Search results matching tag 'daimlerchrysler'

SOLD! Cerberus Purchases Chrysler Corporation for $7.4 Billion

Jeffrey Ross — Mon, 14 May 2007 18:43:00 GMT

By: Jeffrey Ross
Autotropolis.com

Almost nine years to the day since the announcement of the merger and exactly three months to the day since the announcement of a possible sell off, the Daimler and Chrysler names will once again stand alone. It was announced today that Cerberus Capital Management, a private equity firm, purchased an 80 percent majority holding of the Chrysler Group for $7.4 billion. Compared to the $36 billion that Daimler-Benz spent to acquire the Chrysler Corporation, this merger will probably go down in history as one of the costliest and biggest failures of all time.

In 1998, when Daimler-Benz paid $36 billion to form DaimlerChrysler, the transaction was labeled a merger, but after nine years it’s clear that the deal resembled more of a takeover than anything else. The first big event to take place after the “merger” was the discontinuation of the Plymouth brand in 2001. While the demise of Plymouth can hardly be blamed on Daimler, the death of such a once proud brand, that produced cars such as the Road Runner and the Barracuda, marked a sign of things to come for the Chrysler Corporation (other than the limited-production Prowler roadster, the last Plymouth-specific car was a rebadged Mitsubishi Eclipse the 1990-1994 Plymouth Laser).

While the two companies appear to be walking away from the deal as equals, this situation more closely resembles a neglected spouse finally able to escape a relationship. After this particular nine-year relationship, the only successful Chrysler car that used Daimler’s technology was the 2005 Chrysler 300 and Dodge Magnum (followed by the 2006 Dodge Charger). The LX-platform cars used suspension components from 1996-2002 Mercedes-Benz E-Class and the 2000-2005 Mercedes-Benz S-Class – hardly the platform sharing that most manufacturers benefit from.

The success of the LX-platform was severely overshadowed by other platform-sharing projects that failed miserably or were blatant badge-engineering experiments that showed the neglect towards DaimlerChrysler’s U.S. products. The Chrysler Crossfire in concept form drew rave reviews from the media and the general public alike, but by the time the production Crossfire came into fruition in 2004, it was little more than a watered-down, rebadged 1997-2004 Mercedes-Benz SLK-Class. Compared to the Crossfire, the Dodge Sprinter could be called a huge success, but it was little more than cost cutting at its best. With Dodge’s full-size B-van over 30 years old, Dodge was given a Mercedes-Benz Sprinter van with minor badge and grille changes to take its place. The Mercedes-Benz Sprinter was introduced in 1995 and it wasn’t until 2001 that the Sprinter even saw U.S. soil (as a Freightliner Sprinter). The Dodge Sprinter hit showrooms in 2003.

It can be argued that attempts were made to share knowledge and technology, but Daimler’s neglect toward Chrysler is painfully obvious in regards to one car especially: the Pacifica. For argument’s sake, the Crossfire did have a sleek and sporty look and even a peppy SRT-6 model, but the sales never amounted to anything and led to the car’s demise. The Sprinter, on the other hand, is actually quite a success competing against the Ford’s class-dominating E-Series vans, but the lack of individuality from the Mercedes-Benz and Freightliner versions is a definite negative point. The 2004 Chrysler Pacifica represented the first all-new vehicle under DaimlerChrysler. Maybe the Pacifica, a minivan-based crossover, was a few years ahead of its time, but that being said, when the similarly marketed Mercedes-Benz R-Class hit the market just two years later the Pacifica was clearly inferior. Despite being built from the same company, and even carrying the same “sport touring vehicle” label, the R-Class was dominant over the Pacifica in just about every category.

In fact, the only vehicle from the Chrysler Group to be shared with other DaimlerChrysler nameplates won’t be available for months after the de-merger. Sterling, a medium- and heavy-duty truck manufacturer and subsidiary of Freightliner, will receive the Bullet this fall. The Bullet is nothing more than a rebadged version of the heavy-duty Dodge Ram 4500 and 5500 cab and chassis.

Assuming Cerberus doesn’t send the newly formed Chrysler Holdings LLC to the financial chop shop, the separation of Chrysler from Daimler is a step in the right direction. While Cerberus will take over Chrysler with zero debt, the company will be responsible for almost $18 billion in current and former employee benefits including health care and pension.

Hybrid Hemi. Sweet!

Jeffrey Ross — Tue, 08 May 2007 16:15:00 GMT

By: Jeffrey Ross
Autotropolis.com

In the muscle-car era, no other powerplant had as much impact as the iconic Hemi engine. The raw, unadulterated Hemi offered Dodge and Plymouth drivers hours of tire-shredding fun. Unfortunately, the legendary Hemi engine met its ultimate match in 1971: fuel economy.

When the Hemi-branded engines were revived in 2003, well-known Dodge commercials had everyone asking Dodge Ram drivers, “That thing gotta Hemi?” This fall, full-size SUV buyers will be able to counter the Hemi commercials with their own tagline: “That thing gotta hybrid? Sweet!”

A joint development between DaimlerChrysler, General Motors and BMW will bring Dodge and Chrysler their first hybrid vehicles; a two-mode hybrid version of the Dodge Durango and Chrysler Aspen. The hybrid system will be paired up with the 335-horsepower, 5.7-liter Hemi engine featuring Multi-displacement System (MDS). DaimlerChrysler claims the pairing will improve overall fuel economy by 25 percent and a 40-percent gain during city driving alone.

The most unique aspect of this joint venture hybrid system is the transmission. While most of the hybrids on the market use a normal engine (gasoline or diesel) with two electric motors, the system that will find its way into the Durango incorporates the two electric motors into the transmission. This setup allows for high efficiency without sacrificing any power-handling capabilities such as acceleration or towing.

The two-mode hybrid transmission uses the two electric motors that act as an electric continuously variable transmission (ECVT) and four conventional fixed gears. This combination ensures that the Durango and Aspen will fit a wide variety of applications. When the 2006 Dodge Durango was redesigned and the 2006 Chrysler Aspen was released, both featured a floor design that would seamlessly accept the new hybrid system. This allows both SUVs to offer the efficiency of a gas-electric hybrid but maintain the passenger and storage capacities of a conventional full-size SUV.

The MDS Hemi operates as a regular V8 during acceleration or under a load and seamlessly switches to operate as a four cylinder engine while cruising, coming to a stop or idling. For comparison, the 2007 Dodge Durango and Chrysler Aspen get fuel economy of 14 mpg city and 20 mpg highway, while the 2008 hybrid version of the pair will get 20 mpg city and 22 mpg highway according to DaimlerChrylser claim. The MDS system alone improved fuel economy in the in the Hemi by 10 percent.

The first vehicle brought to market using this joint technology will be the 2008 Chevrolet Tahoe and GMC Yukon this summer. By 2009, General Motors will offer the hybrid technology in its entire lineup of full-size pickups and SUVs sharing the GMT900 platform, ranging from the Chevrolet Silverado to the Cadillac Escalade. GM’s hybrid SUVs will be powered the 320-horsepower, 5.3-liter V8 with the MDS-like Active Fuel Management.

China's Chery to provide small car for DaimlerChrysler

Jeffrey Ross — Fri, 29 Dec 2006 19:20:00 GMT

By: Jeffrey Ross
Autotropolis.com

After much criticism from the public for its abundance of big trucks and SUVs, DaimlerChrysler has been trying to find its way into the small car market.

Since the early 1990s, the Chrysler Group has primarily focused on bigger cars, trucks and SUVs. As a result, Chrysler has watched its sales decline in recent years due to customers shying away from trucks and SUVs in favor of smaller, more fuel-efficient cars.

Pending approval, DaimlerChrysler is expected to sign into an agreement to import vehicles from China's Chery Automobile Co. into the Chrysler Group’s lineup. With the subcompact market blossoming in the wake of fuel economy concerns, a small car should help to increase sales numbers.

The Dodge Hornet concept car, which received positive feedback from the public, would be a likely source of design inspiration if the plan goes as expected.

Chery is currently owned by the Chinese government but plans to offer an initial public offering (IPO) in 2008. The company is China’s top automotive exporter and will be the first Chinese auto company to break into the U.S. market.

No specific terms or time frames are known, but in the wake of successful subcompacts like the Honda Fit, Chevrolet Aveo and Scion Xb, Chrysler would most likely benefit substantially from such a vehicle in their lineup.