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Saturn

Chrysler Unveils Future Plans

This past week, Chrysler took the step of engaging in a day-long meeting with the media wherein the company revealed the details of the path forward that it intends to take on the road to recovery from its recent bankruptcy re-organization. While the presentation contained the standard amount of corporate cheerleading and marketing-speak, there were a number of clear indications provided as to how Chrysler’s vehicle lineup will evolve over the next few years.

No fewer than seven vehicles will see the end of their production by 2012 at the latest, including longstanding Pentastar nameplates such as the Dodge Dakota and the Dodge Viper. With regards to the latter, Chrysler stated that a fresh Dodge Viper will most likely be developed after the current generation has been off the market for a few years, although details were not available. The Dodge Dakota, on the other hand, may make the unusual leap to a unibody design, which is currently featured on only one other pickup truck in North America – the Honda Ridgeline, which has failed to light the world on fire in terms of sales.

To offset these product losses, no fewer than 14 new vehicles (either redesigns or all-new cars and trucks) will hit Chrysler, Dodge, Ram and Jeep showrooms during roughly the same period. Several of these will be compact Fiat crossovers and automobiles in all but name, pressed into service from the European market in order to give Chrysler a fighting chance in terms of fuel mileage, quality and fresh design. Fiat is also planning to transfer a significant number of small four-cylinder engines, as well as turbocharged and diesel power plants, in the hope of jumpstarting Chrysler’s wallowing development cycle.

Recalls Continue Through November

On the heels of previous recalls from other major automakers, Mazda, Chrysler and GM have had to deal with product safety issues of their own. In Mazda’s case, a serious problem with anti-lock brakes as well as a third-party cruise control deactivation switch on its Mazda B-Series trucks have been associated with the potential for an engine fire. The recall, which affects vehicles manufactured between 1995 and 1997, as well as though produced between 2001 and 2003 (4,000 vehicles in total), is an echo of the one performed earlier in the year on the Ford Ranger, a platform twin of the Mazda B-Series pickup. The official starting date for the recall is November 13, 2009.

The Chrysler and Dodge recall affects far more recent vehicles, including the 2009-2010 Dodge Challenger, Dodge Charger and the Chrysler 300. Each of these automobiles shares the LX platform, which Chrysler states was victim to a problem during assembly that may have seen a front wheel spindle nut not actually installed before the vehicle left the factory. The worst case scenario is that a wheel could actually fall off while driving, which of course could lead to a major accident. The recall targets 12,674 automobiles.

In the last of this week’s product safety news, General Motors has been forced to recall 53,000 of its compact coupes and sedans in order to address a problem affecting their fuel systems. The automobiles involved in the recall, (the Chevrolet Cobalt, Pontiac G5 and the Saturn Ion) require the replacement of a plastic port which may crack and dangerously drip gasoline. Curiously, the current focus is only on 2006 and and newer vehicles in Arizona, Texas, California, Florida and Nevada, although there is potential to expand it to other states where warm weather could accelerate the problem.

Saab Ponders Future

Now that its divorce from General Motors has been largely finalized, Saab has begun the laborious process of moving out and getting its own place. Currently, Saab is doing its best to concentrate production at its Trollhättan, Sweden facility and de-emphasizes its presence at Opel’s German factories where some of its previous vehicles were built. This means that the new Saab 9-5 will be see a delay in terms of an official sell date due to the logistics of rebuilding the tooling and machinery necessary for its assembly in its new Swedish home. By the time it hits the market in spring of 2010, a wagon or “Combi” edition of the Saab 9-5 will join the sedan in Saab showrooms.

The next generation Saab 9-3 will also unfortunately be pushed back, as Saab has decided to abandon the GM Epsilon platform that the vehicle was originally scheduled to make use of in favor of an in-house chassis and powertrain. Saab will draw on previous design exercises as well as an aborted co-development program with Alfa Romeo in order to put together an entirely new version of its best selling vehicle.

Ferrari, Rolls-Royce to Build Hybrids?

It is a well known fact that Enzo Ferrari only sold street versions of his automobiles in order to fund his racing program. Although the Ferrari brand has been part of the Fiat group for decades, it has remained largely true to the emotional resonance of its founding father. However, even history must occasionally bend to reality, and it is with this in mind that Ferrari would seem to be gearing up to offer a hybrid version of its Ferrari 612 touring coupe. Although details have yet to be solidified, it would appear as though Ferrari will flaunt tradition not only with the addition of two electric motors to the vehicle’s 12-cylinder engine, but also with the installation of all-wheel drive. This brings the number of technologies never before seen on a Ferrari to two, a fact that is sure to drive purists up the wall when the model makes it to the international stage around 2014.

The news that Rolls-Royce, while not exactly synonymous with the concept of restraint or moderation, is pursuing a hybrid vehicle program is definitely much less shocking. Given that its latest vehicle, the Rolls-Royce Ghost, is capable of benefiting from a gasoline / electric system similar to that which is installed in vehicles built by corporate parent BMW, the brand appears to be well on the way towards a greener future. The Rolls-Royce system will adapt the BMW 7 Series’ electric motor to function in tandem with its own V-12, improving fuel economy by as much as 15 percent.

Beginning as the brand to compete with import cars, Saturn was developed by GM in 1985. Saturn will have an official end in 2010, after the last of the 371 dealerships are closed down completely. This comes with a loss of more than 13,000 jobs. There are currently 12,000 Saturns for sale and with production being halted, no more are expected to be made. These Saturns should be sold within four or five months.

Compared to sales in September 2008, sales for 2009 were down a hefty 84 percent. Dealerships will be paid anywhere from $100,000 to 1 million dollars in closing. Carolyn Markey, a GM spokesperson, said, "Consistent with that monetary agreement, all Saturn dealerships will get the same consideration. They will get somewhere between $100,000 and $1 million ... depending upon their circumstances."

Most are attempting to shut down and sell now, though Saturn dealerships are normally built smaller than most other auto dealers. This may end up being another problem as dealers all around the country are looking to get rid of their properties as soon as possible, while most other auto dealerships won’t want the smaller lots and buildings. Most Saturn dealerships are on lots from about three to six acres of land - not enough for Ford, Chevrolet, Dodge or most other auto dealers to keep a reasonably sized inventory.

Saturn was almost saved by Roger Penske. He had attempted to purchase Saturn and make it an independent company, becoming a distributor and retailer and obtaining vehicles through contracts from other auto makers. In the end, an agreement on a deal could not be reached and Penske pulled out of the deal. GM Treasurer Walter Borst said that GM will now “move quickly to wind down Saturn” unless some kind of deal miraculously appears.

Saturn was popular for a number of reasons, one being the company’s policy of “no-haggle pricing.” Prices for the cars were set at reasonable for both the dealer and the buyer, with no wiggle room. After purchasing a new Saturn, employees would cheer as you drove off the lot in your new vehicle. Dealerships were few and far between since the franchises were spread out. This made it easier for the dealers to concentrate on their service and customers without worrying about their buyers going to a nearby dealership.

Saturn had been losing money and interest in the past few years. It’s even been rumored that the company never really turned a profit after including corporate overhead. Once the government stepped into the mix with an automotive bailout, GM didn’t have much of a choice but to cut Saturn out completely.

Surprisingly, the end comes as a shock to many Saturn owners. People loyal to the brand love it and are still hoping for some sort of miracle to save the company. Most are worried about warranties, parts and service on their current Saturns. GM has stated that all current warranties will be upheld and that service and parts will be provided by certified GM dealers.