Chrysler

Chrysler Group, LLC
Type Limited liability company
Industry Automotive
Predecessor Chrysler LLC
Founded June 6, 1925
Founder(s) Walter Chrysler
Headquarters Auburn Hills, Michigan, U.S.
Number of locations List of Chrysler factories
Area served Worldwide
Key people C. Robert Kidder
(Chairman)[1]
Sergio Marchionne
(CEO)[2]
Products Mainstream/Performance vehicles
Automotive parts
Owner(s) United Auto Workers Voluntary Employee Beneficiary Association (67.69%)
Fiat S.p.A. (20%)
U.S. Government (9.85%)
Government of Canada (2.46%)[3]
Employees 58,000 (2008)
Divisions Chrysler
Dodge
Jeep
Ram
Mopar
Global Electric Motorcars (GEM)[4]
Subsidiaries Chrysler Australia
Chrysler Canada
GEM
Website Chryslergroupllc.com

Chrysler Group LLC (pronounced /ˈkraɪslər/) is a U.S.-based automobile manufacturer headquartered in the Detroit suburb of Auburn Hills, Michigan. Chrysler was first organized as the Chrysler Corporation in 1925.[5] From 1998 to 2007, Chrysler and its subsidiaries were part of the German based DaimlerChrysler AG (now Daimler AG).[6] Prior to 1998, Chrysler Corporation traded under the "C" symbol on the New York Stock Exchange. Under DaimlerChrysler, the company was named "DaimlerChrysler Motors Company LLC", with its U.S. operations generally referred to as the "Chrysler Group". On May 14, 2007, DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management, L.P., although Daimler continued to hold a 19.9% stake. This was when the company took on the name, Chrysler LLC.[7] The deal was finalized on August 3, 2007.[8] On April 27, 2009, Daimler AG signed a binding agreement to give up its 19.9% remaining stake in Chrysler LLC to Cerberus Capital Management and pay as much as $600 million into the automaker's pension fund.[9]

On April 30, 2009, Chrysler LLC filed for Chapter 11 bankruptcy protection and announced a plan for a partnership with Italian automaker Fiat.[10] On June 1, Chrysler LLC stated they were selling some assets and operations to the newly formed company Chrysler Group LLC.[11] Fiat will hold a 20% stake in the new company, with an option to increase this to 35%, and eventually to 51% if it meets financial and developmental goals for the company.[12]

On June 10, 2009, the sale of most of Chrysler assets to "New Chrysler", formally known as Chrysler Group LLC was completed. The federal government financed the deal with US$6.6 billion in financing, paid to the "Old Chrysler", formally called Old Carco LLC, which remained in Chapter 11 bankruptcy.[13] The transfer does not include eight manufacturing locations, nor many parcels of real estate, nor equipment leases. Contracts with 789 U.S. auto dealerships, who are being dropped, were not transferred.[14][15]

Contents

History

The company was founded by Walter Chrysler (1875–1940) on June 6, 1925,[16][17] when the Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation.[18][19]

Walter Chrysler had originally arrived at the ailing Maxwell-Chalmers company in the early 1920s, having been hired to take over and overhaul the company's troubled operations (just after a similar rescue job at the Willys car company).[20]

In late 1923 production of the Chalmers automobile was ended.[21]

Then in January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler was a 6-cylinder automobile, designed to provide customers with an advanced, well-engineered car, but at a more affordable price than they might expect. (Elements of this car are traceable back to a prototype which had been under development at Willys at the time that Walter Chrysler was there).[22] The original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication, and an oil filter, at a time when most autos came without these features.[23] Among the innovations in its early years would be the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to Lockheed, and rubber engine mounts to reduce vibration. Chrysler also developed a road wheel with a ridged rim, designed to keep a deflated tire from flying off the wheel. This safety wheel was eventually adopted by the auto industry worldwide.

Following the introduction of the Chrysler, the Maxwell was dropped after its 1925 model year run, although in truth the new line of lower-priced 4-cylinder Chryslers which were then introduced for the 1926 model year were basically Maxwells which had been re-engineered and rebranded.[24] It was during this time period of the early 1920s that Walter Chrysler assumed the presidency of Maxwell, with the company then ultimately incorporated under the Chrysler name.

Organization

Chrysler Headquarters at Auburn Hills

Vehicle brands

Total US Chrysler sales

Calendar Year US Chrysler Sales  %Chg/yr.
1999[25] 2,638,561
2000 2,522,695 decrease4.4%
2001[26] 2,273,208 decrease9.9%
2002[27] 2,205,446 decrease3%
2003 2,127,451 decrease3.5%
2004[28] 2,206,024 increase3.7%
2005[28] 2,304,833 increase4.5%
2006[29] 2,142,505 decrease7%
2007[29] 2,076,650 decrease3.1%
2008[30] 1,453,122 decrease30%
2009[31] 931,402 decrease36%
2010 (January-June)[32] 527,219 increase12%

Global ranking

the Dodge Ram, one of Chrysler's bestselling vehicles[29]

Chrysler officially ranks as the world's thirteenth largest vehicle manufacturer as measured by OICA in 2008.[33] Total vehicle production was about 1.89 million, with more than two-thirds of all units being light commercial vehicles. Chrysler ranks ahead of BMW and behind Daimler AG, and manufactures the least vehicles of the "Big Three" (Chrysler Group LLC, Ford Motor Company, and General Motors) automotive brands of the United States.

Other uses

Turbine

For many years, Chrysler developed gas turbine engines, which are capable of operating on a wide array of combustible fuels, for automotive use. Turbines were common in military vehicles, and Chrysler built many prototypes for passenger cars. In the 1960s, mass production seemed almost ready. Fifty Chrysler Turbine Cars, specialty designed Ghia-bodied coupes were built in 1962 and placed in the hands of consumers for final testing. After further development and testing to make emissions conform to 1970s-enacted EPA standards, the engines were planned as an option for the 1977 model LeBaron. However, Chrysler was forced to abandon the turbine engine as a precondition of U.S. government loan guarantees when the company experienced financial difficulties in the late 1970s

Electric vehicles

Chrysler intended to pursue new drive concepts through ENVI, an in-house organization formed to focus on electric-drive vehicles and related technologies. Established in September, 2007, Chrysler's ENVI division led by Lou Rhodes specifically deals with new all-electric and hybrid vehicles not based on existing models.

Chrysler LLC brought a wide range of green vehicles to the Detroit Auto Show, including three concept vehicles that incorporate electric drive technologies:

  1. The Dodge ZEO concept—short for "Zero Emissions Operation"—is an all-electric sport wagon combining a 64-kilowatt-hour lithium-ion battery pack with a 200-kilowatt (268 horsepower) electric motor. The rear-wheel-drive vehicle accelerates to 60 mph (97 km/h) in less than six seconds and has a range of at least 250 miles (400 km). There is also a plug-in hybrid electric version.
  2. The Chrysler ecoVoyager concept combines a similar battery pack and motor with a small hydrogen fuel cell to achieve a 300-mile (480 km) range. The vehicle can travel about 40 miles (64 km) on battery power alone and can accelerate to 60 mph (97 km/h) in less than eight seconds.
  3. The Jeep Renegade concept, a plug-in hybrid, combines a lithium-ion battery pack with dual 200 kW (270 hp) electric motors on each axle. The Jeep can travel 40 miles (64 km) on battery power alone and can travel 400 miles (640 km) with the help of its 1.5-liter, 3-cylinder clean diesel engine. The vehicle features a lightweight aluminum architecture.

Chrysler is also currently planning at least three hybrid vehicles, the Chrysler Aspen hybrid, Dodge Durango hybrid, and the Dodge Ram hybrid including HEMI engines. Chrysler plans to use hybrid technology developed jointly with General Motors and BMW AG in vehicles beyond the two hybrid SUVs it had already announced to introduce in 2008.[34]

The Ram 1500 pickup will be available as a hybrid in 2010. The Ram HEMI Hybrid will combine a two-mode hybrid system with a 5.7-liter HEMI V-8 engine. For the 2009 Ram 1500, Chrysler is launching an improved version of its HEMI V-8 engine featuring variable valve timing and a four-cylinder mode with an expanded operating range. The result is more power and torque, along with a 4% increase in fuel economy.

Chrysler has also been experimenting with a Hybrid Diesel truck for military applications.

Chrysler has debuted:[35][36]

At the 2009 North American International Auto Show in Detroit, Chrysler unveiled the 200C EV Concept, a sports sedan with an all-electric range of 40 miles and an extended range of about 400 miles (640 km). It also added the Jeep Patriot EV, another range-extended electric vehicle. If Chrysler does release an all-electric sports car in 2010, it will be in direct competition with two North American startup companies: Tesla Motors and Fisker Automotive.[38]

Chrysler's ENVI division, which is dedicated to creating production electric drive vehicles, announced in September 2008 that Chrysler LLC will have electric vehicles in showrooms by 2010. They showed three "production intent" vehicles and stated that these are going to be the first of a broad portfolio of electric vehicles.[39]

Chrysler Chief Executive Bob Nardelli said government loans would help speed the electric technology to market. But if they aren't approved, Chrysler will have to spend limited resources on developing new technology and would have to make cuts elsewhere, possibly in employment and development of conventional products. "Unfortunately we have had to furlough many families as a result of the economy turmoil and certainly the downward spiraling in the industry," he said. "I'd like to make sure that we don't have to go further to be able to support advanced technology work."[37]

The Chrysler executives said the day is coming when the whole Chrysler fleet has electric powertrains. "The goal is to achieve fundamental technology, get economies of scale, improve our ability to make the future generations more robust, less cost, smaller, more powerful, better performance," Press said. "Ultimately it will lead to a transformation of our entire fleet that will be in some manner electric drive."[37]

“ We chose a technology -- one in which we had the most experience, and which is most accessible to the consumer, and that's electricity. ”

—Chrysler CEO Robert Nardelli [40]

PHEV Research Center

Chrysler is in the Advisory Council of the PHEV Research Center.

Chrysler Uconnect Web

Chysler LLC Uconnect Web is a system that brings wireless Internet connectivity to any Chrysler, Dodge, or Jeep vehicle, via a wi-fi "hot-spot". According to Chrysler LLC, the hotspot range will extend approximately 100 feet from the vehicle in all directions, and will combine both WiFi and 3G cellular connectivity. Uconnect is available on several current and discontinued Chrysler models including the Chrysler 300, Aspen, Sebring, Town and Country, Dodge Avenger, Caliber, Grand Caravan, Challenger, Charger, Journey, Nitro, and Ram.[41]

Marketing

In 2007, Chrysler began to offer vehicle lifetime powertrain warranty for the first registered owner or retail lessee.[42] The deal covered owner or lessee in U.S., Puerto Rico and the Virgin islands, for 2009 model year vehicles, and 2006, 2007 and 2008 model year vehicles purchased on or after July 26, 2007. Covered vehicles excluded SRT models, Diesel vehicles, Sprinter models, Ram Chassis Cab, Hybrid System components (including transmission), and certain fleet vehicles. The warranty is non-transferable.[43] However, after Chrysler's restructuring, the warranty program was replaced by five-year/100,000 mile transferrable warranty for 2010 or later vehicles.[44] As of October 5, 2009, Dodge's car and truck line are now split into two, "Dodge" for cars, minivans and crossovers and "Ram" for light and medium duty trucks and other commercial-use vehicles.[45]

Controversies

In 1987, it was discovered that Chrysler sold an estimated 32,750 cars that had been test-driven with disconnected odometers - some as much as 500 miles - before being shipped to dealers. Chrysler settled out of court with complainants.[46][47] Chrysler CEO Lee Iacocca sought to minimize damage to the corporation's public image by calling a news conference in which he termed the action "dumb" and "unforgivable".

Chrysler was among the companies boycotted by gay rights groups after removing advertisements from the ABC sitcom Ellen in 1997, which it deemed "controversial."[48]

See also

Countries

References

  1. ↑ Chrysler LLC (2009-05-20). "C. Robert Kidder to Become Chairman of Chrysler Group LLC". Press release. Archived from the original on 2009-05-20. http://www.examiner.com/p-349852~C__Robert_Kidder_to_Become_Chairman_of_Chrysler_Group_LLC.html. Retrieved 2009-06-09. 
  2. ↑ "UPDATE: US Ruling Paves Way For Marchionne As Chrylser [sic CEO"]. Dow Jones. Dow Jones & Company, Inc.. 2009-06-01. http://online.wsj.com/article/BT-CO-20090601-708155.html. Retrieved 2009-06-09. 
  3. ↑ "Fiat Said to Buy Chrysler Assets Today to Form New Automaker". www.bloomberg.com. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAB9jCmPBUQU. Retrieved 2009-06-11. 
  4. ↑ Chrysler Group LLC list of company brands retrieved 18 November 2009.
  5. ↑ "Chrysler Reviews and History". JB car pages. http://www.jbcarpages.com/chrysler/. Retrieved 2008-09-22. 
  6. ↑ "Chrysler History". JB car pages. http://www.jbcarpages.com/chrysler/history/. Retrieved 2008-09-22. 
  7. ↑ ""Cerberus Takes Majority Interest in Chrysler Group and Related Financial Services Business for EUR 5.5 Billion ($7.4 billion)". DaimlerChrysler. http://www.daimlerchrysler.com/dccom/0-5-7145-1-858191-1-0-0-0-0-0-11979-0-0-0-0-0-0-0-0.html. 
  8. ↑ "Cerberus gains control of Chrysler". San Jose Mercury News. http://www.mercurynews.com/arts/ci_6534916. 
  9. ↑ "Daimler Reaches Agreement On Separation From Chrysler". 27 April 2009. http://online.wsj.com/article/BT-CO-20090427-717397.html. 
  10. ↑ Chrysler bankruptcy plan is announced. www.nytimes.com. Retrieved 2009-04-30.
  11. ↑ "Court Approves Sale of Chrysler LLC Operations to New Company Formed with Fiat". News.prnewswire.com. http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/06-01-2009/0005035600&EDATE=. Retrieved 2009-06-06. 
  12. ↑ "Chrysler Gets OK for Fiat Sale". Edmunds.com. 2009-06-01. http://www.edmunds.com/insideline/do/News/articleId=149327. Retrieved 2009-06-06. 
  13. ↑ Ramsey, Mike and Kary, Tiffany. "Chrysler Assets Said to Have Little Net Proceeds for Creditors" Bloomberg.com, 2009-06-23, retrieved on 2009-07-10.
  14. ↑ de la Mercel, Michael; Micheline Maynard (June 10, 2009). "Swift Overhaul Moves Ahead as Fiat Acquires Chrysler Assets". New York Times. http://www.nytimes.com/2009/06/11/business/global/11chrysler.html. Retrieved June 10, 2009. 
  15. ↑ Forden, Sara Gay; Mike Ramsey (June 10, 2009). "Fiat Said to Buy Chrysler Assets Today to Form New Automaker". Bloomberg. http://www.bloomberg.com/apps/news?pid=20601103&sid=a59MFT3OCDBs. Retrieved June 10, 2009. 
  16. ↑ Davis, Mike; Tell, David (1995). The Technology Century: 100 years of The Engineering Society 1895-1995. Engineering Society of Detroit. p. 53. ISBN 9781563780226. 
  17. ↑ Lockwood, Cliff (October 18, 1968). "Early Chrysler Corporate History: 1903 - 1928". Chrysler Club pages. http://www.chryslerclub.org/walterp.html. Retrieved June 28, 2010. 
  18. ↑ "A Brief Look at Walter P. Chrysler". WPC News. http://www.chryslerclub.org/walterp.html. 
  19. ↑ Malis, Carol (1999). Michigan: celebrating a century of success. Cherbo Publishing Group. p. 76. ISBN 9781882933235. 
  20. ↑ Kimes, Beverly R.; Clark, Jr., Henry A., eds (1996). Standard Catalog of American Cars 1805-1942. Krause Publications. p. 292. ISBN 9780873414289. 
  21. ↑ Kimes, p. 257.
  22. ↑ Kimes, pp. 292 and 1498.
  23. ↑ Zatz, David. "Chrysler Technological Innovations". http://www.allpar.com/corporate/technology.html. Retrieved 2008-01-05. 
  24. ↑ Kimes, pp. 292–293, and 901.
  25. ↑ "Chrysler Group Announces Year-End and December Sales". Theautochannel.com. http://www.theautochannel.com/news/press/date/20010103/press033497.html. Retrieved 2009-04-30. 
  26. ↑ "Chrysler Group Reports U.S. December Sales". Theautochannel.com. http://www.theautochannel.com/news/2003/01/04/152240.html. Retrieved 2009-04-30. 
  27. ↑ "Chrysler Group Reports December 2003 Sales Increase of 2 Percent". Theautochannel.com. 2004-11-17. http://www.theautochannel.com/news/2004/01/05/175827.html. Retrieved 2009-04-30. 
  28. ↑ 28.0 28.1 "Chrysler Group 2005 U.S. Sales Rise 5 Percent, Highest Since 2000; December Sales Decline In Line with Overall Industry". Prnewswire.com. http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/01-04-2006/0004242655&EDATE. Retrieved 2009-04-30. 
  29. ↑ 29.0 29.1 29.2 "Total Chrysler LLC December 2007 Sales Up 1 Percent on the Strength of Retail; Demand...". Reuters. 2008-01-03. http://www.reuters.com/article/pressRelease/idUS217066+03-Jan-2008+PRN20080103. Retrieved 2009-04-30. 
  30. ↑ "Chrysler LLC Reports December 2008 U.S. Sales". News.prnewswire.com. http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/01-05-2009/0004949198&EDATE=. Retrieved 2009-04-30. 
  31. ↑ "Award-winning Month Drives Chrysler Group LLC's December U.S. Sales". Theautochannel.com. http://www.theautochannel.com/news/2010/01/05/460570.html. Retrieved 2010-03-06. 
  32. ↑ "June auto sales stall amid fears recovery is sputtering". 2010-07-01. http://news.yahoo.com/s/afp/20100701/ts_alt_afp/usautosales. 
  33. ↑ "World Motor Vehicle Production – World Ranking of Manufactures 2008". OICA. 2009-06-14. http://oica.net/wp-content/uploads/world-ranking-2008.pdf. Retrieved 2010-05-23. 
  34. ↑ "Chrysler Commits to New Hybrids, Better Mileage". Planet Ark. 2007-06-22. http://www.planetark.com/dailynewsstory.cfm/newsid/42750/story.htm. Retrieved 2010-07-11. 
  35. ↑ Neff, John (2008-09-23). "Chrysler LLC debuts Dodge EV, Jeep EV and Chrysler EV". Autoblog.com. http://www.autoblog.com/2008/09/23/chrysler-llc-debuts-dodge-ev-jeep-ev-and-chrysler-ev/. Retrieved 2009-04-30. 
  36. ↑ "EERE News: EERE Network News". Apps1.eere.energy.gov. http://apps1.eere.energy.gov/news/enn.cfm#id_11990. Retrieved 2009-04-30. 
  37. ↑ 37.0 37.1 37.2 "Chrysler "Jolts" PHEV Race; PHEV Ads; V2Green Acquired". Calcars.org. http://www.calcars.org/calcars-news/1005.html. Retrieved 2009-04-30. 
  38. ↑ "EERE News: Chrysler, Ford, and Other Automakers Pursue Electric Vehicles". Apps1.eere.energy.gov. 2009-01-14. http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12178. Retrieved 2009-04-30. 
  39. ↑ "Innovation – ENVI". Chrysler LLC. 2008-09-22. http://www.chryslerllc.com/en/innovation/envi/overview/. Retrieved 2009-04-30. 
  40. ↑ "Developments on Bridge Loan to Automakers; 4 Groups Write Congress". Calcars.org. http://www.calcars.org/calcars-news/1028.html. Retrieved 2009-04-30. 
  41. ↑ Davies, Chris (June 26, 2008). Chrysler uconnect Web turns car into WiFi hotspot. SlashGear. Retrieved 2010-06-30.
  42. ↑ Abuelsamid, Sam (2007-07-26). "Breaking: Chrysler announces lifetime powertrain warranty!". Autoblog.com. http://www.autoblog.com/2007/07/26/breaking-chrysler-announces-lifetime-powertrain-warranty/. Retrieved 2010-07-11. 
  43. ↑ "New Chrysler Lifetime Powertrain Warranty Customers - Q&A". Chrysler.com. 2007-07-26. http://www.chrysler.com/en/lifetime_powertrain_warranty/faq.html. Retrieved 2010-07-11. 
  44. ↑ Korzeniewski, Jeremy (2009-08-20). "REPORT: Chrysler dropping lifetime powertrain warranty to five-year/100,000 miles". Autoblog.com. http://www.autoblog.com/2009/08/20/report-chrysler-dropping-lifetime-powertrain-warranty-to-5-year/. Retrieved 2010-07-11. 
  45. ↑ "Officially Official: Dodge splits off Ram brand with new exec appointments". autoblog.com/2009. http://www.autoblog.com/2009/10/05/dodge-announces-exec-appointments-tied-to-new-dodge-car-and-ram/. Retrieved 2010-03-12. 
  46. ↑ Chrysler Fined for Safety ViolationsNew York Times, 12 Jul 1987
  47. ↑ Chrysler to Pay Some 40,000 Owners in SettlementNew York Times, Aug 24 1988
  48. ↑ Gallagher, John (1997-06-10). "The ad buck stops here - controversy on gays and advertising". The Advocate. http://findarticles.com/p/articles/mi_m1589/is_n735/ai_20164880. Retrieved 2007-11-07. 

Further reading

External links

Chrysler Group LLC
Marques

Chrysler · Dodge · Jeep · Ram
Related companies

Mopar (parts) · Chrysler Financial Services (finance) · Global Electric Motorcars (GEM) (commercial vehicles)
Chrysler Canada · Chrysler Australia
Defunct marques

American Motors Corporation (1954–1988) · Commer (1905–1979) · Barreiros (1959–1978) · DeSoto (1928–1961) · Eagle (1988–1998) · Fargo (1920–1972) · Hillman (1907–1976) · Humber (1898–1975) · Imperial (1955–1975, 1981–1983) · Karrier (1908–1977) · Plymouth (1928–2001) · Singer (1905–1970) · Simca (1934–1977) · Sunbeam (1901–1976) · Valiant (1960–1966)
Defunct related companies

Daimler-Chrysler (1998–2007) · Chrysler UK (1970–1981) · Chrysler Europe (1967–1981) · Chrysler Australia (1951–1981) · AMC (1986–1988)
Diamond-Star Alliance (defunct)

Diamond-Star Motors · DaimlerChrysler-Mitsubishi alliance · Daimler-Benz · Mitsubishi Motors
Related

Chrysler bankruptcy · Chrysler Building · Cerberus Capital Management · Global Engine Manufacturing Alliance (GEMA) · Fiat SpA
See also: Lee Iacocca · Minivan · Chrysler K platform · Pentastar