Chrysler Group, LLC is a
U.S.
automobile
manufacturer headquartered in the Detroit
suburb of
Auburn Hills,
Michigan
. Chrysler was first organized as the
Chrysler Corporation in 1925. From 1998 to 2007, Chrysler and its
subsidiaries were part of the German based DaimlerChrysler AG (now
Daimler AG). Prior to 1998, Chrysler
Corporation traded under the "C" symbol on the New York Stock
Exchange. Under DaimlerChrysler, the company was named
"DaimlerChrysler Motors Company LLC", with its U.S. operations
generally referred to as 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., although Daimler continued to hold a 19.9% stake. This was
when the company took on the name, Chrysler LLC. The deal was
finalized on August 3, 2007. On April 27, 2009, Daimler AG signed a
binding agreement to give up its 19.9% remaining stake in Chrysler
LLC to Cerberus Capital Management and pay as much as $600 million
into the automaker's pension fund.
On April
30, 2009 Chrysler LLC filed for Chapter 11 bankruptcy protection and
announced a plan for a partnership with Italian
automaker
Fiat
.On June 1, Chrysler LLC stated they were
selling some assets and operations to the newly formed company
Chrysler Group LLC. Fiat will hold a 20% stake in the new company,
with an option to increase this to 35%, and eventually to 51% if it
meets financial and developmental goals for the company.
On June 10, 2009, the sale of most of Chrysler assets to "New
Chrysler", formally known as Chrysler Group LLC was completed. The
federal government financed the deal with US$6.6 billion in
financing, paid to the "Old Chrysler", formally called Old Carco
LLC. The transfer does not include eight manufacturing locations,
nor many parcels of real estate, nor equipment leases. Contracts
with 789 U.S. auto dealerships, who are being dropped, were not
transferred.
History
The company was founded by
Walter
P. Chrysler on June 6, 1925,
when the
Maxwell Motor Company
(est. 1904) was re-organized into the Chrysler Corporation.
Walter Chrysler had originally arrived at the ailing
Maxwell-
Chalmers company in the
early 1920s, having been hired to take over and overhaul the
company's troubled operations (just after a similar rescue job at
the
Willys car company).
In late 1923 production of the Chalmers automobile was ended.
Then 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 back to a
prototype which had been under development at
Willys at the time that Walter Chrysler was there). The original
1924 Chrysler included a carburetor air filter, high compression
engine, full pressure lubrication, and an oil filter, at a time
when most autos came without these features. Among the innovations
in its early years would be 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 road wheel
with a ridged rim, designed to keep a deflated tire from flying off
the wheel. This safety 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. 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.
Organization

Chrysler Headquarters at Auburn
Hills
- Mopar — Replacement parts
for Chrysler-built vehicles. Also comprises Mopar
Performance, a subdivision providing performance
aftermarket parts for Chrysler-built vehicles.
- Chrysler
Financial — Financial services for Chrysler customers
and dealers
Vehicle brands
Total American sales
| Calendar Year |
U.S. Sales |
%Chg/yr. |
| 1999 |
2,638,561 |
|
| 2000 |
2,522,695 |
4.4% |
| 2001 |
2,273,208 |
9.9% |
| 2002 |
2,205,446 |
3.0% |
| 2003 |
2,127,451 |
3.5% |
| 2004 |
2,206,024 |
3.7% |
| 2005 |
2,304,833 |
4.5% |
| 2006 |
2,142,505 |
7.0% |
| 2007 |
2,076,650 |
3.1% |
| 2008 |
1,453,122 |
30.0% |
| 2009 Jan-Oct |
781,319 |
39% |
Vehicles
Turbine
For many years, Chrysler developed
gas
turbine engines, which are capable of operating on a wide array
of combustible fuels, for automotive use. Turbines were common in
military vehicles, and Chrysler built many prototypes for passenger
cars. In the 1960s, mass production seemed almost ready. Fifty
Chrysler Turbine Cars,
specialty designed
Ghia-bodied
coupes were built in 1962 and placed in the hands of consumers for
final testing. After further development and testing to make
emissions conform to 1970s-enacted EPA standards, the engines were
planned as an option for the 1977 model LeBaron. However, Chrysler
was forced to abandon the turbine engine as a precondition of U.S.
government loan guarantees when the company experienced financial
difficulties in the late 1970's
Electric vehicles
Chrysler intends to pursue new drive concepts through
ENVI, an in-house organization formed to
focus on
electric-drive vehicles
and related technologies. Established in September, 2007,
Chrysler's ENVI division led by Lou Rhodes specifically deals with
new all-electric and hybrid vehicles not based on existing
models.
Chrysler LLC brought a wide range of green vehicles to the
Detroit Auto Show, including three
concept vehicles that incorporate
electric drive technologies:
- The Dodge ZEO concept—short for "Zero
Emissions Operation"—is an all-electric sport wagon combining a 64-kilowatt-hour lithium-ion battery pack with a 200-kilowatt
(268 horsepower) electric motor. The rear-wheel-drive vehicle
accelerates to in less than six seconds and has a range of at least
. There is also a plug-in hybrid electric
version.
- The Chrysler ecoVoyager
concept combines a similar battery pack and motor with a small
hydrogen fuel cell to achieve a range. The vehicle can travel about
on battery power alone and can accelerate to in less than eight
seconds.
- The Jeep Renegade concept, a
plug-in hybrid, combines a
lithium-ion battery pack with dual electric motors on each axle.
The Jeep can travel on battery power alone and can travel with the
help of its 1.5-liter, 3-cylinder clean diesel engine. The vehicle
features a lightweight aluminum architecture.
Chrysler is also currently planning at least three
hybrid vehicles, the
Chrysler Aspen hybrid,
Dodge Durango hybrid, and the
Dodge Ram hybrid including
HEMI engines. Chrysler plans to use
hybrid technology developed jointly with
General Motors and
BMW
AG in vehicles beyond the two hybrid SUVs it had already
announced to introduce in 2008.
An all-new
Ram 1500 pickup will be
available as a
hybrid in
2010. The
Ram HEMI Hybrid will combine a
two-mode hybrid system with a 5.7-liter HEMI V-8 engine. For the
2009 Ram 1500, Chrysler is launching an improved version of its
HEMI V-8 engine featuring variable valve timing and a four-cylinder
mode with an expanded operating range. The result is more power and
torque, along with a 4% increase in fuel economy.
Chrysler has also been experimenting with a
Hybrid Diesel truck for
military applications.
Chrysler has debuted:
At the 2009
North
American International Auto Show in Detroit, Chrysler unveiled
the
200C EV Concept, a sports sedan
with an all-electric range of 40 miles and an extended range of
about . It also added the
Jeep Patriot
EV, another
range-extended electric
vehicle. If Chrysler does release an all-electric sports car in
2010, it will be in direct competition with two North American
startup companies:
Tesla Motors and
Fisker Automotive.
Chrysler's
ENVI division, which is
dedicated to creating production electric drive vehicles, announced
in September 2008 that Chrysler LLC will have electric vehicles in
showrooms by 2010. They showed three "production intent" vehicles
and stated that these are going to be the first of a broad
portfolio of electric vehicles.
Chrysler Chief Executive Bob Nardelli said government loans would
help speed the electric technology to market. But if they aren't
approved, Chrysler will have to spend limited resources on
developing new technology and would have to make cuts elsewhere,
possibly in employment and development of conventional products.
"Unfortunately we have had to furlough many families as a result of
the economy turmoil and certainly the downward spiraling in the
industry," he said. "I'd like to make sure that we don't have to go
further to be able to support advanced technology work."
The Chrysler executives said the day is coming when the whole
Chrysler fleet has electric powertrains. "The goal is to achieve
fundamental technology, get economies of scale, improve our ability
to make the future generations more robust, less cost, smaller,
more powerful, better performance," Press said. "Ultimately it will
lead to a transformation of our entire fleet that will be in some
manner electric drive."
PHEV Research Center
Chrysler is in the Advisory Council of the
PHEV Research Center.
Marketing
In 2007, Chrysler began to offer vehicle lifetime powertrain
warranty for the first registered owner or retail lessee. 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. However,
after Chrysler's restructuring, the warranty program was replaced
by five-year/100,000 mile transferrable warranty for 2010 or later
vehicles. As of October 5, 2009, Dodge's car and truck line are now
split into two, "Dodge" for cars and crossovers and "Ram" for
pickup trucks and minivans.
Controversies
Chrysler was among the companies
boycotted
by
gay rights groups after
removing advertisements from the
ABC sitcom Ellen in 1997, which it deemed
"controversial."
In 1987, it was discovered that Chrysler sold an estimated 32,750
cars that had been test-driven with disconnected
odometers - some as much as 500 miles - before
being shipped to dealers. Chrysler settled out of court with
complainants. Chrysler CEO
Lee Iacocca
sought to minimize damage to the corporation's public image by
calling a news conference in which he termed the action "dumb" and
"unforgivable".
See also
Countries
Footnotes
- "
- Chrysler bankruptcy plan is announced.
www.nytimes.com. Retrieved 2009-04-30.
- Ramsey, Mike and Kary, Tiffany. "Chrysler Assets
Said to Have Little Net Proceeds for Creditors"
Bloomberg.com, 2009-06-23, retrieved on
2009-07-10.
- Planet Ark : Chrysler Commits to New Hybrids,
Better Mileage
- BREAKING: Chrysler announces lifetime powertrain
warranty!
- NEW CHRYSLER LIFETIME POWERTRAIN WARRANTY CUSTOMERS
-- Q&A
- REPORT: Chrysler dropping lifetime powertrain
warranty to five-year/100,000 miles
- Chrysler Fined for Safety ViolationsNew
York Times, 12 Jul 1987
- Chrysler to Pay Some 40,000 Owners in
SettlementNew York Times, Aug 24 1988
External links