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Cars on the chopping block!
Date: 2009/02/19 20:59 By: iluvgossip Status: User  
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In the "viability plan" that Chrysler submitted to the Treasury department the carmaker laid out some more changes to its product line-up.

Some of those changes had already been announced shortly after Chrysler's new owners, Cerberus Capital Management, took over in 2007. The new management team quickly announced that the Chrysler Pacifica crossover, Dodge Magnum wagon and PT Cruiser convertible would be dropped.

As part of its latest announcement, Chrysler co-president Jim Press told reporters that the hard-top PT Cruiser, shown here, and two of Chrysler's SUVs, are being dropped from the line-up as well.

Chrysler also said that new versions of two of Chrysler's popular sedans would be coming soon, as well as a new Jeep. Chrysler also has vague plans to bring an electric car to market next year.

Dodge Durango - Gone

Chrysler shut down the factory that made the Durango and the closely related Chrysler Aspen late last year. High gas prices combined with the economic downturn forced the plant's early closure.

The plant shut down only a couple of months after production had started on hybrid versions of the two large three-row SUVs.

But the Durango may rise from the dead. Chrysler hopes to bring it back around in 2011. Next time, it may be a car-based crossover, according to several published reports. An image in Chrysler's viability report shows a much sleeker, more aerodynamic vehicle.

Hummer – Gone

General Motors will make a financial decision about Hummer soon. Either way, it seems it won't be a GM brand anymore. It will be sold, or it will be phased out.

Hummer had the worst sales fall-off of any brand in America last year, dropping by half to 27,485 vehicles.

High gas prices pushed customers away from truck-based SUVs, which are all Hummer sells. And as a love-it-or-loath-it niche product, the brand has always been highly dependent on new model introductions that sell hot for a while before they fizzle.

When sales of the original H1 started to fade, the smaller H2 came in to pick up the slack. Then, as the H2's welcome wore thin, in rode the smaller-yet H3. There will be nothing more beyond that.

No More Saturn

The Saturn brand has been amazingly resistant to success. After years of hard work, GM has finally admitted the car line has been "disappointing" and it is in discussion with its dealers about what's next.

For now, GM isn't planning to do anything with Saturn beyond the life-cycles of its current models. If no one steps forward wanting to take Saturn over when the models are done in 2011, the brand is done too.

Over the last few years, Saturn has had a complete makeover of its once drab line-up. The new cars are flashy-looking and mostly well-received by critics.

The Saturn Aura was even voted car-of-the-year by auto critics at the 2007 Detroit Auto Show. When its close relative, the Chevrolet Malibu, received the same honor in 2008, its sales took off. But the Aura's sales never took off and fell even lower last year.

Part of the problem has to do with Saturn's "No haggle" pricing policy. In exchange for agreeing not to finagle on deals, Saturn dealers got big exclusive territories with many miles between them. But that means it's much harder to find a Saturn dealer than one who sells Chevrolets or Pontiacs.

Jeep Grand Cherokee Gets a Redesign

If all goes well with Chrysler's latest funding request, an all-new version of the Jeep Grand Cherokee will hit the market in the next year as a 2011 model-year vehicle.

Chrysler promises fuel economy of between 21 and 25 miles per gallon on the highway compared with 20 for the current version.

New from Chrysler: The 200C Concept

At this year's Detroit Auto Show, Chrysler showed off a concept car called the Chrysler 200C. It was slightly larger than the current mid-size Sebring sedan but smaller than the full-size 300.

Chrysler's lead designer, Ralph Gilles said that a car looking very much like the 200C is intended for near-future production. The look is much sleeker and cleaner than current Chrysler designs. The car displayed at the show was an electric-powered vehicle to boot, Chrysler said.

Chrysler has said its plan is to make vehicles like the 200C available in both gasoline- and electric-powered versions. A plug-in of some type is planed for next year, but Chrysler still isn't saying what it will be, only that more are supposed to follow.

Chevy Volt: Look for More

It's well known, by now, that GM intends to produce an extended range electric vehicle called the Chevrolet Volt beginning late next year. In its restructuring plan, GM revealed that two more vehicles using the same technology are planned for 2012.

GM isn't saying, yet, what those vehicles will be. One possibility is represented by the Cadillac Converj, a concept vehicle unveiled at this year's Detroit Auto Show.The Converj is, essentially, a luxury version of the Volt.

Chrysler, Meet Fiat

Chrysler has entered into a tentative deal with Fiat that would allow the Italian automaker to take a 35% equity stake in the American automaker. In exchange, Chrysler would get access to Fiat engineering, and possibly some whole vehicles. Fiat would also be able to sell some of its products in the Unite States and use some of Chrysler's factories here, as well.

In all, Chrysler will get seven new small vehicles out of the deal, the carmaker said in its restructuring plan. It will also get six new engines and transmissions.

Chrysler says it still has an agreement with Nissan under which Chrysler will produce a version of the large Dodge Ram truck for the Japanese automaker, and Nissan will produce a small car for Chrysler. But that agreement is reportedly on hold while the two companies work out financial details.

Saab – Gone

One GM brand has had even lower market share than Hummer, and that's Saab. And now it finds itself in the same position - under "strategic review." If no buyer is found, Sweden-based Saab will likely fade away.

Even including Europe, Saab sales are small for a parent company the size of GM. Its best year worldwide was 2006 when about 130,000 sold in the U.S. and Europe, a Saab spokesman said. By contrast, GM sold more than 300,000 Buicks in the U.S. alone that year.

GM is asking the Swedish government for financial help as it tries to find a buyer for Saab.
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