Get Ready For More Chrysler and Dodge Minivans

The Chrysler Group has recently announced that the all-new 2008 Chrysler Town & Country as well as the Dodge Grand Caravan minivans both introduced at the North American International Auto Show in Detroit are going to be produced at the DaimlerChrysler’s Windsor Ontario Assembly Plant and St. Louis South Assembly Plant in Fenton, Mo.

The main objective of the Chrysler Group is to produce several vehicles under same roof and in the process save millions of investment dollars while hastening the availability of the vehicles to the market equipped with the same high quality Chrysler parts that meets the quality levels set by the automaker.

According to Frank Ewasyshyn, Executive Vice President, Manufacturing, Chrysler Group, "These are very important products for the Chrysler Group as we remain committed to the minivan market and maintain our leadership position. Our focus on flexible manufacturing and new investments, adding state-of-the art technology to plant operations, will help us ensure we can meet those demands and build almost anything, anywhere, with improving speed and quality."

Visiting DaimlerChrysler’s Windsor and St. Louis Assembly Plants

The Windsor Assembly plant is presently housing the production for Dodge Grand Caravan and Chrysler Town & Country minivans with the Stow ‘n Go® seating and storage system, together with the Chrysler Pacifica, has enough resources to accommodate the production of two different vehicle platforms. The Chrysler Group has invested $508 million to its Windsor Assembly to provide it with a state-of-the art paint facility which is capable of accommodating the dimensions of at least eleven different body styles. The Windsor Assembly plant is scheduled to operate on the first quarter of 2007. This plant was built in 1928 and at present considered to be one of Chrysler’s largest assembly plants with 4.01 million square feet. The plant is currently employing 4800 people.

The St. Louis South Assembly Plant is another big plant of Chrysler. The automaker invested $1 billion for this plant. Chrysler Town & Country, Dodge Grand Caravan minivans (south), and Dodge Ram (1500 and 2500) Standard and Quad Cab Pickup (North) are the vehicles produced in this plant. The St. Louis Plant was constructed in 1959 and has a total area of 2.64 million square feet and the third assembly plant of Chrysler that implements a fully robotic body shop. This gives the St Louis plant the capability of manufacturing multiple types of vehicles on one line. Chrysler’s St. Louis Assembly plant has 3,200 employees presently.

Chrysler Group is expecting to make the 2008 Dodge Grand Caravan and Chrysler Town & Country available to US market in the fall of 2007.

By Correy Putton.

Two Private Equity Firms Interested On Chrysler

February 14 was a sad day for Chrysler employees in the country. On that day, DaimlerChrysler Chief Executive Officer Dieter Zetsche announced that due to the poor performance of the U.S. brand, all options are open for the brand including its sale. The day also saw the workforce reduction carried out by the company as a part of its restructuring plan.

The speculations that Chrysler will be for sale is made even more plausible with the emergence of interested firms popping out and saying that they are interested in buying the U.S. arm of DaimlerChrysler AG. It can be remembered that Chrysler has already planed to cut down the number of their employees in the following months.

Aside from workforce reduction, the restructuring plan of Chrysler involves closing down of a plant and eliminating shifts on two plants. These steps, as Chrysler maintained, are necessary to address the reduced demand for their vehicles.

Recently, The Associated Press reported that there are now two firms which are most likely going to be the next owner of Chrysler. The Cerberus Capital Management LLC and a group of investors led by the Blackstone Group and Centerbridge Partners LP. These firms have expressed their intention to buy the troubled company. The American news agency reported that representatives of the group have made a visit at Chrysler’s headquarters in Auburn Hills, Michigan.

The Associated Press also spoke with a Chrysler insider who disclosed that potential bidders are now looking into Chrysler’s financial status.

Another firm that has shown interest in Chrysler is Canadian car parts manufacturer Magna International along with the largest car manufacture in the world, General Motors. Although the Canadian firm has shown interest, insiders said that the possibility of the Canadian firm buying the company has been reduced. There are also other firms that have shown interest on Chrysler although these are not as strong as the interest shown by Cerberus and Blackstone are Apollo Management LP, and the Carlyle Group. These firms have not yet made comments about their interest on the car maker.

As far as the rumored takeover of General Motors of the ailing Chrysler group, experts pointed out that it looks unlikely. While General Motors has yet to comment about the rumored interest they might have on the third U.S. car maker, speculations in the auto industry says that the world’s largest car manufacturer will not gain any advantage from the acquisition of the ailing group. On the other hand, another U.S. brand, Ford, when asked whether there is a possibility of them buying Chrysler, Ford CEO Alan Mulally flatly said that it will never happen.

On a sudden twist, DaimlerChrysler AG Chief Executive Officer Dieter Zetsche has announced that there is a possibility that Chrysler will still remain as a part of the German company. But the emergence of the two firms most interested in the purchase of Chrysler has a look similar to Nissan cornering lights which shows which way Chrysler is going in the future.

By Ryan Thomas.