Chrysler, who filed for bankruptcy protection two weeks ago, announced today that they plan to cut a quarter of its 3,200 U.S. dealerships, closing almost 800 by June 9. At a bankruptcy court filing on Thursday the company claimed that they had too many stores competing with each other. Here is a complete list of Chrysler dealerships closing.
Ken Phillips, a Southern California dealership owner, recieved the bad news today. He told a local radio station, “I’m setting here with $5 million worth of inventory that they’re not gonna buy back. We just have to try and liquidate it. We’ll have a huge fire sale. It’s just a huge money loser.”
Notices were sent out today to Chrysler dealers all over the United States informing them whether or not they were to lose their franchises.
Chrysler is expected to file for bankruptcy today, becoming the first major automaker to file for Chapter 11.
President Obama was scheduled to deliver a noon ET address to discuss the bankruptcy plan. The Treasury is expected to provide financing for the company while it is in bankruptcy with the intent that the automaker will reposition itself as a smaller company under the umbrella of Italian automaker Fiat. Chrysler chief executive Robert Nardelli will be replaced by the management of Italian automaker Fiat.
Reportedly, under the plan, the flailing company will receive billions more in aid from the United States and Canada, where the company has much of its operations.
President Obama said it was “not yet clear” whether Chrysler would have to move forward with bankruptcy.
“I am actually very hopeful, more hopeful than I was 30 days ago, that we can see a resolution that maintains a viable Chrysler automobile company out there. The fact that the major debt holders appear ready to make concessions means that even if they ended up having to go through some sort of bankruptcy, it would be a very quick type of bankruptcy.”
Back in January Fiat and Chrysler struck a deal that saw Fiat get a 35 percent stake in Chrysler for which they’d get to use some of Fiat’s engine designs. Now, according to Quattroroute Magazine, it looks like Fiat is designing a hybrid system specifically for small cars which Chrysler will get to make use of.
The new hybrid vehicles would see Fiat’s new 900cc 2-cylinder turbocharged engine working with an electric motor and a lithium-ion battery. Interestingly this hybrid system will also be able to be plugged in.
While plug-in hybrids aren’t breaking any new ground, Fiat is looking to put the system into their little 500 series as well as the soon to be released Topolino. This would be a landmark for hybrid vehicles in that a 500 would be the smallest hybrid out there.
This type of vehicle might see some decent sales in the US which would be great for a struggling Chrysler assuming that they really do get some Fiat models with this hybrid system.
Yesterday marked the official launch of the Chrysler Peapod neighborhood electric vehicle (NEV). The Earth Day kick off saw some buzz for Chrysler and it’s little electric vehicle however that’s now being overshadowed by rumors that Chrysler is filing bankruptcy.
According to the New York Times as early as net week Chrysler is expected to file chapter 11.
What does this mean for the future of the Peapod and the rest of Chrysler’s plans? It remains to be seen but with Chrysler now being likely to be forced into a serious restructure you can be sure that things will definitely see a shake up.
The Peapod is priced at $12,500 and has a 30-mile range and a top speed of 25mph. If you want to order one they are supposedly available for ordering now but as our friends over at Autoblog Green point out, there doesn’t seem to be a place to do it on their website. In the face of bankruptcy it’s odd that Chrysler should not make it easy to plunk down a deposit for a Peapod.
If you’re looking to get around town this Earth Day, the smiling Peapod car might be your best bet. Chrysler has outfitted the Neighborhood Electric Vehicle with an iPhone docking station, which also transforms the iPhone into the car’s key.
Another nifty feature is that the iPhone will also work as a green meter, outlining the Peapod’s energy savings. The iPhone also functions as an interface to the Peapod’s sound system as well as a navigational system.
Maxing out at 25 mph (standard for all NEVs) on Earth Day today Chrysler will begin taking customer orders for the Peapod, which goes on sale at $12,500 and costs about two cents per mile to drive.
Car-battery maker A123 Systems Inc. has just finished raising $69 million, $15 million of which came from General Electric. This sum puts GE’s total ownership of the company at 10 percent and gets it a seat on the company’s board.
The money will go to building factories in Michigan to build lithium-ion batteries for the hybrid and electric car industry.
A123′s large investment is great news for Michigan, who has obviously suffered terribly from the recession and it’s effects on the auto industry.
A123 has already secured a major purchase of its batteries in Chrysler who will use the batteries for its upcoming line of electric cars.
President and chief executive of A123, Dave Vieau, stated that the success of the capital campaign shows that despite the crippled economy, investors are still looking for alternative energy tech that has potential.
By 2013 the production facilities that A123 is going to build will be capable of producing batteries for five million hybrid vehicles or a half-million plug-in electric cars like the Chrysler 200C EV pictured above.
Was it GM and Chrysler’s failure to fully address Obama’s environmental plans for the auto industry that prevented further bailout funds? Both Chrysler and GM had submitted plans detailing how they’d use the funding to help salvage their companies, however both sets of plans were deemed “not viable.”
Reportedly, among their reasons was that neither planned on going green enough. The Obama administration laid out a “Path to Viability” for both companies, which emphasized allocating resources towards developing and selling fuel efficient vehicles.
The “Path to Viability” laid out by the Obama administration states, “Industry financial analysts and industry experts are nearly unanimous in their views that, to be competitive in the decades to come, auto companies will need to transform their processes and products to improve efficiency, reduce costs, and offer higher quality, more fuel efficient fleet.”
As we previously reported Fiat and Chrysler have struck a deal which sees Fiat receive a 35% stake in Chrysler in return for Chrysler getting to use some of Fiat’s vehicle designs. It’s an important deal for struggling Chrysler which badly needs an injection of good, affordable, gas-efficient small cars.
Automotive News is now reporting that it knows what the Fiat models will be that Chrysler will be building. They include two minicars: the Fiat 500 in the three-door and five door versions. Two subcompact cars, the Alfa Romeo MiTo and a Chrysler version that might replace the Dodge Caliber. And two compacts and one mid-sized vehicle that look to replace the Sebring.
This deal won’t be official and finalized until the Spring so don’t hang your hat on this information quite yet.
Big news in the auto industry today. Without paying a dime Italian automaker Fiat has gained a 35% stake in Chrysler. The two companies have formed a global strategic alliance that will see Fiat provide Chrysler with its small car platforms.
Both companies are banking that the addition of things like Fiat’s small vehicle drivetrains will result in substantial improvements in Chrysler’s line of small fuel-efficient cars. Fiat will also be distributing Chrysler vehicles outside of the U.S.
We can expect that Chrysler will now be using Fiat small vehicle platforms like the Punto or the Fiat 500 to get a new line of small, affordable cars with great mileage. But will it be in time to pull their tail pipes out of the fire?
There’s been so much buzz about Chrysler’s 200C Concept that we thought those who couldn’t make the auto show this year would enjoy a closer look at this slick hybrid vehicle. Will the Chrysler 200C ever see production? If Chrysler survives rumor has it that this is a concept vehicle that will actually see the light of day.
