Chrysler Bankruptcy Could Delay 2010, 2011 Models

Nobody ever thought that once Chrysler LLC filed for Chapter 11 bankruptcy, everything would immediately get better. During the 30-60 day bankruptcy phase, all of Chrysler’s production has ceased which is one of the main factors that could delay 2010 models, while tooling and equipment issues could cause delays for 2011 models. A partnership with Fiat S.p.A. could help alleviate product down time, but estimates are putting the first Fiat car in Chrysler showrooms no sooner than 18 months. With important vehicles such as the redesigned LX sedans, the Chrysler 300 and Dodge Charger, and the all-new 2011 Jeep Grand Cherokee and in the upcoming product pipeline, Chrysler’s recovery may hinge on these vehicles being produced sooner rather than later.

While nothing is definite yet, Chrysler’s manufacturing chief Frank Ewasyshyn doesn’t seem very confident in the planned vehicles making it to market on time. Since no vehicles will be built while Chrysler emerges from the bankruptcy over a two-month span, the production of many 2009 models were halted and remained unfinished meaning that the 2010 models must be pushed back. Although Chrysler isn’t expected to launch any new or important vehicles for the 2010 model year, the 2011 year is also in jeopardy of being delayed, according to Ewasyshyn. The 2010 model changeover usually takes place in early summer.

Ewasyshyn’s comments come at a time when Chrysler is trying to build consumer confidence for its current and future vehicles and relay a positive attitude that its cars will become competitive in the market. This past weekend, Chrysler ran advertisements in multiple newspapers across the country touting its new vehicles as the key to a “New Chrysler.” The three vehicles it showed in the ads were the Chrysler 200C and Dodge Circuit EV concept vehicles and the upcoming fourth generation of Jeep’s Grand Cherokee. The Dodge Circuit is an electric vehicle based on the Lotus Europa S and is intended to showcase Chrysler’s ENVI division and its ability to create a sporty electric vehicle in a short amount of time. Likewise, the 200C is a concept vehicle that not only shows the company’s intention to invest more in plug-in electric vehicles, but also showing the future design of a much-needed Chrysler Sebring and Dodge Avenger replacement.

The transition from last week’s Chrysler into the “New Chrysler” will result in a few models being trimmed. Some casualties that are already in the works include the Dodge Viper and Chrysler PT Cruiser. This year has already seen vehicles such as the Dodge Durango, Chrysler Aspen, Dodge Magnum and Chrysler PT Cruiser convertible quietly end production.