Chrysler, Jeep, Dodge & Ram models are on sale this month.

There is a new found swagger being seen around the hallways of the executive offices at Chrysler’s Auburn Hills headquarters. That’s because America’s most beleaguered automaker found a way to sell more cars in April 2010 than they did one year earlier, netting a nice 24.8 percent increase for the month and putting Chrysler ahead of the game for the year.

Bottom Up

Sure, Chrysler’s sales rose in comparison to when they hit rock bottom in 2009, just ahead of its summer bankruptcy filing. But the automaker managed to close the gap between it and Honda while holding off Nissan who seems to have found its own mojo lately.

Until this past month, Chrysler has been looking and acting every bit the problem plagued automaker that it is. Though now under the tutelage of Fiat, the Chrysler, Jeep and Dodge model lines are aged and in desperate need of updating. The 2011 Jeep Grand Cherokee is now in production with an all new Chrysler 300C due out this November. In December, the first Italian import arrives when the Fiat 500 goes on sale through select dealerships.

Product Mix

Chrysler is not completely devoid of products consumers want with its minivans still packing a punch and its Ram line of trucks continuing to finish a strong third in an ultra competitive five (or six) full-sized model horse race. Even its aged midsize Chrysler Sebring and Dodge Avenger sedans sold well last month thanks to deep incentives designed to move these models as well as fleet sales.

Today, Chrysler announced that they are going all out for customers, offering zero percent financing for 60 months on most 2010 Jeep, Dodge and Chrysler models when customers finance these cars through GMAC Financial Services. Those buyers wanting to stretch out their financing to 72 months can do so at an ultra-low 1.9 percent rate. Or, buyers can choose to receive as much as $3000 customer cash instead of the financing deal.

Deep Discounts

Three Jeep models—Liberty, Grand Cherokee and Commander—offer $4000 customer cash or zero percent financing for sixty months. The Liberty and Commander have been slow sellers for Jeep while the 2010 Grand Cherokee will be replaced this summer with an all new model. Special deals also apply to most Chrysler, Dodge, and Ram vehicles; check out this press release for more information.

If you are planning to buy a new Chrysler product and are in need of financing, shop around for a rate first. No, you won’t find zero percent financing elsewhere, but you may find a rate low enough making taking the customer cash a better deal. In any case use an auto loan calculator such as one offered by Edmunds to figure out the best course of action for you.

Chrysler plans to end its current discounting plan on June 1, 2010.

2010 PT Cruiser Couture Edition

In dire need of fresh products to attract customers, but with nothing new to offer, the Chrysler Group is in sad shape. That desperation is all the more evident in recently updated product offerings unveiled this week across its Jeep, Dodge, Ram, and Chrysler lines.

Instead of bringing forth all new models or making significant mid-cycle changes, the product poor Chrysler Group is making do with what it has by offering new packages based on old themes. Long awaited all new models underpinned by Fiat technology are still more than a year away, but the automaker hopes that customers will flock to showrooms based on its repackaged offerings.

Will this move work or will it hurt Chrysler’s image?

The Chrysler Group recently separated its Ram truck line from Dodge, a curious move to say the least. All four brands are offering special or limited edition models many of which were announced yesterday in advance of next week’s North American International Auto Show (NAIAS) in Detroit. Supposedly, these “new” models will be on display when the show kicks off to media on Monday.

But the changes are mostly cosmetic including the Chrysler PT Cruiser Couture Edition, representing Chrysler’s feeble attempt to modify its woefully outdated retro model first introduced in 1999. That PT Cruiser, riding on the extinct Dodge Neon platform, was killed off by Chrysler and later resurrected by Fiat once Chrysler emerged from bankruptcy protection this past summer and was placed in Fiat’s arms. Fiat wanted to keep the PT Cruiser around given that the Chrysler Group’s small car line up had one car left: the Dodge Caliber.

Chrysler describes the latest limited edition PT Cruiser as offering a bold look featuring exterior changes such as “chromed body-side moldings, door handles, 16-inch polished aluminum wheels.” Inside, “chromed detail rings” and “all-new Radar Red leather or Dark Slate Gray seats” highlight this edition’s offerings. The car will go on sale later this quarter for $19,995.

Other changes include:

• The Dodge Caliber receives a redesigned interior.

• The Chrysler 300 gains a pair of new models – S6 and S8, vehicles featuring “blacked-out grilles with chromed surround and body-color fascia accents.”

• Jeep expands the lines of two of its models by introducing the Liberty Renegade as well as the Wrangler Islander and Wrangler Mountain editions, the latter sporting 32 inch tires.

• Dodge Nitro receives changes to sub-model names with Heat, Detonator and Shock emphasizing updates to exterior styling as well as standard equipment changes and a new safety package.

Other changes involve several Dodge models including Avenger, Journey, Challenger, and Viper, as well as for the Chrysler Town & Country.

If Chrysler can hold off for a year, the Fiat 500 will soon be available through select dealers followed by a bevy of new cars, riding on Fiat platforms. But with sales off by 36 percent last year and market share sinking rapidly, time is not on Chrysler’s side nor does it have new vehicles to sustain itself through what promises to be yet another challenging year.

Photo Credit & Source: Chrysler Group LLC

Turns out that at least 25 dealerships in the two Carolinas got hit, including Southern States Dodge in Raleigh, Johnson Chrysler-Dodge-Jeep in Durham, Goldsboro Chrysler-Dodge-Jeep and Williamson Motors in Clinton according to WRAL.com. I can’t say that any of thee surprised me, given that I pretty much know which dealerships near me seem to have the size to survive. Still, I am sure that it was a shock to dealership employees and owners that Chrysler LLC would be giving them the heave-ho.

One Quarter Of All Dealerships Must Close

All told, some 789 dealers will be shut down by Chrysler no later than June 9th, removing 25% of its total. Operating under federal bankruptcy protection, Chrysler is allowing dealers to appeal although for the lowest volume dealerships a stay of execution seems unlikely.

Yesterday morning, Chrysler filed paperwork with the U.S. Bankruptcy Court seeking to reject certain U.S. dealer agreements, and a list of U.S. dealer agreements to be assigned to the buyer of its business assets. Those dealerships who pass muster will become part of Chrysler’s pending alliance with Fiat once the sale is complete.

In response to the pending closure and loss of jobs, Chrysler shared the following announcement:

“We are in the process of revitalizing Chrysler’s business to succeed as a viable enterprise under new ownership in the future,” said Jim Press, Vice Chairman and President. “The unprecedented decline in the industry has had a significant impact on our sales and forced us to reduce production levels to better match the needs of the market. With the downsizing of operations after the sale and reduction of plants and production, similar reductions must be made to the size of the dealer body. We appreciate the support of our dealers and regret this painful action. We wish market conditions made it possible to keep everyone.”

Company Sets Up A Special Website

To help shepherd Chrysler through bankruptcy, the company has set up a special website, ChryslerRestructuring.com, to disseminate information about the changes coming forth.  On that site visitors can pull up key documents, review filed claims & schedules and see other details related to the bankruptcy filing.

Source: Chrysler LLC

No matter, many analysts will tell you that the Grand Cherokee, if it is ever built, will probably be the last all new vehicle designed by Chrysler because by this time next year Chrysler will either have been absorbed by Fiat or out of business.

For its part, the Grand Cherokee has served admirably as the flagship vehicle in the Jeep fleet. It, along with the ugly Commander, are the two largest sport/utility vehicles sold by Jeep, with the latter likely to die off no matter whether Fiat takes over Chrysler or not. By the way, Fiat and Chrysler have until April 30th to get their plans in order for the Obama administration’s review.

Ever since replacing the Jeep Cherokee, the Grand Cherokee has been the new flagship vehicle for Jeep. The current generation Grand Cherokee was rolled out for the 2005 model year, the 2011 Grand Cherokee will bring the model into its fourth generation.

First application of company's all-new, flexible fuel 3.6-liter Pentastar V-6 engine which features Variable-Valve Timing (VVT), 280 hp (209 kW) and 260 lb.-ft. of torque (353 N*m) @ 4,800 rpm - an 11 percent improvement in fuel economy, 33 percent in horsepower and 11 percent in torque

World-class interior features include real wood and leather, seated steering wheel, heated and ventilated front seats, heated rear seats, four-way power lumbar controls, rain-sensitive wipers, Keyless Entry/Keyless Go, ParkView rear camera and power tilt/telescoping steering column with memory

Standard safety features include full-length side-curtain air bags which extend protection to front and rear outboard passengers, seat-mounted side thorax air bags that enhance protection for the driver and front passenger and active head restraints which deploy in the event of a rear collision.

For added passenger comfort, rear seats recline 12 degrees. There also is a 12-degree forward angle to allow 24 degrees of variation.

Premium seating includes room for five passengers. An available fold-flat front-passenger seat provides improved cargo storage room (Laredo models).

Cargo volume behind the second-row provides an additional 6.8 cubic feet of room (36.3 cubic feet total) compared to the previous model. The well-appointed rear cargo area includes a storage unit with a rechargeable flashlight and new and improved grocery hooks on both sides. The spare tire compartment includes removable dual storage bins for secure storage of muddy gear or other items.

Chrysler LLC has reintroduced zero percent financing for qualified buyers. One of the models eligible for special financing is the Dodge Challenger.

In a bid to at least stabilize its free fall, Chrysler has rolled out zero percent financing for sixty months on a wide variety of 2008 and 2009 models. Thanks to a $1.5 billion federal loan to its financing unit, Chrysler Financial, the nation’s third largest automaker may have a compelling reason for buyers to consider a Dodge, Jeep or Chrysler product.

Chrysler suffered the most of all car companies last year when its US sales plunged by 30%, even dropping by 53% in December. Extremely tight credit shut many buyers out of the market while other potential buyers were certainly concerned about the automaker’s future.

Big Bucks For Chrysler Financial

With both GM and Chrysler issuing dire warnings last month that they would shut down by year end, purchasing a Chrysler product suddenly carried more risks with it than many consumers would want to assume. Thanks to the new loan deal for Chrysler Financial, that concern has been reduced at least for now.

The vehicles eligible for special zero percent financing include the following:

• Jeep: Wrangler, Grand Cherokee and Commander

• Dodge: Ram, Grand Caravan, Charger, Challenger and Magnum

• Chrysler: Town & Country and 300/300C

Up until recently, only buyers with a credit score of 700 or above were eligible for Chrysler financing, while the new financing deal captures consumers whose credit score is above 620. Leasing won’t be included with this offer as that is something the automaker pretty much abandoned back in August 2008.

March 31st Is An Important Date For Chrysler

Last month, Chrysler LLC was the beneficiary of a loan package totaling $4 billion which the company says will see through the first quarter. March 31st is the deadline for Chrysler to prove that it has a viable option going forward in order to be eligible for additional federal assistance.

If they cannot prove that they have the wherewithal to survive for the long term, Chrysler could be forced into structured bankruptcy by Congress. Likely, new car warranties would be protected, but the automaker could be dissolved and its assets sold off.

Source: Chrysler LLC

With Chrysler LLC getting hammered so badly this year, some automotive analysts are calling for the company to sell Jeep. Realizing that Chrysler LLC is bleeding through cash at an alarming rate and with a much lower survival threshold to weather the current economic climate then Ford or General Motors, the drum beat to ditch Jeep is certain to grow louder.

Though I’ve never been a fan of the Jeep Compass or Patriot, two models which in my opinion have sullied the image of the brand, what remains is quite good. The Wrangler is a perennial favorite for everyone who wants a smaller off road vehicle, the Liberty is a capable compact SUV, and the Grand Cherokee is a decent midsized people move. Get rid of the ugly Commander and you have a line up worth considering.

This past February I stated that Chrysler will be sold within the year and I believe that this move will still take place. Cerberus is a buy ‘em and flip ‘em operation, with very little knowledge of the automotive industry. Overly dependent on the US market, Chrysler would be best suited to team up with Renault and Nissan, becoming the third leg of what would be an incredibly powerful automotive entity.

Selling Jeep apart from the rest of Chrysler LLC would only stem the tide for awhile before the incredibly shrinking automaker would be crying out for relief again. With Jeep, the company is much more appealing. Without it, Chrysler and Dodge dealers would simply be fodder for some Chinese or Indian automaker to gain access to the US market.

Of course, if gas prices suddenly plunge by more than one dollar per gallon over the coming month or two, then Chrysler LLC will buy itself some time before a decision about the automaker must be made. Not that people will return to big cars and SUVs en masse, but it could slow the bleeding long enough for other suitors to step forward.

Automakers, like all major corporations, craft marketing campaigns designed to help drum up business. Many times these campaigns are developed in coordination with an ad agency to help find the “sweet spot” where customer interest is turned into actual sales.

Some campaigns are a bust, quickly scrapped and soon forgotten. Others, do their job and help bring in a steady stream of customers who might otherwise not show up at a particular brand’s new car showroom, giving sales people the opportunity to market their products.

Once in awhile a marketing campaign has an impact that not only brings in additional customers, but provokes the type of controversy that causes the campaign to go viral. By viral, I mean that the campaign mutates and spreads on its own with very little help from the company or the ad agency.

Let’s Refuel America

A prime example of viral marketing success is Chrysler’s current Let’s Refuel America campaign, an initiative started by Chrysler LLC to guarantee buyers that they would not have to pay more than $2.99 per gallon when filling up. Specifically, customers buying a new Dodge Ram truck would be guaranteed that their gas price would not hit $3 per gallon even if the pump price says $4, $6, or even $10 as some are predicting will happen.

Now Extended Through July 7th

Chrysler’s marketing scheme extends to most other Chrysler, Jeep, and Dodge brand vehicles, not just to the Dodge Ram, and the program was to end on June 2nd. However, Chrysler is reporting a 25% increase in web activity and a 34% increase in lead activity from the internet. With this news, Chrysler is extending the initiative through July 7th, in a bid to keep the momentum building.

Controversy Sparks Free News

Many of the automotive blogs have commented on the Chrysler initiative, with most articles stating that “Let’s Refuel America” is a bad idea. Actually, I’m being kind by not repeating some of the uglier comments as they can easily be found by looking around for yourself.

Personally, I wouldn’t advise a customer interested in buying a Jeep, Dodge, or Chrysler vehicle to join the program for one important reason: you lose the chance to take advantage of other incentives offered by Chrysler LLC including rebates which can add up to more than $5000 for certain vehicles. Yes, as gas prices fluctuate your costs will be capped, but if gas prices drop below $3 per gallon, then you lose the benefit of this program.

Running The Numbers

Chrysler’s does hold the line on gasoline for three full years with their program, an option that will appeal to people who want pump price stability. Personally, I believe gas prices will eventually drop as national demand for fuel continues to drop and prices begin to stabilize later this summer. Even if prices settle at around $3.25 per gallon, the 25 cents per gallon savings with a 26-gallon fuel tank would save you $6.50 per fill up.

Use Lots Of Gas, Save More

Moreover, if you drive a lot and fill up twice per week your savings would be $13 per week or $676 per year. Move that figure out for three years and your savings would be $2028. If gas was to settle at $3.50 per gallon then your savings would be $4056 for the same three year period. Not bad, but if you check Chrysler’s current incentives you could save more money by taking the rebate. Don’t forget, the 2009 Dodge Ram is all-new, therefore the incentives to push 2008 models out of the showroom will only get better.

From a marketing standpoint, the “Let’s Refuel America” campaign is a smart one, even if your depending on gas prices to stay high is a risky idea. For Chrysler, there is risk involved for themselves, especially if certain global conditions push prices to the top of the scale. Yet, the “controversy” generated from this campaign is likely to make Chrysler’s risk worthwhile — just don’t join in as I believe you’d do better by opting for their other deep incentives instead.

Yesterday, Cerberus announced that additional models would be cut across its three brands — Jeep, Dodge, and Chrysler — as the automaker stated that they were working toward having dealers sell all three brands under one roof.

Jim Press, Chrysler’s Vice Chairman and President, recently completed an eight city “New Day” road show with members of his executive team in a bid to meet with nearly 3,000 of its dealer partners. The main topic at those meetings was to discuss the company’s 2008 strategy while expressing their commitment to product, dealers and customers; driving dealer profitability; and building franchise value.

A new corporate initiative, Project Genesis, was also introduced with the goal to align the needs and wants of the customer with its product portfolio and the dealer network.

Industry analysts have been pointing out for years that the dealer networks for American’s three automotive manufacturers are a serious cash drain on each company. The new plan would allow fewer dealers to sell more cars, cutting brand overlap while driving up profits.

(Source: www.thefirehouse.biz)

In a press release issued on Tuesday the company announced three goals with this initiative:

• Chrysler realigns product development process to meet global customer demand
• New appointments better aligned with vehicle brands
• Components and commonality also emphasized

In addition, Product Development will now consist of the following:

• Jeep Product Team: Focused on the Jeep brand, its strong, iconic heritage and loyal customers
• Truck Product Team: Responsible for advancing the strong, bold Dodge truck brand
• Car and Minivan Product Team: Charged with development of Chrysler’s fullsize cars, the current midsize lineup and minivan products
• Future Midsize Product Team: Responsible for development of future midsize vehicles for worldwide markets.
• Street and Racing Technology (SRT) Product Team: Carrying on Chrysler’s successful performance brand.

Along with the brand restructuring, Chrysler has announced a number of personnel appointments to carry out their initiative.

(Source: www.chrysler.com)

Photo courtesy/copyright Chrysler LLC.