Chrysler Group LLC (
/ˈkraɪslər/) is an American-based,
multinational automaker, in global strategic alliance with its majority owner,
Italian manufacturer
Fiat, since 2009.
Chrysler was first organized as the Chrysler Corporation in 1925.
[2] Its core brands which it produces are Chrysler, Jeep, Dodge, Ram, SRT, Fiat, and Mopar vehicles and products. The Company is headquartered in
Auburn Hills, Michigan, United States.
[3] On June 10, 2009, Chrysler LLC emerged from a government backed
Chapter 11 reorganization as Chrysler Group LLC, in alliance with the Italian automaker
Fiat.
[4][5] Initially holding a 20% interest in Chrysler Group, Fiat's stake was increased to 58.5% (fully diluted) following acquisition of the equity interests held by the U.S. Treasury (6% on June 3, 2011) and Canada (1.5% on July 21, 2011)
[6][7][8][9][10] The stake was further increased to 61.8% in July 2012.
[11] History
![[icon]](http://upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Wiki_letter_w_cropped.svg/20px-Wiki_letter_w_cropped.svg.png) | This section requires expansion with:- Under DaimlerChrysler
- Under private equity firm Cerberus
- Bankruptcy
- Rescued by the U.S. Government
- Taken over by Fiat. (May 2012)
|
The company was founded by
Walter Chrysler (1875–1940) on June 6, 1925,
[12][13] when the
Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation.
[14][15] Walter Chrysler arrived at the ailing Maxwell-
Chalmers company in the early 1920s. He was hired to overhaul the company's troubled operations (after a similar rescue job at the
Willys-Overland car company).
[16] In late 1923 production of the Chalmers automobile was ended.
[17] In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler was a 6-cylinder automobile, designed to provide customers with an advanced, well-engineered car, but at a more affordable price than they might expect. (Elements of this car are traceable to a
prototype which had been under development at Willys during Chrysler's tenure).
[18] The original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication, and an oil filter, features absent from most autos at the time.
[19][20] Among the innovations in its early years were the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to Lockheed, and rubber engine mounts to reduce vibration. Chrysler also developed a wheel with a ridged rim, designed to keep a deflated tire from flying off the wheel. This wheel was eventually adopted by the auto industry worldwide.
Following the introduction of the Chrysler, the Maxwell was dropped after its 1925 model year run, although in truth the new line of lower-priced
4-cylinder Chryslers which were then introduced for the 1926 model year were basically Maxwells which had been re-engineered and rebranded.
[21] It was during this time period of the early 1920s that Walter Chrysler assumed the presidency of Maxwell, with the company then ultimately incorporated under the Chrysler name.
Following the introduction of the Chrysler, the Maxwell brand was dropped after the 1925 model year. The new, lower-priced four-cylinder Chryslers introduced for the 1926 year were
badge-engineered Maxwells.
[22] The advanced engineering and testing that went into Chrysler Corporation cars helped to push the company to the second-place position in U.S. sales by 1936, a position it would last hold in 1949.
In 1928, the Chrysler Corporation began dividing its vehicle offerings by price class and function. The
Plymouth brand was introduced at the low-priced end of the market (created essentially by once again reworking and rebadging Chrysler's four-cylinder model).
[23] At the same time, the
DeSoto brand was introduced in the medium-price field. Also in 1928, Chrysler bought the Dodge Brothers
[24] automobile and truck company and continued the successful
Dodge line of automobiles and Fargo range of trucks. By the mid-1930s, the DeSoto and Dodge divisions would trade places in the corporate hierarchy.
The
Imperial name had been used since 1926, but was never a separate make, just the top-of-the-line Chrysler. In 1955, the company decided to spin it off as its own make and division to better compete with its rivals, Lincoln and Cadillac. Imperial would see new body styles introduced every two to three years, all with V8 engines and automatic transmissions, as well as technologies that would filter down to Chrysler corporation's other models. Imperial was folded back into the Chrysler brand in 1973.
The
Valiant was also introduced for 1960 as a distinct brand. In the U.S. market, Valiant was made a model in the Plymouth line for 1961 and the DeSoto make was discontinued during 1961. With those exceptions per applicable year and market, Chrysler's range from lowest to highest price from the 1940s through the 1970s was Valiant, Plymouth, Dodge, DeSoto, Chrysler, and Imperial.
[25] Chrysler acquired the
Jeep brand as part of the purchase of
American Motors (AMC) on August 5, 1987, for somewhere between US$1.7 billion and $2 billion, depending on how costs were counted.
[26] Chrysler then established the
Jeep/Eagle division, along with the
Eagle brand that was discontinued a decade later as part of the DaimlerChrysler merger at that time. In 2001, the Plymouth brand was also discontinued. Currently, Dodge is the full line automobile brand, with the Chrysler brand marketing upscale cars. The Jeep brand focuses on SUVs, while the RAM brand offers small commercial vans and a variety of pick-up trucks.
Corporate governance
- Sergio Marchionne, Chairman and Chief Executive Officer
- Richard Palmer, Chief Financial Officer
- Reid Bigland, Dodge brand; U.S. sales chief & President and CEO Chrysler Canada[27]
- Fred Diaz, Ram brand; Chrysler Mexico/Latin America[27]
- Olivier Francois, Chrysler brand and marketing
- Ralph Gilles, Design and SRT brand[27]
- Michael Manley, Jeep and international sales
- Pietro Gorlier, Mopar parts and service
Source:
[28] Sales and marketing
Domestic sales
It is reported that Chrysler was heavy on fleet sales in 2010, hitting as high as 56 percent of total sales in February of that year. For the whole year, 38 percent of sales of Chrysler were to fleet customers. The industry average was 19 percent. However, the company hopes to reduce its fleet sales to the industry average in 2011 with a renewed product lineup.
[29] Global sales
Chrysler is the smallest of the "Big Three" U.S. automakers (Chrysler Group LLC,
Ford Motor Company, and
General Motors). Chrysler is the world's 13th largest vehicle manufacturer as ranked by OICA in 2010.
[30] Total Chrysler vehicle production was about 1.58 million that year.
Yanase Co., Ltd. is currently the exclusive retailer of all imported Chrysler products (Chrysler, Jeep, Dodge) to Japanese consumers.
Marketing
Lifetime powertrain warranty
In 2007, Chrysler began to offer vehicle lifetime powertrain warranty for the first registered owner or retail lessee.
[31] The deal covered owner or lessee in U.S., Puerto Rico and the Virgin Islands, for 2009 model year vehicles, and 2006, 2007 and 2008 model year vehicles purchased on or after July 26, 2007. Covered vehicles excluded SRT models, Diesel vehicles, Sprinter models, Ram Chassis Cab, Hybrid System components (including transmission), and certain fleet vehicles. The warranty is non-transferable.
[32] After Chrysler's restructuring, the warranty program was replaced by five-year/100,000 mile transferrable warranty for 2010 or later vehicles.
[33] Let's Refuel America
In 2008, as a response to customer feedback citing the prospect of rising gas prices as a top concern, Chrysler launched the "Let's Refuel America" incentive campaign, which guaranteed new-car buyers a gasoline price of $2.99 for three years.
[34] With the U.S. purchase of eligible Chrysler, Jeep and Dodge vehicles, customers could enroll in the program and receive a gas card that immediately lowers their gas price to $2.99 a gallon, and keeps it there for the three years.
Lancia co-branding
Chrysler plans for
Lancia to codevelop products, with some vehicles being shared. Olivier Francois, Lancia's CEO, was appointed to the
Chrysler division in October 2009. Francois plans to reestablish the Chrysler brand as an upscale brand.
[35] Ram trucks
From Oct 2009, Dodge's car and truck line were split into two, "Dodge" for cars, minivans and crossovers and "Ram" for light and medium duty trucks and other commercial-use vehicles.
[36] | Calendar year | U.S. Chrysler sales | %Chg/yr. |
|---|
| 1999[37] | 2,638,561 |
|
| 2000 | 2,522,695 |  4.4% |
| 2001[38] | 2,273,208 | 9.9% |
| 2002[39] | 2,205,446 | 3% |
| 2003 | 2,127,451 | 3.5% |
| 2004[40] | 2,206,024 |  3.7% |
| 2005[40] | 2,304,833 | 4.5% |
| 2006[41] | 2,142,505 | 7% |
| 2007[41] | 2,076,650 | 3.1% |
| 2008[42] | 1,453,122 | 30% |
| 2009[43] | 931,402 | 36% |
| 2010[44] | 1,085,211 | 17% |
| 2011[45] | 1,369,114 | 26% |
Imported From Detroit
In 2011, Chrysler unveiled their new "Imported From Detroit" campaign with ads featuring Detroit rapper
Eminem, one of which aired during the Super Bowl. The campaign highlights the rejuvenation of the entire product lineup, which includes the new, redesigned and repackaged 2011 200 sedan and 200 convertible, the Chrysler 300 sedan and the Chrysler Town & Country minivan.
[46][47] As part of the campaign, Chrysler sold a line of clothing items featuring the
Monument to Joe Louis, with proceeds being funneled to Detroit-area charities, including the Boys and Girls Clubs of Southeast Michigan, Habitat for Humanity Detroit and the Marshal Mathers Foundation.
[48] Following the Eminem ad, there was also an ad for Detriot Lions defensive tackle
Ndamukong Suh driving a Chrysler 300 to Portland, Or., to visit his mother, an ad featuring Detroit-born fashion designer John Varvatos cruising through a shadowy Gotham while Kevin Yon's familiar baritone traces the designer's genesis.
[49] In March 2011, Chrysler Group LLC filed a lawsuit against Moda Group LLC (owner of Pure Detroit clothing retailer) for copying and selling merchandise with the "Imported from Detroit" slogan.
[50] Chrysler claimed it had notified defendant of its pending trademark application February 14, but the defendant argued Chrysler had not secured a trademark for the "Imported From Detroit" phrase. On June 18, 2011, U.S. District Judge Arthur Tarnow ruled that Chrysler's request didn't show that it would suffer irreparable harm or that it had a strong likelihood of winning its case. Therefore Pure Detroit's owner, Detroit retailer Moda Group LLC, can continue selling its "Imported from Detroit" products. Tarnow also noted that Chrysler doesn't have a trademark on "Imported from Detroit" and rejected the automaker's argument that trademark law isn't applicable to the case.
[51][52] In March 2012, Chrysler Group LLC and Pure Detroit agreed to a March 27 mediation to try to settle the lawsuit over the clothing company's use of "Imported from Detroit" slogan.
[53] Pure Detroit stated that Chrysler has made false claims about the origins of three vehicles - Chrysler 200, Chrysler 300 and Chrysler Town & Country - none of which are built in Detroit. Pure Detroit also said that Chrysler's Imported From Detroit merchandise is not being made in Detroit.
In 2011, Eminem settled a lawsuit against
Audi alleging the defendant had ripped off the Chrysler 300 Super Bowl commercial in the
Audi A6 Avant ad.
[54] Half Time in America
Again in 2012, Chrysler advertised during the
Super Bowl. Its two-minute February 5, 2012
Super Bowl XLVI advertisement was titled "Half Time in America". The ad drew the criticism of several leading U.S.
conservatives, who suggested that its messaging implied that President Obama deserved a second term and, as such, was political payback for Obama's support for the federal bailout of the company.
[55] Sergio Marchionne in a
60 Minutes interview with
Steve Kroft said when asked to respond to the conservatives he stated "just to rectify the record I paid back the loans at 19.7% Interest. I don't think I committed to do to a commercial on top of that." and "was unnecessary and out of place".
[56] Slogans
- Engineered to the Power of Cars (1998–2001)
- Drive & Love (2002-2004)
- Inspiration comes standard (2004-2007)
- Engineered Beautifully (2012-halfway of 2010)
- Imported From Detroit (2012-current)
Product line
Chrysler — Passenger cars, minivan- Dodge — Passenger cars, minivan, crossover, and SUV
- Ram — Trucks and commercial vehicles
- Jeep — Off-road vehicles, SUVs and crossovers
- MOPAR — Upscale versions of selected cars, trucks, and SUV's from Chrysler, Dodge, Ram, Jeep, and Fiat. (New for 2012) Also brand for dealer service and customer service operations.
- SRT — High Performance. (2013 Viper will be badged as SRT Viper not Dodge Viper) (New for 2012)
Mopar
- Mopar — Replacement parts for Chrysler-built vehicles.
- Mopar Performance, a subdivision providing performance aftermarket parts for Chrysler-built vehicles.
PHEV Research Center
Chrysler is in the Advisory Council of the
PHEV Research Center.
Chrysler Uconnect Web
Chrysler LLC Uconnect Web is a system that brings wireless Internet connectivity to any Chrysler, Dodge, or Jeep vehicle, via a Wi-Fi "hot-spot". According to Chrysler LLC, the hotspot range will extend approximately 100 feet (30 m) from the vehicle in all directions, and will combine both Wi-Fi and 3G cellular connectivity. Uconnect is available on several current and was available on several discontinued Chrysler models including the
Chrysler 300,
Aspen,
Sebring,
Town and Country,
Dodge Avenger,
Caliber,
Grand Caravan,
Challenger,
Charger,
Journey,
Nitro, and
Ram.
[57] Fiat
Fiat Auto plans to sell seven of its vehicles in the U.S. by 2014, while Fiat-controlled Chrysler Group is to supply nine models to sell under Fiat brands in the European market, according to a five-year plan rolled out on April 21, 2010 in
Turin, Italy, by Fiat and Chrysler CEO
Sergio Marchionne. At least five of the Fiat Auto models are expected to be marketed in the U.S. under its
Alfa Romeo brand. Showing the level of integration envisioned, a product introduction timeline shows Chrysler-built compact and full-size SUVs going on sale in 2012 and 2014, respectively, in both European and North American markets.
[58] Environmental initiatives
Electric vehicles
The first
electric vehicle produced by Chrysler was the 1992
Dodge EPIC concept minivan. In 1993, Chrysler began to sell a limited-production electric minivan called the
TEVan; however, this minivan did not gain much popularity throughout its lifetime. In 1997, a second generation, called the EPIC, was released. It was discontinued after 1999.
Chrysler intended to pursue new drive concepts through
ENVI, an in-house organization formed to focus on
electric-drive vehicles and related technologies which was established in September 2007. In August 2009, Chrysler took
US$70 million in grants from the U.S.
Department of Energy to develop a test fleet of 220
hybrid pickup trucks and minivans. ENVI was disbanded by Nov 2009.
[59] Hybrid vehicles
The first hybrids of Chrysler,
Chrysler Aspen hybrid and
Dodge Durango hybrid, were discontinued a few months after production in 2008.
[60] Chrysler continues to develop The
Dodge Ram hybrid.
Chrysler has also been experimenting with a
Hybrid Diesel truck for military applications.
Special programs
During World War II, essentially all of Chrysler's facilities were devoted to building military vehicles (Note that the
Jeep brand came much later after Chrysler acquired
American Motors Corporation). The Chrysler tanks were far superior to Ford or General Motors tanks. They used five Plymouth flathead straight-6 engines in a radial design where the tank could keep going if one engine was disabled.
[61] They were also designing V12 and V16 hemi-engines producing 2,500 hp (1,864 kW; 2,535 PS) for airplanes, but they did not make it into production as
jets were developed and were seen as the future for air travel.
[62] Radar antennas
When the
Radiation Laboratory at
MIT was established in 1941 to develop
microwave radars, one of the first projects resulted in the
SCR-584, the most widely recognized radar system of the war era. This system included a
parabolic antenna six feet in diameter that was mechanically aimed in a helical pattern (round and round as well as up and down).
One of Chrysler’s most significant contributions to the war effort, however, was not in the field of vehicles but in the radar field. For the final production design of this antenna and its highly complex drive mechanism, the Army’s
Signal Corps Laboratories turned to Chrysler's Central Engineering Office. There, the parabola was changed from aluminum to steel, allowing production forming using standard automotive presses. To keep weight down, 6,000 equally spaced holes were drilled in the face (this had no effect on the radiation pattern). The drive mechanism was completely redesigned, using technology derived from Chrysler’s research in automotive gears and differentials. The changes resulted in improved performance, reduced weight, and easier maintenance. A large portion of the Dodge plant was used in building 1,500 of the SCR-584 antennas as well as the vans used in the systems.
[63][64] Missiles
In April 1950, the U.S. Army established the Ordnance Guided Missile Center (OGMC) at
Redstone Arsenal, adjacent to
Huntsville, Alabama. To form OGMC, over 1,000 civilian and military personnel were transferred from
Fort Bliss, Texas. Included was a group of German scientists and engineers led by
Wernher von Braun; this group had been brought to America under
Project Paperclip. OGMC designed the Army's first
short-range ballistic missile, the
PGM-11 Redstone, based on the WWII German
V-2 missile. Chrysler established the Missile Division to serve as the Redstone prime contractor, setting up an engineering operation in Huntsville and for production obtaining use from the U.S. Navy of a large plant in
Warren, Michigan. The Redstone was in active service from 1958 to 1964; it was also the first missile to test-launch a live
nuclear weapon, first detonated in a 1958 test in the South Pacific.
[65] Working together, the Missile Division and von Braun's team greatly increased the capability of the Redstone, resulting in the
PGM-19 Jupiter, a
medium-range ballistic missile. In May 1959, a Jupiter missiles launched two small monkeys into space in a
nose cone on a Jupiter; this was America's first successful flight and recovery of live space payloads. Responsibility for deploying Jupiter missiles was transferred from the Army to the Air Force; armed with
nuclear warheads, they were first deployed in
Italy and
Turkey during the early 1960s.
[66] Space boosters
In July 1959,
NASA chose the Redstone missile as the basis for the
Mercury-Redstone Launch Vehicle to be used for suborbital test flights of the
Project Mercury spacecraft. Three unmanned MLRV launch attempts were made between November 1960 and March 1961, two of which were successful. The MLRV successfully launched the chimpanzee
Ham, and astronauts
Alan Shepard and
Gus Grissom on three suborbital flights in January, May and July 1961.
America's more ambitious manned space travel plans included the design of the
Saturn series of heavy-lift launch vehicles by a team headed by
Wernher von Braun. Chrysler's Huntsville operation, then designated the Space Division, became
Marshall Space Flight Center’s prime contractor for the first stage of the
Saturn I and
Saturn IB versions. The design was based on a cluster of Redstone and Jupiter fuel tanks, and Chrysler built it for the
Apollo program in the
Michoud Assembly Facility in East New Orleans, one of the largest manufacturing plants in the world. Between October 1961 and July 1975, NASA used ten Saturn Is and nine Saturn IBs for suborbital and orbital flights, all of which were successful,
[67] in fact Chrysler missiles and boosters never suffered a launch failure.
DaimlerChrysler
In 1998, Chrysler and its subsidiaries entered into a partnership dubbed a "merger of equals" with German-based
Daimler-Benz AG, creating the combined entity
DaimlerChrysler AG.
[68] To the surprise of many stockholders, Daimler subsequently acquired Chrysler in a stock swap,
[69] after the retirement of Chrysler CEO Bob Eaton. Under DaimlerChrysler, the company was named DaimlerChrysler Motors Company LLC, with its U.S. operations generally called the "Chrysler Group". On May 14, 2007, DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American
private equity firm
Cerberus Capital Management, L.P., thereafter known as Chrysler LLC, although Daimler (renamed as
Daimler AG) continued to hold a 19.9% stake.
[70] The deal was finalized on August 3, 2007.
[71] On April 27, 2009, Daimler AG signed a binding agreement to give up its remaining 19.9% stake in Chrysler LLC to Cerberus Capital Management and pay as much as $600 million into the automaker's pension fund.
[72] The sale of substantially all of Chrysler's assets to "New Chrysler", organized as Chrysler Group LLC was completed on June 10, 2009. The federal government provided support for the deal with US$6.6 billion in financing, which was paid to "Old Chrysler", and a newly formed company called Old Carco LLC took over the remaining assets and liabilities, which remained in Chapter 11 bankruptcy.
[73] This transfer excluded eight manufacturing sites, the majority of real estate holdings, and equipment leases. Contracts with 789 dealers in the U.S. were also excluded.
[74][75] On May 24, 2011, Chrysler repaid its $7.6 billion loans to the United States and Canadian governments.
[76] Discontinued brands
See also
Countries
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- ^ Ramsey, Mike and Kary, Tiffany. "Chrysler Assets Said to Have Little Net Proceeds for Creditors", Bloomberg, 2012-06-23, retrieved July 10, 2009.
- ^ de la Mercel, Michael; Micheline Maynard (June 10, 2009). "Swift Overhaul Moves Ahead as Fiat Acquires Chrysler Assets". New York Times. Retrieved June 10, 2009.
- ^ Forden, Sara Gay; Mike Ramsey (June 10, 2009). "Fiat Said to Buy Chrysler Assets Today to Form New Automaker". Bloomberg. Retrieved April 30, 2012.
- ^ "Breaking: Chrysler repays the rest of its federal loans... are SUVs to thank?". autoblog.com. Retrieved May 24, 2011.
- ^ Though the first Humber was produced in 1898, Chrysler bought the company in 1967 and stopped production of the Humber the next year.
Further reading
- Adler, Dennis (2000), Chrysler, MBI Publ, ISBN 0-7603-0695-8
- Breer, Carl; Anthony J Yanik (1994), The birth of Chrysler Corporation and its engineering legacy, Society of Automotive Engineers, ISBN 1560915242
- Curcio, Vincent (2001), Chrysler: The Life and Times of an Automotive Genius, Oxford University Press, ISBN 0-19-507896-9
- Yanik, Anthony J. (2009). Maxwell Motor and the Making of the Chrysler Corporation, Detroit: Wayne State University Press ISBN 978-0-8143-3423-2
External links
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Fargo (1920–1972)
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