Chrysler will build a licensed version of a ZF 8-speed automatic gearbox at their Indiana transmission plant. Production is expected to start in 2013, and retain roughly 1,200 jobs.

The PT Cruiser, the car we love to hate, will pull into the parking lot in the sky on July 9th. According to a report by Wards Auto, the unconscionably retro cruiser will cease production ( for real this time) this summer.

Fulvia. Delta Integrale. Beta Montecarlo. There are some of the storied nameplates a car enthusiast normally associates with the Lancia brand. Now those models will be joined by some less illustrious names, like the Sebring and PT Cruiser if Fiat’s newest scheme comes to fruition.

Chrysler is recalling 575,000 Jeep SUVs and Chrysler and Dodge minivans due to a malfunction in both the brake lines and electrical wiring.

Chrysler is recalling all Dodge Caravan and Town and Country minivans from 2008-09 due to a concern that an improperly installed wiring harness could cause a fire. According to a release issued by the National Highway Traffic Safety Administration (NHTSA), the recall affects 284,831 vehicles in total. NHTSA says that the vehicles in question may use a “improperly routed” wiring harness that may become worn by the van’s sliding door. The wire insulation may then become worn which could lead to a short circuit, or possibly even a fire.

Owners of 2008 and 2009 model year vans (manufactured between February and September of 2007) are asked to contact their local Chrysler dealer for a fix.

This is the second recall for the Chrysler van duo in 2010. Both models were recently recalled for faulty airbags.

Official release after the jump:

Chrysler is recalling 25,265 Dodge Caliber and 71 Jeep Compass models due to faulty throttles that may become stuck, in a manner similar to the infamous Toyota gas pedals that lead to a number of motorist deaths and injuries.

Minivan ads are usually focused on touting features that appeal to the families that buy them. Airbags to keep you safe, entertainment to keep the kids happy, powerful engines to cut down on “Are we there yet?” In a rare moment of humor in the segment, Dodge has commissioned a couple ads that are totally out of left field.

Chrysler is recalling 40,000 2010 Chrysler 300, Dodge Challenger, Charger and Ram, Jeep Commander and Grand Cherokee vehicles due to a faulty ignition system.

Chrysler‘s Sebring is the butt of jokes in the automotive world, but its nameplate, (ironically derived from the historic Sebring race track) will apparently live on even after the current car is euthanized re-designed in the coming years. The cost of launching a new nameplate is apparently $100 million dollars, a princely sum for the financially fragile automaker, and money that could be put towards the all important task of making a good car.

Hyundai and Chrysler could partner together for a full-sized truck based off of the Ram, after Chrysler’s deal with Nissan fell apart. Sources say that Hyundai approached Chrysler as late as February regarding a potential tie-up. Hyundai’s lineup is experiencing a renaissance in North America, but the Korean automaker lacks a full-size pickup truck for the crucial North American market. Chrysler CEO Sergio Marchionne reportedly turned down the offer at that time, but is now re-considering due to excess capacity at truck plans. Both Toyota and Nissan have struggled to sell their own full-size pickups in recent years.

Jeep‘s 2011 Grand Cherokee is one of the most important products for what is arguably Chrysler’s strongest brand. The new 2011 model represents a move upscale for the Grand Cherokee, but the base price will rise  to $32,995, a fair bit more expensive than its main rivals, the Ford Explorer and Chevrolet Traverse, which start at $29,280 and $29,224 respectively.

Chrysler had previously announced that a selection of Fiat-based compact cars was slated to hit the market in early 2012.  But in a sign of rapid progress at Chrysler (or anxiety over the supposed apocalypse), CEO Sergio Marchionne said in a conference call that work on the vehicles is advancing sooner than the company anticipated, and it should appear in the fourth quarter of 2011.

April sales numbers are beginning to trickle in, and two companies largely written off by the media turned out to be the biggest gainers. Chrysler and Toyota, two companies who were earlier maligned for their dated product and recall scandals saw sales increases of 25 and 24 percent respectively, while current industry darlings Ford and Hyundai saw gains of 32 percent and 25 percent.

This author has loved hip-hop music since the tender age of 3, when Digital Underground’s “ The Humpty Dance” caught my attention. I didn’t really understand the lyric “I once got busy in a Burger King bathroom” but it had a fat bassline and a character from a nursery rhyme, and that was enough for me.

In the same way that rock and roll groups mythologized American muscle in the 1960’s, rappers have taken to lionizing the automobile in all its forms, whether it’s an East Coast rapper like Jay-Z rapping about Maybachs or Jaguars, or Snoop Dogg cruising through Long Beach, California in one of his famous 1964 Impalas.

Recently, the Southern United States has had a stranglehold on the hip-hop scene, and their love of American muscle has seen a resurgence of interest in rear-drive American cars. For those with money, a new Dodge Charger or a classic muscle car is the must have ride. But not everyone can afford a new car, and so ordinary folk turn to cars like the Chevrolet Caprice, Mercury Grand Marquis or 1980’s G-Body General Motors cars and customize them with cartoonish 24inch rims and custom lift kits.

As with any fashion-driven culture, huge chrome rims are now out of style, and the new trend is “ swangas“, the street term of wire wheels from a 1983 or 1984 Cadillac. Since the wheels were made for a rear-drive offset, they tend to poke out on many of the front-drive vehicles that are affordable to young people, like Oldsmobile 98s, Cadillac Devilles or Buick Park Avenues. While automotive purists may scoff, the “poke” aesthetic is a signature look of the “swanga” movement.

Houston rap group “Block Boyz Click” released a video, imaginatively titled “Ridin Swangas”, and the song is a decent, if amateurish attempt to capture the slowed-down, soulful styles of fellow Houstonians UGK, the video is chock full of truly ghetto American iron that should have been consigned to the junkyard long ago. Aside from the aforementioned cars, sharp eyes will also spot a Chrysler LHS, Buick LeSabre and Pontiac Bonneville.

The artistic merits of the song may be a matter of opinion, but we happened to enjoy the use of some under-appreciated Rick Wagoner-era General Motors machinery, rather than having the (rented) supercar du jour being driven at a snails pace, with a blinged-out hand gripping the wheel at 12 o’clock. Long live the ingenuity and resourcefulness of the Dirty South. Keep swangin on ’em, H-Town. Check out the official video after the jump.

[Source: Cardomain blog]

When Chrysler gets around to replacing the current Sebring it also hopes to erase all memory of the failed mid-size sedan by changing its name to the Nassau. The name may sound familiar to some as back in 2007 the American automaker debuted the Nassau Concept at the Detroit Auto Show, sporting some details that were later incorporated into the current Sebring model.

Consumer watchdog, Consumer Reports has released its list of 2010 cars, which includes the Hyundai Accent and the Chevrolet Aveo, that do not come with the electronic stability control (ESC) safety feature.

Fiat will cut u to 5,000 jobs at its Italian plants by moving production of several Alfa Romeo models to North America. According to a report by Automotive News Europe, the cuts will affect three Italian plants. Parent company Fiat hasn’t released the specific details, but it is expected that the models slated to be built in North America are the 159 replacement, 166 replacement and a new mid-size crossover.

A company doesn’t usually send out a press release to announce production of a new engine, but these days Chrysler can use all the good press it can get. And good press this most certainly is, as the new Pentastar 3.6-liter V6 marks the first real step in the rebirth of Chrysler.

The new V6 engine will significantly reduce overall costs as Chrysler will replace seven different V6 engines currently used across the company’s lineup with this one motor. Chrysler also claims it will reduce fuel consumption by at least 25 percent. Power output will also increase considerably, with 280-hp and 260 ft-lbs of torque available from the V6 when it debuts later this year in the new 2011 Jeep Grand Cherokee.

Afterwards, it’s slated to arrive in the new mid-size D-Class models, mated to a six-speed Dual Dry Clutch Transmission (DDCT).

But the best news of all is confirmation that Chrysler has built the engine to be compatible with more advanced technologies, meaning that in the future it will get Fiat’s Multiair variable valve timing, direct-injection and turbocharging.

Previously it was thought this technology might only be used in pricey European models (Alfa Romeo perhaps?), but the fact that Chrysler thought to mention it speaks volumes. Perhaps, the company is looking to follow after Ford’s EcoBoost plan and bring a Turbo Pentastar V6 to market as a V8 alternative?

Official release after the jump:

You’ve likely heard a lot about Toyota’s woes over the past several months and there’s one automaker who couldn’t be happier to be out of the hot-seat – Chrysler. While sales are only down three percent so far this year, over half of Chrysler’s sales have been to fleets, which is never a positive sign and simply kills a car’s resale value.

The folks at AllPar seem to have gotten hold of a list of production dates for all Chrysler products this year, including everything from a revised Chrysler 300 to the Fiat 500. The AllPar team is also claiming to have some pretty big news on future Chrysler engines, including the elimination of the HEMI 6.1-liter V8 (in favor of a 6.4) and new versions of the Pentastar V6. Plus, the 200C (pictured above) has also reportedly been approved for production – but with a gasoline engine.

The upcoming Alfa Romeo Giulietta, set to debut at the Geneva Auto Show next month, will likely underpin the next generation Dodge Caliber and Chrysler PT Cruiser. According to a report by Automotive News, Fiat (Alfa’s parent company) is looking to sell one million vehicles based of the Giulietta platform, 700,000 of which it intends to move in the U.S. as Chrysler company products.

With little more than a new grille and badging, Chrysler is displaying a possible future hatchback model at the Detroit Auto Show. With little else new other than some facelifted models for 2010, the unnamed Chrysler hatch stays true to the premium outlook that the Fiat-controlled company has for the brand. The large five-door hatch is sold in Europe under Fiat’s Lancia brand as the Delta.

As expected, Chrysler is displaying many refreshed models at the Detroit Auto Show including the brand’s flagship car, the 300. There isn’t actually a lot new with the car, but under new Fiat ownership the company is eager to rebrand itself in any way possible as it waits for all new models to go into development and/or production.

Chrysler has just unveiled its strategy that will see a more than 25 percent improvement in fuel economy by 2014. The five-year plan will see significant use of Fiat technology and engines, with smaller engines, six-speed dual clutch transmissions, as well as the use of turbocharging and direct injection technology. Chrysler will also continue to explore electric car technology, with a hybrid Ram expected this year, while a plug-in hybrid Ram 1500 will begin fleet testing.

Easily one of the the most unanimously despised vehicles by automotive journalists throughout the country, Chrysler recently decided to keep the PT Cruiser as a part of its lineup after axing it just a few months before. Now the automaker doesn’t even have the decency to let it quietly fade into obscurity, but has decided to launch the Couture Edition – apparently in an affront to high-fashion throughout the world.

As a part of Chrysler’s new approach, the company is tweaking almost all of its models for 2010 and changing their trim designations. Easily one of the U.S. automaker’s most successful models in the past decade, the 300, gets only minor changes this year.

Chrysler might not be holding a press conference at the Detroit Auto Show in just a few weeks time but the automaker is planning to draw crowds at its booth by showing off a long list of Italian machinery, including several Fiat products that are expected to launch in North America in the near future.

Contrary to previous reports that Chrysler will not present any new models at the Detroit Auto Show in just a few weeks, there is now word that the struggling U.S. automaker will show a new car based on a Lancia platform. The Lancia badge is a sub-brand under Fiat, which now runs Chrysler.

Fiat’s plan to gobble up all of Chrysler has taken its first step forward since the Italian automaker rescued the struggling America manufacturer from bankruptcy liquidation. Currently Fiat owns 20 percent of Chrysler and has the ability to take a 35 percent share of the company if it meets three specific criteria: building a fuel-efficient engine in the United States, building a 40-mpg car in the U.S. and expanding Chrysler’s reach internationally. Once those goals have been achieved, it can also purchase up to 51 percent of Chrysler.

Baring a miracle, Honda will pass Chrysler to become the fourth largest automaker by sales in the United States for 2009. Due mostly to Chrysler’s dramatic month over month sales decreases, Honda has managed to pull ahead of the American automaker with a healthy lead of roughly 200,000 units. As as no automaker managed to sell more than 200,000 vehicles in the month of November, the likelihood of Chrysler making up the difference during the last month of the year is essentially impossible.

Last week Fiat/Chrysler CEO Sergio Marchionne set out a long-winded plan for the future of the American automaker and how its future will be closely tied to its new Italian parent company. There was a lot to digest at the seven hour press conference and so we thought a model by model breakdown would be helpful and would shed some light on what appears to be the general plan to eliminate old Chrysler products and replace them with new Chrysler Group-branded Fiat models. So let’s start with Dodge…

During Chrysler’s seven hour press conference explaining the direction of the company over the next few years, it became increasingly clear that the new Fiat ownership is planning to build up the Chrysler group of brands using Fiat products. Much of the news isn’t entirely new, but it has now been confirmed and the extent to which Fiat intends to wipe clean Chrysler’s slate of underperforming cars is clear.

Chrysler will stop production of the Dodge Viper in 2010 and replace it with its successor in 2012.

A week ahead of a planned Fiat/Chrysler press conference in which Sergio Marchionne, the CEO of both automakers, was to outline the future of Chrysler, much of the information has been revealed in an in-depth report in the Wall Street Journal. But before we get to the new products that the Italian-owned automaker is planning to bring into the North American marketplace, it’s time to learn the fate of the vehicles being axed. And judging from the list, it appears as though Fiat is intent on moving its products in and Chrysler’s products out.

After several rumors and reports, Chrysler has now confirmed that the Dodge Ram will be spun off into its own brand with the appointment of two individuals. Fred Diaz Jr., formerly Director of the Denver Business Center, will now head up the RAM brand, while Ralph Gilles will take over at the helm of the car brand. Gilles will also continue to run the product design department at Chrysler Group.

“The brand-focused strategy has been refined further with the unbundling of the Dodge Brand which now consists of the Dodge RAM Brand and the Dodge Car Brand organizations,” said Chrysler and Fiat CEO Sergio Marchionne. “This reorganization will allow us to protect and develop the unique nature of the product offerings within the Dodge Brand.”

Within this new corporate structure, Marchionne also appointed a new Chrysler brand CEO; Olivier Francois, who comes from Fiat’s Lancia Brand and will continue in his position there as well.

Official release after the jump:

As expected, auto industry sales were way down for the month of September, after record highs posted during the previous month with the Cash for Clunkers program in effect.

Compared to September of 2008, GM’s sales declined 45 percent, while Chrysler dropped 42 percent. Ford’s posted just a modest 5 percent loss due in part to steady gains in the truck segment, with F-150 pickups (pictured above) selling at an increased pace.

As for the high-volume foreign automakers, Honda dropped 20 percent, Toyota was down 13 percent and Nissan slumped by 7 percent. And with some automakers losing ground, others were sure to grab market share with Hyundai/Kia up 26 percent (its third straight monthly gain), while Porsche rose 8 percent, BMW was up 4 percent and Subaru posted a 1 percent increase.

The loses for September are actually worse than they sound, as the month they are being compared to, September of 2008, was a brutal month for auto industry sales, after the collapse of Lehman Brothers started the recession watch.

Overall, the industry wide decline is listed at 23 percent for September, slightly better than the average 28 percent drop for the previous eight months.

Industry analysts expect these slumping sales to continue through the rest of 2009.

For a full breakdown of each automaker’s sales in September, see after the jump:

[Source: Automotive News]

Chrysler’s previous ownership by Daimler continues to effect the company’s future as plans to replace two of its struggling vehicles have been pushed back. Both the Dodge Avenger and Chrysler Sebring were scheduled to be replaced in 2010, but the American automaker’s new Fiat management has now decided to extend the life-cycles of the two vehicles until at least 2012.

The Ram appears destined to break free of its Dodge moorings to run solo as a stand-alone brand. According to a report on Inside Line, the plan to market Ram as its own brand is part of Fiat’s new corporate strategy, that will see other SUVs and some commercial vehicles branded with the Ram, leaving the Dodge nameplate to focus squarely on more performance-oriented yet affordable vehicles.

Fiat plans to market Chrysler as a serious luxury brand in the U.S. In an interview with Automotive News, Chrysler’s brand CEO Peter Fong said that he sees the company’s flagship line as “a notch above Lincoln, a notch above Cadillac,” which has us wondering what sort of parallel universe Fong is from.

Chrysler has been in the minivan game longer than anybody else in North America and while its domestic competitors have chosen to exit the market, the Pentastar concern (at least in the short term), remains committed to the segment.

In a brief statement, Chrysler has announced that the Global Engine Manufacturing Alliance (GEMA) is now entirely owned by the U.S. automaker, with both former partners, Mitsubishi and Hyundai, having sold their parts of the company.

This may sound like a dull bit of business news, but it could most certainly have a big impact on some of the coolest engines on the planet. Sure, the engines that originated from GEMA have found there way into less exciting vehicles like the Chrysler Sebring, but the same engines have also been the backbone of cars like the Mitsubishi Lancer Evolution (pictured above) and Hyundai Genesis Coupe 2.oT. The high-powered Caliber SRT4 also used a version of a GEMA engine.

Three basic engines have come out of GEMA with displacements of 1.8, 2.0 and 2.4-liters, many of which were fitted with turbochargers and superchargers to make as much as 300hp.

There is no word if the end of the GEMA partnership could affect future Hyundai and Mitsubishi powertrain developments, but you can be sure the decision had a lot to do with Chrysler’s new Fiat ownership.

Official release after the jump:

According to a recent Consumer Reports survey, the overwhelming majority of car shoppers are considering a domestic vehicle as their next purchase. Results of the “Auto Pulse” survey indicate that 81 percent of respondents looking at a new car are considering buying American. That number is significantly higher than the numbers for Asian imports (47 percent) and European imports (46 percent).

The U.S. auto industry showed continued improvement in the month of August, helped on by the Obama Administration’s Cash for Clunkers program.

Ford was once again a big winner as sales increased 17.2 percent over last August, a significant improvement over the 2.4 percent growth in July – which was thought to be good at the time.

Honda posted a 9.9 percent increase while Toyota pulled itself from the gutters with a 6.4 percent gain.

Unfortunately for GM and Chrysler, the turnaround seems to have left them behind, with GM slipping 20.1 percent and Chrysler dropping 15.4 percent. Both of those numbers are worse than in July, with GM dropping 19.4 percent and Chrysler dropping 9.4 percent then.

Two smaller players in the U.S. market that are now poised to become larger players are Hyundai and Subaru. Hyundai saw an increase of 47 percent, while Subaru posted 51.5 percent growth. Volkswagen also posted growth of 11.4 percent.

Current estimates now put the total number of vehicle sales for 2009 at the 14.4 million mark, a significant increase from the sub-10 million units forecasted during the height of the recession.

[Source: Automotive News]

See the full U.S. Auto Industry August Sales Results after the jump:

Chrysler and Nissan have officially canceled plans to work together on a number of platform sharing opportunities. Previous plans would have seen Chrysler supply Nissan with the next generation Titan pickup truck, in exchange for Nissan supplying Chrysler with a small car for international markets, as well as a rebadged Nissan Versa for South America.

Chrysler’s deputy CEO Jim Press is planning to quit his post before the year’s end, reports the Wall Street Journal.

According to a report from the Pentastar nuts over at AllPar, Chrysler will be dropping its lifetime powertrain warranty on almost all of its vehicles. But it’s not all bad news.

In a bid to get inventory moving out of showrooms in a hurry, Chrysler has decided to offer a new incentive program that would double the value of the government’s cash-for-clunkers program.

The car that has generated the most publicity out of the Fiat/Chrysler deal is the Italian automaker’s 500 model and now word comes from Fiat’s CEO that four different versions of the subcompact will be offered in the U.S.

Now that Fiat CEO Sergio Marchionne is at the helm of the new Chrysler he is looking at making some changes. For starters, the Chrysler Sebring and Dodge Caliber, as well as the Jeep Patriot and Compass may get the axe.

Can you hear that? It might sound a lot like Monty Python’s John Cleese, but it’s actually Chrysler’s PT Cruiser screaming, “I’m not dead yet.”

When the U.S. Supreme Court delayed the sale of Chrysler to Fiat yesterday it put the whole contract in jeopardy, giving the Italian automaker the opportunity to walk away if the sale isn’t approved by June 15th. Fiat CEO Sergio Marchionne has, however, confirmed his commitment to the purchase, saying that it would not deter him.

A U.S. Supreme Court judge has delayed the sale of Chrysler to a new Fiat-run company. The move by Justice Ruth Bader Ginsburg came just before a 4 p.m. deadline set by a New York appeals court would have seen the sale completed.

A new survey out of the U.K. by J.D. Power & Associated in association with automotive resource What Car? might be great new for Lexus… but it’s quite the opposite for both Chrysler and its new bosses at Fiat.

Chrysler, the brand that carries the name of the corporation behind it, may not do so for long. According to a report on AdAge.com, Fiat executives are looking at if they should keep all three Chrysler brands (Chrysler, Dodge and Jeep) and the most likely candidate to get axed is Chrysler itself.

Those 789 Chrysler, Dodge and Jeep dealers that were cut loose by Chrysler as a part of its bankruptcy and restructuring plan have until June 9th (next Tuesday) to part with their remaining inventory.

As a part of Chrysler’s restructuring plan it has announced that Mopar will cease its sponsorship of the NuFormz Racing team and driver Samuel Hübinette.

The writing has been on the wall for quite some time now as Chrysler has been seeking every area where it can cut costs. Additionally, a strong sign was when Hübinette took to the track during the first round of the Formula D series in Long Beach in a Dodge Viper – and not the Challenger (pictured above) that Mopar debuted at the 2008 SEMA Show.

“As a part of Chrysler’s comprehensive restructuring plan to revitalize our business and succeed as a stronger car company, we’re rigorously reviewing all expenditures and making tough business decisions,” said Mike Accavitti, Director of Brand Marketing and Strategy at Chrysler. “The decision to end Team Mopar’s sponsorship of NuFormz Racing was difficult because of our long-term relationship with the ream and all of the success we’ve enjoyed competing in Formula Drift.

Driving for Mopar, Hübinette won the first ever Formula D contest and holds the title of the most outright victories. He won the championship in 2004 and 2006 and was a runner up in ’05 and ’08.

“I had a great eight-year run as a member of the Team Mopar family and want to thank the company for all the great memories I’m taking away,” said NuFormz Racing team owner Shaun Carlson. “It’s a tough decision, but given the current economic environment inside and outside of racing, I certainly understand it.”

The sponsorship contract will be terminated after the next event in New Jersey on June 5/6.

Official release after the jump:

According to the latest bankruptcy court filings by Chrysler, the company plans to cut 789 dealerships (one quarter of the current dealer network) in an effort to emerge as a financially viable company.

According to Automotive Leasing Guide, the resale value of a Chrysler vehicle dropped six percent in the week following the company’s Chapter 11 bankruptcy filing.

From start to finish, Chrysler’s bankruptcy proceedings could take as long as two years, according to a Bloomberg report. The article cites an administration official, and says that the initial period of 30 to 60 days for the “quick and surgical” process only refers to the period required to sell the major assets to a new company.

There has been plenty of speculation as to which Fiat vehicles will make it on to North American roads as a result of the merger with Chrysler, but thanks to bankruptcy filings, the mystery has been solved.