Chrysler, Nissan Talk Joint Car Manufacturing

Chrysler LLC is officially exploring a manufacturing partnership with Nissan to produce the replacement for its Dodge Avenger and Chrysler Sebring midsize cars, known internally at Chrysler as Project D.

"The front-end [research and product design] of the project is done," Chrysler product development chief Frank Klegon said. "Now we're in the process of making the decisions for execution, such as where the platform comes from. We're talking to possible partners. Nissan is one."

The companies already have one joint manufacturing agreement in place, in which Nissan will produce a small car, based on its Versa compact, for Chrysler in South America, and Chrysler will supply Nissan with a full-size pickup, based on the new Dodge Ram 1500, for sale in the U.S. 

The platform candidate for Project D would likely be Nissan's midsize Altima sedan, one of the best-selling cars in the country.

Chrysler Drops AWD from Some Models

Hardly anyone who bought a Chrysler Sebring actually sprung for the all-wheel-drive option. Only .7% of Sebring buyers opted for AWD, likely because it jacks up the sticker price and decreases fuel economy.

This has led Chrysler to announce that it will drop AWD for the Sebring and two other vehicles, the Dodge Avenger and Dodge Caliber, which roped only 1.5% and 4.4% of buyers into adding the option, respectively. The change goes into effect for 2009 model year.

Dealers were having trouble moving AWD models starting at $26,000, but Chrysler is probably wrong that the number of drivers who consider AWD a “must-have” is negligible. Subaru’s all-AWD lineup is seeing record sales and AWD crossovers are still popular. 

Chrysler Dropping AWD on Avenger, Sebring and Caliber (Autoblog)

Chrysler Adds More Cash to Gas Plan Rebates

The Big Three automakers are faced with some pretty remarkable May sales numbers, and not in a good way. Adapting to the new demand for smaller, more-fuel-efficient cars is a long-term process. In the meantime, rebates on trucks, SUVs and vans are flooding automakers’ websites — and none more so than Chrysler’s.

For example, Chrysler is offering $4,500 cash back on the Aspen, or $1,000 plus the three-year Let’s Refuel America $2.99 gas deal. That lowers the price of the full-size SUV down to about $28,000. Check out a list of Chrysler’s incentives below.

Recall Alert: 2007-08 Dodge Avenger, Chrysler Sebring

Chrysler is recalling its two new midsize sedans, the Chrysler Sebring and Dodge Avenger, due to defective electrical connectors. Nearly 181,000 2007- and 2008-model-year cars are involved in the recall, but the company says there have been no accidents involving the faulty equipment.

The bad connectors are part of the tire pressure monitoring system and can corrode and short out, leading to various electrical problems, including stalled engines, dead batteries and failing cruise control systems.

Owners will receive a notice from Chrysler regarding the problem, and dealers will fix it.

Chrysler recalling 181,000 Avengers and Sebrings (Motor Trend)

It's Official: Chrysler Cuts Four Models

Chrysler announced today it will cut four models from its lineup: The Chrysler Crossfire, Pacifica and PT Cruiser convertible, and the Dodge Magnum. The automaker also announced plans to cut some 9,000 jobs at assembly plants that produce a number of other models: the Chrysler 300 and Sebring; Dodge Avenger, Caliber, Charger and Nitro; and the Jeep Commander, Compass, Grand Cherokee, Liberty and Patriot. Though those 11 models – as well as the regular PT Cruiser – will still be sold, expect production to be scaled back. For shoppers, that likely translates to fewer cars with massive discounts clogging showroom floors.

The decision has been coming for several weeks now, with rumors brewing that Chrysler could cut up to five models. The Crossfire and Pacifica have trailed the competition for years, but it’s a shame to see the Magnum go. With the Hemi V-8, it was one fun cruiser. If they’d asked us, we probably would have advised canning the latest Sebring instead – or at the very least taking it back to the drawing board.

Chrysler spokesman David Barnas told us 2008 would be the last year for all four models. That means in about a year’s time there should be some steep discounts to clear the last of them off the lots.

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)

Recall Alert: 2007-08 Chrysler Sebring, Dodge Avenger

No, this isn’t an update of last week’s recall. Chrysler is recalling 102,042 2007-08 model year Chrysler Sebring and 2008 Dodge Avenger sedans with 2.4-liter four-cylinder engines for potentially faulty cooling fan motors. The connectors in the motor could lead to fires; there have been reported incidents, but no accidents or injuries.

This news comes on the heels of two other recent recalls by Chrysler, but the company says this year’s recall numbers aren’t unusually high.

Concerned owners can call 800-853-1403 for more information. 

UPDATE: Chrysler To Recall 102,042 Sebrings, Avengers (CNNMoney.com)

Recall Alert: 2008 Dodge Avenger, Chrysler Sebring

Chrysler will recall 72,333 Chrysler Sebring convertibles and Dodge Avenger sedans from the 2008 model year because of faulty door latches. The front doors of the two models can become stuck in the unlock position, leading to the doors opening in situations when they shouldn’t, namely, crashes. Dealers will install additional parts to ensure that even if the primary latch does fail, the doors will not open.

In a separate recall, the company is recalling 1,158 2008 Dodge Avenger all-wheel-drive models for faulty fuel tank straps. The straps could separate from the body of the car, leading to the tank potentially loosening.

Owners can call 800-853-1403 for more information.

Chrysler Recalls 77,233 Sebring Convertibles, Avengers (Autoblog)

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)

Cars.com Faceoff: Retractable-Hardtop Convertibles

Summer is almost over, and that usually means putting the convertible away for the winter. That’s why many automakers have added retractable-hardtop versions to their lineups. This design allows for all-season driving, and it also makes for a good Faceoff. This year we tackled three cars with vastly different demographics: the Volkswagen Eos, Chrysler Sebring and Mazda MX-5 Miata. It was a tough call because all three cars have such different characteristics, but a clear winner did arise.

Cars.comparison: Retractable-Hardtop Convertibles