VIDEO: New Chrysler Ad Emphasizes the Importance of Style

In its latest commercial, Chrysler takes a trip down memory lane, showcasing some of its vintage models and wonders what ever happened to the glamour and style that these cars represented. And you guessed it; according to Chrysler, good 'ol American style is making a comeback on the firm's new models like the recently launched 300 sedan. Video available after the jump.

Chrysler and EPA Working on Hydraulic Hybrid System for Passenger Cars [with Video]

Chrysler and the U.S. Environmental Protection Agency (EPA) today announced a new partnership to explore the possibility of adapting the EPA's hydraulic hybrid system for passenger cars and light-duty vehicles. Developed by the EPA, the hydraulic hybrid system is currently used in industrial applications, including large delivery trucks and refuse trucks, but Chrysler, keen on developing a new portfolio of hybrid vehicles, wants to adopt it for use on passenger vehicles.

“The EPA and Chrysler are working together to explore the possibilities for making this technology affordable and accessible to drivers everywhere," said EPA Administrator Lisa P. Jackson. "This partnership is further proof that we can preserve our climate, protect our health and strengthen our economy all at the same time”.

The focus will be on adapting the technology to a Chrysler Town & Country minivan powered by a 2.4-liter 4-cylinder gasoline engine. The hydraulic system includes a 117 cc engine pump, a 45 cc drive electric motor and 2-speed automatic transmission, with an additional 14.4-gallon high-pressure accumulator storing the fluid for the system.

Power is produced as the engine torque drives the hydraulic pump, which, in term, charges the accumulator up to 5,000 psi. The pressure energy is then directed through the axle hydraulic motor to the driven wheels. As long as there’s enough pressure, the thermal engine remains off, thus reducing fuel consumption.

“In this hydraulic hybrid project, the Chrysler Group and EPA will evaluate and, hopefully, validate fuel-efficiency gains and greenhouse gas reductions”, Marchionne said. “One of the aims of Chrysler Group’s integration efforts will be to meet driver expectations for smooth and quiet operation, so that Americans will want to buy and will enjoy driving vehicles with this technology”.

Chrysler and the EPA plan to have a running demonstration vehicle by 2012. The automaker also announced that it would introduce 150 Ram 1500 trucks with a plug-in hybrid system in the near future, as part of a project with the U. S. Department of Transportation.

The video below shows an industrial application of the hydraulic hybrid system.

European and Asian Automakers to Build More Cars than Detroit's Big Three in N. America by 2012

According to a new study from financial advisory firm Grant Thornton LLP, European and Asian automakers will churn out more cars in North America than Detroit's 'Big Three' by 2012. The study expects that after the completion of the restructuring of the domestic auto industry, the combined capacity of General Motors, Chrysler Group LLC and Ford in North America will fall by more than 4 million units or a 35 percent reduction compared to 2008, for a total of 7.5 million units in 2012.

At the same time, all other foreign automakers combined are expected to increase their North American production by around 1.5 million a year or 20 percent, to more than 8 million units.

"A new order is emerging where the Detroit companies may no longer be the volume leaders in their home market," said Grant Thornton LLP Principal Kimberly Rodriguez, co-leader of the firm's global automotive practice.

Grant Thornton LLP reports that Volkswagen and BMW will nearly double their combined production, increasing their output capability to around 1 million units a year while Toyota, Honda, Nissan and Hyundai are projected to expand their combined production by 20 percent, or nearly 1 million units.

The study finds that the dramatic shift in production will have a large impact on North American parts suppliers that will need to secure more business from European and Asian makers.

"Suppliers largely dependent on Detroit OEMs will have to present a new value equation to potential customers from Europe and Asia if they want to participate in the accelerated shift that is coming," said Kimberly Rodriguez.

New Chrysler 300 and its Lancia Thema Counterpart to get Hybrid Variant in 2013

On the sidelines of the 2011 Detroit Auto Show, Fiat Group CEO Sergio Marchionne confirmed that hybrids will make a comeback to Chrysler’s line-up, with one such model being a gasoline-electric version of the Chrysler 300 sedan. “We will offer a hybrid variant of the 300 equipped with an eight-speed automatic in 2013”, Marchionne said last week.

Besides the new Chrysler 300, Lancia's re-badged version of the car called Thema, which will debut at the forthcoming Geneva Salon alongside three more models, will also get the eco-friendly technology. However, it remains to be seen if the Thema hybrid will make its world premiere in Geneva or if Lancia will reveal it at another show.

According to a report from Automotive News Europe, the hybrid system is expected to share several components including the control software with a similar project that is currently being developed by Maserati for the next generation Quattroporte sports sedan, while the 8-speed automatic gearbox will be sourced from German supplier ZF.

Since it emerged from bankruptcy in June 2009, Chrysler significantly scaled down an ambitious hybrid strategy conceived under previous owners DaimlerChrysler and Cerberus Capital Management, but it seems that this is about to change.

Fiat Group Seals Mirafiori Deal with Unions, Marchionne Criticizes Nay-Sayers

Fiat Group CEO Sergio Marchionne’s key productivity deal won narrow backing from workers of the historic Mirafiori plant in Turin, with 54% of them voting in favor of the groundbreaking contract that limits strikes and absenteeism in exchange for investment.

The agreement enables the automaker to start building Jeep models in Italy and it’s also considered as a crucial step in Alfa Romeo’s U.S. launch. The deal was fiercely contested by a more hard-line Italian union, which threatened the deal with strikes. Fiat said last week that it’s ready to pull out altogether from the country if an understanding is not reached.

However, the positive outcome means that Fiat and Chrysler can go ahead with their €1 billion euro ($1.32 billion) joint-venture, with 60% of the investment to be covered by Fiat which wants to build around 150,000 Alfa models a year at the plant. Chrysler will provide the rest in order to get an annual quota of about 100,000 units of the next generation Jeep Compass/Patriot, due to launch in 2013.

Aside from being the catalyst for further development, the new labor contract was also necessary if the Fiat Group was to improve its productivity.

In 2009, Mirafiori workers built 178,000 cars, less than a third of the 600,000 vehicles their Polish counterparts of the Tychy plant managed, with both factories employing roughly the same number of workers. That means productivity at Mirafiori averaged 30 cars per employee a year, compared with almost 100 at Tychy.

It’s clear that this is “an industrial scheme which needs to be reformed”, said Gianluca Spina, dean of the business school at Milan's Polytechnic, before the referendum result was announced.

While Fiat Chairman John Elkann said that “controversies and contrasting positions” have to be put aside and future challenges faced in “a constructive manner”, CEO Sergio Marchionne issued a much more aggressive statement, heavily criticizing the opposing union. The full statement is available below.

Statement from Fiat CEO, Sergio Marchionne

We are pleased that the majority of workers at Mirafiori have understood Fiat’s commitment to transform that plant into one of international standing. We are pleased because their vote demonstrates their confidence in themselves and their future.

They have chosen not only to say “yes” to a new opportunity for Mirafiori, the opportunity to work and compete with the best. They have also chosen to take their destiny into their own hands, to take an historic step and become the architects of something new and important.

In a country such as Italy, which has always been tied to the past and reluctant to change – and yesterday’s referendum was in part a demonstration of that – those who voted yes showed vision.

Their vote represents a desire to achieve rather than being resigned to decline. It represents a courage to overcome the inaction of those who just talk and expect things to happen.

I have always been extremely proud of what Mirafiori represents for Fiat, of its role as custodian of our Group’s and our nation’s industrial heritage, and of the capability it has always demonstrated.

Mirafiori and those who work there did not give up when, in 2004, many were predicting the plant would close. Together we brought the plant back from the brink of despair, giving it back its dignity and future.

The majority of our workers have not allowed themselves to be conditioned by the many accusations and attacks of those that sought to gamble with their future. They have chosen instead to commit themselves, to dedicate their abilities and passion to making a difference. This is the best response to the lies and provocations of recent months.

By saying “yes” to the agreement, they have closed the door on extremism, that creates nothing but chaos, and they have opened the door to the future, to the privilege of transforming Mirafiori into a factory of excellence.

I hope that those who voted no, putting aside their ideologies and preconceived notions, will realize the importance of the agreement in safeguarding the future of all workers.

The plan for the Mirafiori plant is very ambitious. The company to be created in partnership between Fiat and Chrysler will enable establishment of a new platform at Mirafiori for the construction of large SUVs for distribution under both the Jeep and Alfa Romeo brands worldwide, including in the United States. This will allow us to achieve very high production levels, of up to 280,000 vehicles per year, and also open the way for the potential creation of jobs.The sole purpose of the agreement that serves as the basis for achieving all of this – the same agreement that has been at the center of so much conflict – is to ensure the plant works more effectively, without infringing on any rights.

It doesn’t penalize workers in any way. Rather, it maintains unchanged all conditions of the national collective agreement which are in their favor, as well as all those conditions which Fiat has over time extended to its workers directly. The work organization is, in fact, the same that has been experimented with at Mirafiori for more than 2 years and takes account of the level of fatigue associated with the type of work performed. The introduction of 18 shifts includes a Saturday evening shift which is the most problematic. Accordingly, it has been agreed that, even though workers are still compensated, it will only be activated if there is a real need and, in any case, will be treated as overtime. Full utilization of the 18 shifts would also enable an increase in annual pay of around €3,500 per year.

We have also taken account of other needs relating to overtime. As employees cannot always be available, we have instituted the option of substituting up to 20% of those workers who are unable to work overtime. By revising the system of breaks, reducing them to 30 minutes and monetizing the difference, we have also brought ourselves into line with standard practice at factories throughout the rest of Europe and the world. For sick leave, in relation to which many absurd things have been said, the agreement simply provides for monitoring of the rate of absenteeism, to avoid potential abuse. A commission operated jointly with trade unions will evaluate, on an individual basis, cases where the company is not liable to cover absences.

The purpose of this clause is to call attention to the problem, by provoking individual conscience and sense of responsibility, and I hope that it is never invoked.

Finally, we have simplified the compensation structure which will make pay-slips easier to read and also have a positive effect in the case of overtime or shift work, with supplements being applied to basic pay, which is higher than current minimum contractual values.

As the majority of our workers have understood, there is nothing exceptional in the Mirafiori agreement, other than the opportunity to relaunch the plant and give it the profile it deserves internationally. The criticisms leveled at us have been unjust and often frustrating. When you see your efforts being misrepresented, you sometimes ask yourself if it is really worth it.

The majority of workers at Mirafiori have given the clear message that commitment to building something better is always worthwhile.

Chrysler 200 Convertible Photographer Lashes Out on Facebook, Calls the Person who Leaked the Pictures an "Arrogant D...bag"

If you've been following our daily posts, you'll remember that the first batch of photos of Chrysler's 200 Convertible, previously known as the Sebring, were leaked onto the net last Thursday (January 13, 2011). The following day, Chrysler posted the photos on its official website. End of story? Well, not exactly as we discovered a very interesting posting on the photographer's official Facebook page.

Webb Bland, the person who shot the admittedly impressive press photos of the 200 cabriolet accused a “misguided idiot somewhere outside of the fantastic marketing team at Chrysler” for leaking the images “weeks in advance of the meticulously scheduled unveiling”.

“Rage-induced”, Mr. Bland added that “it's goddamn infuriating that so many car blogs have already run many of the photos cropped awkwardly, without context or back story, and at a horribly compressed resolution, on top of that.”

While we can understand the photographer's disappointment, we think that his reaction was over the top. Leaks (intentional or...not) are all too common in the automotive industry and you just can’t accuse all blogs for the quality of the photos. Neither can you expect them to crop a photo just like a professional photographer. Furthermore, all sites posted the HD pictures once Chrysler decided to drop the ball.

Any website - be that a news outlet or a blog- jumps at such an opportunity in order to be able to convey the latest information to its readers. But in any case, we’re not the enemy of professional photographers and we’re pretty sure the online media wasn’t trying to sabotage Mr. Bland’s work.

Maybe Mr. Bland should’ve concentrated on finding out who was that “one selfish arrogant douchebag who got a hold of the digital files before the CEO was set to review the images”, rather than taking a shot at blogs and automotive websites that present his work to the public.

We don’t want to add any more fuel to this fire, but it seems that Mr. Bland has a good idea about who the culprit might be and maybe the fact that it could be a Chrysler exec is what caused him to lash out.

Granted, if someone inside Chrysler leaked the photos, there’s not much Mr. Bland can do, other than maybe re-evaluate his professional relationship with the automaker.

In any case, reporting the news shouldn’t be confused with wrongdoing.

Fiat’s Future in Italy Could be at Stake Due to Disagreements with Unions

As previously reported, Fiat hasn’t been able to secure agreements with all Italian unions regarding a key productivity deal to help the automaker to keep its turnaround strategy on track. With a hard-line union planning a strike later this month, the country’s Prime Minister Silvio Berlusconi claims Fiat will have a good reason to quit Italy if the deal falls through.

Fiat CEO Sergio Marchionne agreed with Mr. Berlusconi saying that the future of the company in Italy could be at stake and he might be forced to move all production to lower-cost countries.

The dispute with the FIOM union, which represents workers employed at Fiat’s historic Mirafiori plant, concerns the introduction of more shifts and reduced benefits. The automaker supports that implementing these changes is crucial if the company is to make further investments and build new models in Italy.

Talking with reporters in Berlin after a meeting with German Chancellor Angela Merkel, Silvio Berlusconi commented: “We think that what has been happening in this case is absolutely positive, with the possibility of an accord between the unions and the company, in the direction of greater flexibility”.

“It's obvious that if this didn't happen, clearly the company and business people would have a good reason to move to other countries. Let us hope this has a positive outcome”, Berlusconi added.

Source: Reuters

Lancia to Unveil Chrysler 200-based Model at Geneva Show, may name it Flavia

*The above image is a Carscoop illustration

It appears that all those the rumors regarding future Lancia models are true as the Italian automaker is gearing up for this year’s Geneva Auto Show with several new additions to its line-up.At the Detroit Motor Show, Fiat Group execs revealed that along with the Chrysler 300-based Thema flagship, Lancia will also unveil its own version of the Chrysler 200. The mid-size model will be offered in both sedan and convertible body styles, and is destined to replace the Sebring in the European market.

“The new Chrysler 200 will come – cabriolet included – to Europe as a Lancia, and Flavia is a very good hint as its possible name,” Fiat Group CEO Sergio Marchionne said on the sidelines of the 2011 Detroit Auto Show.

It is believed that Lancia's version of the Chrysler 200 will feature only a few minor styling tweaks over its American counterpart including a unique grille and Euro-spec bumpers. However, Lancia-Chrysler CEO Olivier Francois told reporters that the Lancia model will gain a manual transmission and a diesel option.

The Chrysler...ization of Lancia will continue with a Town and Country/Voyager-based minivan that will go on sale in 2011 together with the Thema, followed by the 200-based sedan in early 2012.

The Italian company said it hopes the three Chrysler-based models will give Lancia an image boost and generate higher profit margins, as they’re going to be positioned above the Delta, currently the company’s largest offering.

Last but not least, the Geneva Show will mark the debut of the Ypsilon replacement that will hit showrooms in June. Offered for the first time in a 5-door version, Lancia plans to sell 130,000 units a year of the new Ypsilon and boost overall sales to 300,000 vehicles in 2014 from 112,000 in 2009.