Tagged: Chrysler

Fiat/Chrysler CEO Sergio Marchionne talked about an improving revenue picture ahead of a Fiat stockholders meeting today in Turin, Italy. He also says Fiat may soon increase its stake in Chrysler from 25% to 35% this year.   Fiat took over management of Chrysler 21 months ago, as the Detroit automaker emerged from bankruptcy protection.

Agenzia Giornalistica Italia reports that Marchionne told investors  that he is confident Fiat's 2011 goals will be met:

He explained, moreover, that in 2011, profits will amount to 37 billion(with the possibility of reaching more than 100 billion after 2014, due to the Chrysler integration effect), whereas the management outcome will range from 0.9 and 1.2 billion. Dividends policy will be confirmed (25% of net profits will go into dividends).

The Wall Street Journal quotes Marchionne as saying Fiat will increase this year its share of the European auto marker, where it saw a decline in 2010. 

"We expect a general improvement in trading conditions, with the exception of the passenger-car market in Europe, which will be negatively influenced by declines forecast for Italy and France...Nevertheless, we project that our market share will increase as a result of new model releases programmed for the second half".

This morning, Chrysler's twitter feed featured something that grabbed people's attention, and not in a good way.

The tweet featured an expletive. A bad one. From the Detroit Free Press:

"The official Twitter account of Chrysler brand vehicles dropped the F-bomb this morning in an off-color update from an employee at the automaker’s social media agency."

"The post read: 'I find it ironic that Detroit is known as the #motorcity and yet no one here knows how to (expletive) drive.'"

"While the tweet has since been deleted, the original post was retweeted by several people on the popular social network, including Twitter user @tverma29, making it impossible to erase from the Web."

CNET suggested that it might have been Eminem causing the mischief, but it turns out that the offending tweeter worked for Chrysler's social media agency of record. From WXYZ:

"The company says that an investigation determined that an employee of their 'social media agency of record, New Media Strategies' posted the tweet Wednesday morning. That employee, who was not identified, has been terminated.

Which is a shame, because it really seemed like Eminem.

-Brian Short, Michigan Radio News

Chrysler’s now-famous “Imported from Detroit” Super Bowl ad is getting recognition from city leaders.

The Detroit City Council honored the Chrysler Group with a testimonial resolution Tuesday.

Councilman Andre Spivey, who sponsored the resolution, says the “phenomenal” ad was about much more than a car.

“I don’t think Chrysler intended it to be what it turned out to be. But I think it inspired many people in Detroit to say hey, this is our city. We have a good city. We have our challenges, yes…but I think we can come back. And I think it gave us a little spark of energy to go on and see what else we can do.”

Chrysler Group President Olivier Francois accepted the award on the company’s behalf.

Francois says Chrysler meant the ad as a tribute to Detroit, but didn’t think it would have so much resonance.

“For sure, the Super Bowl commercial has been promoting a lot beyond the car itself and beyond the company. It did I think a great job for the city."

The commercial’s “Imported from Detroit” catchphrase has become so popular Chrysler is putting it on t-shirts and other merchandise.

Francois says some proceeds from those sales will go to four still-to-be-named Detroit charities.

Chrysler is recalling a quarter million crossovers and minivans for ignition switch problems that can cause stalling. 

The recall involves 2010 model year Dodge Journey crossovers and Grand Caravan minivans and Chrysler Town and Country minivans. 

The company says in some of the vehicles, ignition switches can slip out of the “run” position while the vehicle is being driven. That could shut off the engine. 

At least two rear-end collisions have been reported due to the defect.   

The Grand Caravan and Town and Country minivans are top-sellers for the company. 

The automaker is struggling to increase sales while many of its Chrysler, Dodge and Jeep brand vehicles remain at the bottom of many quality and reliability surveys.

For $29.95 you can continue the buzz that started with the "Imported from Detroit" Super Bowl ad.

Chrysler is selling t-shirts with the "Imported from Detroit" logo on its Chrysler Collection website ('imported' from the USA, according to the website).

The Detroit Free Press asked a Chrysler spokesperson if the design will be on other items:

Chrysler spokeswoman Dianna Gutierrez said, “It’s too early to discuss. I don’t have any formal details to share at this time.”

The epic two-minute ad is still running on television in edited down one-minute and 30 second versions.

I didn’t really watch the Super Bowl last night. I only flipped it on toward the very end to see what had happened. I also logged onto my Facebook page about the same time, and was floored to see my newsfeed exploding with updates, nearly all variations on one theme: “Imported from Detroit.”

I was curious to know what this was all about, and fortunately some helpful people had already posted links to the Chrysler 200 ad featuring Eminem. It begins with the familiar stark images of Detroit—the bleak industrial landscape, the vacant and decaying buildings. Then a growling, defiant voice: “I’ve gotta question for you. What does this city know about luxury?”

“What does a town that’s been to hell and back know about the finer things in life?”

The response is an unfolding visual narrative that was a surprisingly moving tribute to Detroit’s aesthetic and cultural beauty. Underlying it all is a frank admission that the city has been to hell, and it may still be somewhere near hell-ish. But like Diego Rivera’s gorgeous murals that depict Detroit in its industrial heyday, the ad also finds beauty in Detroit’s hardscrabble nature. It issues a defiant challenge to recognize that beauty, but offers no apologies to those who won’t.

The "Imported from Detroit" commercial stirred a lot of pride around these parts, and on Michigan Radio's Facebook page.

We posted it last night and the "likes" and comments about pride started flowing:

• "Gave me chills and made me proud to be a born in Detroiter."
• "This is the kind of thing we need for our area. This commercial gave me goose bumps."
• "Great commercial! I'm proud to be from Michigan!"
• "Chills...I almost started crying! But, I have had almost 14 beers."

Just up I-96, the profs at MSU's Department of Advertising, Public Relations, and Retailing, who release an annual ranking of Super Bowl commercials, put the Chrysler ad in third place – tied with the ads from Audi, PepsiMax, Hyundai, and Bud-Light.

First and second place went to German car-maker Volkswagen (first went to the Darth Vader ad, and second went to the VW Beetle ad).

When I asked them, "why third?"  MSU instructor and the organizer behind the MSU rankings, Bob Kolt, said the margin between 1st and 3rd was quite small, "If a few professors had changed their ranking of the commercial slightly, it could have easily been put in the top spot."

Chrysler lost $650 million in 2010, primarily as a result of high interest payments on its government loans.

It's a far different result from the other automaker that received federal bailout loans, General Motors, which posted a healthy profit in 2010.  And GM paid back a significant portion of its loans from cash reserves and proceeds from its Initial Public Stock Offering.

But Chrysler is a much smaller company than GM, and its sales were still weak last year.  That means less revenue to lower the debt burden.   

Chrysler's CEO Sergio Marchionne says, "We’ve got more than a billion in interest costs a year, which are effectively chewing up the operating profits that we’ve got."

Marchionne  says he hopes to secure private loans to pay off the federal loans by the end of this year.

On the plus side, Chrysler has entered the new year with 16 new or significantly remodeled vehicles, just as U.S. auto sales are improving.

Despite not being able to turn a profit, Marchionne says the company met or exceeded all of its targets last year.  He says everyone pitched in to help Chrysler refresh its vehicle lineup in record time, and implement a new cost-saving manufacturing system. 

"I think it would been absolutely inexcusable on our part not to recognize what our people have done," he said during an earnings conference call with analysts and media.

The publication Automotive News reports Chrysler UAW workers will get payments of $750 each.

GM workers are expected to get actual profit-sharing checks.  GM releases its fourth quarter and full 2010 year results later in February.

Ford workers will get an average $5,000 each after the company posted its best profit in 11 years.