Autos Blog

Posted by Bruce Hall on Fri, Nov 20, 2009 at 11:19 AM

New vehicle controls

A golfing buddy and I were enjoying the last few days of the season and he mentioned that he went to one of Ford's facilities in Dearborn to participate in some simulator tests of new vehicle instrumentation panels.

Ford wanted to see how various instrumentation groupings would work for seniors and, as a 70-year old, my friend qualified. He was quite impressed with what he saw and said that the testing was more than just pressing buttons and figuring out menus. The simulator put him into a "moving vehicle" with traffic and pedestrians and various distractions. With all of the simulated events going on, he then tried to figure out how to use the instrumentation and still "drive" safely.

He said that there were four different configurations and systems being evaluated; he only tested one. His conclusion: whatever system Ford selects is going to amaze their customers who are used to conventional buttons and knobs.

My own preference? I'd like to see more voice activated controls like the Sync system. "Radio - volume - up - up." "Warning - backup - off." "Lights - dome - on"....

Category: Fiat

Posted by Neil Winton on Tue, Nov 17, 2009 at 5:24 AM

As dust settles on Fiat's Chrysler plan, "ambitious" is the watchword

Fiat's aggressive and ambitious plan for Chrysler was delivered with panache, brio and at some length by CEO Sergio Marchionne by all accounts, but investors think he might have bitten off more than he can chew.

The main points of the five-year plan were â€"

*More than double Chrysler global sales to 2.8 million.

*Raise Chrysler's U.S. market share to 13.7 per cent from 2009's 8.5 per cent.

*Roll out a dozen new Chryslers built on Fiat platforms.

*Pay back debt to U.S. taxpayers.

*Break-even in 2010 on operating basis, make net income in 2011. Reach EBIT margin of seven percent by 2014.

*Raise foreign sales to 18 per cent by 2014 from eight per cent in 2008.

Marchionne conceded that the plan look difficult to achieve.

"Some of you are going to walk out of here skeptical and some of you are going to be downright incredulous," Marchionne said.

Deutsche Bank seems to be in the incredulous group.

"Fiat management certainly sees more potential upside in Chrysler than us or the (Wall) street," the bank said in a report.

Morgan Stanley analyst Adam Jonas was impressed, although Chrysler's profit targets for 2014 outstripped his projection â€" 4.7 per cent versus seven per cent, by more than 30 per cent. Jonas believes Chrysler will be a big asset to Fiat.

"We believe the market grossly under-estimates the value of Chrysler to Fiat," Jonas said.

Bruce Clark, Senior Vice President at U.S. ratings agency Moody's described Marchionne's projections as perhaps the most ambitious business plan in automotive history, anticipating an unprecedented pace of change. The plan needed time.

"(Fiat-Chrysler) is being asked to implement change and reach extremely demanding objectives at a breakneck pace â€" accomplishing in 12 months what would normally take two or more years. We also note that the automotive industry's track record for harvesting the hoped-for synergies associated with international tie-ups, even under favorable market conditions, is not encouraging," Clark said.

Citigroup Global Markets analyst John Lawson expressed surprise at the extent of Fiat's plan to involve its vehicles in Chrysler's new products, wondering whether they would be up to scratch for the job.

"We have never regarded Fiat as one of Europe's best-placed groups in this regard," Lawson said.

But Lawson saw a big payoff if this plan worked.

"We can see a significant revenue opportunity in this for Fiat if it works. However, there are plenty of wrecks in a history of failed attempts to take European engineering into the U.S. in the past," Lawson said.

Moody's Clark liked the plan's ambition, but pointed to the big challenges ahead for Team Chrysler.

"Coach Marchionne has put together a great game plan. And every member of the Chrysler team knows their assignment. But Chrysler has to cover more ground in less time than almost any other auto company has ever attempted. Execution on every play will have to be flawless, and the company must begin showing clear signs of progress quickly â€" particularly in the areas of market share, consumer perception of the company, and effective cooperation with Fiat," Clark said.

Perhaps the biggest question mark in the plan is the credibility of Fiat products, no matter how well disguised by Chrysler badges.

"Customers need to be convinced of the Fiat/Chrysler vehicles which will hit the market from 2012 and Chrysler needs to win back lost customers," Deutsche Bank said.

Posted by Robert Snell (The Detroit News) on Mon, Nov 16, 2009 at 9:53 AM

GM financial exec mum on reassignment

Ray Young, chief financial officer of General Motors Co., appeared on the sidelines of the automaker's third-quarter results announcement this morning and deflected reports that he will be replaced soon.

The Detroit News earlier this month reported that GM is considering former AT&T Vice Chairman Charles Noski among roughly seven candidates to replace Young, who heads a financial department that drew intense criticism from the White House this year.

"I've got a lot of work to do," Young said. "I'm keeping my head down. I want to be part of the team that turns around this company."

Once a new chief financial officer is hired, Young is expected to be reassigned to help run GM's international operations.

Category: Cash for Clunkers

Posted by Mike Wilkinson (The Detroit News) on Fri, Nov 13, 2009 at 3:18 PM

Loyalty fades for domestic brands

A deeper look at the detailed data from the "cash for clunkers" program shows that GM did the best job in retaining owner loyalty, followed closely by Ford. Chrysler was a dismal third.

We compared the make of the cars traded in to the make of the cars sold. The data comes from a database of the nearly 700,000 "clunker" sales that took place in which buyers could get up to $4,500 for trading in low-mileage vehicles for newer, more fuel-efficient models.

All three domestic brands did far better in Michigan than they did in the rest of the country. GM kept over 61 percent of its Michigan customers; Ford retained 52.1 percent. Chrysler was way behind, at just one-in-five.

Nationwide, excluding Michigan, GM trade-ins produced a GM sale just under 30 percent of the time. Though low, it represents the best of Detroit's Big Three; Ford had 23 percent outside Michigan; Chrylser just 10.8 percent.

Chrysler owners were even more likely to buy a GM product in both Michigan and across the country.

A look at the numbers

Of the GM products traded in, here's the breakdown of the new vehicle purchases:

Make bought	In Michigan	In the rest of the country
GM	61.7	29.8
Chrysler	7.5	5.9
Ford	14.2	10
Foreign	16.6	54.4

Of the Chrysler products traded in, here's the breakdown of the new vehicle purchases:

Make bought	In Michigan	In the rest of the country
GM	31.2	13
Chrysler	20.5	10.8
Ford	22.7	9.7
Foreign	25.6	66.4

Of the Ford products traded in, here's the breakdown of the new vehicle purchases:

Make bought	In Michigan	In the rest of the country
GM	23.3	13.4
Chrysler	7.5	5.3
Ford	52.1	23
Foreign	17.1	58.3

Posted by Alisa Priddle (The Detroit News) on Wed, Nov 4, 2009 at 6:56 PM

No interest in Opel

Chrysler CEO Sergio Marchionne, who is also CEO of Fiat SpA, said he has lost interest in Opel, a brand that Fiat bid on earlier this year.

Marchionne said he sees the sense in GM keeping its European subsidiary.

Category: Chrysler Business Plan

Posted by Louis Aguilar (The Detroit News) on Wed, Nov 4, 2009 at 6:50 PM

Marchionne: Keep American jobs in U.S.

CEO Sergio Marchionne said American jobs, "need to be kept here." He also told the mayor of Toledo, Ohio, "just be proud to be an American car company." He added "We will deliver." He also vowed to keep work in Brampton, Ontario.

Posted by Alisa Priddle (The Detroit News) on Wed, Nov 4, 2009 at 6:32 PM

Electric vehicle plan not settled

Chrysler's electric vehicle strategy is still under review, but these vehicles will only account for 1-2 percent of total volume initially, executives said.

One of the first applications could be a commercial van from Fiat and marketed under the Ram brand.

In the past, Chrysler has shown electric concepts of Jeeps, minivans and a sports car.

Category: Chrysler Business Plan

Posted by Robert Snell (The Detroit News) on Wed, Nov 4, 2009 at 6:02 PM

CEO: Don't worry, be happy

Chrysler CEO Sergio Marchionne just finished speaking, ending a more than eight-hour event outlining the automaker's five-year business plan.

His closing comments mixed an appreciation for singer Bobby McFerrin (whose songs, drawn from Marchionne's personal music collection, were played inside the design dome all afternoon) and Machiavelli, the Italian philosopher.

Marchionne summed up the five-year plan this way: "When all is said and done, it is a commitment to building an enterprise of men and women of virtue."

Category: Chrysler Business Plan

Posted by Robert Snell (The Detroit News) on Wed, Nov 4, 2009 at 5:45 PM

Chrysler CEO: Hold me accountable

Chrysler CEO Sergio Marchionne is giving his closing address after his leadership team finished outlining the automaker's five-year plan.

"It's comprehensive, it's ambitious and it's a serious plan," he said. "It's a plan for which this leadership team ultimately wants to be held accountable."

Category: Chrysler Business Plan

Posted by Robert Snell (The Detroit News) on Wed, Nov 4, 2009 at 5:40 PM

Chrysler chief: We will invest billions

Chrysler will invest $23 billion in coming years to rebuild the automaker's product portfolio and manufacturing infrastructure, CEO Sergio Marchionne said.