Freep.com ran a story today citing an anonymous source that states Fiat CEO Sergio Marchione is planning cuts for certain Chrysler models that use crossover platforms, selling them only under one of the brand names. Workers at one Toledo plant are concerned that Marchione will cut the slower selling Dodge Nitro creating job cuts in an area that is already hurting economically.
“Marchionne has ordered U.S. executives to come up with model cuts so a particular car or truck is sold only under one of the company’s three brands, Chrysler, Dodge or Jeep.
At the 2.1 million-square-foot Toledo North Jeep plant, which makes the Dodge Nitro and Jeep Liberty midsize sport utility vehicles, workers are worried that Marchionne will cut the slow-selling Nitro to focus on the Liberty.”
You knew it had to be coming. It’s Summer and people want Jeep Wranglers. Unfortunately, after Chrysler’s Chapter 11 proceedings, new JK body-style Wranglers are tough to come by. As I look out the window at the Jeep Dealership next door, I can count exactly ZERO new Wranglers on the lot. What’s a Jeeper in need of a new Wrangler to do? In the first good news from Jeep in a while, Bloomberg.com is reporting that Chrysler is boosting 2nd-half production to fulfill demand.
“Chrysler plans to run two plants on overtime and is operating a third shift at another factory to restock dwindled inventory on dealer lots…Chrysler has scheduled overtime at its Dodge Ram truck plant in Warren, Michigan, and a plant in Toledo, Ohio, that makes the Jeep Wrangler sport-utility vehicle.”
So hold on just a little bit longer, folks. Hopefully we’ll have a whole fleet of new Wranglers heading to a dealership near you (that made the cut) faster than you can say Sergio Marchionne!
“A recent shuffle of Chrysler Group’s design team could be just what the company needs to effect a quick turnaround after bankruptcy, industry analysts say. The automaker has promoted three men from within to head design for its Chrysler, Dodge and Jeep brands.”
“Mark Allen, 46, was promoted to head of Jeep design from his previous position of chief of Dodge and Jeep truck design.
Jeep has the most going for it in terms of design, analysts say. Allen’s prime directive will be to preserve and evolve the iconic Jeep look that makes the Wrangler a continued sales success relative to other models in the line-up. “Don’t try to make Jeep what it’s not,” Hossack says. “Don’t be selling these little crossover SUVs that won’t go over anything other than wet grass. Make a Jeep a Jeep.”
Allen is very familiar with Jeep’s design heritage, having worked on the 2007 Liberty and 2006 Wrangler. And he certainly has experience with trucks that can tackle more than a damp lawn, after helping craft the 2010 Dodge Ram Heavy Duty, 2009 Dodge Ram 1500 and 2008 Dodge Dakota.”
Back in February, we’d gotten word that if the Fiat deal with Chrysler went through we’d be seeing a mini Jeep off-roader. Our friends over at Auto Spies have revealed the 2011 Jeep Phoenix 4×4, “a remarkable 1.3litre, 5 door, four wheel drive mini-Jeep that is going to take the North American market by storm, while still getting almost 59 mpg! Based on the Fiat Panda cross 4×4, the Jeep Phoenix is simply rebadged, but completely suited to North American offroad conditions. It is also an exceptional city car that gets far higher mpg than any hybrid on the market, including the Honda Insight and the Toyota Prius. And all that with a convential gasoline engine with no hybrid technology anywhere!”
Will this be the next great addition to the Jeep line-up? Will this be the vehicle that saves Jeep? Do you love it or hate it? Be sure and let us know what you think. -JW
3 litre, 5 door, four wheel drive mini-Jeep that is going to take the North American market by storm, while still getting almost 59 mpg!Based on the Fiat Panda
Cross 4×4, the Jeep Phoenix is simply rebadged, but completely suited to North American offroad conditions. It is also an exceptional city car that gets far higher mpg than any hybrid on the market, including the Honda Insight and the Toyota Prius. And all that with a conventional gasoline engine with no hybrid technology anywhere!
“President Barack Obama said today that Chrysler LLC will file a historic bankruptcy shortly, backed by up to $3.5 billion in new government aid designed to allow a Chrysler-Fiat partnership to emerge from court in 30 to 60 days…
‘The necessary steps have been taken to give one of America’s most storied companies a new lease on life,’ Obama said…
The administration portrays its “surgical” bankruptcy of one of Detroit’s major automakers as just a legal chore, rather than the threat to Chrysler’s existence and the entire U.S. auto industry that Chrysler itself had described less than three months ago. Administration officials said Chrysler would operate as usual during bankruptcy, and that no additional job cuts were anticipated as of now.”
“Ailing car maker Chrysler is close to filing for protection from creditors as soon as next week under Chapter 11 of U.S. Bankruptcy laws… The move will come whether or not it reaches a buyout deal with Fiat SpA, the newspaper reported, citing people familiar with the companies.”
Chrysler issued this response:
(from the Chrysler Media Site)
“On March 30, the Administration recognized the viability of Chrysler LLC and its products, in combination with a Fiat alliance.
Chrysler has consistently said that its viability will be enhanced through an alliance with Fiat, as it represents a change in the Company’s business model that expands its global competitiveness.
As we move forward in this process, we believe it’s important to keep all options open. Chrysler will continue to work through the end of the month, based on the direction given by the Presidential Auto Task Force, to secure the support of the necessary stakeholders and reach a successful conclusion that the Administration and U.S. Treasury deems appropriate.”
We’re not sure how this will play out, but we have no doubt that Jeep will soldier on regardless!
MILAN (AP) — Automaker Fiat Group SpA will walk away from a deal to take a 20-percent stake in Chrysler LLC if the U.S. automaker’s unions don’t agree to major cost cuts, Fiat CEO Sergio Marchionne said in an interview published Wednesday.
Fiat and Chrysler are up against an April 30 deadline for Fiat to take a stake in the failing U.S. automaker in exchange for small car technology, but Chrysler first needs concessions from creditors and unions to ink the Fiat deal. If the Fiat alliance isn’t finalized by then, the U.S. government has threatened not to provide any more aid and let Chrysler be sold off in pieces.
“Absolutely we are prepared to walk. There is no doubt in my mind,” he said. “We cannot commit to this organization unless we see light at the end of the tunnel,” Fiat CEO Sergio Marchionne said in an interview published in the Toronto Globe and Mail.
A Fiat spokesman confirmed Marchionne’s statements. Marchionne was attending a shareholders meeting of the Swiss bank UBS in Zurich on Wednesday.
Marchionne said there is a 50 percent chance the deal will fail because of lack of progress in labor negotiations in both the United States and Canada.
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