During a routine quality inspection, automaker Chrysler, noticed that some vehicles had an improperly formed brake booster push rod retaining clip or no clip at all. Even though there have been no accidents or consumer complaints related to the problem, Chrysler feels there is potential for the push rod to separate from the brake pedal assembly resulting in loss of brakes. As a result, they will be recalling 2010 models of the Chrysler Sebring, Dodge Avenger, Dodge Nitro, Jeep Commander, Jeep Grand Cherokee, Jeep Liberty and 2009 and 2010 models of the Dodge Ram pickup. Owners will be notified this month if their vehicles are affected, and Chrysler will replace the faulty or missing clips free of charge.
Tag Archives: Chrysler
Chrysler to Challenge Legislation
Complaints made to Congress from GM and Chrysler dealerships has led to a House approved $1.1 trillion spending bill. This bill will give dealerships a chance to dispute their closure depending on their past success. G.M. and Chrysler proposed their own review processes last week in an effort to keep Congress from getting involved, but their proposal was rejected.
Today, Chrysler came back challenging the decision, calling it ‘unconstitutional legislation’. Sergio Marchionne (CEO of the Fiat and Chrysler Group LLC and Chairman of the European Automobile Manufacturers Association) said that restoring large numbers of dealerships could cause havoc within Chrysler. “We are in a completely different position than G.M.” he said. G.M. has about $42 billion in cash in September, paying back $6.7 is easier than it would be for us.” Mr.. Marchionne also said G.M. was more focused on repaying the loans because the government owns 60% as opposed to 10% of Chrysler. Chrysler’s majority shareholder is the United Automobile Workers union’s retiree health care trust.
Chrysler is planning to make investments that would provide jobs and other economic benefits. Building a fuel-efficient engine with Fiat technology in the United States is one of three goals that each allow Fiat to gain an additional 5 percent of Chrysler.
Chrysler/Fiat Merger has Chrysler Awaiting New Vehicles based on Partners Technology
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
Chrysler and Nissan End Agreement
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).
U.S. Government to Sell Chrysler and G.M. Shares
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.
Fiat Enters into Joint Venture with Chinese Auto Manufacturer
Fiat, the Italian automaker which owns a 20% controlling interest in the new Chrysler, announced an equal partnership, joint venture with Chinese automaker Guangzhou Automobile Group. The companies announced that they would build a new 173 acre plant in Hunan province with production scheduled to begin at the end of 2011. The plant will cost more than $550 million and will have the ability to manufacture 140,000 cars and 220,000 engines per year after the first phase is completed. Upon completion of all phases production would eventually increase to 250,000 cars and 300,000 fuel-efficient, low emission engines per year. Guangzhou Automobile Group which already has similar joint ventures with Honda and Toyota, stated that it had delivered more than 530,000 vehicles last year.
Some Basics About The New Chrysler
On Wednesday, June 10, 2009, Fiat management assumed control of Chrysler after the company had emerged from 42 days under bankruptcy protection. The new company is restarting operations under the name Chrysler Group L.L.C. and will be under the management control of Fiat which initially will hold 20% and whose eventual holding may increase to 35%. The remainder of the ownership is divided between a health-care trust for retirees of the United Automobile Workers union which holds 55%, and the American and Canadian governments which hold 8% and 2% respectively. Fiat cannot take majority control of Chrysler until it repays the federal government the monies which had been borrowed by Chrysler.
Chrysler’s new board of directors will consists of nine members, with three to be appointed by Fiat, four from the US Treasury, one by the Canadian government, and one by the UAW health care trust. It is not yet clear whether Chrysler will be selling shares to the public but the UAW president, Ron Gettelfinger, had recently stated that he wanted to sell the health care trust holdings as soon as possible.
The new company announced it would restart production soon but in the meantime was re-distributing vehicles, which it has an ample supply of, from its closed dealerships to the remaining dealers. Chrysler closed approximately 800 dealers as part of its bankruptcy. Remaining dealerships will operate normally.
While the federal government had backed Chrysler warranties of new vehicles sold while the company was in bankruptcy, Chrysler Group will now assume that responsibility. Likewise, warranties on Chrysler products which were purchased before Chrysler filed for bankruptcy will also be honored until they expire. Warranty work for vehicles which were sold by the now closed dealerships can be done at any of the remaining open Chrysler dealers.
Fiat management announced last week that it would soon begin transferring technology, engines, transmissions and other components to the Chrysler plants to enable them to start building small and medium-sized cars for sale in North America. As one of the first steps Chrysler Group will be offering the Fiat 500 to US consumers.
Think the Chrysler you are driving may be a lemon. Call 888-Ex-Lemon (888-395-3666) and speak with an attorney at the Law Offices of Delsack and Associates for a free consultation.
Buying American? Or Are You?
Although 8.5 million cars and light trucks were assembled in the United States last year, the traditional Big Three automakers, Ford, Chrysler, and General Motors, only accounted for about 5 million of those. The remaining 3 million were built in the United States in American plants for manufacturers such as Toyota, Mercedes-Benz, Hyundai, Honda, and BMW. Making it more confusing is that the Big Three also have assembly plants in Canada and Mexico. Thus, American car buyers are faced with the question of whether a car manufactured by a company with its headquarters in Japan, but which has been built in Ohio, as is the Honda Accord, is more American than is a car from an American company headquartered in Michigan selling cars manufactured in Mexico, as is, for example, the Ford Fusion.
Toyota is the leading producer of vehicles built in the United States beating out Chrysler last year by a slight margin. In fact, Honda has been building its vehicles in the United States since as early as 1982 in its plant in Marysville Ohio. And in the 80s and 90s Canadian and Mexican plants were already turning out cars for the Big Three American manufacturers.
Therefore, what is euphemistically called “domestic content,” may not be domestic at all. Domestic content may include parts made in Canada and Mexico. However, while American auto workers are assembling vehicles in American plants for foreign manufacturers, labor is excluded from the determination of what is American-built. Thus, foreign auto manufacturers with assembly plants in the United States cannot factor in the value of American labor, nor be credited for it.
To further confuse matters while, for example, Honda builds its engines in its plant in Ohio for the Acura RTX, the country of origin is still listed as Japan. The reason is that one expensive part, the turbocharger, is actually manufactured and imported from Japan although installed by workers in the Ohio plant.
Clearly, determining whether a car is American-built is confusing and oftentimes misleading.
