From the article: “Chrysler was reborn Wednesday under a new Italian parent, but it can’t shake the shadows of its past: It’s not selling enough cars, its fleet is tilted to trucks and SUVs, and help is more than a year away.

A 42-day stay in bankruptcy court cleansed the company of much of its debt and labor costs, but many analysts say Chrysler’s immediate future is bleak. It lost $8 billion in 2008, and sales are down by almost half for the first five months of this year.

Cars designed by its new owner, Italy’s Fiat Group SpA, won’t make it to the U.S. until late 2010. And even then there are no guarantees American drivers will want the tiny cars Fiat specializes in.

In the meantime, Chrysler is left with few new vehicles headed to its drastically reduced network of dealers. Its aging model lineup is still heavy with bigger vehicles. And its offerings in the growing small and midsize markets haven’t caught on.”

Problems of old Chrysler linger at new Chrysler - yahoo.com

Chrysler LLC selected C. Robert Kidder, former chairman of Borden Chemical and Duracell Chairman, to become chairman of a reorganized Chrysler.

Mr. Kidder, currently the lead director of Morgan Stanley, will succeed Robert Nardelli, who will step down as chairman and chief executive when the auto maker emerges from Chapter 11 bankruptcy protection. Chrysler said it will name a new CEO with the “concurrence” of Fiat SpA, which has agreed to forge an alliance with Chrysler.

Mr. Kidder’s board experience and business “will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward,” Mr. Nardelli said in prepared comments.

Also Wednesday, Chrysler won court approval to borrow the full amount of a $4.96 billion loan from the U.S. and Canada.

Chrysler Names Nardelli’s Successor - wsj.com

From the article: “The car business is a great business. Despite the economic downturn and widespread recession- basically ruining domestic car sales- the car business is a simple business of people and cars. It’s a fun business. It’s exciting as jobs go. You’re selling what people want, what they’re happy spending money on- no matter the love, (or not) for the automobile, let’s face it- American’s love the smell of a new car. If given the choice of buying a new car and say, toilet paper, toothpaste, or maybe life insurance- they’d pick cars. Trust me.

My tenure at Chrysler was typical and short. I sold a lot of cars, did pretty well, had to lie on every profitable sale, work my ass-off on every pain-in-the-ass deal, only to make $50 bucks before taxes, per copy. Sixty hours weeks on your feet, most often six days a week, in all sorts of weather donning a suit. Rain, sleet, snow, didn’t matter. Push metal, hold gross, make it happen. Hope for the next “five-pounder” to make your week. I’m not saying it’s right; it is what it is (was…). By the way, a five-pounder is a deal with $5,000 gross profit in the front-end (above invoice)- a very good score for a salesmen who makes his money on a percentage of gross profit…

I worked alongside ex-cons, drug addicts, misfits; not all of them, just some of the more memorable ones. The smart ones (and there were many) weren’t honest and the honest ones, well, made no money! They were blown-out, fired, sometimes in a matter of days.”

Small Town Chrysler… Memories Served… - zerohedge.blogspot.com

From the article: “Stanley Balzekas Jr. served in the U.S. Army and survived six months in World War II German prison camps. His Chicago Chrysler-Jeep franchise won’t survive the automaker’s cutbacks.

Balzekas’s family has been in the business since 1919, when his father, Stanley Sr., a blacksmith from Lithuania, opened his first dealership. In the early years, Balzekas Motor Sales Inc. carried Pontiacs, Chevrolets and Studebakers. It’s been a Chrysler-only shop since 1933.

“After 90 years, we are a piece of meat,” said Balzekas, 85, whose two sons and one daughter also work at the dealership. A letter from Chrysler LLC early yesterday notified him that “we are no longer a dealer,” he said in a telephone interview.”

Chrysler Plan Makes Dealers Feel Like ‘Piece of Meat’ - bloomberg.com

From the article: “Fiat SpA Chief Executive Officer Sergio Marchionne plans to take charge of Chrysler LLC after it emerges from bankruptcy within the 60-day time frame set by President Obama’s administration.

“Chrysler is on track to re-emerge from bankruptcy in 60 days,” Marchionne said in an interview. “I will become Chrysler CEO after that.” The idea has been discussed in meetings with the Treasury, he said.

The Italian carmaker, having come to the rescue of Chrysler, is interested in acquiring Swedish carmaker Saab Automobile as Marchionne tries to assemble a global auto group, including GM’s Opel and Vauxhall operations in Europe and Latin America.

“Saab is an interesting opportunity, the brand is however too small for the auto mass market,” Marchionne said. “We could combine Saab with another brand. In the U.S., there’s a Saab dealership network. It would be a pity to give that up.” ”

Fiat CEO Marchionne Says He Will Run Chrysler, Also Wants Saab - bloomberg.com

Chrysler LLC is expected to file a motion Saturday to sell substantially all of its assets to Italian automaker Fiat Group SpA, but the ailing automaker must still deal with creditors who refused to come to a deal to erase the company’s debt.

Attorneys for Chrysler say eight plants will not be affected by the sale, including five that the automaker revealed it will shutter by the end of next year.

While Chrysler faced its first hearing Friday in Manhattan bankruptcy court, court documents showed the Big Three automaker planned to close plants in Michigan, Missouri, Ohio and Wisconsin that employ about 4,800 people. Chrysler said they will be offered jobs at other plants.

The company also announced President and Vice Chairman Tom LaSorda is retiring effective immediately.

Chrysler expected to sell assets to Fiat - yahoo.com

Chrysler LLC, the smallest of the Big Three U.S. automakers, filed today for bankruptcy protection in New York to streamline operations and shed debt in a reorganization that includes Italy’s Fiat SpA as a partner.

The iconic automaker, which survived a near-death experience in 1979, missed a U.S. government deadline to come up with a restructuring plan by today that was rigorous enough to avoid bankruptcy and qualify for more bailout aid. The carmaker tried to negotiate an alliance with Fiat, reduce $6.9 billion in secured loans and cut $10.6 billion owed to a pension fund. Some lenders refused to slash the debt to $2.25 billion.

The carmaker and the government plan to use the bankruptcy process to revitalize Chrysler by putting its best assets, such as its Jeep and Dodge Ram brands, in a new company that wouldn’t be burdened by current costs and debt. A slimmed-down version of Chrysler, armed with Fiat’s small-car technology, would emerge from such a process, giving the carmaker a “new lease on life,” U.S. President Barack Obama said today.

Chrysler Files for Bankruptcy to Shed Debt, Seal Fiat Accord - bloomberg.com

President Barack Obama aims to announce tomorrow that Chrysler LLC will be placed into Chapter 11 bankruptcy, leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said.

Administration officials are still resolving outstanding issues, and the plan isn’t finished yet, said one of the people, who declined to be named because discussions are private.

As part of ongoing negotiations, the U.S. Treasury raised its offer to Chrysler’s lenders, offering them $2.25 billion in cash to forgive $6.9 billion in secured debt, two other people familiar with the matter said. The previous offer had been for $2 billion in cash.

Any bankruptcy filing could come as soon as tomorrow, people familiar with that matter said.

Chrysler’s best assets would be sold to a new entity that would have an ownership structure similar to that envisioned in an out-of-court deal between the Auburn Hills, Michigan-based automaker and Fiat, based in Turin, Italy, the people said.

The Italian company would become a 20 percent owner of Chrysler, and a union retiree health-care trust fund would own 55 percent, with the rest of the company staying in the government’s hands initially, the people said.

Update: The Treasury Department sweetened its offer to Chrysler bondholders by $250 million, set a 6 p.m. deadline.

Obama Said to Plan for Chrysler Bankruptcy, Alliance - bloomberg.com

The U.S. Treasury reached an agreement with Chrysler LLC’s lenders that may help the troubled automaker avoid bankruptcy, a source briefed on the matter said on Tuesday.

The details of the deal were not immediately available, the source said.

Chrysler’s first-lien lenders, owed $6.9 billion in secured loans, have agreed to write down the debt to $2 billion, the Washington Post reported earlier on Tuesday.

From ft.com: “The United Auto Workers’ union will own 55 per cent of Chrysler and Italy’s Fiat will eventually own 35 per cent of the carmaker after a balance sheet restructuring, with remaining stock split between Chrysler’s secured lenders and the US federal government, according to a UAW document sent to members on Tuesday.”

The Treasury Department is preparing a Chapter 11 bankruptcy filing for Chrysler that could come as soon as next week, people with direct knowledge of the action said Thursday.

The Treasury has an agreement in principle with the United Automobile Workers union, whose members’ pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing, said these people, who asked for anonymity because they were not authorized to discuss the case.

Moreover, Fiat of Italy would complete its alliance with Chrysler while the company is under bankruptcy protection.

The only major question that remains unresolved is what happens to Chrysler’s lenders, who hold $6.9 billion in company debt. The government’s most recent offer, presented Wednesday, would give the company’s lenders about 22 cents on the dollar, or $1.5 billion, and a 5 percent equity stake in a reorganized Chrysler. Earlier this week, a steering committee of the lenders proposed that they receive 65 cents on the dollar, or $4.5 billion, and a 40 percent equity stake.

U.S. Is Said to Prepare Filing for Chrysler Bankruptcy - yahoo.com

The chief executive of Fiat SpA said Wednesday he doesn’t see obstacles to closing a deal with Chrysler LLC by an April 30 deadline, adding he would do what it takes to fix the ailing U.S. car maker.

“There is not a single reason why Fiat can’t close (the deal by) April 30,” Chief Executive Sergio Marchionne told reporters on the sidelines of a shareholders’ meeting of UBS AG, of which he is board member.

U.S. President Barack Obama has given Chrysler until the end of the month to find a partner, or else face bankruptcy proceedings. If a final deal is reached, Marchionne is likely to seek broad authority over Chrysler’s operations either as chief executive or in some other capacity, according to a person familiar with the matter.

“I’m ready to do whatever is necessary to turnaround the company,” Marchionne said when asked if he would be ready to take the helm of Chrysler.

Fiat CEO Sees Chrysler Deal By Apr 30 Deadline - wsj.com

From the press release: “• New Quadra Lift™ air suspension system provides height control and lifts vehicle up to 4.5 inches from park mode to a maximum ride height of 11.1 inches to deliver legendary Jeep off-road capability

• Choice of three 4×4 systems – Quadra-Trac I®, Quadra-Trac II® and Quadra-Drive® II with Electronic Limited-Slip Differential (ELSD)
• New Selec-Terrain™ system with Quadra-Trac II and Quadra-Drive II offers five terrain settings: Auto, Sand/Mud, Sport, Snow and Rock to match driving conditions
• First application of company’s all-new, flexible fuel 3.6-liter V-6 engine which features Variable-Valve Timing (VVT), 280 hp (209 kW) and 260 lb.-ft. of torque (353 N•m) @ 4,800 rpm – an increase of 33 percent in horsepower, 11 percent in torque over its predecessor and up to an 11 percent improvement in fuel economy
• Available 5.7-liter HEMI® V-8 generates 360 hp (268 kW) and 390 lb.-ft. of torque (520 N•m) @ 4,250 rpm – features VVT and fuel-saving Multi-displacement System (MDS) technology with dual exhaust to maximize efficiency
• For international markets, left- and right-hand drive and a choice of diesel and petrol powertrains will be available
• Unsurpassed trailer tow capability of up to 7,400 lbs. on 4×2 models
• Larger fuel tank with 24.6 gallon capacity, compared to 21.6 on current model, combined with improved V-6 fuel economy, delivers range close to 500 miles on one tank of gas
”

The 2011 Jeep Grand Cherokee - allpar.com

New York: 2011 Jeep Grand Cherokee must serve two masters - autoblog.com

From the article: “Chrysler LLC selected Massachusetts-based A123Systems to build lithium ion battery cells, packs and modules for its electric cars, which are expected to hit the market in late 2010.

The electric vehicle components will be used in Chrysler’s ENVI vehicles, which have been in development for nearly two years, Lou Rhodes, president of the company’s ENVI division said. The five vehicles are the Dodge Circuit EV, Jeep Wrangler EV, Jeep Patriot EV, Chrysler Town & Country EV and the Chrysler 200C EV concept.

“The design, development and chemistry is A123,” Mr. Rhodes said. “They’ve been a trusted partner over the last three years.”

Chrysler has been tight-lipped about who is helping them build their electric engine vehicles, one of which they say will be available next year. The company has not said which one, but has unveiled a minivan, a sports car and two Jeeps with electric engines in the past year.”

Chrysler Picks Electric-Car Vendor - wsj.com