Is the Chrysler Gas Deal Really a Deal?

Say what you will about Chrysler, but you can’t fault its marketing department. In a world staring down an impending $4 gallon of gas, Chrysler’s latest incentive program — in which the automaker offers to pay any cost over $2.99 a gallon for gas over three years — is a brilliant marketing strategy. It sounds great, right? Cheaper gas! But is it actually a deal?

Turns out, the answer is yes only when compared to Chrysler’s own newly reduced incentives. Given the choice of the gas deal or $1,000 cash back on new 2008 models, consumers would be wise to select the gas. If Chrysler had kept its old incentives, however — which featured up to $2,500 cash back on selected car models — Let’s Refuel America wouldn’t come close.

The math is slightly convoluted, but let’s do it anyway.

Chrysler Execs Phone Your Home

Starting next week, Chrysler is going to get serious about quality.

That's when each of its top 300 executives will get on the phone and call a customer who recently bought a Chrysler, Dodge or Jeep vehicle and ask a simple question: "Having any problems?"

This won’t just be one call to one person, then a toss of the cell phone into the drawer, either. Those 300 executives are going to call one customer a day every day until Chrysler chairman and chief executive officer Bob Nardelli is satisfied that if his customers have troubles, their problems will be fixed. Nardelli, by the way, is going to make the calls, too.

Some Chrysler, Dodge, Jeep Incentives Beat Employee Deals

We’ve been covering the rollout of April incentives this week, and so far the deals coming from Chrysler, Dodge and Jeep are the most jaw-dropping. The weak economy and double-digit sales slump in March spurred major incentive spending from Ford, while GM has kept incentives about even for the past few months. Chrysler, however, has incentives so large that, in some regions, they even beat the radical employee discount sale from the summer of 2006.

Not surprisingly, the biggest numbers are on large trucks and SUVs, with the Dodge Ram half-ton sporting a $5,500 cash-back offer. The Dodge Durango and Chrysler Aspen have $2,500-$3,000 cash back, while the Jeep Commander and Grand Cherokee have between $3,500 and $4,000 cash back. Those prices don’t quite match the 2006 employee pricing deals of $6,000 in some cases, but they’re nothing to sneeze at.

If you’re looking for an inexpensive car, though, there is significant savings on the company’s lowest-priced models. The Chrysler PT Cruiser is seeing between $1,500 and $3,000 cash back, dropping the MSRP of $15,685 to $12,685 or 19% off. At the height of employee pricing, the PT saw just $1,084 off.

What’s that you say? The PT is an aging model? What about something newer, like the Dodge Caliber? That’s getting $1,000-$2,000 off, with added regional cash back of $1,000 in some areas. That drops MSRP from $14,580 to $11,580 or about 21% off.

Our ultimate pick, though, would have to be the Dodge Magnum, which is being discontinued. It’s still a lot of car for the money, especially with some regions seeing total cash back of $4,000, with $2,000 in additional regional cash-back. That drops the $24,120 MSRP to $18,120 or almost 25% off. 

There are a lot more cash-back offers on these brand’s entire lineups, broken down below, along with the fine print.

Chrysler Tapping Customers for Feedback

While domestic automakers are reducing their employee ranks, Chrysler is looking for a few good men and women to join its company — 2,000 of them, to be exact, to serve on the industry's first Online Customer Advisory Board.

Chrysler spokeswoman Carrie McElwee said that while automakers spend lots of time and money on consumer focus groups to gather information about future products, "focus groups usually are used one time for one product.”

“The advisory board is for ongoing dialogue between the company and consumers, with members serving for several months at a time," she said.

Weekend Athlete: 2008 Jeep Patriot

I took the Patriot out for a test recently, and it didn't score any better than its Dodge cousin, the Caliber. That's a shame, because I'd hoped a Jeep product would skew a little more toward the outdoors enthusiast than a Dodge. Still, it's a wagon-like vehicle and that means it has a few nice touches up its sleeve.

Weekend Athlete: 2008 Jeep Commander

I usually leave the three-row SUVs to the Suburban Dads who need them, but I thought the Commander might be fun. By and large, things worked as well as you’d expect with a large vehicle, but there are a few things Commander-shoppers need to examine before they buy.

Cars.com Reviews the 2008 Jeep Commander

Expert reviewer Kelsey Mays takes on the 2008 Jeep Commander with a warning for potential buyers: Check around. Although the Commander may be the perfect car for you if you're planning on trekking over mountain roads or through heavy weather, if you don't need to haul 7,000 pounds on a regular basis, you may want to keep shopping. Read Kelsey's full review on Cars.com.

2008 Jeep Commander Expert Review (Cars.com)

Friday Fleet Notes: 2.29.08

This week, we have input from staffers on multiple vehicles, including the Mazda RX-8, Jeep Patriot, Subaru WRX STI and the always-coveted Chevy Malibu. Check out what our staff had to say, then take a look at our latest Expert Reviews for each vehicle for more in-depth coverage.

2008 Honda Odyssey

• Unlike many minivans, the Odyssey doesn't forget about the driver. The V-6 engine is a smooth performer, and the van's responsive handling is much appreciated. Cabin quality is impressive, and seat comfort is good in all three rows. If I were shopping for a minivan, I'd spend my money on this one. – Mike Hanley, Cars.com reviewer

Chrysler, Dodge and Jeep Brands to be Sold Under One Roof

How's this for astounding: Chrysler has announced a major initiative designed to eventually bring Chrysler’s three brands — Chrysler, Dodge and Jeep — into single storefront dealerships. The plan is called "Project Genesis," and was announced to dealers over the past few weeks.

We’re not sure where the company came up with the name Project Genesis, but if you saw "Star Trek II: The Wrath of Khan," the Project Genesis in that movie destroyed a dead and lifeless planet and turned it into a lush new world. Do you see where we’re going with this?

This move is also reminiscent of GM’s recent decision to make all GMC, Pontiac and Buick dealers consolidate under one umbrella. The difference of course is scale. Those three brands are not GM’s biggest sellers, and offer varied types of vehicles, while Chrysler, Dodge and Jeep are significant brands. Getting dealers to agree to the move may prove difficult and it could take a lot of time.

It also makes us wonder at how closely-related products like the Dodge Caliber and Jeep Patriot, or the Chrysler 300 and Dodge Charger, will be sold under the same roof. Despite that, we think most shoppers won’t mind getting to see more vehicles during one stop on their car shopping trip.

Update: CNBC is reporting that Chrysler will slash half of its product line-up as part of the new plan.

Related
Chrysler Discounts, Adds Value to 12 Models, Starting Today (KickingTires)

Chrysler Discounts, Adds Value to 12 Models, Starting Today

Chrysler has had a number of big-name new model introductions over the past few years, including redesigned versions of big sellers like the Chrysler Sebring and Dodge Grand Caravan. There’s just one problem: They’re not setting the world on fire. In a stagnant car market, some of the company’s models are at the bottom of the barrel. To help spark some interest, Chysler announced added content to many models across Chrysler, Dodge and Jeep while using a new ad campaign called "New Day" which will debut during the Super Bowl on Sunday.

When we first heard about this story, we made a joke in the office of “Free MyGigs for everyone!” and that actually seems to have come true, along with other options like Stow N’ Go being added standard to base model minivans. Below are the changes you’ll be seeing, copied directly from Chrysler’s press release. We normally don’t copy press materials because the language can often be misleading to consumers. You’ll just have to judge if the “value” numbers add up for you. If these features would make you consider heading into a dealership, let us know in the comments below.

Chrysler Updating 12 Models in February

Next week, Chrysler will launch a promotion called "New Day Celebration" in which 12 vehicles have been earmarked to get 56 new or upgraded features, ranging from optional equipment made standard to deeply discounted "value" option packages.

Chrysler wouldn't say which vehicles will get what changes. Those details will be announced next week, but vehicles with the new features and options will be displayed at the Chicago Auto Show, which opens Feb. 8.

As an example, however, Stow ’n Go seats that weren't even offered in the base Dodge Grand Caravan SE minivan will now be standard. Also, the base Dodge Charger SE Plus will newly offer a package including a 3.5-liter V-6 upgrade from the 2.7-liter V-6 engine, plus Sirius Satellite Radio and 17-inch cast aluminum wheels. The Charger will also get a new "cool vanilla" body color in response to customers who've asked for more subtle colors.

Chrysler also plans to upgrade the interior cabin materials in several of its vehicles over the next year. There have been reports that the Jeep Compass and Patriot, for example, will get softer armrests, but Chrysler wouldn't confirm that.

2008 Detroit Auto Show: Jeep Renegade Concept

• Looks like: A dune buggy, plain and simple
• Defining characteristics: Open roof, barely-there doors
• Ridiculous features: Interchangeable rear deck lids for storing different outdoor gear, like kayaks or … water scooters?
• Chance of being mass-produced: About the same as Britney retaining custody of her kids

Jeep’s Renegade concept takes green traveling outdoors. The dune-buggy-inspired concept features an electric-diesel hybrid engine that would bump the rock-crawler’s range to 400 miles when fully charged and filled with diesel. The company says its equivalent fuel economy would be roughly 110 mpg.

The electric motor would produce 268 hp, with another 115 hp coming from the diesel engine. Torque numbers would have to be pretty impressive, as well. Of course, there’s a 4x4 system too, to live up to the Jeep moniker.

There’s a roll bar but no roof — not even a canvas number, like a Wrangler has. Instead, Renegade owners — if it ever went on sale — would get a choice of rear deck lids they could install depending on their activities. Lids for mountain bikes, kayaks and dual water scooters are all envisioned.

Check out the photos below. 

Video: 2008 Jeep Wrangler Rubicon

Kelsey Mays had the arduous task of finding some offroad terrain in downtown Chicago for this video, and we have to say we’re impressed with his location scouting. Perhaps he has a future in Hollywood. He also gives a terrific overview of the recently redesigned Wrangler’s capabilities, and a few negatives about living with the Jeep day-to-day.

Mini, BMW, Infiniti Top Best Resale Value List

Our list of the cars, trucks and SUVs with the best resale value has just been updated, and a lot of familiar names top the list. When we break down resale values by segment, the Mini Cooper, Honda Accord, Infiniti G35/G37, BMW 5 Series and GMC Sierra/Chevy Silverado top their respective segments.

When you take a look at the top 10 resale values overall, it’s the Infiniti G35/G37, Jeep Wrangler and BMW 3 Series taking the top three spots, knocking the Mini Cooper off its previous No. 1 perch.

Which cars rank lowest? The Mazda B2300, Ford Ranger and Suzuki Forenza top that dubious list.

Check out the full rankings below. 

Best Car Resale Values by Class
Best Overall Car Resale Values
Worst Overall Car Resale Values

Video: 2008 Jeep Liberty

Two weeks ago I delivered my review of the all-new 2008 Jeep Liberty. Now there’s video proof of me in said SUV. OK, so what does the video prove? Not much, but now you can see for yourself whether my assessment of the new Jeep was on the money or not.

Friday Fleet Notes: 11.30.07

Cars.com’s notes from our test fleet return after an extended break due to the L.A. auto show and Thanksgiving holiday. That means we had some good impressions built up on a number of recently reviewed cars and SUVs including Chevy's all-new Malibu.

2008 Jeep Liberty

• I was wowed by the extra-large ragtop sunroof, and the airlock-like sound you get when that top closes. It opened up, letting a lot of sunlight into the car, and gave it a near-convertible feeling. That said, the driving experience left me feeling like I was hovering over the wheels, not really attached to them — just kind of bobbing up and down on the suspension. I didn’t feel directly connected to the road, and there was some pretty noticeable lean in turns. — Patrick Olsen, managing editor

2008 Detroit Auto Show: Eco-Friendly Chrysler, Dodge, Jeep Concepts

Chrysler unveiled sketches and preliminary details of three concepts it will show at the 2008 Detroit auto show in early January. All three feature some form of alternative energy powertrain, and all appear to be classic “concepts,” meaning there's little chance they’ll be produced.

Cars.com Reviews the 2008 Jeep Liberty

Jeep’s Liberty SUV was one of the vehicles that spurred the term “cute-ute,” and it was one of the most popular choices in the segment. With a new design for 2008, the Liberty definitely sheds its cute image for a bit more of Jeep’s well-known rock-crawling attitude. I took the Liberty for a week of thorough on-road testing to see if it lives up to the much-beloved SUV it replaces. Check out the review and tell us what you think.

2008 Jeep Liberty Expert Review

Jeep Expands Diesel Grand Cherokee Offerings, Drops Price $1,000

Jeep was one of the first major brands to release a diesel vehicle in the wake of new clean diesel fuel with last year’s 3.0-liter V-6 diesel in Grand Cherokee Limited and Overland trims. For 2008, the company will add the power plant to the Laredo X packages and drop the price on the existing diesel trims by $1,000.

The V-6 diesel engine gets 18/23 mpg city/highway in 4X2 models and 17/22 mpg in 4X4 models, versus the standard V-6 gasoline engines’ 15/20 and 15/19 mpg, respectively. Of course, with 376 pounds-feet of torque, the diesel could also be compared to the V-8 Grand Cherokee, which has 375 pounds-feet of torque and sucks down unleaded at a clip of 13/19 and 13/18 mpg for 4X2 and 4X4 models, respectively. The diesel also tows 7,600 pounds, versus the V-8’s 7,400 rating. While the diesel does have improved emissions, it does not meet the strict requirements of eight states including California, Maine, Massachusetts, New York, Vermont, Connecticut, Pennsylvania, and Rhode Island. We're unsure if that makes it truly a clean diesel or not.

Full pricing is below.

Pacifica, PT Cruiser, Magnum Could Get Ax Today

A few weeks back, we told you about rumors circulating that Chrysler would cease production of a number of models. Today, the board of Chrysler is meeting to decide the fate of a number of models, and The Detroit News is reporting that the Chrysler Pacifica, PT Cruiser and Dodge Magnum will assuredly be getting the ax, and the Jeep Commander will be on the table as well.

While we don’t mind seeing the PT Cruiser go, both the Pacifica and Magnum were unlike anything else on the market for their time and deserve a second chance. We’d guess the new Dodge Journey will get a Chrysler spinoff to replace the Pacifica, otherwise Chrysler might be missing the boat and losing some loyal fans of the crossover. Again we poll you, our readers, to see if this is the right batch to kill off. And we’ll get confirmation as soon as possible on which models are indeed no longer for this world.

Chrysler to Dump Three Slow-Sellers (The Detroit News)

Chrysler Killing Models: What Would You Euthanize?

Ever since Chrysler changed ownership earlier this year, the new owners have been trying to turn things around, and quick. Today, comes news — or really well-sourced rumors — that the company is looking to cut up to five models in its Chrysler, Jeep and Dodge lineups. That could be particularly meaningful for UAW members, whose new contract only ensures their jobs as long as the product they’re working on is being built. There has been talk about dissent over the Chrysler contract, and UAW members at Chrysler will vote on that new contract soon. This news could make winning that vote harder for Chrysler.

The Detroit Free Press story mentions the Chrysler Pacifica, Dodge Dakota, Jeep Commander and Jeep Compass as likely candidates while the Chrysler Sebring and Dodge Durango are also up for review. We wouldn’t miss any of those vehicles, but a new Pacifica would probably compete well in an auto landscape now full of crossovers that mimic its layout and usefulness. 

That’s what Chrysler is reportedly thinking of axing, but we figured we’d poll our readers to see if they agree with the above or have ideas of their own. Sound off in the comments. 

Chrysler Set to Ax Models (Detroit Free Press)

Some SUVs Don't Hold Up in Side Crash Tests

The Insurance Institute for Highway Safety’s latest round of crash tests focused on midsize SUVs, and most of the vehicles tested didn’t do nearly as well as sedans and similarly sized crossover SUVs. The results will no doubt spark more debate among the bigger-is-safer and the get-your-land-yachts-off-the-road segments of the population.

The common thought is that the bigger the vehicle you’re in, the safer you are in an accident. There have been various studies to back that up that compare the number of road casualties to the types of vehicles involved. What IIHS discovered is that many popular midsize SUVs, including the Jeep Grand Cherokee, Nissan Pathfinder, Nissan Xterra, Chevy TrailBlazer, GMC Envoy and Saab 9-7X, rate Marginal side-impact scores. The two Nissan's did earn Good scores when equipped with optianl side airbags. The others came standard with side airbags. Most of the SUVs tested also didn’t do well in rear crash tests, and none earned a Top Safety Pick award from IIHS.

Interestingly enough, the vehicles tested were truck-based. Car-based crossover SUVs, including the Ford Edge, Subaru Tribeca and Honda Pilot, have gotten IIHS’ Top Safety Pick nod. Check out the full crash results below.

Chrysler Going All Alt-Fuel, Eventually

New Chrysler head honcho Jim Press says alternative-fuel versions of every Chrysler, Dodge and Jeep model will eventually find their way to dealer lots. The former Toyota man isn’t giving a time frame for all these earth-friendly mobiles to go into production, but he does list potential drivetrains, including diesels, plug-in hybrids, diesel hybrids, fuel-cell hybrids and standard gasoline hybrids. Not mentioned is ethanol or other biofuels, but we’re not sure if that's an oversight by the original author of the story, or by Press himself, or if the company simply isn’t considering them at all.

Last month, Chrysler launched a new division called Envi — short for environment — to help speed up implementation of new green vehicles for the company.

Chrysler's James Press: Every Model to Offer Alternative-Fuel Version (The Detroit News)

Jeep Recalls SUVs Due to Faulty Brakes

Jeep is recalling 28,755 Commanders and Grand Cherokees from the 2007 and 2008 model years to replace front-brake parts that can fail. Both SUVs could have brakes made of the wrong type of metal, which can fracture, making the time it takes to stop increase to an unsafe rate. No accidents or injuries have been reported.

The Jeeps included in the recall were made between May 17 and July 13 of this year. Brakes will be replaced at no cost, and concerned owners can call 800-853-1403 for more information.

This follows on the heels of last week’s recall of more than 156,000 Grand Cherokees and Commanders for other brake issues.

Chrysler Recalls Jeep SUVs to Replace Brake Parts (Bloomberg)

Nearly 300,000 Dodge, Jeep SUVs Recalled

Chrysler announced today that it’s recalling almost 300,000 SUVs from the 2006 and 2007 model years due to potential brake problems. This includes more than 156,000 2006 and 2007 Jeep Grand Cherokee and Commander SUVs, more than 90,000 2007 Jeep Wranglers and almost 50,000 2007 Dodge Nitro SUVs.

There have been 20 complaints about the SUVs’ brakes, which suffer from a delay in braking while going uphill. Chrysler will reprogram the computer that controls the antilock braking system.

The company is also recalling more than 72,000 2008 Dodge Avenger sedans and Chrysler Sebring convertibles due to faulty front door latches and locks. There were no reported incidents from that recall.

Notices will be mailed out in coming weeks, but owners can call 800-853-1403 for more information.

Chrysler Recalls Nearly 300,000 SUVs to Fix Brake Problem (The Detroit News)

Chrysler Announces Lifetime Powertrain Warranty

Minutes ago, Chrysler announced it would offer a lifetime powertrain warranty on all of its new Chrysler, Dodge and Jeep vehicles. A powertrain warranty covers the engine, transmission and drive system of a car, but is separate from a bumper-to-bumper warranty. Chrysler says this will include parts and labor.

This is an unprecedented move in the automotive industry. GM recently announced a 10-year powertrain warranty, and foreign nameplates like Hyundai, Kia, Suzuki and Mitsubishi also have 10-year warranties.

Owners must go through an inspection process every five years, at no cost, to maintain the warranty. The warranty is non-transferable so used car buyers will be out of luck. The warranty also excludes all SRT high-performance models, diesel vehicles, Sprinter trucks, Ram chassis cab and certain fleet vehicles. We’re still waiting on word from the company and will update this post when we learn more.

Related
Making Sense of New-Car Warranties (Cars.com)

Chrysler Adds More Cash Back in July

Chrysler Group incentives — especially on the Dodge Ram 1500 regular cab — are already among the highest the summer has to offer, but that hasn't stopped the manufacturer from rolling out some additional cash-back offers for the rest of July.

Most Dodge, Jeep and Chrysler models have received a cash-back offer in tandem with current financing offers, allowing customers to choose low-rate financing plans with a new cash bonus. For example, those interested in the Dodge Durango now have the option of $4,500 cash back, or 0% financing for 60 months plus $1,000 cash back. All offers expire July 31.

Check out the full incentives for Chrysler, Dodge, Jeep and other manufacturers at Cars.com's Incentives page.

2008 Jeep Liberty Prices Announced

In a continuing trend from the Chrysler Group, Jeep has announced pricing for the all-new 2008 Jeep Liberty, and it’s less than the outgoing model’s MSRP — roughly $1,000 less on some models. Jeep, of course, is touting the new Liberty’s additional standard features that appear to make the value even higher. The base Jeep Liberty Sport will start at $20,330, not including $660 in destination charges.

Side curtain airbags, electronic stability control, rollover mitigation, traction control, brake assist, antilock brakes and a tire pressure monitoring system are all standard. The new Liberty is very similar to the Dodge Nitro, which has a truck-like ride — something Jeep fans might enjoy. The Liberty also features an optional cloth sliding roof called the Sky Slider, at a $1,200 option price.   

Full prices are below.

2007 Jeep Wranglers, Dodge Nitros Recalled

The redesigned 2007 Jeep Wrangler has been a significant sales success for Chrysler. Too bad it’s back in the news for a recall. Tuesday, Chrysler announced that 80,895 2007-model-year Jeep Wranglers and Dodge Nitros will be recalled to fix faulty power modules that could lead to engine stalls.

Wrangler owners had complained of engines stalling at highway speeds, which is a significant problem. In February, Chrysler recalled the same two models, along with many others in the Chrysler family, for faulty antilock brake software.

Owners should receive notification in the next week, and Chrysler will reprogram the power module at no cost.

For more information, owners can call Chrysler at 800-853-1403.

Chrysler to Recall Jeep Wrangler, Dodge Nitro Over Engine Stalls (The Wall Street Journal)

Related
Two Chrysler Recalls: 50,000 New Cars, 86,000 Dodge Rams (KickingTires)
Most Recalled 2006 Models (KickingTires)

2008 Chrysler Preview in Pictures

Last week, Cars.com visited Michigan to check out Chrysler’s upcoming products for 2008, and we even got to drive some concept cars. Cameras were in hand, so we put together quite a photo gallery of a number of vehicles, including the Dodge Challenger concept and its evil black twin, crafted by Mopar.

We also learned that the upcoming Dodge Caliber SRT4 will produce 280 hp instead of the 300 hp originally stated when it debuted at the Chicago Auto Show in 2006. Yes, more than a year ago and we still don’t have a solid release date. Check out the gallery below, and tell us what you think of Chrysler’s future in the comments.

Chrysler Preview Photo Gallery

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Cars.com Video: Driving the Dodge Demon (KickingTires)
New Drivetrains, Hybrids Coming From Chrysler (KickingTires)
First Drive: 2009 Chrysler Aspen Hybrid (KickingTires)

New Drivetrains, Hybrids Coming From Chrysler

Long criticized for its truck-heavy lineup and low gas mileage, Chrysler says fuel-efficient engines and transmissions, including a few hybrids, are in store. In addition to the hybrids, there will be a new family of V-6 engines, a dual-clutch transmission and more diesels, product development executive Frank Klegon said at a media event in Michigan today. Details include:

More-efficient V-6 engines. Chrysler’s upcoming “Phoenix” V-6 engines will feature cylinder deactivation and variable valve timing. Expect gas mileage improvements of 6 to 8 percent. They’ll likely replace the current 3.5-liter and 4.0-liter V-6s, whose fuel efficiency isn’t exactly at the head of the pack. The 2008 Dodge Avenger gets 16/26 mpg with the current engine.

2007 Jeep Wranglers Under Investigation

The National Highway Traffic Safety Administration is launching an investigation into 2007 Jeep Wrangler and Wrangler Unlimited models due to reported instances of engine stalling at highway speeds. The government agency has received 53 complaints of both two- and four-wheel-drive models losing electrical power and lighting.

The 2007 Wrangler has been a huge success for Jeep since its launch last year.

Report: NHTSA to Probe Jeep Wrangler Stalls (The Detroit News)

Related
2007 Jeep Wrangler Expert Review (Cars.com)
More Jeep News (KickingTires)

Friday Fleet Notes: 05.18.07

This week we get some feedback from the staff on the recently reviewed 2007 Kia Rondo, as well as a summertime treat in the Pontiac Solstice GXP. Two of our staffers turned out to have radically different impressions of the little roadster.

2007 Kia Rondo

One of the Rondo's most impressive features is how open and airy the cabin feels; visibility is exceptional in all directions. The flipside, though, is that after driving the Rondo for a while you begin to feel like you're piloting a giant fish bowl because pedestrians have an equally good view inside the car. Subaru's Forester provides a similar experience, but it's one we're seeing on relatively few new cars these days.

• Mike Hanley, Cars.com reviewer

Chrysler Sale: What it Means to Consumers

The big news today is the official announcement that DaimlerChrysler will sell the Chrysler Group to private equity firm Cerberus Capital Management for $7.4 billion before the end of the year. This is the first time a private equity firm has bought an automaker and employee concerns naturally stem from the slash-and-burn tactics often employed by such firms.

Cerberus already owns a majority stake in General Motor’s financial company GMAC — for which it coincidentally also paid $7.4 billion last year — and the most logical step of the Chrysler purchase would be to merge Chrysler Financial and GMAC to help reduce costs. For car owners, that could mean a change to the logo on their statements, but unless Cerberus decides to sell one of the three Chrysler Group brands — Chrysler, Dodge or Jeep — there shouldn’t be a significant change for consumers, at least right away.

However, the speculation is that the private equity firm’s penchant for cost-cutting will affect the dealer network of all three Chrysler brands, and it may well mean that the firm will seek concessions from its unions.

We wonder how future vehicle development will progress, since so many recent Chrysler products were partly developed in conjunction with Daimler’s Mercedes-Benz.

Friday Fleet Notes: 05.11.07

This week we get some new blood into the reporting, namely our multimedia producer, Eric Rossi, who drove a Subaru Forester XT up to Wisconsin loaded with gear and some of our staff. He probably wanted to drive the new Nissan 350Z a bit more, but he still gives some interesting insight on the Forester’s long-haul attributes. The rest of us weigh in on the Volvo C70 and Jeep Patriot.

2007 Volvo C70

The C70 has impressed us before (we named it our Play Car of the Year for 2007), and I was thrilled to get the chance to drive it on a long-distance trip. I was a little worried about what it might cost at the pump, because the heavy car moved spiritedly, but those fears were not realized. Driving at highway speeds for more than three hours, I was able to get 29 mpg in the C70.

The C70 had great acceleration, handled the road well and was very comfortable. Perhaps the best thing about it, considering it’s a convertible, was the lack of wind noise with the top up — way better than I expected. Also better than expected was the visibility in the car, especially considering the low, arcing top, I expected to find blind spots on the sides and limited visibility out the back, but I never felt like it was difficult to see. On the downside, the doors are a little heavy, and getting into the backseat was a challenge for the kids. Still, I wouldn’t hesitate to put this on my list of possible next cars.

• Patrick Olsen, managing editor

Jeep Compass Gets Rallye Package

The new Jeep Compass has gotten a lot of grief for its looks, and considerably more for its on-road driving attributes, from Jeep and non-Jeep enthusiasts alike. Maybe that’s why Jeep is adding a new body kit from its in-house go-fast shop Mopar for what it says is a limited time. Click the photo to the left for a larger image and click here for a side view.

The nice thing is that this isn’t a dealer-installed package, it comes straight from the factory. The cost is $1,850 for the Limited Rallye and $1,985 when it’s added to the less-expensive Sport model. For that price you get:

• Mopar body kit
• Unique 18-inch black aluminum wheels
• Rear spoiler
• Auxiliary driving lights
• Bright exhaust tips
• Chrome badging

Related
2007 Jeep Compass Expert Review (Cars.com)
That Was Fast: Cash Back on All-New Chrysler Aspen and Jeep Compass (KickingTires)
Test-Drive Tips: 2007 Jeep Compass (KickingTires)

2007 New York Auto Show: 2008 Jeep Liberty

For 2008, Jeep is giving the Liberty an all-new look inside and out, along with a radical, optional retractable roof. If the Liberty resembles the Dodge Nitro, that’s because they’re largely the same vehicle. The Jeep sports a 210-hp V-6 and two 4x4 drivetrains, and comes in Sport and Limited trims.

We’d get into all the changes from the past generation, like all the added space and comfort inside, but we’re a bit bummed there aren’t more Jeep-specific touches.

Unlike the Nitro, the Liberty has an optional retractable canvas roof that Jeep calls a Sky Slider, and it looks to live up to its name. We’ve seen similar roofs offered by prominent aftermarket companies on vehicles like the Hummer H3, but this is the first time we’ve seen one from a manufacturer. You’ll also be able to add a rear seat DVD system and the new MyGig entertainment system.

We’ll have more on the 2008 Jeep Liberty later today from the show floor, but for now check out the photos below, including a comparison shot of the Dodge Nitro so you can judge for yourself.

New York Auto Show: 2008 Jeep Grand Cherokee

For 2008, Jeep wants to change the first impression people get of the Grand Cherokee. The front end gets new, round headlights that significantly change the look of the SUV, even though it’s relatively unchanged from last year’s model in every other regard.

The company says the interior is updated as well, but it hadn’t provided any visual proof by press time. If the past is any indication, we’re guessing the interior changes won’t be immediately noticeable to the average car shopper.

Most important about the 2008 Grand Cherokee is the array of engine choices. There are five, including a diesel V-6. The rest are:

• 3.7-liter V-6 – standard on Jeep Grand Cherokee Laredo
• 4.7-liter V-8 – standard on Jeep Grand Cherokee Limited
• 5.7-liter V-8 Hemi – available on Jeep Grand Cherokee Limited, standard on Overland
• 6.1-liter V-8 Hemi – standard on Jeep Grand Cherokee SRT8

The 4.7-liter V-8 is new for 2008 and makes 24% more horsepower while remaining flex-fuel capable.

We can’t get too excited about the Grand Cherokee. The SUV has been a slow seller recently, but maybe the available diesel power plant and new V-8 will make it more appealing. More pictures, including a comparison between the 2008 and the 2005 models (the last redesign), are below. 

DaimlerChrysler Looking to Change Name

DaimlerChrysler AG — the company that owns both Mercedes-Benz and the Chrysler Group, composed of Jeep, Dodge and Chrysler — will take a vote on changing its name back to DaimlerBenz at a shareholder meeting in April.

If you follow financial news, you know there’s been considerable talk of DaimlerChrysler selling the Chrysler Group, and they aren’t hiding the fact any longer. “The Board of Management is authorized to defer notification of the change of name for entry in the Commercial Register until the Chrysler Group is separated from the Group or sold, but not later than March 31, 2008.” Note the word “until.”

In a document published by the company for shareholders, we learn that there’s a definite reason for the name change, too. We just can’t believe what we’re reading: