CAW forms tentative agreement with GM, Chrysler
Like all good compromises, it seems none of the parties is really happy with the outcome, but General Motors, Chrysler and the Canadian Auto Workers have reached a tentative labor agreement. Involving both continued production at some plants and job cuts all around, the deal will keep both sides on track to meet their longer-term goals. Two of the primary casualties of the weakening North American auto market are GM’s Windsor transmission plant and a Chrysler casting facility, both of which will...

Chrysler aims to cut costs by 25% over three years
Chrysler has revealed another element of its three year turnaround plan with news today from the carmaker’s purchasing chief John Campi that plans are in place to reduce costs by 25 percent over the next three years. Speaking at a recent supplier conference, Campi said that significant changes in manufacturing and purchasing operations will help reach the target and that any potential savings will be shared among the suppliers as well. Some of the initiatives include a 30 day timeframe for production...

Chrysler announces 2% price rise
Due to take effect as of Monday, June 16, Chrysler has told its dealers most new production of the current 2008 models and next year’s 2009 models will face a 2% price rise in the U.S. Increased prices on the raw materials used to build its cars are the driving force behind the rise. Chrysler isn’t alone in its response to the rising commodities prices. Toyota has already announced a similar price rise, and Honda and GM are considering doing the same. It’s a simple business measure to...

Chrysler asks public to help design future cars
Chrysler announced today that it’s recruiting members of the public for its new ‘Customer Advisory Board’, an online forum where individuals can voice their ideas about what they want to see in a new car. Anyone can join the forum, including consumers who have never previously owned a Chrysler product. The idea of a forum, rather than using expensive and time-consuming focus groups, has been a long time coming considering the amount of free ideas and feedback Chrysler could gain with...

Chrysler CEO expects U.S. market to slide further
Chrysler CEO Bob Nardelli has repeated statements made by a number of CEOs from rival carmakers including Renault-Nissan’s Carlos Ghosn that the U.S. auto market is likely to slide even further and there’s no prediction of a recovering any time soon. Nardelli expects sales this year to drop below 15.5 million units, down from 16.1 million the year before, and is predicting 2009 will have an even lower tally. Chrysler sales in the U.S. have already dropped 15.5% in the first three months of the year...

Chrysler could cut top-end Avenger and Sebring
Cutting models while adding value to existing mid-range trims could be the new tactic at Chrysler as it fights to regain sales and stability in the turbulent market. The changes are wrapped up in a plan called “Fight Back” that the carmaker is rolling out to parts suppliers this week, and things are set to kick off with a realignment of the Dodge Avenger and Chrysler Sebring lines. What the new fighting strategy means is that the Avenger and Sebring may lose their top trim levels while some...

Chrysler expects to be profitable within 3 years
With Chrysler’s new owners Cerberus Capital Management making the hard and fast decisions, the carmaker is now on track to return to profitability. Even with the worsening U.S. economy and fluctuating exchange rates and commodity prices, CEO Bob Nardelli is confident Chrysler will be profitable within the next couple of years despite predictions the market will remain sour. Analysts expect U.S. auto sales to fall to 15.5 million cars this year, down from 16.1 million last year, but despite his...

Chrysler moving fast on in-car Internet
Working and thinking like a small company is how Chrysler hopes to weather the current economic storm. We told you just last week about Chrysler’s plan to implement new technologies and product updates on-demand rather than waiting for product refresh cycles, and now it looks like one of the first implementations of the fast-moving method with be the addition of in-car web access to its lineup. Initially the user will need a wireless phone subscription to access the Internet, because the system...

Chrysler needs only half of its SUVs
Now that Chrysler is in private hands the tough decisions are coming hard and fast. Last year we saw officials axe cars like the PT Cruiser convertible, Pacifica, Crossfire and Dodge Magnum, and now there are reports that even more models will be dropped from the current lineup. Earlier this month Chrysler revealed its new ‘Project Genesis’ turnaround strategy with which it plans to drop overlapping models that share common platforms and compete in similar segments. The carmaker’s President, Jim...

Chrysler on track with restructuring plans
Chrysler’s last few years have been emblematic of the difficulty some of the older portions of the automobile industry are having adjusting to the increasingly mature, saturated and urban U.S. and global automobile markets. But Chrysler isn’t counting itself out yet. Repackaging the Chrysler structure as a smaller, lighter company is going well, according to Chrysler’s top executives, but it’s not going to be quick - or painless. Though they don’t hold hope for a profitable...