Chrysler Group LLC has sued Daimler AG, accusing the German automaker of failing to uphold parts delivery contracts and jeopardizing the production of key 2010 vehicles.

The Auburn Hills, Michigan-based company said without the parts it will be unable to produce several 2010 model-year vehicles, including the Chrysler 300 and the Jeep Grand Cherokee SUV.

The lawsuit revolves around dispute over payments for diesel engines supplied by Daimler. Chrysler accused Daimler of using the dispute as a basis for refusing to sign deliveries of steering columns and torque converters.

“Chrysler Group believes Daimler’s effort to extort Chrysler Group into paying for costs for a diesel engine that Daimler agreed to forego a few months ago is a breach of its obligation to negotiate in good faith,” the company said.

Chrysler sues Daimler over key 2010 vehicle parts - yahoo.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

A merger between U.S. automakers General Motors Corp. and Chrysler is likely on hold until after next week’s presidential election, as the U.S. Treasury Department said it will not provide the automakers with aid, the Detroit Free Press reported Friday.

GM had asked the Bush administration and Congress for a loan of about $10 billion to help keep the struggling company operational. It said that it could possibly use the aid to fund a merger between it and Chrysler, which is owned by Cerberus Capital Management.

Treasury says no aid for GM, Chrysler - cnn.com

Site Update: I’m not sure what happened but the blog post disappeared. I am reposting the blog entry. Thanks for pointing out the glitch Warhawk!

Dodge Grand Caravan and Chrysler Town & Country minivans have strong sales month, up 7 percent over last year

Dodge Ram light-duty truck and Jeep® Liberty performance improves versus July

Dodge Journey gains momentum; buyers coming out of larger SUVs

Dodge Charger sales continue to grow

Up to 40 percent off MSRP available in September

Auburn Hills, Mich., Sep 3, 2008 - Chrysler LLC today reported total August 2008 U.S. sales of 110,235 units, down 34 percent from the same period last year. Total August sales reflect an industry-wide slowdown, segment shifts and reduced fleet sales. Compared with July 2008, Chrysler’s August sales increased 12 percent supported by enhanced financing offers, efforts to shift lease-oriented customers to purchasing, leasing availability from independent financial institutions and better demand for key vehicles. Although Chrysler Financial is no longer offering leasing options to Chrysler customers, customers are still able to lease Chrysler, Jeep® and Dodge products through independent financial institutions and qualify for available discounts.

Chrysler LLC Reports August 2008 U.S. Sales; Continues ‘Shop ‘Til You Drive’ Campaign with up to 40 Percent off MSRP - chrysler.com

From the coverage: “Numerous changes have been made to the Patriot’s interior, with new chrome accents, a carpeted load floor, illuminated cupholders, new MyGIG radios, soft-touch armrests, a new instrument panel, new door trim, and a new center console; the 2.4 PZEV engine is now on all front wheel drive models with the customer-preferred option packages. This addresses the major shortfalls of the Patriot and should make it much more popular if the word goes out. We only released these images because 2009 Jeep Patriots started showing up on dealer lots and other outlets have already released images. We may have more detail and photos after September 1. ”

The Jeep Patriot - allpar.com

Click on the photo to show the full size photo. Right click on the photo, and click “Set as Background”. Enjoy!!!

From the BW review: “It may not be as distinctive as the Nissan Murano, for example, but there’s plenty to enjoy in the Journey’s silhouette and details. The Journey’s big crosshair grille is swept into big quad headlamps and carries a nice line over the top of pronounced wheel arches. Large taillights flank a lightweight, composite tailgate that’s tastefully sloped earthward.

Inside, there’s less happy news to report. The Journey’s cabin is a touch better than the rental-grade Avenger, but only by a little. The Journey’s been designed to be built for left-hand drive and right-hand drive, which dictates a squarish, old-fashioned shape to its instrument binnacle. Not only does the instrument package look inexpensive, it vaguely reminds me of the old Dodge Omni hatchback from the 1970s. The worst offense: the gauges themselves are slightly askew from the horizon set by the rest of the dash.

The Journey is a good value, especially in base SE trim, priced from $19,985. That includes six airbags, a six-disc CD changer and power features. The SXT is our favorite, priced from $22,985 and outfitted with less expensive options like Sirius satellite radio. Once the Journey rises above $30,000–as most all-wheel-drive R/Ts will be–it’s more difficult to choose. ”

2009 Dodge Journey - businessweek.com

On their financial position:

“”Someone asked me, ‘Are we bankrupt?’” Mr. Nardelli said at the meeting. “Technically, no. Operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with.”"

On the Wolfgang Bernhard fallout:

Originally, Cerberus’s Mr. Feinberg envisioned another executive as his man at Chrysler: Wolfgang Bernhard, Chrysler’s chief operating officer from 2001 to 2004. As Cerberus neared the closing of its deal to take Chrysler off the hands of the German auto maker now called Daimler AG, Mr. Bernhard took an office at Chrysler’s Auburn Hills, Mich., headquarters, and began visiting design and engineering centers.

Mr. Bernhard was in line for the chairman’s post, but he backed out when he learned that Mr. Nardelli, an automotive novice, would be CEO.

On the current Sebring:

“Messrs. Nardelli and Press agreed to stop making the money-losing cars and drew up plans for a crash program, called Project D, to replace the Sebring, these people said. Mr. Nardelli meets every Monday at noon with Mr. Press and other executives to go over the company’s turnaround plan. Often the sessions last until 6 or 7 p.m., people familiar with the matter said”

On Chrysler interiors:

“He liked the new Jeep Grand Cherokee, but also saw Chrysler’s product line had many serious weak spots. Riding the Sebring convertible, “I found the wind noise totally unacceptable and bordering on offensive at speeds of 80 mph,” he wrote in a terse email to Chrysler’s top designer, Trevor Creed. Griping about the cheap plastic of its interior, he added, “I sure hope that as we go forward, we don’t punish the customer by thrifting the interior to meet a cost target.”

On raising cash:

“In his talk with the group of engineers, Mr. Nardelli said the company will move “very aggressively” to dispose of about $1 billion in land, old plants and other assets, even if it has to sell them below book value. He noted that publicly owned companies hesitate to do that because they would have to charge the book loss against their earnings. But in a private company, “cash is king,” Mr. Nardelli has told colleagues.”

Chrysler Faces Financial Pinch, Sees Asset Sales - wsj.com

I will be going on summer vacation from Sunday August 19th through Sunday August 26th.