Dodge Grand Caravan and Chrysler Town & Country minivans have strong sales month, up 7 percent over last year

Dodge Ram light-duty truck and Jeep® Liberty performance improves versus July

Dodge Journey gains momentum; buyers coming out of larger SUVs

Dodge Charger sales continue to grow

Up to 40 percent off MSRP available in September

Auburn Hills, Mich., Sep 3, 2008 - Chrysler LLC today reported total August 2008 U.S. sales of 110,235 units, down 34 percent from the same period last year. Total August sales reflect an industry-wide slowdown, segment shifts and reduced fleet sales. Compared with July 2008, Chrysler’s August sales increased 12 percent supported by enhanced financing offers, efforts to shift lease-oriented customers to purchasing, leasing availability from independent financial institutions and better demand for key vehicles. Although Chrysler Financial is no longer offering leasing options to Chrysler customers, customers are still able to lease Chrysler, Jeep® and Dodge products through independent financial institutions and qualify for available discounts.

Chrysler LLC Reports August 2008 U.S. Sales; Continues ‘Shop ‘Til You Drive’ Campaign with up to 40 Percent off MSRP - chrysler.com

Last week, we heard of Nardelli’s plan to shop around the Dodge Viper car business. The once iconic, untouchable halo car now has a “For Sale” slapped right across the windshield like a used car. Whatever happened to brand DNA, image, etc?

I found the following excerpt interesting:

Earlier this month, Vice Chairman Tom LaSorda said the company has identified more than $1 billion in “nonearning” assets that it intends to sell to generate cash.

Nonearning assets….would patents, trademarks, and copyrights be included in that $1 billion treasure chest of assets?

What if Chrysler decided to sell the Plymouth trademark? Would it be worth $50 million…$100 million?

What if the guys in the HQ decided to sell the Cuda trademark and design? Given the average rare Cuda now fetches 300K on eBay, there is considerable demand for the car. Maybe a specialty coachbuilder would be interested in buying the rights for the Cuda. I imagine someone would $200-300M for the rights to the Cuda.

The prospect of a potential Viper sale implies that nothing is off the table. No sacred cows…

What other trademarks, patents, or copyrights do you think would generate cash for Chrysler? Post it as a comment and make sure to include a price tag.

From the interview:

“Experts in Astronomy have studied collapsing stars for years. The phenomenon of Hypernovas is very rare but extremely destructive since they morph themselves into light-swallowing black holes.

Meanwhile, experts in the automotive industry have been watching their own collapsing star, or more appropriately, collapsing Pentastar in Chrysler. Some analysts believe that the venture capitalists at Cerberus bit off more than they could chew when the firm purchased the troubled automaker last August. Now faced with a depressed truck market and a four-cylinder lineup that just isn’t selling the way it should be in our $4-a-gallon gas world, some fear that Chrysler will implode like a Hypernova with its brands and pieces swallowed by other industry giants.

That is not a fear of Tom LaSorda. Chrysler’s Vice Chairman and President insists that Cerberus is committed to the company and believes it can be profitable thanks to a future portfolio of energy-efficient vehicles built not just by Chrysler but an international alliance of partners as well. Of course that’s easier said than done. To get to that point, the company must slog through the next couple years of retrenchment like every other manufacturer. Hear how he believes Chrysler will circumvent this crisis as he joins John McElroy for an exclusive one-on-one interview from the Management Briefing Seminars in Traverse City, Michigan.”

LaSorda Interview - autolinedetroittv.com (Video Link)

Chrysler LLC, selling assets to raise cash as U.S. sales slide, said it’s considering the possible sale of its Viper sports-car business.

“We have been approached by third parties who are interested in exploring future possibilities'’ for the 600- horsepower, 10-cylinder car, Chief Executive Officer Bob Nardelli said today in a statement, without elaborating. The Auburn Hills, Michigan-based company hired Lazard Ltd. as financial adviser in the review of options for the business.

“My bet will be they will definitely be able to unload it,'’ for a price of “maybe $100 million,'’ said James Gillette, an automotive consultant at CSM Worldwide Inc. in Grand Rapids, Michigan, who does asset valuations for customers.

Selling the Viper might help the third-largest U.S. automaker raise cash to help ride out a 23 percent decline in U.S. sales this year through July. The closely held company sold $647 million in assets this year through May 28, according to a June presentation by owner Cerberus Capital Management LP.

Chrysler May Sell Viper Car Business, Hires Lazard - bloomberg.com

Battered by high gasoline prices and weakened earnings, the Big Three auto makers and their suppliers are now seeking significantly more help from Washington in the form of government-backed loans than the $25 billion they had previously been authorized to receive.

The $25 billion in loans were approved as part of an energy bill last year, but now General Motors Corp., Ford Motor Co. and Chrysler LLC will need “well north” of that, a GM spokesman said. The loans have yet to be funded. Following an extreme run up in gas prices that has crushed U.S. vehicle demand, auto executives are now making the case that Detroit could need far more money in order to fund critical initiatives.

“This is not really a bailout,” David Cole, president of the Center of Automotive Research in Ann Arbor, Mich. said. “This is actually more like the government acting like a banker as it begins to look at the major consequences of a major failure in the auto industry,” he said.

Big Three Auto Makers Seek More Help From Washington - wsj.com

So our US tax dollars will go to help private equity companies, high paid executives, and complacent middle management be more successful?

Will the US also provide billions to Tier 1, Tier 2, and Tier 3 automotive suppliers as well? They are being squeezed by high commodity prices and low cost competition as well.

How does everyone feel about the government loan request? Will the Big Three put it to good use or squander it?

Congrats to Ralph on the new promotion!

From the article: “One of the industry’s rising stars, Ralph Gilles, is now at the top of Chrysler design.

He takes over the reins of the No. 3 U.S. automaker’s design operations Sept. 1, following the retirement of Trevor Creed, senior vice president of design.

Gilles, 38, has been instrumental in a number of Chrysler’s most eye-catching designs in recent years, including work on the Chrysler 300, Dodge Charger, Magnum and Viper.”

Ralph Gilles to head Chrysler design; Trevor Creed retires Aug. 31 - autoweek.com

Looking back at my Top 10 Prediction for 2008 post, my record is still mixed. It will be interested to see how the rest of the year plays out.

10. Trevor Creed will resign from Chrysler. Ralph Gilles will replace Creed as senior vice president of design for all three brands.

9. Chrysler will kill the Aspen, Commander, and Compass, and Dakota.

8. The Journey will be a dud.

7. It will be the year of the “end of cheap plastic interiors”. All new cars and trucks will feature competitive interiors thanks to Jim Press’ efforts.

6. The 2009 Dodge Ram unveil will be a non-event at the Detroit Auto Show.

5. A major Chrysler asset will be sold in order to shore up cash for new Product Development.(Chrysler Financial, GEM, or Mopar)

4. A youth brand will be introduced as a concept. The products will be imported from China.

3. A long term roadmap to rationalize the product lines will be leaked (Chrysler will be cars, Dodge trucks, and Jeep off-road).

2. Chrysler will accept a cash infusion from foreign investors (Chinese or Middle Eastern investors).

1. Chrysler will unveil another muscle car as they continue to see overwhelming demand for the Challenger.

From the article: “LaSorda said that the privately held auto maker plans to expand and upgrade the Jefferson North Assembly Plant in Detroit, including a new body shop. He said that the move will keep more than 400 jobs in Michigan.

According to the company’s Web site, the plant manufactures the company’s Jeep products and Mr. LaSorda said the facility will see a 285,000-square-foot expansion. In a radio interview this morning, Mr. LaSorda said that the new Jeep coming to market would replace its Grand Jerokee. He didn’t say when the vehicle will be introduced to the market.”

Chrysler to Make Investment
In Detroit Plant for New Vehicle - wsj.com

From the article: “According to Bragman, Chrysler doesn’t have the reserves, sales volume and international presence to compete in the current climate and so may begin “moving away from manufacturing their own cars.” Such predictions may be coming closer to reality. The Wall Street Journal reports Chrysler and Nissan are talking about working together on a mid-size car in hopes of boosting a segment where Chrysler’s Dodge Avenger and Chrysler Sebring have been outsold by the class-leading Camry and Accord almost 7-to-1.

Clues that Chrysler is preparing for a sale or a merger have been a long time coming.

First of all, Bragman says, the company’s taken the unusual step of announcing operating profits and cash on hand. Such an announcement is not required for a private company but may be used to court a potential buyer or partner. Chrysler is saying they aren’t for sale, but “that’s what they’d be expected to say,” Bragman tells us. “As soon as there are sale talks, customers would start to abandon Chrysler in droves.”

Chrysler seeks a savior - portfolio.com

From the article: “Chrysler LLC’s manufacturing chief says the company is working with great energy and speed to fix its quality problems, but the payoff hasn’t shown up yet in external quality studies.

Frank Ewasyshyn, executive vice president of manufacturing, said Monday that many problems reported in such studies have to do with perceived quality issues, such as ride and handling, or interiors with too many hard surfaces. In each case, the company is working hard to fix the problems, he said.

The number of actual mechanical problems has dropped and is much lower than it has been in the past, he said.

“We’re getting better,” Ewasyshyn said in an interview Monday at the Center for Automotive Research Management Briefing Seminars, a weeklong auto industry conference in Traverse City. “We’ve got work to do, there’s no question about that.”

Quick basic question: Did you have a plan under Daimler’s leadership? Or did you just kinda wing it?

Chrysler exec says company working on quality - businessweek.com

From the coverage: “Numerous changes have been made to the Patriot’s interior, with new chrome accents, a carpeted load floor, illuminated cupholders, new MyGIG radios, soft-touch armrests, a new instrument panel, new door trim, and a new center console; the 2.4 PZEV engine is now on all front wheel drive models with the customer-preferred option packages. This addresses the major shortfalls of the Patriot and should make it much more popular if the word goes out. We only released these images because 2009 Jeep Patriots started showing up on dealer lots and other outlets have already released images. We may have more detail and photos after September 1. ”

The Jeep Patriot - allpar.com

From the press release: “Chrysler kicked off the annual Woodward Dream Cruise today at Duggan’s Irish Pub with the introduction of a special-edition PT Cruiser. Announced in conjunction with Detroit’s famed Woodward Dream Cruise, the new 2009 Chrysler PT Dream Cruiser Series 5 will be available this fall as a limited-production version of the 2009 Chrysler PT Cruiser.
“Chrysler PT Dream Cruisers are about individuality and uniqueness, and for 2009 we modernized our next factory-customized edition,” said Larry Lyons, Vice President – Car and Minivan Product Team, Chrysler LLC. “The new 2009 Chrysler PT Dream Cruiser Series 5 embodies a contemporary theme with a distinctive two-tone exterior and the use of unique exterior and interior materials.”

Chrysler Kicks Off Woodward Dream Cruise With Introduction of New 2009 Chrysler PT Dream Cruiser Series 5 - chrysler.com

From the article: “hrysler LLC is in talks with Nissan Motor Co. about jointly producing midsize cars, a partnership that would move the U.S. auto maker toward a radical new business model.

The two companies agreed earlier this year to team up on pickup trucks and subcompact cars. Since then, they have been discussing an agreement under which Nissan would produce midsize sedans that Chrysler would sell in the U.S. under its own name, people familiar with the matter say.”

A partnership with Nissan on midsize sedans would put Chrysler on a path to becoming a marketer and seller of cars made by others. Under its earlier agreement with Nissan, which is based in Japan, Chrysler will start selling a subcompact car made by Nissan by about 2011. Chrysler also has a deal under which China’s Chery Automobile Co. will make small cars for it.

Chrysler, Nissan in Talks To Team Up on Key Cars - wsj.com

Check the photos below of the new 2009 Jeep interiors.

Source: Allpar Forums - allpar.com (Registration Required)