The Obama administration’s former auto czar, Steven Rattner, said that the key aim of restructuring Chrysler was replacing the group of top executives and management that was put together by private equity firm Cerberus Capital Management LP.

“We wanted to have a completely fresh management team (at Chrysler),” said Rattner. “You can’t come to any conclusion that management is not a huge ingredient, a huge determinant of success.”

The U.S. government allowed Fiat SpA to take 20 percent of Chrysler and allowed Fiat CEO Sergio Marchionne to become the head of Chrysler Group LLC.

Rattner, who left the auto task force in July, said that the main reason behind support the Chrysler/Fiat alliance “was frankly to get new management and to get what we thought was one of two or three best management teams in the world.”

Former CEO Bob Nardelli left the company along with Tom LaSorda. Jim Press will leave by the end of the month.

Chrysler had no comment on Rattner’s remarks.

- By: Omar Rana

Source: Detroit News

Former Fiat SpA marketing executive and Italian businessman Gian Mario Rossignolo plans to revive the De Tomaso sports car brand, reports Automotive News. Rossignolo plans to build 8,000 De Tomaso cars a year in a former Pininfarina factory near Turin.

79-year Rossignolo said that he plans to offer a three-model range of aluminum premium vehicles. He bought the brand from a Modena bankruptcy court earlier this month.

Originally, the De Tomaso company was founded in Modena in 1959 by Alejandro De Tomaso, a former Argentinean race-car driver. The company closed its doors and filed for bankruptcy in 2004, a year after De Tomaso’s death. The brand had three popular coupes in the 1960s and 1970s including the Vallelunga, Mangusta and the Pantera.

- By: Omar Rana

According to Doug Betts, senior vice president in charge of quality at Chrysler Group LLC, the company will be a quality leader by the end of 2012 with a refocused and larger quality team that will strive to meet tougher standards. He said that Chrysler will commit to quality gains and make it a long-term success by embedding it into the company culture.

“It’s different now,” said Betts. “People are talking openly about problems now and how to fix them.”

Betts, who was hired by Cerberus Capital Management from Nissan two years ago, said that Chrysler is now attacking quality problems and making better cars by changing the culture.

Product quality has been an issue at Chrysler for decades scaring consumers away from Chrysler, Dodge and Jeep vehicles that scored poorly on many quality studies and surveys.

- By: Stephen Calogera

Source: Detroit News

Though they are encouraged by Chrysler’s turnaround plan, the U.S. government will not push for a quick IPO, a senior official told Reuters. Sergio Marchionne, CEO of Fiat, who now controls Chrysler, released Chrysler’s five-year plan earlier this month, and said that Chrysler should be operating on a break-even basis by 2011.

Marchionne’s plan rests on the anticipation that Chrysler can recover market share that it lost before hitting bankruptcy, and that the U.S. market will gradually recover. 56 percent of Chrysler’s vehicles will be derived from Fiat platforms by 2014.

Ron Bloom, head of the administration’s autos task force said that it is unlikely that we will see a Chrysler IPO before 2011, and that they weren’t going to push for an early IPO.

- By: Stephen Calogera

Source: Reuters

You probably thought that Abarth’s 695 Tributo Ferrari was one of the hottest Fiat 500s you’ve ever seen. Well, we’d now like to introduce you to Romeo Ferraris’ modified Fiat 500 that will take part in the ‘6 Hours of Vallelunga.’

The carbon-fiber Fiat 500 is powered by a 1.4L turbocharged 4-cylinder engine that produces an outstanding 360-hp. The hardcore Fiat 500 will be driven by Aldo Cerruti, Michela Cerruti and Maria Ferraris.

The Fiat 500 will be available in the North American market with a 1.4L Multiair engine in the fourth quarter of 2010.

Fiat 500 Racer:

- By: Omar Rana

Source: Romeo Ferraris (via CarScoop)

On Monday, Fiat took the wraps off its second-generation Fiat Doblo compact van, which will go on sale in Europe in mid-January. According to Automotive News, Chrysler Group LLC’s new Ram brand will get a version of the Fiat Doblo to compete with Ford’s new Transit Connect, which started selling in United States in July.

The Fiat Doblo is sold as seven-seat passenger vehicle or a panel van for small businesses. It has been sold in Europe since 2001. The model will join a large Fiat-based van to be sold in the United States by Ram, along with a restyled chassis cab model and light and heavy duty Ram vehicles.

Chrysler said it expects Ram sales to hit 415,000 by 2014, up from 280,000 in 2010.

2010 Fiat Doblo:

- By: Omar Rana

Even though Daimler AG and Chrysler’s break up back in 2007 ended like a horrible divorce, Daimler’s CEO Dieter Zetsche still cares a lot for the American automaker.

In a recent interview with USAToday, Zetsche said, “I continue to be emotional about this company and am crossing my fingers for the very best future.”

Zetsche said that besides focusing on small cars and fuel-saving technologies, Fiat and Sergio Marchionne shouldn’t forget that Americans still like larges cars and SUVs.

He said that if Marchionne did ask him for advices, he would tell him that “I would not focus exclusively on small cars going forward. I do believe the successful continuation of SUVs and larger cars is necessary.”

Daimler and Chrysler broke up in 2007 when Daimler sold 80.1 percent of Chrysler to a private investment firm Cerberus Capital Management, after paying $36 billion for it in 1998.

- By: Omar Rana

Source: USAToday

After five months of marketing darkness, Chrysler Group LLC is preparing to pump up their advertising this quarter and gradually increase the amount spent over the next few years says Automotive News. Starting next quarter, Chrysler Group will spend $100 for each vehicle sold at retail in the US, and eventually cap out their media spending at $170 per vehicle next year, and $210 in 2011. Chrysler Groups sales fell 30% last month from the same time the previous year, and CEO Sergio Marchionne told Automotive News “I can give you one reason: The fact that we’ve been incredibly quiet for the last five months, so the marketing positions of all our brands have been incredibly weak.”.

Marchionne cautioned against pessimism in his plan however and told attendees that “We would not reinvest $23 billion if your expectation is not to re-establish these brands.”

As part of their marketing plan, Chrysler plans to reinvent the Dodge image. They hope to shift from a rugged image to a more refined and youthful one. Ralph Gilles, CEO of the brand also mentioned a shift in marketing approach. Instead of going after consumers based on traditional demographics such as age, or price groups, Dodge intends to market to lifestyles as he noted that “people are aging gracefully”.

Jeep also has a slight image modification in the pipeline. CEO Mike Manley hopes to shift focus from sheer capability towards fuel economy and on-road driving performance. Research showed that only 30% of Jeep customers are truly interested in off-roading. Daimler AG had tried this when they owned jeep with the introduction of the Compass and the Patriot, which both flopped.

- By: Stephen Calogera

Under Fiat SpA, Chrysler has dismantled a team of engineers dedicated to developing a range of electric-vehicles. The move marks a major reversal for Chrysler, which had used its ENVI department and its electric-car program in order to receive $12.5 billion in federal aid.

In August, Chrysler took a $70 million grant from the U.S. Department of Energy to develop and test a fleet of 220 hybrid pickups and minivans that are now scrapped from its turnaround plan that CEO Sergio Marchionne announced earlier this week. Spokesman Nick Cappa said that on Friday, Chrysler had disbanded ENVI for a more traditional organization.

“Envi is absorbed into the normal vehicle development program,” Cappa told Reuters.

Under the new plan presented by Marchionne, ENVI’s chief Lou Rhodes will become the executive in charge of developing electric-cars for both Fiat and Chrysler.

Originally, Chrysler had plans to launch its first electric-vehicles by 2010. It had pledged to have 500,000 electric-cars on the road by 2013.

- By: Kap Shah

Source: Reuters

Starting in 2012, we can expect to see an influx of Fiat-based Chrysler Group LLC vehicles, according to Automotive News. Joseph Veltri, VP of product planning for Chrysler unveiled the product plan on Wednesday. 56 percent of Chrysler’s vehicles will be derived from Fiat platforms by 2014, Veltri announced in the plan.

Chrysler projects a $5 billion operating profit by 2014, CFO Richard Palmer announced during an eight-hour program outlining Chrysler’s strategy for the next five years.

Palmer predicts that U.S. sales will more than double during that time from 950,000 units sold this year to 2 million units sold. The plan also calls for each Chrysler brand to receive new nameplates that build off of Fiat platforms.

Chrysler’s 5-Year Product Plan:

- By: Stephen Calogera

If you were keeping up-to-date yesterday with egmCarTech you probably noticed that most of our posts had to do with Chrysler’ 5-year product and business plan. If you missed anything the plan is available to view in detail over at http://www.chryslergroupllc.com/business/.

You can check out some of the important slides right here.

- By: Omar Rana

At its 5-year business plan yesterday, Chrysler repeatedly said that Jeep will be the only brand exported on global scale and it wasn’t lying. While the Chrysler badge will disappear from cars sold in Europe by 2011, most Chrysler and Dodge branded vehicles will be re-badged and sold as Lancia or Fiat mold to streamline capital expenditure and distribution costs.

“In North America, Lancia models will complement the Chrysler brand and in Europe the opposite will happen,” said Olivier Francois, CEO of the Chrysler and Lancia brands.

Some of the plans include selling the Chrysler Voyager as a Lancia to replace the Phedra minivan, reports Automotive News. Other plans include to rebadge the next-generation Chrysler 300C as a successor to the Lancia Thesis sedan and selling the Chrysler Sebring sedan and a new mid-size crossover as a Lancia.

Fiat may get a version of the Dodge Journey to replace its Ulysee minivan and the Fiat Croma hatchback will be replaced by a Dodge-based mid-sized sedan. The Dodge Nitro will replace Fiat’s Sedici.

- By: Omar Rana

Chrysler Group LLC said today that it will break even in 2010 and expects to turn profit in 2011 and generate $5 billion in operating profit by 2014. CFO Richard Palmer said that the advances will be driven by a boost in sales, cutting sales and a more efficient supply-chain.

At Chrysler’s 5-year business plan conference, Palmer said that by 2014, Chrysler will repay the $12.5 billion in U.S. loans that have kept it going through bankruptcy and the worst U.S. sales climate in 30 years, reports Automotive News.

He said that by 2014, Chrysler expects its vehicle sales to more than double on a global scale from 1.3 million this year to 2.8 million. U.S. sales are expected to jump from 950,000 to 2 million.

- By: Omar Rana

Chrysler Group LLC plans to finish the consolidation of its dealerships into three-brand stores by the end of 2011. Speaking at the company’s 5-year business plan conference today, the automaker’s vice president of network development and fleet Peter Grady said that Chrysler is looking to dramatically increase the number of vehicles it sells at each store so dealers can be more profitable and financially healthy.

Separately, Fiat and Chrysler will share more than two-thirds of their suppliers by 2014, reports Automotive News. Chrysler’s purchasing chief Daniel Knott said that Chrysler is looking to cut purchasing costs and expects $2.9 billion in cumulative savings from 2010 to 2014. It hopes to save $500 million next year, he said.

Knott said that Chrysler will improve its relationships with suppliers.

“Chrysler purchasing will be accountable,” Knott said. “We will be firm, and we will be fair.”

- By: Omar Rana

Senior Vice President of Chrysler Powertrain, Paolo E. Ferrero, said that the Fiat 500 will be available in the North American market with a 1.4L Multiair engine in the fourth quarter of 2010. A 1.4L Multiair turbo will arrive in the fourth-quarter of 2011, Ferrero said.

The Fiat 500 will be mainly sold in metro markets at select dealers with all Chrysler brands. To sell the Fiat badged minicar, Chrysler dealers will setup a dedicated salon inside dealerships.

Chrysler did not confirm if the Fiat 500C convertible will come to the United States.

It has been reported that Chrysler will build and sell four versions of the 500 minicar in the United States starting 2010.

Fiat 500:

- By: Omar Rana

Speaking today at Chrysler’s 5-year business plan conference, Jeep brand CEO Mike Manley said that the SUV brand will use Fiat-supplied platforms starting 2013. He said that Jeep will also eliminate the Patriot and Compass after 2012 and replace them with one C-segment vehicle based on a platform from Fiat.

Jeep is also planning a B-segment small SUV for 2013. The Liberty crossover will also move to a Fiat platform, reports Automotive News.

Manley said that the Jeep Wrangler will also receive “major modifications” in 2011.

It was reported earlier that Jeep will be the only global Chrysler Group LLC brand. Jeep is aiming for global sales to reach 800,000 by 2014. That compares to 497,000 sold in 2008.

A new slogan will also be attached to Jeep “I live. I ride. I am. Jeep.”

- By: Stephen Calogera

We’ve been providing you live updates on Chrysler’s 5-year business plan press conference all day. However, some of the things being discussed this morning are more significant and deserve their own post.

Chrysler and Fiat said today that V8 engines will account for only 11 percent of the mix by 2014 – down from 18 percent in 2010.

The Auburn Hills automaker said that it anticipates 4-cylinder engines to make up 38 percent of its vehicle mix in 2014, up from 19 percent in 2010. Diesels will also join the mix and will make up 14 percent of the vehicle lineup by 2014, up from 9 percent today.

- By: Omar Rana

Source: Straightline

Chrysler Group LLC is not burning through cash and has improved its positions since Fiat SpA took over in June, CEO Sergio Marchionne said earlier this morning.

“Some of you have been surmising we’re burning through cash,” Marchionne said at the company’s presentation of its five-year plan. “This is not true.”

Compared to $4 billion when Fiat took over Chrysler in June, the Auburn Hills automaker ended September with $5.7 billion cash on hand, reports Automotive News. Chrysler also has $200 million in earnings before interest, taxes, depreciation and amortization.

- By: Omar Rana