like the HEMI-powered 300C SRT-8 with driving enthusiasts here in the UK'.

We won't argue with that. You can expect a launch price of £40,990.

Rona's Folly -

Rona's Folly - by Rolf Lockwood
12/11/2006

Despite my statement a few issues ago that I'd grown a new concern for the environment -- and might even give up my much-loved V8 the next time I switch rides -- I'm no rabid tree-hugger. I'm first and very foremost a pragmatist. I'll always opt for what works. Most of the time I think there's no room for absolutes -- nothing is 100-percent clear, and almost nothing is completely right or completely wrong.

The operative word in there is 'almost' of course.

And so I'll drop my pragmatic approach to life and ideas when it comes to the federal government's ironically entitled 'Clean Air Act' and its complete abandonment of our Kyoto Protocol commitments. Sure, the original Kyoto goals were probably unreachable. And sure, the previous Liberal government accomplished very little in environmental terms. Maybe nothing at all, I suppose. But the Clean Air Act tabled in October… well, it's gotta be a joke, right?

More to the point, it's just plain wrong. Approximately 100-percent wrong. No ifs, no ands, no buts.

And Environment Minister Rona Ambrose? A jokester of the first order, acting as if she actually knows something about the subject -- and cares.

Apparently just a puppet anyway, with her strings pulled by our Stephen, she tabled a bill that plainly insults Canadians. With no chance of becoming law in the present Parliament, it will undoubtedly be an issue in the federal election we're bound to suffer some time next year. And that gives us a chance to repudiate the government's approach to the environment and its impact on our collective future.

No, I don't want another Liberal government of the sort we had for too long. Frankly, I don't care which party holds sway. I just want a government that responds to us. And this one has missed the mood of Canadians in a very big way. Ordinary Canadians, I mean, because it seems fine with big business.

The Clean Air Act actually mirrors legislation of the same name that's now law in the U.S. In many cases it makes sense to do that -- truck brake rules and regs, for instance, not that either country goes far enough on that front -- but in this case, Ottawa is proposing to take us backwards in lock step with a country whose environmental policy is itself a joke. Neither Ottawa nor Washington has any vision whatsoever.

Honestly, I'm embarrassed to be a Canadian. How come? Well, let me count the ways…

First, it won't set new regulations for vehicle fuel consumption until 2011. And much as I love my big Dodge V8, I have to think that long delay is just silly. The truth is, we've been dealing with automotive fuel economy since 1973 and we know rather a lot about it. As we also know, and only too well, the Environmental Protection Agency has dealt with truck diesels very effectively. I question the means and the speed and the fact that fuel-saving measures weren't employed as a means to cut emissions, but it can't be argued that present and future EPA rules haven't had the intended effect. Why not deal with light vehicles the same way? And let's not even talk about trains, whose huge diesels live pleasant, unrestricted lives -- and will continue to do so.

But we should definitely talk about hybrid powertrains. I've written about them again in this issue ('Hybrids are Coming', pg. 35, and 'Hybrids, Hybrids Everywhere' on pg. 40 of our November magazine) and the more I learn about what's possible, the more convinced I become that we should be busting our hind quarters to commercialize them. Yet the woman with the responsibility to pave that highway doesn't mention them, and in fact her government has suspended support for fuel-saving efforts at large.

Washington is no different, supporting all of this with tiny dollars at best, if at all. I heard rumors at the IAA show in Germany a couple of months back that Ottawa would in fact announce tax breaks or some other incentives for hybrid trucks in dear Rona's October statement of intent, but no such luck.

The other thing that bugs me a ton about the deceptively labeled 'Clean' Air Act is that Harper and Ambrose won't set federal targets for smog and ozone levels until 2025. Whaaaat? We have the science to do that now, and God knows we have the need.

In general, the bill says we'll cut emissions 45 to 65 percent from 2003 levels by 2050. Hell, my teenaged kids will have grandchildren by then. And China will probably have cleaner air.

Truth is, Rona and Stephen are practising the dangerous ­politics of denial. And we all know that's not good enough. Not even close.

That bitterness aside, let me wish you all a great Christmas. You deserve it.