After receiving nearly $13 billion in federal loans and filing for bankruptcy Chrysler is struggling with products that trail the competition in quality, styling and fuel economy. Sales have been down most of the year, while last month was the highest drop of any major car company. Its market share has gone from nearly 11 percent in the months before its May 1 bankruptcy filing to about 8 percent after it.

According to the Wall Street Journal, Fiat and Chrysler will enter an alliance in which Fiat will take an initial 35 percent stake in the troubled Detroit automaker, with an option to raise its ownership stake to 55 percent at a later date. The terms of the deal do not require Fiat to pay any cash to Chrysler. Instead, Fiat will receive equity in Chrysler for investments it will make in revamping a Chrysler plant to produce Fiat models for the US market.

Some of the Fiat models Chrysler would build in the United States, would likely include:
-Fiat Grande Punto and Linea
-A new compact SUV based on the Fiat C-Evo platform
-A four-door sedan possibly replacing the Sebring and Avenger
-Alfa Romeo version of the Grand Cherokee

After 93 years of major automaking plants in California , Toyota will shut down the last plant in March, 2010. This plant was a joint venture with General Motors, but GM pulled out as part of its reorganization after bankruptcy. Currently 4,700 people are employed there and Senator Feinstein has said that closing the plant could cost upward of 40,000 jobs. Corolla Production will now be done in Canada and Japan and Tacoma production will be moved to San Antonio, Texas. This will be the first time that Toyota has closed a major automobile assembly plant.

The automobile industry used to be very important to the state of California. California’s first plant was for General Motors in Oakland from 1916-1964. The Willy’s- Overland automobile factory was in Maywood, California from 1928-1954. Ford had a plant in Long Beach from 1930-1959. Chrysler had a plant in City of Commerce 1032-1971. Studebaker has an auto plant in Vernon from 1936-1956. General Motors opened another plant in South Gate 1936-1982. General Motor’s had plant number 3 in Van Nuys from 1947-1992. Nash had a plant in El Segundo from 1948-1955. Ford’s 2nd plant was in Milpitas 1955-1983. Ford’s 3rd auto plant was in Pico Rivera from 1957-1980. General Motor’s 4th plant was in Fremont 1962-1982. And then Nummi, the re-opening of the Fremont plant under both GM and Toyota from 1984-2010.

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Chrysler and Nissan said they were not going to continue with plans to build vehicles together. Nissan was going to help Chrysler with smaller vehicles and Chrysler was going to help Nissan with larger vehicles.

Chrysler now has Fiat to help them with smaller vehicles and now plans to sell Fiat models through its U.S. dealerships. The models being discussed are the Fiat 500 minicar, which is scheduled to be assembled in Mexico and a larger compact the might be built at a Chrysler factory in the Midwest.

A different agreement between Chrysler and Nissan, since 2004, where an affiliate of Nissan builds transmissions for Chrysler will continue.

Do you think the Nissan or Chrysler you are driving is a lemon? Call the Law Offices of Delsack and Associates for a Free consultation. Call toll free 888-395-3666 (888-Ex-Lemon).

In 2007 Chrysler introduced a lifetime powertrain warranty on their vehicles. They have decided to replace that warranty with a 5 year/100,000 mile powertrain warranty which will go into effect with 2010 models. It will have no deductibles for repairs during the five year period and the warranty can be transferred to another owner if the vehicle is sold. The new warranty will not be applicable to diesel Dodge Rams or Dodge Sprinter commercial vans.

Do you think your Chrysler may be a lemon? Call the California Lemon Law Firm, Delsack and Associates for a Free consultation. The toll free number is 888-Ex-Lemon (888-395-3666).

Cars and light truck sales were up for the month of July. The Cash for Clunkers Program is credited with giving auto makers a boost. The White House has guaranteed the program through Friday, but the continuation of the program depends on the Senate vote.

General Motors sold 187,582 vehicles, Toyota sold 174,872 vehicles, Ford sold 158,354 vehicles, Honda 114,690 vehicles, Chrysler 88,900 vehicles, Nissan 71,847 vehicles, Hyundai 45,553 vehicles, Kia 29,345 vehicles, Subaru 21,839 vehicles, and Volkswagen 20,590 vehicles.

The difference from auto sales in July, 2008 are: Subaru up 34.2%, Hyundai up 11.9%, Kia up 4.7%, Ford up 1.6%, Volkswagen up 0.7%, Chrysler down 9.4%, Toyota down 11.4%, Honda down 17.3%, GM down 18.9%, and Nissan down 24.6%.

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Approximately 8.5 million vehicles were assembled in the United States in 2008, but only 5 million of those were made by Big Three auto makers. More than 3 million of the assembled vehicles in U.S. plants were built by autoworkers employed by brands such as BMW, Honda, Hyundai, Mercedes-Benz, and Toyota. American vehicles assembled in the United States, built by American union workers, and made with engines and transmissions manufactured in the U.S.are the following:

Chrysler Sebring, Dodge Avenger, Dodge Nitro, Jeep Liberty, Ford Expedition, Ford F150, Ford F-250, Ford Taurus, Lincoln MKS, Lincoln Navigator, Buick Lucerne, Cadillac DTS, Chevrolet Corvette, Chevrolet Express, Chevrolet Suburban, GMC Savana, GMC Yukon XL, Hummer H2, Dodge Caliber (manual transmission only), Dodge Dakota (automatic only), Jeep Compass (manual transmission only), Jeep Patriot (manual transmission only), Jeep Wrangler (automatic transmission only), Jeep Wrangler Unlimited (automatic transmission only).

If you are having problems with your vehicle and think you may be driving a lemon, call the California Lemon Law Firm of Delsack and Associates. Call toll free 888-Ex-Lemon (888-395-3666) for a free consultation.

The United States Government is looking into selling its shares in Chrysler and General Motors Company soon. This was relayed to a congressional panel the other day by the head of the Autos Task Force, Ron Bloom. The U.S. government currently owns 8% of Chrysler and 61% of the new General Motors Company. Mr. Bloom did not discuss the objectives that Chrysler or G.M. would have to meet before they sell their shares.

Concerned that either your Chrysler or G.M. vehicle may be a lemon? Call the law firm of Delsack and Associates at 888-Ex-Lemon (888-395-3666) and find out if you qualify.