The Light Is Green

Chrysler green cars

Chrysler is showing off three eco-friendly concept cars at the Detroit International Auto Show:

1. ecoVoyager. A 4-seater with a single electric motor alternately powered by a lithium-ion battery pack and hydrogen fuel cell. The battery has a 40 mile (64 km) range, the fuel-cell “range extender” adds 260 miles (418 km).

2. ZEO. A a 4-seat sport wagon powered by a lithium-ion battery pack with a 250 mile (400 km) range. Its 200 kw (268 hp) motor does 0-60 mph (0-100 km/h) in under six seconds.

3. Jeep Renegade. Has two electric motors powered by a lithium-ion battery, with a range of 40 miles (64 km). Also has a 1.5 liter Bluetec diesel engine that adds 400 miles (644 km), for an overall fuel-economy rating of 110 mpg (2.13 liters per 100 km).

Tags: concept cars, automotive, auto industry, automotive industry, alternative energy, sustainable energy, electric cars, hybrids, flex-fuel, diesel, Chrysler, ecoVoyager, ZEO, Jeep Renegade

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What's a brand worth?

The top ten global brands are worth over $400 billion in conjunction, according to Interbrand and their most recent yearly report.

These are the top ten brands with their estimated worth:

1. Coca-Cola, $63B
2. Microsoft, $58B
3. IBM, $57B
4. General Electric (GE), $51B
5. Nokia, $33B
6. Toyota, $32B
7. Intel, $31B
8. McDonald's, $29.4B
9. Disney, $29.2B
10. Mercedes Benz, $23B

Tags: Coca Cola, Microsoft, IBM, General Electric, GE, Nokia, Toyota, Intel, McDonald's, Disney, Mercedes Benz, Interbrand, branding, marketing, best brands

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Daimler sues Chinese copycat

Daimler has just sued Chinese automaker Shuanghuan Automobile from unveiling its Noble, a Smart ForTwo look-alike, at the Bologna Auto Show last week. Daimler claims the Noble infringes on its design copyright for the Smart ForTwo.

Daimler also obtained a similar order in September to prevent Shuanghuan from showing the Noble at the Frankfurt Motor Show.

To give you an idea, see both models below. The Smart ForTwo is on top, the Noble below.

  

Martin Motors, Shuanghuan's European distributor, says they will rename the Noble as the Bubble to avoid potential lawsuits with UK's Noble Auto. And they say that Daimler's suit is unfounded because the Noble/Bubble "is a four-seat, front-engined vehicle, while the Smart model is a two-seat car with a rear engine".

Read more at MotorTrader.

See also:

• BMW vs. Chinese copycats

Tags: automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, Shuanghuan Automobile, Shuanghuan, Martin Motors, Noble, Bubble, intellectual property

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Chrysler gets life

Chrysler continues to grab headlines, this time with a gutsy move intended to underscore their commitment to quality.

They've now announced a lifetime powertrain warranty for all new vehicle sales in the U.S.

Chrysler's previous powertrain warranty was for three years or 36,000 miles (58,000 km).

This is the now the best warranty in the auto industry.

Both GM and Ford currently offer transferable 5-year powertrain limited warranties; GM for 100,000 miles (161,000 kms), Ford for 60,000 miles (97,000 kms).

Hyundai has been the market leader in this sense. Since 1999, they've had a 10-year, 100,000-mile non-transferable powertrain warranty.

Toyota has a five-year, 60,000-mile warranty for Toyotas, and a six year, 70,000-mile warranty for Lexuses.

The new Chrysler warranty is non-transferable, and owners must get a free powertrain inspection every five years from a certified dealer.

Chrysler had tried a 7-year, 70,000-mile warranty two years ago, but that turned to be too onerous. According to Wards, DaimlerChrysler paid out $6.9 billion in worldwide warranty claims in 2005, way ahead of all other manufacturers, including GM ($4.7 billion) and Ford ($4 billion).

According to Wards:

Chrysler officials trace the genesis of the plan back to its dealers, who recently told executives in Auburn Hills the auto maker’s product quality is the best they've seen in years and its warranty should reflect the improvement.

MSNBC reports that the warranty applies to 88 percent of U.S. sales under the Chrysler, Dodge and Jeep brands, and covers the cost of all parts and labor needed to repair covered powertrain components, engine, transmission and drive system, which happen to be the most expensive repairs in a vehicle.

Tags: Chrysler, Cerberus, automotive, auto industry, automotive industry

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Chrysler wants less dealers

According to the Wall Street Journal and Dealers Edge, Chrysler is warning dealers that they may get shut them down if sales don't improve in six months.

"Some 50 dealers in the Great Lakes region that have been missing monthly sales goals received letters from Chrysler saying they must improve their performance within 180 days or the company would begin the process to "terminate" their franchises.

Similar letters are expected to go out to other low-volume dealers across the country in the next few weeks."

Chrysler is now controlled by Cerberus Capital, and as part of their plan to lower losses in North America they say they to slash dealer ranks.

Tags: Chrylser, Cerberus, automotive, auto industry, automotive industry

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Chrysler signs with China

Chrysler finally went and did it.

Chrysler has signed a deal with leading Chinese automaker Chery, to manufacture small cars in China and then export them to the U.S. (as well as other markets).

The first vehicle on the table will be based on the Chery A1 compact sedan, but sold as a Dodge.

Step 1 in the Chrysler-Chery plan calls for the car to reach, within a year, less demanding markets... either Latin American or Eastern Europe, at an estimated cost of $10,000.

Eighteen months later the cars would reach North America and Western Europe. Chery has also said that it could move up its U.S. plans to 2008, and lower the price tag to $7,000.

Says CBS News:

   

Tom Lasorda, Chrysler chairman, said, “As of today, we're committed to building vehicles here for export. We will combine Chrysler's research and technology and global reach with Chery's lean manufacturing.”

   

Yin Tongyao, Chery CEO, said the deal gives his company the opportunity to improve its skills at it tries to expand exports of its own models. “Chery is still young, so we should learn from Chrysler and improve our own competitive edge in the near future.”

   

Both said that will jointly develop future models, "probably with Chrysler styling on a Chery platform".

Chery is a relatively newcomer to the auto industry, barely ten years old, though they are the fastest growing carmaker in China. Last year they produced 350,000 units, and plan to increase that by 10% this year.

Chery previously had a deal with Malcolm Bricklin's Visionary Vehicles (of Yugo "fame"), who was to bring Chinese cars to the U.S., but that went south and in fact the two are now in litigation.

Tags: Chery, Chery Automobile, Chery Automobile Co., Yin Tongyao, Tom Lasorda, Chrysler, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Chrysler sold to Cerberus

Automomotive News reports that DaimlerChrysler has sold 80.1% of Chrysler to Cerberus Capital Management, a private equity group, for some $7.45 billion

DaimlerChrysler will retain the remaining 19.9 percent.

Tags: DaimlerChrysler, Chrysler, automotive, auto industry, automotive industry

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Japanese cars grow in Mexico

Mexico is a big (currently the 14th largest in the world) and potentially huge auto market. Last year car and truck sales totaled over 1.1 million units. Though comparatively small compared to the U.S. market, the world's biggest at 16.7 million units, experts think Mexico will surpass current #11 Canada by 2010.

And while U.S. and Canadian sales have stagnated since 2000, the Mexican market has grown 35% thanks to a stable economy and more abundant consumer credit, as the Houston Chronicle tells us. And only 20% of Mexicans own cars...

That's why the big three are worried about their drop in market penetration. Here's what's happened in 2006:

• Japanese companies (mainly Honda, Toyota and Nissan) grew 9% to reach 32% of the Mexican market
• The combined market share of GM, Ford and DaimlerChrysler fell 7% to 48%
• VW, who has been very big in Mexico (20% share in 2000), is now down to 12%

And, as in the U.S. (see "Toyota are ants"), this is not just about price. Honda and Toyota led the most recent J.D. Power satisfaction survey in Mexico.

Tags: Mexico, Toyota, Honda, Nissan, Ford, GM, Chrysler, VW, automotive, auto industry, automotive industry

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Chrysler's three bidders

Knowledge@Wharton says that DaimlerChrysler has three serious bidders for Chrysler at this point, and that they should have preliminary offers in hand soon (the end-date was by March 30):

• Cerberus Capital Management, a New York private equity firm. Has ex-Chrysler executives in prominent roles.
• Blackstone Group and Centerbridge Partners, both private equity firms
• Magna International, a Canadian maker of auto parts, together with Ripplewood Holdings, a New York private equity firm. Ripplewood also has ex-Chrysler executives in prominent positions.

They also mention that GM may eventually join one of the private equity bidders.

Tags: Chrysler, DaimlerChrysler, GM, automotive, auto industry, automotive industry

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Chrysler has a buyer?

Brett Hoselton, an analyst for KeyBanc Capital Markets, says via Automotive News that Magna International, a maker of advanced automotive systems based in Canada, is set to make an offer for Chrysler for some $4.6 billion, for a 20-25% stake. The firm would do this together with an equity partner.

Currently, 26% of Magna's sales are to Chrysler, around $6 billion per year.

Tags: Chrysler, DaimlerChrysler, Magna International, automotive, auto industry, automotive industry

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