Chrysler Announces Year-End Incentives

Kicking off today, Chrysler has announced its “Year-end Wrap-up” incentives on 2010 models for all four of its brands. Customers can choose from a few different options depending on which brand of vehicle they are buying. The deals will be offered now until Jan. 4, 2010.

Incentives for Chrysler vehicles include the choices of 0% financing for up to 60 months, consumer cash of up to $3,000, free all-wheel drive for the Chrysler 300, a free DVD entertainment system for the Town & Country minivan and an “attractive” financing rates coupled with a free service program for three years/36,000 miles.

Jeep customers can choose between 0% financing for up to 60 months, consumer cash of up to $4,000, or the same attractive financing rates and free service program for three years/36,000 miles.

Select Dodge vehicles will come with 0% financing for 60 months, consumer cash of up to $2,500 or free all-wheel drive on the Dodge Charger.

Finally, customers looking at the new Ram Truck brand will have the choice of a few combinations of incentives, including 0% financing for up to 48 months, 2.9% financing for 60 months or up to $2,500 of consumer cash. Ram will also offer 0% financing for up to 72 months or $5,500 consumer cash on most 2009 Dodge Ram trucks.

Chrysler Could Lose Another 145 Dealers

As part of its bankruptcy filings, Chrysler terminated 789 dealers, leaving roughly 2,400 shops in the U.S. Now, a credit issue may cause another 145 dealers to close their doors.

Chrysler Financial once backed loans to dealers so they could stock inventory. The company, which is owned by Cerberus Capital Management (Chrysler's former owner), is in the process of terminating all loans to dealers while maintaining its loan business to car buyers. It’s transferring this dealer business to GMAC now; the government is planning to wind down all of Chrysler Financial's business in liquidation by the end of 2011.

To back these new dealer customers, GMAC is asking for more collateral, which is often in the hands of Chrysler Financial in terms of mortgages and other debts the dealers have leveraged.

Sounds like a blast to be a dealer, doesn’t it? The financial wrangling has already led to 85 dealers not getting GMAC financing; another 50-60 dealers are still in negotiations.

Chrysler May Lose 145 Dealers on Lack of Financing (Bloomberg)

Recall Alert: 2007-08 Jeep Wrangler

Chrysler has issued a recall for 161,450 Jeep Wranglers from the 2007-08 model years, according to the National Highway Traffic Safety Administration. The vehicles affected by the recall were manufactured from June 2006-July 2008 and are equipped with an automatic transmission.

These vehicles weren’t equipped with a transmission fluid temperature warning system. Without this system, transmission fluid could boil over and come into contact with a hot engine or exhaust component, which could cause a fire.

Dealers will inspect and install a “hot oil” message in the instrument cluster and a chime indicating an elevated transmission fluid condition. This recall is expected to begin in December.

For more information, owners can call Chrysler at 800-853-1403 or NHTSA’s hotline at 888-327-4236.

2007|Jeep|Wrangler

2008|Jeep|Wrangler

Chrysler Electric Program Still In Place

Despite reports to the contrary, Chrysler says it’s still working on hybrids, plug-in hybrid electrics and battery-electric vehicles. Rumors hit the Internet yesterday that Chrysler was scrapping its electric portfolio and program and had halted plans to bring a trio of electric products to market. However, after contacting Chrysler and reviewing the company’s presentation from last week, it is clear the company is still working on hybrids, work being done as part of a grant from the U.S. Department of Energy. However, it doesn’t look like the three green concepts from last year’s Detroit auto show (shown below) will become a reality, which is not much of a surprise. 

According to the last week’s presentation by Paolo Ferrero, vice president of powertrains — see the chart above — the company will roll out its electric products very slowly, starting with a hybrid Ram 1500 pickup in 2010. In 2011, two pilot programs of plug-in electric vehicles — a minivan and a Ram 1500 — would hit the streets in demo fleets of 100 or so.

Forbes Ranks Top 10 Dirtiest Vehicles

Using air pollution and greenhouse gas emissions data from the Environmental Protections Agency, Forbes magazine has ranked the top 10 dirtiest vehicles on the road.

The EPA gives every vehicle an air pollution score of 0-10 that rates the amount of the tailpipe emissions. It ranks pollutants like hydrocarbon, nitrous oxide, particulate matter, carbon monoxide and formaldehyde; a score of 10 means a car doesn’t emit any of these. The agency also uses fuel economy numbers to rate a car’s greenhouse gas levels — looking specifically at carbon dioxide, nitrous oxide and methane — on the same scale of 0-10.

Forbes combined air pollution and emissions scores to determine the 10 dirtiest cars; it used cars’ combined fuel efficiency ratings to break ties. As you read the list below, you’ll notice that Chrysler vehicles dominate with five of the top 10 dirtiest, while Korean and Japanese automakers do not make an appearance on the list.

The biggest loser is the Jeep Grand Cherokee with abysmal scores of 3 on its air pollutants test and 1 for greenhouse gases. It’s important to note that exotics like Ferrari and Rolls-Royce were not included in this list, and No. 10 on the list, the Dodge Durango, will no longer be produced.

The air pollution and greenhouse gas scores are in parentheses beside the vehicle’s make and model.

The Future Jeep Lineup

Today, Chrysler executives revealed their future plans for the Jeep brand. Prior to the company’s bankruptcy, many considered Jeep the only brand valuable enough to sell off. Now, the company will slowly revamp the lineup, much like they’re doing with the Dodge brand.

Here’s a look at their new commercial.

There weren’t nearly as many specific details given about the new Jeep models or what the major refreshes would include. The most notable new product mentioned is an all-new Jeep SUV based on a very small Fiat model. The company says the entire Jeep brand will be converted to a new architecture by 2013 and ride on front-, all- and four-wheel drive.

Consumer Reports' Top 10 Automakers

Today, Consumer Reports released the results of its annual car reliability survey, which includes more than 1.4 million vehicles. This is one of the most important publications of the year for consumers interested in a car’s reliability. There were few surprises in terms of which makes are most and least reliable, with Scion maintaining the top spot. Porsche, Saab, Suzuki and Pontiac saw the biggest gains while Lincoln and Mini took the biggest hits. Check out Consumer Reports full report if you’re a subscriber. We list the top 10 most and least reliable automakers below.

Fiat to Gut Chrysler Lineup

Update 11/5/09: Fiat and Chrysler have officially announced lineups for the future which directly counter the claims made in the Wall Street Journal story mentioned in the below post. Click on the following links for the formal lineups.

The Future Chrysler Lineup
The Future Jeep Lineup
The Future Dodge Lineup

The Wall Street Journal reported today Fiat’s future plan for Chrysler, a full week before the company is to meet in a closed-door session with analysts and media to reveal its intentions.

The article is striking in its detail and scope of Fiat’s restructuring. Nearly the entire Chrysler, Dodge and Jeep lineups will be replaced in five years by not only Fiat technology and products but also the return of Alfa Romeo as a luxury marquee slated above Chrysler.

We break down the product shifts below.

Speculation Abounds Around Fiat-Run Chrysler

As we near the anticipated early November announcement about the future of Chrysler, news agencies are already speculating about its plans. Today, Reuters reported that Fiat will spin off Ram into its own brand and new, jointly designed Chrysler models won’t arrive until late 2011.

Publications such as Car & Driver magazine have suggested the new models will include a midsize sedan based on a Fiat and branded as the Dodge Avenger and Chrysler 200, which was shown as a concept car at last year’s Detroit auto show.

The redesigned Chrysler 300 and Jeep Grand Cherokee have already been announced and will go on sale at some point in 2010, as will the Fiat 500.

As to the Ram brand rumor, Reuters says its to serve as an umbrella for all of the Dodge trucks. However, with weakening demand for small trucks like the Dakota and sales of the Ram falling behind its Detroit rivals, we’re not sure there is any reason to change the way Dodge sells trucks.

Fiat to create Ram brand, rush new Chrysler models (Reuters)

Chrysler Taking Owner's Manuals Digital for 2010 Models

Chrysler thinks one way to win over car shoppers in the digital age is to take the venerable owner’s manual and make it digital for its 2010 Chrysler, Dodge and Jeep models. That means instead of a ridiculously large book taking up space in your glove box, you’ll get a DVD and a 60-80-page full-color user’s guide. Chrysler says this move will save 930 tons of paper.

We’re just hoping the user’s guide will have that one bit of information you need when you’re stranded and nowhere near a DVD drive — or even if you’re just in your driveway. Chrysler lists the following as included in the guide: