Autoblog

• Chrysler gets first $4 billion from government
  

  Filed under: Chrysler, LLC., Earnings/Financials

  Two days after General Motors got its first installment of cash from the Treasury Department, Chrysler also closed on its loan. On Friday, Chrysler received a transfer of $4 billion to help tide it over while management tries to find a way to right the ship. CEO Bob Nardelli acknowledged the complex arrangements that had to be made with privately owned Chrysler. It's not known at this point exactly what arrangements were made as far as collateral and what the government would get from Cerberus in the event of a default by Chrysler. No doubt the comments will be heated on the



• Vehicle recalls down 30% in 2008
  

  Filed under: Recalls/TSBs, Safety, Chrysler, LLC., GM, Honda, Nissan, Toyota

  After such a gloomy 2008, automakers are looking anywhere they can for a ray of sunshine. One such glimmer came in the form of a preliminary report by the National Highway Traffic Safety Administration that recalls were down 30% last year compared to 2007, and at their lowest levels since 1994.
  
  It's not all good, though. While automakers recalled a combined 10.2 million vehicles in 2008, the total number of recall campaigns hit a record number of 642 -- a 9% jump over 2007 - and also included a 233...
  



• GM gets its $4 billion, Chrysler still waiting
  

  Filed under: Government/Legal, Chrysler, LLC., GM, Earnings/Financials

  
  
  On Monday, December 29, Chrysler and General Motors were supposed to get the first installments of its allotted funds from the $17.4 billion dollar bridge loans. On Wednesday, GM got it's $4 billion. Chrysler, on the other hand, is still "finalizing the details of our financial assistance." The U.S. Treasury - the body disbursing the funds - didn't have much to say beyond that, either, merely reiterating that it wants to get the deal done within a timeline that satisfies Chrylser's funding needs.
  
  While we wonder what the holdup is, we have no reason to believe that...
  



• Chrysler sputtering in China, too
  

  Filed under: China, Chrysler, LLC., Earnings/Financials

  
  
  It's not just North America that is yielding an ugly red balance sheet for Chrysler. ChinaStakes.com reports that the automaker's position in China is in rough shape, too. Right before the taxpayer bailout of General Motors and Chrysler became official, Chrysler's Philip Murtaugh exited the company after just 15 months on the job, creating a leadership void in its Chinese operations. Murtaugh had joined Chrysler to lead its Asia/Pacific operations after 32 years at GM, the last ten of which were spent heading up the General's Chinese division, and a stint at China's SAIC.
  
  The thinking was that Murtaugh...
  



• Chrysler scraps dealer awards meeting in Mexico
  

  Filed under: Government/Legal, Chrysler, LLC.

  
  
  Every year, Chrysler rewards its top dealers with an all-expenses paid trip to some exotic location. But with the financial situation at the privately-owned automaker in the crapper, the Pentastar decided to cancel this year's excursion. Chrysler spokesman Stuart Schorr told the Detroit News that "the state of the market and the financial challenges the company faces, it made sense not to hold this year's reward meeting." We're sure the decision to cancel the trip to the Hilton Los Cabos Beach & Golf Resort in San Jose del Cabo, Mexico was monetarily motivated, but there are likely other motivating factors as well.
  
  There is the...
  



• Can't win for losing: Chrysler criticized for "Thank You" ads
  

  Filed under: Marketing/Advertising, Chrysler, LLC.

  
  
  After receiving at least $4 billion dollars in low cost government loans, Chrysler, LLC thought the least it could do was thank the American people for their support. Instead of calling a press conference or writing a heart-felt letter to major newspapers, team Pentastar thought it best to take out full page ads in newspapers across America. Actually, maybe it wasn't such a good idea (not to mention several pop-up text ads). It seems there are quite a few Americans that don't like the fact that Chrysler found the need to spend hundreds of thousands of dollars taking out ads in papers when the company is struggling...
  



• Two more out the door: Meyer and Murtagh leave Chrysler
  

  Filed under: Hirings/Firings/Layoffs, Chrysler, LLC.

  A little over a year ago, Chrysler was poaching and hiring folks with big brains to be a part of its executive turnaround team. Now a few of those hires, along with the old guard, are walking out the front door. Deborah Meyer came over from Toyota, where she had been VP of marketing for Lexus, and she took over the chief marketing officer spot at the Chrysler, LLC. At the time we wrote, "She must have been aware of the situation when she accepted the offer, however, so perhaps she sees hope in Chrysler's new beginning." Apparently, hope ran out, and Meyer has vacated her...
  



• Blame Game: Survey says who's at fault — Management or union?
  

  Filed under: Government/Legal, Chrysler, LLC., Ford, GM, UAW/Unions

  
  
  Each month, the American Pulse Survey seeks respondents' opinions regarding various political, pop culture and economic issues. Seeing that the auto bailout is a hot topic these days, it is unsurprising that much of the latest survey centered on the $17.4 billion in so-called bridge loans to the Detroit 3 automakers. So, who's to blame for the Motor City's downfall? Survey says: bad management (78.8 percent), the UAW (63.8 percent) and global economic uncertainty (57.7 percent); so say 4,117 Americans.
  
  59.1 percent of respondents believe that the union should offer concessions to the automakers. Lastly,...
  



• Jim Press says Chrysler could be America's Benz, BMW
  

  Filed under: BMW, Chrysler, LLC., Mercedes-Benz

  
  
  What American automaker best matches up with the uber-machines from the Germans? Lincoln... no, probably not. Cadillac? Getting warmer. How 'bout Chrysler, asks ChryCo. co-Prez Jim Press. After a quick review of Chrysler's current line-up, we're not really buying the comparison; but it's fun to dream, so we'll bite. The Sebring is roughly the size of the C-Class and 3 Series, but it's driving the wrong wheels to go head-to-head with BMW and Mercedes-Benz, so that would need a complete rework, to say the least.
  
  The 300C is a very nice car with an appropriate engine up front, rear-wheel drive and...
  



• BREAKING: Bush greenlights $17.4 billion Auto Rescue/Bailout package
  

  Filed under: Government/Legal, Chrysler, LLC., GM, Earnings/Financials

  
  
  President George W. Bush will doubtlessly be remembered for many things things, but his parting legacy may yet be his eleventh-hour pledge of $17.4 billion in low-interest loans to General Motors and Chrysler (Ford Motor Company has said it does not require relief at this time).
  
  The funding will reportedly come from the Troubled Asset Relief Program (TARP), the financial industry bailout package signed off on this fall. Up front, the White House will earmark $17.4 billion in short-term financing for December and January, and in February, another $4 billion will be disbursed, provided it can draw the funds...