The Herald, Sharon, Pa.

Business

November 4, 2009

Chrysler plans to revamp its Dodge cars by 2013

AUBURN HILLS, Mich. — Chrysler plans to revamp its struggling Dodge car brand under a new turnaround plan and says the company’s cash has grown by nearly $2 billion since it exited bankruptcy protection in June.

Under the plan, the automaker aims to introduce four new Dodges by 2013 and put new exteriors, interiors and engines on most of its current lineup. The new Dodges include a mid-size sedan for the North American market designed by Fiat SpA, the Italian automaker that now owns 35 percent of Chrysler.

That sedan is a key component of Chrysler LLC’s five-year overhaul, which is being outlined here. Chrysler lacks a competitive product in the segment, the largest in the U.S. car market.

The automaker’s sales are down sharply this year as a weak U.S. economy curbs overall demand for autos and buyers flee to other brands.

The 84-year-old Chrysler lost upward of $8 billion last year and would have run out of cash had the U.S. government not stepped in with $15.5 billion in aid. Chrysler was forced into bankruptcy protection earlier this year.

Chrysler CEO Sergio Marchionne said Wednesday the automaker’s cash has grown by $1.7 billion since it exited Chapter 11 this summer and totaled $5.7 billion at the end of September. He also said Chrysler was breaking even in that month.

Chairman C. Robert Kidder said the company intends to go public and repay its loans “with all deliberate speed.”

Another key to Chrysler’s revival is whether it can tackle quality problems. Doug Betts, senior vice president of quality, said work is under way.

He said the company has been restructured so the 14 teams focusing on specific areas act quickly to resolve problems.

When he arrived late in 2007, it took 71 days for someone to begin working on a problem, so Chrysler’s ability to raise its quality fell behind rivals.

“Seventy-one days goes to zero days,” Betts said.

Fiat has plans to replace most of Chrysler’s engines with its own. Paolo Ferrero, senior vice president of powertrain, said the number of Chrysler-designed engines will drop to 12 percent by 2014 from 84 percent currently, with many larger engines replaced by smaller, four-cylinder ones.

Text Only
Business
  • Authority OKs change order for temporary work

    Hermitage Municipal Authority begrudgingly approved paying more than $7,000 to move electric lines that will soon be abandoned.

    February 2, 2012

  • indianapolis.jpg Indy draws on super effort to overcome skeptics

    Leaders of Indiana's capital city spent years gussying up their downtown to prepare for Super Bowl XLVI -- by building big sports and convention venues and luring nice hotels, popular restaurants and a four-story shopping mall.

    January 31, 2012 1 Photo

  • Despite new construction, building slumps in city

    Although it’s hard to compare dollar values from today and even a few years ago, it’s safe to say there was not much new development in Hermitage in 2011.

    January 31, 2012

  • Distinguished service award going to Hudson

    On Feb. 2, Thiel College will recognize 10 faculty and staff members and John M. Hudson at the college’s annual Founders’ Day convocation in the Lutheran Heritage Room of the Howard Miller Student Center.

    January 27, 2012

  • Contractors, workers eye CHOICE housing jobs

    There are no guarantees that Shenango Valley residents will be among the workers who build a 34-unit apartment complex and 10 homes in Farrell, but an open house Wednesday gave them a chance to lay the groundwork to be considered.

    January 26, 2012

  • FNB: 2011 earnings up 16%

    FNB Corp. reported its fourth quarter earnings edge down slightly from a year ago but the results were due to a one-time credit a year ago of nearly $7 million. For all of 2011 earnings for the company were up 16 percent from 2010.

    January 24, 2012

  • Retiring Reichard feted for service to Penn-Northwest

    For more than a quarter of a century, Larry Reichard was the voice and spirit of Penn-Northwest Development Corp.

    January 20, 2012

  • GE receives order for 43 more locomotives

    GE Transportation on Tuesday said it signed a deal to sell 43 locomotives to Transnet SOC Ltd., South Africa, which will benefit its Grove City plant.

    January 11, 2012

  • City planners prefer new facade for Chipotle

    A month after calling the proposed Chipotle Mexican Grill building “ugly,” Hermitage Planning Commission Chairman Charles E. Rogers was much more reserved in his comments about a revised facade.

    January 10, 2012

  • Kelly raps role of feds in Volt fires

    U.S. Rep. Mike Kelly complimented General Motors Co. for telling Volt owners to return the car to dealers for repairs, but continued his call for repealing the $7,500 tax credit for the plug-in electric-drive vehicles.

    January 9, 2012