Chrysler offering even more incentives to close out July

The automotive sales sector is in a major state of flux as consumers continue to run from SUVs and pickup trucks into smaller, more fuel efficient cars. One manufacturer hit especially hard by this transition is Chrysler, a company that recently posted the worst fleet average fuel economy numbers of all major automakers in the U.S. due to its truck-heavy lineup. Still, the automaker has built up a large supply of Chrysler, Dodge and Jeep utility vehicles that they have got to get off dealer lots somehow. To ease consumers into the fuel-thirsy utes, Chrysler has introduced new incentives of zero-percent financing for 72 months on the 2008 Dodge Durango, Chrysler Aspen and Jeep Grand Cherokee and Commander.

While the lack of any financing charges will certainly impact the bottom line, it is nothing compared to the losses the automaker has been hit with over its past lease deals. In fact, truck and SUV residuals are so bad these days that Chrysler Financial has gone so far as to completely cut leasing out of its available portfolio starting August 1. The financing deals announced today are scheduled to continue through Thursday, July 31.

Chrysler and Great Wall to share technology, distribution

Most automakers are struggling with horrible US market conditions right now, but unlike competitors such as Toyota and Ford, Chrysler doesn't have sales in other areas of the world to fall back on. The Pentastar is looking to improve its fortunes overseas while also benefiting from low labor costs by partnering with the Great Wall Motor Company. The young Chinese automaker doesn't specialize in the small vehicles Chrysler needs here in the States, however, as the company's primary focus is on trucks and SUVs. The goal of the union is to share distribution channels, technology, and components, which should save both companies money in R&D and improve economies of scale. The deal is unrelated to a separate pact with Chery to produce a small, Dodge-branded car for sale in North America.

With sales down in the states by 28% in June, Chrysler appears to be in the most trouble of the Detroit automakers in the near term. Branching out to other markets to drive down costs and add sales could be the automaker's best hope for survival in the future.

Chrysler plans to idle minivan plant in St. Louis

Now that General Motors and Ford have completely abandoned the minivan market for good, the American originator of the species faces only Honda, Toyota, Nissan, Kia and soon Volkswagen as manufacturers that also offer competitive choices. Perhaps you'd think that Chrysler would be benefiting as the only domestic automaker currently playing in the segment, but it seems that sales are down this year by 13 percent for the Chrysler Town and Country while the Dodge Grand Caravan is down an alarming 35 percent. High gas prices are the obvious reason why the minivan market is seeing such a harsh downward trend, and likely the culprit behind Chrysler's impending move to idle its St. Louis South minivan plant as early as December, which would leave some 1,500 employees jobless.

Utility vehicles have been the biggest gas-price casualties, and slow sales are said to be forcing the Jefferson Avenue assembly plant in Detroit where the Jeep Grand Cherokee and Commander are assembled and the Toledo, Ohio North assembly plant which builds the Jeep Liberty and Dodge Nitro into extended shut-downs, as well.

McCain has no plans for Detroit bailout

Back in the late seventies and into early eighties, Chrysler had gotten itself into such horrid financial shape that the U.S. government decided to step in and fix the situation itself. Considering the sorry state of affairs that all three of the Detroit automakers find themselves in today, some may wonder if a government-funded bailout is in the cards. Not so much... at least according to John McCain. "Frankly I just don't see a scenario where the federal government would come in and bail out any industry in America today," says the Republican.

So, what plan does McCain have in store for the Detroit 3? More Chevrolet Cobalts and Pontiac G5s for one, as the Arizona Senator said the above words after touring the plant in Lordstown, Ohio where the GM compact cars are made and a where third shift has just been added. "I am convinced that what is being done at the Lordstown assembly plant is the future of the American auto industry," added McCain.

In more related good news for the U.S. automakers, McCain says he supports nationwide CO2 standards and would oppose any state's individual plans -- California, we're looking at you. The Presidential hopeful also wants to see more fair-trade standards implemented with the other various auto-building nations and quicker violations for unfair practices. We await a response from the Democratic side.

Chrysler LLC Launches Umbrella 'uconnect' Name for Connectivity Technologies

Today's consumers are passionate about staying in touch and want to be connected no matter where they are home, work, school or vehicle. To focus on the experience and connect customers to the things that matter the most, Chrysler LLC will now bundle innovative consumer technologies under one umbrella name - "uconnect." The function of the feature is directly in the name - uconnect phone, uconnect tunes, uconnect gps, uconnect studios and uconnect web.

"We set out to connect customers to the things that matter most to them," said Deborah Meyer, Vice President and Chief Marketing Officer - Chrysler LLC. "The role for 'uconnect' in the 2009 model year places the focus on the customer experience and how the features will make their life easier."

What it does: Uses Bluetooth(R) technology to provide voice-controlled wireless communication between the occupants' compatible mobile phones and the vehicle's onboard receiver. New for 2009, the hands-free system automatically downloads up to 1,000 phone book entries from supported phones. The system also recognizes three languages, and is capable of learning. Voice commands can manage onboard phone book entries, select radio stations and access voice mail. Voice memos can be recorded using the microphone that's integrated within the rearview mirror. Three memos of up to thirty seconds each can be stored in the system. The hands-free option promotes safety, freedom, value and flexibility.

Availability: Chrysler 300, Aspen, PT Cruiser, Sebring and Town & Country; Dodge Avenger, Grand Caravan, Caliber, Challenger, Charger, Dakota, Durango, Journey, Nitro, and Ram; Jeep(R) Grand Cherokee, Commander, Compass, Liberty and Patriot

Part of uconnect phone on select Chrysler, Jeep and Dodge vehicles is an iPod interface, which allows an iPod to be plugged into the vehicle's sound system to play music through the vehicle's speakers, charge/recharge the iPod when the ignition is on, display artists and music choices on the radio and pause play when uconnect phone receives a phone call. The iPod can be controlled through the radio controls and the remote steering wheel switches (if equipped). The system uses a Universal Customer Interface (UCI) connector located either in the glove box or in the center console, depending on vehicle model.

uconnect tunes

What it does: uconnect tunes includes the following features for music, movie and personalized picture display:

A 30-gigabyte hard drive for ripping up to 6,700 songs from CD or USB memory devices in compressed format (either MP3, AAC or WMA file formats)

Photos can be loaded onto the hard drive, allowing the customer to personalize the home screen

Movies can be displayed on the screen for entertaining passengers when the vehicle is in Park (as permitted by the state regulations)

Availability: Chrysler 300, Aspen, Sebring and Town & Country; Dodge Avenger, Caliber, Grand Caravan, Challenger, Charger, Journey, Nitro and Ram 1500; Jeep Commander, Compass, Grand Cherokee, Liberty and Patriot

uconnect gps

What it does: uconnect gps combines the features of uconnect phone and uconnect tunes with navigation and real-time traffic. The system includes an integrated voice recognition system and touch screen for easy operation. The voice recognition system also recognizes more than 100,000 words and can input addresses, which allows the customer to enter destinations while the vehicle is in motion.

Availability: Chrysler 300, Aspen, Sebring and Town & Country; Dodge Avenger, Caliber, Grand Caravan, Challenger, Charger, Journey, Nitro and Ram; Jeep Commander, Compass, Grand Cherokee, Liberty and Patriot

uconnect studios

What it does: uconnect studios offer optional SIRIUS Backseat TV(TM), featuring three channels of family TV programming, and optional SIRIUS Satellite Radio, with more than 130 channels of the best music, entertainment and information coast to coast. The systems can be bundled or opted for independently depending upon model availability, and either can be operated from the rear-seat entertainment unit or from the radio head unit.

Chrysler's uconnect studios offer optional SIRIUS Satellite Radio which provides more than 130 channels, including 69 channels of 100 percent commercial-free music, plus sports, news, talk and entertainment. Station selection with the radio is easy, using the same familiar method as choosing an AM or FM station. Consumers are able to scan channels or have preset buttons for their favorite channels. They can also search both by music category and channel, which is displayed on the radio screen.

Availability: SIRIUS Satellite Radio is available on all Chrysler, Jeep and Dodge vehicles

Chrysler's uconnect studios offer optional SIRIUS Backseat TV which features three channels of family TV programming: Nickelodeon, Disney Channel and Cartoon Network. SIRIUS Backseat TV operates via an in-vehicle satellite video receiver and two small roof-mounted antennas. Programming is displayed on the vehicle's second- and/or third-row video screens, and channel name, program title and rating is broadcasted and displayed on the screen. In addition, when the vehicle is in Park, programming can be displayed on the uconnect tunes or uconnect gps screen for front-seat viewing (as permitted by state regulations). New for 2009 in the Chrysler Town & Country and Dodge Grand Caravan are larger nine-inch rear-seat video screens that swivel.

Availability: Chrysler 300, Aspen and Town & Country; Dodge Grand Caravan, Charger, Durango, Journey and Ram 1500; Jeep Commander and Grand Cherokee

uconnect web

What it does: The system will provide high-speed data transfer and flexibility, combining WiFi and cellular connectivity for a new level of wireless technology. The system transforms the vehicle into a "hot spot" to deliver the Internet directly to the vehicle, for instant access to Web sites, e-mail, personalized music, online gaming, photo albums, and more.

Availability: Chrysler plans to offer aftermarket in-vehicle "hot-spot" wireless Internet capability through Mopar(R) for Chrysler, Dodge and Jeep vehicles.

Chrysler lowballs price of its SUV hybrids, starting at $45,340

Apparently hoping to avoid the ignominious fate of the full-size hybrid SUVs from two-mode hybrid partner General Motors, Chrysler is getting aggressive with the pricing of its new Durango and Aspen hybrids. At launch this fall, the Chryslers will be stickered at 45,340 and $45,570 respectively, some $8,000 below the four-wheel-drive versions from GM. GM recently had to slap $4,000 cash on the hood to entice customers to check out the Tahoe Hybrid and Yukon Hybrid. Unlike GM, however, Chrysler has chosen not to offer a two-wheel-drive variant of its hybrid SUVs. At this point we still don't know how equipment levels will compare between the GM and Chrysler models, so it's hard to do a direct comparison of these high-mpg hybrid SUVs.

The last time we talked to Chrysler about the hybrids, they were not planning to implement any of the weight savings measures that GM has used to offset the weight of the two-mode hybrid system in its GMT900 SUVs. On the GM models, an aluminum hood and tailgate, lighter front seats and special wheels drop the weight by about 150 lbs. Chrysler has apparently not given the hybrids unique body work either, which surely added to GM's cost. As for mileage, the official EPA numbers are apparently not in yet, but Chrysler is anticipating 20 mpg at best, which would be equal to the four-wheel-drive GM vehicles.

Chrysler to market certified used cars on eBay

Chrysler LLC said on Thursday it would list its used car inventory on eBay Inc., following a pioneering tie-up between General Motors Corp. and the online auctioneer announced early this year.

Chrysler has reached a partnership to market over 15,000 certified pre-owned vehicles of its Chrysler, Jeep and Dodge brands on the eBay Motors site, the automaker said.

The agreement follows GM's program announced in February to list all of the inventory of certified pre-owned cars at some 3,900 GM-affiliated U.S. dealers on eBay. GM said on Thursday that its listings are now live on eBay.

Automakers increasingly have focused on selling used vehicles amid a deeper-than-expected slump in new car sales. U.S. auto sales are expected to drop to near 15 million units in 2008 and is tracking at a decade low so far this year.

The struggling No. 3 U.S. automaker sold more than 122,000 certified used cars in 2007, up 5 percent from a year earlier. Chrysler's used car sales are up 8 percent so far this year, while new vehicle sales have dropped more than 20 percent, hit by tumbling demand for gas-guzzling trucks and SUVs.

The Chrysler showroom on eBay enables consumers to view its used vehicles within their local area via a classified listings format.

Chrysler's certified pre-owned vehicles cover models from 2003 to 2008 with less than 65,000 miles and are reconditioned to meet the automaker's standards. They carry an eight-year, or 80,000-mile powertrain warranty, roadside assistance and rental car allowances.

Chrysler said it would seek more tie-ups with search engines such as Cars.com and AutoTrader.com in an effort to help dealers market used vehicles.

About 43 million used vehicles were sold in the United States last year, well over double the 16.2 million new vehicles sold. Used car profit margins are also generally better than they are for new vehicles.