Chrysler prepares to build small car that may increase Fiat stake

DETROIT : June 24, 2011 - Chrysler Group LLC said it plans to begin test production in the second half of this year of the small car that will trigger U.S. government requirements to increase Fiat SpA (F)’s ownership stake.


Tooling for the small Dodge brand car goes into Chrysler’s Belvidere, Illinois, assembly plant in August, Fred Goedtel, head of Chrysler’s assembly operations, said in an interview this week in Sterling Heights, Michigan.

“We’ll start pilots in the fall” and official production begins “sometime” in the first quarter, he said.

Design work on the car, which is the vehicle Chrysler expects will trigger the final government ownership milestone, is done, Ralph Gilles, head of Chrysler design, said in an interview in Chelsea, Michigan, yesterday. “The company is really focused on it,” he said of the vehicle.

Turin, Italy-based Fiat is consolidating control over Chrysler. Fiat is buying the U.S. Treasury Department’s final stake in the U.S. automaker, acquired as part of Chrysler’s 2009 bankruptcy reorganization. That purchase will raise Fiat’s stake to 52 percent on a fully diluted basis. Chrysler must test and commit to building a vehicle in the U.S. that achieves 40 mpg to gain another 5 percent stake.

Its deal with the U.S. and Canada allowed Fiat to gain as much as 35 percent in Chrysler without paying cash in exchange for giving management experience and technology to Chrysler and achieving various performance milestones. The 40 mpg vehicle is the final such milestone.

Fiat also exercised an option to purchase 16 percent of the Auburn Hills, Michigan-based company after Chrysler repaid the U.S. and Canadian government loans in May.
Sergio Marchionne, chief executive officer of both automakers, has said he expects Fiat will get its final 5 percent tied to the 40 mpg car by year’s end. The small Dodge car is being based on Fiat’s Alfa Romeo Giulietta technology, Marchionne has said.

Gilles said the new Dodge model’s name was decided earlier this week. He declined to provide the name.

[Source : BLOOMBERG]

The Chrysler Brand Joins Forces with "The 67th Annual Golden Globe Awards" to Contribute Relief Efforts to Haiti

Chrysler 300 'eco style' at The 67th Annual Golden Globe Awards

Nominees, presenters and performers arriving to"The 67th Annual Golden Globe Awards" will have an opportunity to help raise money for Haitian relief efforts with a simple signature. Positioned at the entrance of the Beverly Hilton Hotel is President and Chief Executive Officer for the Chrysler Brand, Chrysler Group LLC, Olivier Francois' personal car, a Chrysler 300C. Francois donated his vehicle so that attendees to the ceremony could place their signature upon the sedan which could then be donated for auction to specifically raise money for Haiti relief efforts.


"Looking at the devastation this catastrophe has caused to an already impoverished country,there is no doubt that we have a social responsibility to assist in any way that we can. This will not be the only funding we will provide to this country on behalf of the Chrysler Brand and Chrysler Group LLC, there is more to come."said Olivier Francois, President and Chief Executive Office – Chrysler Brand, Chrysler Group LLC. "We are pleased to join hands with Hollywood to offer this gesture as part of the relief efforts toward Haiti. And, to my colleague, Dodge Brand President and Chief Executive Officer, who is of Haitian-descent, and to all Haitian-Americans with family in Haiti, our thoughts are with you."

Chrysler Brand CEO Olivier Francois

The Chrysler 300C that will be donated for auction is expected to raise approximately 1 million dollars.

Chrysler Joins Stars for a Cause to Auction Chrysler 300 "eco style" Edition Vehicles
The Chrysler brand, together with Dick Clark Productions, has also partnered with Stars for a Cause to donate six eco-friendly accessorized vehicles that will be auctioned off to select celebrity charities.

Nominee Meryl Streep, presenters Christina Aguilera, Leonardo DiCaprio, Tom Hanks and Felicity Huffman and actor Colin Firth will arrive to the Golden Globes in their select Chrysler 300 eco style limited edition vehicle, which will be donated and auctioned to the charity of their choice.

Based off of the Chrysler 300C, the most-awarded vehicle in the industry, the eco style edition vehicles are accessorized with eco-friendly materials such as cork, bamboo, recycled jute carpeting and suede seat inserts and feature refurbished wheels while providing high-end luxury and elegant design. The vehicles feature a refined interior, premium technology and offer fuel-efficient performance and excitement.

The signatures of about 300 celebrities attending the 67th Golden Globe Awards

Each of the celebrities will arrive to the awards in their select vehicles:

• Presenter Christina Aguilera's Chrysler 300 eco style vehicle features a water-based Vanilla exterior color. On the inside are cactus-colored seat-inserts with bamboo applique placed on the door trim and center console
• Presenter Leonardo DiCaprio's vehicle has Cream exterior and Aqua-blue seat inserts, a hydrographic water-themed applique is subtly placed throughout the interior
• Actor Colin Firth's vehicle features a stately and sleek Black exterior color with Black Bamboo interior accents
• Presenter Tom Hanks will arrive to the awards in an elegant Black Chrysler 300 eco style edition vehicle with Curry seat-inserts and organic appliques
• Presenter Felicity Huffman will arrive in a Dark Cordovan vehicle with a stained Cordovan cork interior color
• Nominee Meryl Streep's vehicle features a Platinum exterior and on the interior are Cumin-colored seat-inserts along with natural mat and cork materials

Recycled materials are used within the interior of the vehicle. Recycled ultra-suede seat inserts are used for the front and rear-passenger seats and are soft to the touch and durable. Hydrographics patterns are used to place organic themes on the center console and door trim of the interior compartment. Water-based paints are used on the exterior of the vehicle.

Under the hood is the 5.7-liter HEMI^® engine with Muliti-displacement System (MDS). MDS seamlessly alternates between smooth high-fuel-economy four-cylinder mode when less power is needed and V-8 mode when more power is needed. MDS optimizes fuel economy without sacrificing vehicle performance.

Signatures from Tom Hanks and Jim Parsons

[Source : CHRYSLER]