Road Reality » automotive

How do you say Chrysler in Italian?

roadreality — Tue, 24 Nov 2009 17:00:47 +0000

Earlier this year, Fiat Group purchased 20% of Chrysler Group, leaving 55% to the UAW (United Auto Workers) and the rest to the US and Canadian Governments. To American drivers who remember when Fiats and Alfa Romeos were last sold in the United States, this can conjure up bad memories of rotting floorboards, rusty fenders, and finicky engines. I think the new Chrysler/Fiat merger means good things to those of us stateside, and I’ll tell you why.

Since the last Fiat or Alfa Romeo was sold in the United States, their cars have been improved, and are fairly well received in Europe. Now that Fiat has controlling stake in Chrysler, they automatically have a dealership network, parts suppliers and manufacturing plants in North America. This means easy integration into America, and with Chrysler’s current lack of upcoming products, an opportune time to replace existing designs and platforms with Fiat and Alfa Romeo’s existing hardware. Currently, the only vehicles set to show up in calendar year 2010 are the 2011 Jeep Grand Cherokee and the redesigned 2011 Chrysler 300C.

With that in mind, Fiat plans to incorporate its own cars into Chrysler/Dodge/Jeep dealerships, starting with the Alfa Romeo MiTo, and possibly the Fiat 500 later on. In addition to bringing fresh styling to the Chrysler vehicles, the traditionally smaller cars produced by Fiat and Alfa Romeo will raise Chrysler’s average fuel economy, making it more likely that the newly-formed group won’t get in trouble for meeting new, stringent CAFE (Corporate Average Fuel Economy) standards, set to take effect in 2012.

In addition to the influsion of cars and technology, Fiat also brings cash flow to the table, able to help out a struggling Chrysler and keep them afloat long enough for the new products to hit showroom floors.

Another interesting facet to this story is the Dodge Ram truck line. Recently, television ads have told us all about the new Ram trucks, and the new 2500 and 3500 heavy-duty line. Chrysler confirmed recently that they are actually splitting the Ram truck line off, as its own brand. This makes it easier to meet the aforementioned CAFE requirements, and allows the Ram brand to branch off into big-rig territory. This is still a rumor which may or may not come true, but in my mind is likely.

It’s a troubling time to be Chrysler, but with a little luck, and some fresh new products, they have every chance to make it, although I predict that the Chrysler of a few years from now will be very much different from today’s Chrysler, with smaller, more fuel-efficient cars and less of a dependance on SUV and truck sales. They will also have streamlined their product lineup, and will be more of a niche player in the automotive marketplace. While Fiat and Alfa Romeo will donate new vehicles, all of the poorly-selling vehicles currently in showrooms will be phased out or replaced, but mostly just phased out. Look for more modern interiors, with all of today’s avaliable technologies, as well as more highly-engineered engines, capable of doing more with less, which is the current mantra of engine designers.

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by John Suit

Photo Sources: www.chrysler.com, Road Reality

Industry Update: Company Ownership

roadreality — Wed, 28 Oct 2009 17:44:04 +0000

Since the early 1900s, vehicle manufacturers have been buying and selling each other, trying to grow their combined business. Some of these ploys work (GM buying Cadillac in 1909) while others fizzle out (GM buying Hummer in 1998). In today’s uncertain automotive times, the Detroit 3 are trying to streamline their companies, to cut operating costs and slough off under performing brands. In order to answer the question of whose product you’re really buying when you buy a car, truck or SUV in America, I will go into a little detail as to which companies are on the block, which have already been sold, and which are dying (or already deceased).

We’ll start with Chrysler, which has been in the news recently, following their arrival post-Chapter 11, and the subsequent purchase by Fiat. While considered a purchase, Fiat only bought 35 percent of Chrysler Group, which gives them controlling interest, from Cerberus Group, which bought out Daimler in 2007 (Daimler makes Mercedez-Benz). This includes the Chrysler, Dodge and Jeep brands.

Next up is GM. Now labeled Government Motors by many people, they have been forced to cut Pontiac, Saturn, Saab and Hummer. While Pontiac had a popular car in its G8 sedan, its other cars were far too close to their Chevrolet siblings. Saturn lost its focus in the late 1990s, and Since the Ion was introduced in 2003, sales were on the decline, leading to GM trying to sell it off. There was a deal in the works with Penske Racing, but an inability by Penske to secure manufacturing after the end of 2010, the deal was scuttled. Saab has been sold to Koenigsegg, a Swedish company known for its ultra-low production supercars, and recently the Swedish government promised 400 billion Kroners (about $399 million US) to keeping Saab alive. A deal involving Chinese company Sichuan Tengzhong – a heavy industrial machinery company - buying Hummer is still trying to be solidified.

Of the Big 3, that leaves Ford. CEO Alan Mulally’s crystal ball must work, as in 2007, he leveraged part of the company to secure $4 billion in order to keep the company afloat, and in 2008, Ford sold Jaguar, Aston Martin and Land Rover in order to streamline the company. Jaguar and Land Rover were sold to the Indian company Tata, which is notable because they produces a car there that sells for a paltry $2,500 US, called the Nano. Aston Martin was sold to a British consortium, led by Prodrive and its owner, David Richards. Ford also sold its controlling interest in Mazda, but should continue to share chassis designs, engines, and other small bits.

Now, knowing the companies in limbo, a little refresher as to which US companies are still holding on to others. Ford continues to own Volvo – known to Americans as building some of the safest cars on the road – though recent reports suggest that Volvo is now up for sale. GM is still producing Buick, Cadillac, Chevrolet and GMC vehicles.

So what does this all mean to the American car buyer? It means that some of the marques, traditionally labeled as American, are either going to close up shop or be answering to new parents. The companies currently in flux or already sold will be creating new vehicles, stopping production of some current vehicles, and possibly changing their entire corporate structure and focus, in order to further differentiate themselves from their corporate siblings. You can already see this in Buick’s new lineup of crossovers and sedans. Some of them might resemble Chevrolet or GMC’s vehicles, while others have altogether different appearances.

By John Suit

Ladies and Gentlemen, Start your engines!

roadreality — Mon, 19 Oct 2009 21:53:05 +0000

Welcome to Road Reality, and thanks for stopping by. This is an automotive blog that caters to the average American driver. You’ll find a simple review structure, with easy-to-understand facts and figures. The reviews here are intended for people who have to commute regularly, but who also might also get out on the weekend for a spirited drive or a road trip, which contrasts with the existing automotive publications and blogs, which are mostly geared towards drivers who don’t drive on the same roads as you or I. You’ll see reviews here for cars which you can find at your local dealership, not just the latest Ferrari or limited production Lamborghini. Besides reviewing cars, this blog hopes to educate the average driver as to what’s going on in the American Automotive Industry. There will also be car previews, tips (buying, detailing, etc.) and automotive industry predictions, but first, some background on me, after the break.

2009 Lincoln MKS Dash

I have an ingrained love for cars. Ever since I was young and my dad had a ’46 Cadillac, and the endless streams of Fords, Lincolns, and the occasional Cadillac – I cut my driving teeth on a 1991 Mercury Cougar, and then drove the entire family from our D.C. Metro area home to Big Pine Key, Florida in a 1980 Cadillac Eldorado Limousine. Since I got my license, I’ve owned far too many cars for the number of years I’ve been driving (13), and test driven literally hundreds more. I’ve helped friends and relatives shop for (and ultimately buy) cars, getting them a good deal, and removing a lot of the anxiety of car shopping. I keep up to date with the latest print publications, as well as several online sources, all of which have helped me predict what the automotive market might do, and to keep up to date on which cars are hot, and which are not. As anyone who knows me would say, I love cars, from the classics to the concepts. They’d also tell you I’m good at predicting what the automotive market will do.

In 2007, as soon as the automotive industry started showing signs of slowing down, I made several predictions. I predicted that Ford would come out on top of GM and Chrysler as the best domestic automotive manufacturer; that domestic automakers would start importing tooling and designs from foreign subsidiaries, and that Chrysler would really be having troubles. I also predicted that product lines would have to be greatly diminished for the domestic automakers to compete with their foreign rivals. These predictions are all coming true, as Ford didn’t take any TARP government money, whereas both GM and Chrysler did. Further, Ford and GM have both imported cars made by their European counterparts and subsidiaries – see the new Ford Fiesta, which is coming to our shores in 2010 or 2011, the Opel cars for GM, and Fiat’s automobiles, which will come to the US, probably branded as Chryslers. Ford has sold off Jaguar, Land Rover and Aston Martin, while GM has killed off Saturn and Pontiac (Saturn was almost sold to Penske Racing, but that deal fell through), sold Saab to Koenigsegg, and is still trying to sell Hummer to the Chinese, amidst other streamlining deals. Since streamlining their product lines, GM is also bringing to market variations on its more popular products, such as the CTS Sport Wagon and CTS Coupe. The former should be hitting dealerships soon, the latter should be introduced sometime next year. Chrysler, meanwhile, is spinning off its Dodge Ram trucks as its own entity, the Ram brand, and is trying to stay afloat with what its got, while it fast-tracks new products from Fiat and refreshes to existing products. Chrysler is now running ads for its Chrysler 300C and Dodge Charger sedans, two cars which haven’t seen a major refresh since their introductions several years ago.

The American automotive industry is in great turmoil right now, and is changing at a fast pace, so enjoy the ride! And as it says on the About page, feel free to email with questions, comments and any requests you might have, to john.roadreality@gmail.com.

John Suit
Editor, Road Reality

Welcome! Thanks for stopping by. Road Reality is an automotive blog that caters to the average American driver. You’ll find a simple review structure, with easy-to-understand facts and figures. Reviews are intended for people who have to commute regularly, who might also get out on the weekend for a spirited drive. Besides reviewing cars, this blog hopes to educate the average driver as to what’s going on in the American Automotive Industry. There will be car previews, the aforementioned reviews, tips (buying, detailing, etc.) and automotive industry predictions, but first, some background.

A lot of people predict a lot of things. Las Vegas is built on predicting what will happen in a particular sporting event. Wall Street is built on predicting the values of companies and commodities, among other things. Not a lot of time is spent predicting what cars will be hot, which car companies are going to succeed, and how the automakers are going to incorporate new technology into their cars. In 2007, as soon as the automotive industry started showing signs of slowing down, I made several predictions. I said that Ford would come out on top of GM and Chrysler as the best domestic automotive manufacturer; that domestic automakers would start importing tooling and designs from foreign subsidiaries, and that Chrysler would really be having troubles. I also predicted that product lines would have to be greatly diminished for the domestic automakers to compete with their foreign rivals. Currently, Ford has several hot products (2010 Fusion, 2010 Taurus, 2010 Mustang, and to a lesser extent, the new Flex and Escape Hybrid). GM has the refreshed Cadillac CTS, Buick LaCrosse. Chrysler, meanwhile, has next to nothing. Even the new Chrysler CEO, appointed by new owner Fiat, has said that he was surprised to find that Chrysler/Dodge/Jeep had nothing new coming out, short of the 2011 Jeep Cherokee. Chrysler is even running commercials for the Chrysler 300C and Dodge Charger, cars which haven’t had a major refresh since their inceptions, several years ago. The next prediction, about tooling and designs from overseas, GM and Ford are importing both, for the Ford Fiesta, which is slated to hit our shores in 2010 or early 2011, as well as the renewed push for its “World Car” the Focus. GM imported the Holden Monaro as the Pontiac GTO, and its Commodore as the Pontiac G8, both of which died with Pontiac earlier this year. Finally, the diminishing product lines prediction has come true as well. Pontiac and Saturn are both dead, and GM is working to sell off Hummer. Saab has been sold to Koenigsegg, a supercar manufacturer from Sweden. Ford sold Jaguar, Land Rover and Aston Martin. The former two were sold to Tata Motors, in India, and the latter to a group of British racing enthusiasts. Chrysler has been bought by Fiat (majority share, at least), and is spinning off its Ram brand of trucks. As far as their lack of upcoming products goes, Fiat/Chrysler should be importing Fiat automobiles, most likely branded as Chryslers when they enter the US.

So, enjoy the ride! And as it says on the About page, feel free to email with questions, comments and any requests you might have, to john.roadreality@gmail.com.