Chrysler Resale Values Increase

The increasing resale value of Chrysler vehicles comes as a spot of good news after the automaker emerged from bankruptcy only a month ago, and it’s happened without Chrysler slashing prices.

Chrysler managed to get its inventory down from a 114-day supply when it entered bankruptcy to just a 71-day supply at the end of June (an ideal number is about 60). Detroit inventory lots where Chrysler stores its unsold cars are emptying out for the first time in years, and the company is no longer bullying dealers into taking more cars than they can sell.

As a result, the company’s prices have stabilized at an average transaction price of $25,200. With 25% fewer dealers, the average price will likely grow, given the dealer network — which in some cases was competing against itself — has been cut into leaner form.

Chrysler Back to $4000, $5,000 Cash Back Offers

Now that it’s out of bankruptcy, New Chrysler is offering up some healthy incentives for July. Starting today and running through July 31, select 2009 Chrysler, Dodge and Jeep models will have $4,000 cash back, with an additional $1,000 owner-loyalty cash back. There’s also a credit union program that allows for an additional $1,000 incentive on top of the manufacturer-offered cash back. All told, you could see $6,000 cash back on select models.

Chrysler has not updated its consumer sites with exact details on which models are eligible. When they do, we’ll post those details here.

Cars.com Reviews the 2009 Chrysler Town & Country

When purchasing a minivan, who is it more important to please, the passengers or the driver? Cars.com reviewer Mike Hanley makes the point that if you’re in the market for a minivan, it’s probably because you want an effective way to shuttle your kids around, not because you’re looking to bask in a fantastic driving experience. In this sense, the 2009 Chrysler Town & Country succeeds with a slew of creative features. But about that driving experience — well, read his full review to find out.

2009 Chrysler Town & Country Review

Fiat-Chrysler Deal: What it Means to You

The Chrysler-Fiat deal is done. Today, the Italian automaker is the new owner of the majority of Chrysler’s assets. This clears the way for Chrysler to emerge from bankruptcy, having shed nearly 800 dealerships as well as billions of dollars in debt and labor costs.

Fiat plans to reopen most of Chrysler’s factories by the end of June. The factories were idled during the automaker’s bankruptcy filing. The future looks a lot brighter for Chrysler, but what Fiat cars can we expect to see here in the coming years?

Fiat in the U.S.
Fiat’s small cars will plug a gaping hole in Chrysler’s lineup. However, it will take time to adapt Fiat’s cars to meet U.S. emissions standards and safety requirements; Fiats were last sold in the U.S. in 1983. Some experts say we can expect to see Fiats here again by the end of 2010. According to published reports, here are the Fiat cars that are projected to come stateside.

Supreme Court Won't Block Chrysler-Fiat Deal

After taking a couple of days to decide, the Supreme Court, specifically Justice Ruth Bader Ginsburg, has decided not to block the Chrysler-Fiat deal. The court issued a short statement late today, saying that it was not ruling on the merits of the case, but rather saying that the Indiana funds which were seeking to delay the deal had not proved that it was necessary for the high court to get involved. A deal could be finalized as early as tomorrow morning, experts said.

There had been fear that a delay in closing the deal could lead to its collapse; Fiat had set a June 15 deadline that would let it walk away if the deal was not completed by then. Still, earlier today, a Fiat exec said the automaker was committed to making the deal work, regardless of the completion date. In addition, there were fears that GM's bankruptcy case could have been hurt by a failed Chrysler deal, since the government is using the speedy Chrysler bankruptcy case as a blueprint for the larger, more complex GM bankruptcy.

Also today, the bankruptcy judge in New York approved the plan by Chrysler to jettison nearly 800 dealers. In doing so, the judge said that dealers could file for damages if they wished. In addition, Chrysler said in a hearing today that it would guarantee dealers that it would find someone to take unsold cars off their hands.

Chrysler, Fiat win approval to merge and shed 789 dealers (Detroit Free Press)

Supreme Court Clears Way for the Sale of Chrysler to Fiat (New York Times)

Chrysler Dealers Lose Franchise Agreements

Is today judgment day for Chrysler? While Chrysler and Fiat officials wait to see what, if anything, the Supreme Court will do to their proposed deal, Fiat said that its plan to buy Chrysler is still on even though it can walk away from the deal if it isn’t completed by mid-June.

"Fiat will not walk away from the deal if it isn't completed by the June 15 deadline," a spokesman for the Italian automaker said.

No matter what happens, though, judgment day has arrived for 789 Chrysler, Jeep and Dodge dealerships across the country.

That number represents 25% of the 3,189 Chrysler dealerships in the U.S. Those 789 will lose their franchise agreements today and therefore cannot offer Chrysler’s national sales incentives. This makes it fairly difficult to sell cars in an already depressed market. Dealerships were targeted based on poor sales performance, close proximity to other Chrysler dealerships and not selling all three Chrysler brands.

Update: Chrysler-Fiat Deal Goes to Supreme Court

Today, Chrysler and Fiat plan to close the deal forming a new Chrysler company. However, the deal could be derailed or delayed by the Supreme Court.

Sometime today, Supreme Court Justice Ruth Bader Ginsburg could decide whether to hear an appeal involving Chrysler creditors, brought by three Indiana pension funds that claim they’re getting an unfair shake. If she opts to hear the case, a Chrysler rebirth will have to wait until the case is heard before the full Supreme Court. If the Indiana pension funds were to win, Chrysler could potentially end up in liquidation. The bankruptcy court has set a 4 p.m. EDT closing time for the Chrysler-Fiat deal. We’ll keep you posted on this developing story as more information is made available.

Chrysler-Fiat deal could close today if Ginsburg shuns appeal (Detroit Free Press)

Update: The Supreme Court has issued a stay halting, for the time being, the Chrysler-Fiat deal. They did not give an explanation, or say what their next step might be. We'll let you know more when we know.

Chrysler Announces New Sales Incentives

As it navigates out of bankruptcy, Chrysler has announced several new incentives good through July 1 for Chrysler, Jeep and Dodge vehicles. This includes 0% financing for 60 months on select 2009 vehicles or up to $4,000 consumer cash on 2009 models.

Current Chrysler customers are also eligible for $1,000 of owner loyalty cash on most 2008 and 2009 vehicles, and there’s $1,000 in credit-union bonus cash on certain products for qualified buyers who finance their vehicles through participating credit unions.

Shoppers Still Researching GM, Chrysler Cars

In an interesting twist, we’ve seen consumer interest in Chrysler and GM cars hold steady over the past year on our parent site, Cars.com, even though both automakers have been shedding sales and talking bankruptcy for more than six months.

As of April, searches for new and used GM cars on Cars.com were up more than 5 percent year over year, and they've continued that trend throughout May. Beyond just consumer searches, more Cars.com users have contacted GM dealers asking about a car or truck this year than did last year.

For Chrysler, it’s much the same story. Search activity and dealer contacts were steady through April, and in May the number of consumers contacting Chrysler dealers has been on the rise.

Chrysler, Fiat Sale Approved

Earlier this morning, a bankruptcy court in New York approved the sale of the new Chrysler company — formed from the bankrupt automaker’s healthy parts — to Fiat, the Italian automaker. The union is seen by analysts and government officials as the only way for Chrysler to come out of bankruptcy as a viable company.

The decision comes before Fiat’s June 15 deadline for the alliance. This paves the way for the new Chrysler to exit bankruptcy in the two-month timeframe set by the government, and it could prove a positive sign for GM's own bankruptcy proceedings, which could take twice as long. That would still be blazingly fast for such a complex bankruptcy.

The company also confirmed that Chrysler CEO Robert Nardelli will resign his post. An official replacement has not been named.