16.09.2009 BIGGER JOB THAN EXPECTED TO TURN CHRYSLER AROUND SAYS SERGIO MARCHIONNE

CHRYSLER STAND AT THE 63RD FRANKFURT IAA 2009
JEEP WRANGLER UNLIMITED CUSTOMIZED BY MOPAR AT THE 63RD FRANKFURT IAA 2009
CHRYSLER 300C TOURING WALTER P CHRYSLER SERIES EDITION AT THE 63RD FRANKFURT IAA 2009

Chrysler Group is showing a mixture of cars from its three brands in Frankfurt, presented in Model Year 2010 specification, which include two new limited series models, the Jeep Patriot Overland and Chrysler 300C Touring Walter P Chrysler Series Edition (bottom) as well as a Jeep Wrangler Unlimited that has been customised by Mopar (middle).

Chrysler Group's three automotive divisions have joined the Fiat's Group's own brand collection in one hall in Frankfurt this week where the Italian company has announced that it is putting back revealing future product plans for the North American carmaker until November while also saying that the newly acquired Bertone plant in Turin will be used to build future Chrysler Group models.

Fiat which took over control of Chrysler Group in June as well as gaining an initial 20 percent stake and had been expected to outline future plans for the ailing North American carmaker later this month; however an announcement will now wait until early November. In the meantime it was revealed today that following the conclusion of the U.S. government's scrappage scheme, Chrysler Group's sales are running 19 percent down this month compared to August. "We are going to see harsh reality in September," Fiat Group CEO Sergio Marchionne said today. Chrysler's sales chief Peter Fong blamed the lack of cars available for the decline this month, saying that dealers had 83,000 cars on the lots at present, less than a quarter of what they had a year ago. "For Chrysler, our story is a lack of inventory," he said in Frankfurt, adding: "It’s the lowest level that anyone can remember, I think it's likely that car sales will bounce back next month."

With sales quickly collapsing and an aged model range, Chrysler Group's future plans cannot come soon enough. It is widely believed that some of the hold up in announcing the future strategy is due to intense negotiations with different states and regions for the strongest incentives as long-term production locations are chosen. Marchionne wouldn't be drawn into discussing any individual locations and for the Fiat 500, widely expected to be built at Chrysler's Toluca in Mexico, he would only say in Frankfurt that it would be built "somewhere in NAFTA." The November plans will also include news of how Alfa Romeo will be relaunched in the U.S. with Marchionne revealing that a limited number of Chrysler dealers will have the opportunity to extend their showrooms to take on the Italian sports brand.

Marchionne also said in Frankfurt that the situation at Chrysler is even worse than he had expected, with no forward planning having been made since private equity house Cerberus Capital Management bought Chrysler from its then owner Germany's Daimler two years ago. "There's a whole pile of stuff that we didn't see when we came, that we we were not expecting,” Marchionne said. “Probably the single largest surprise to us was how little had happened in the past twenty four months to get competitive." Chrysler executives are now working round the clock, seven days a week as they try to put the carmaker onto a path that will safeguard its future. "It's pretty intense stuff what's going on," added Marchionne who likened the activity now to the dramatic turnaround that was undertaken at Fiat after he arrived as CEO.

Marchionne also revealed that he has completely shut the door to a deal for Opel, even though a sale to Canadian car parts and contract manufacturer Magna still hasn't been inked. "I've completely closed with Opel," he told reporters in Frankfurt. Marchionne believes that a carmaker can only be profitable if it makes 5.5 to 6 million cars a year and he will now try to achieve that objective through the new partnership between Fiat and Chrysler. "Wait until November," when he will reveal his plans for Chrysler he said, "we'll see if I get there on my own."

Marchionne also praised the U.S. for its attitude to rationalising the car industry this year compared to the European attitude. The U.S. approach was "much more thoughtful, much more reasoned that we've had in Europe," he said. "As a result of this crisis, there has not been a single plant that has been shut down, not a single attempt at rationalisation in Europe, even though capacity is long." He also said that Bertone will build Chrysler models in the future. Currently Magna, who beat Fiat to Opel this year, assembles the Jeep Grand Cherokee and Chrysler 300C for the European markets and this arrangement is likely to come under review with the Grugliasco factory in Turin expected to start building cars from 2011, possibly kicking off with the replacement for the 300C.

Meanwhile on the Chrysler Group stand in Frankfurt this week the U.S. carmaker is showing a mixture of cars from the Chrysler, Dodge and Jeep brands, all being presented in Model Year 2010 specifications which are mostly focused around revised interiors and other cosmetic trim upgrades, and include two new limited series models, the Jeep Patriot Overland and Chrysler 300C Touring Walter P Chrysler Series Edition.

Approximately 40 percent of Jeep Wrangler customers who order exterior accent packages will purchase chrome to customise their vehicle and a Mopar-outfitted 2010 Wrangler Unlimited, on display this week in Frankfurt showcases a new line of chromed parts and accessories from the minds of Mopar. The “Moparized” Wrangler Unlimited features chromed mirror covers and brushed stainless steel door sills--popular accents that hold true to the appearance theme. At the rear of the Mopar-outfitted Wrangler Unlimited, a chromed fuel-filler cap and an upgraded chromed exhaust tip sparkle even in the worst weather and off-road conditions. In addition, tubular side steps double as easy entry points. Further, Mopar’s18-inch chromed aluminium wheels are added to enhance the appearance. Finishing off the Wrangler Unlimited, the historical seven-slot grille is upgraded to a chromed grille. In addition to chromed accents, Mopar offers a vast selection of parts and accessories to further enhance the capability and performance of Jeep Wrangler. These parts and accessories include lift kits, upgraded axles, rock protection, cold-air intake kits and cat-back exhaust systems. Whether it’s chromed accents or lift kits, new Wrangler customers spend approximately US$325 on Mopar parts and accessories in order to customise their new vehicle. To meet the demand of customer individuality, these parts and a variety of others may be ordered and installed at the dealership. They may also be installed at the factory. “Right after Dodge Ram, Jeep Wrangler is our most accessorised vehicle,” said Pietro Gorlier, President and Chief Executive Officer – Mopar Service, Parts and Customer Care. “From chromed parts to axle kits, we offer our Jeep Wrangler owners hundreds of parts and accessories from which to choose.”

ItaliaspeedTV: Chrysler 300C Touring Walter P Chrysler Series Edition / Jeep Patriot Overland
 

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