Chrysler sales collapse heightens need for product

DETROIT -- On the eve of CEO Sergio Marchionne's unveiling of his five-year turnaround plan for Chrysler, the U.S. automaker did something it had done for each of the past 22 months: announced a decline in U.S. sales.

October's 30 percent fall amid one of the industry's strongest months this year highlights the size of the task facing Marchionne and his Chrysler restructuring team.

"The biggest issue for Chrysler is how quickly they fill the void in their product pipeline," says Earl Hesterberg, a former Ford Motor Co. executive who now heads the Houston-based Group 1 Automotive Inc. dealership group.

Today, almost five months since Chrysler emerged from bankruptcy, Marchionne is expected to outline a new product plan for the company now controlled by his Fiat S.p.A. The first major new product -- a redesigned Jeep Grand Cherokee -- is due in the second quarter of 2010. Fiat-based products aren't expected until 2011.

When New York private-equity firm Cerberus Capital Management took majority ownership of Chrysler from Daimler AG in August 2007, Chrysler's U.S. market share stood at 11.4 percent. Through October 2009, its share had fallen to 9 percent. .

Only two models -- the Dodge Avenger sedan and Grand Caravan minivan -- saw sales increases last month. The Chrysler brand was down 36 percent; Dodge was down 26 percent; and Jeep, widely regarded as Chrysler's most valuable asset, took the steepest dive -- down 37 percent.

Million sales lost

Overall Chrysler sales have fallen 39 percent year to date to 781,319. Two years ago through the end of October, Chrysler had 1,724,139 sales. Chrysler last posted a monthly increase in December 2007.

Marchionne has said that Chrysler will continue to experience "painful" sales results during its restructuring period. On Oct. 1, he told journalists: "Our intention is to improve share from this point on, but I don't get alarmed. The machine is timed. We're not bleeding like people think we are.

"We are undergoing a painful process," Marchionne said that day. "But we need to go back to the real starting point."

Marchionne has predicted that Chrysler could return to profitability by 2011 and has said Chrysler could break even holding a 9 percent market share in a 10 million-unit market.

The company has been in a news blackout since emerging from bankruptcy June 10 as Marchionne and his teams worked on the plan. He has reorganized the company along the lines he used at Fiat. Chrysler is now built around its brands: Chrysler, Jeep, Dodge car, Ram truck and Mopar parts.

First Drive: 2010 Ford Taurus SHO

Best labeled a luxury sport sedan, the SHO is the performance black sheep in the all-new Taurus family. It couples the near-luxury trim of a high-end Taurus Limited with outstanding turbocharged power and tautly athletic handling. It also draws a line in the powertrain sand with the introduction of Ford's all-new EcoBoost engine, a fuel-efficient combination of direct fuel injection and turbocharging. This is Ford's critical near-term strategy to handle the fuel-economy, emissions and power maelstrom — and it works.

Model Lineup
As the performance offshoot of the all-new 2010 Taurus, the Taurus SHO is a stand-alone model. Minimal badging identifies the SHO, which will be spotted only by those in the know. Outside, minor brightwork details are found in the grille, along with SHO badges in the quarter windows, a small rear spoiler and twin tailpipes. All sheet metal is shared with the standard Taurus.

Already stuffed with premium materials, the SHO offers but three option packages. The first we expect to find on nearly all SHOs. It includes a moonroof, a 390-watt 12-speaker Sony sound system and heated and cooled front seats for $2,000.

The second option package is luxury-oriented at $3,000 and offers a power rear sunshade, heated rear seats, adjustable pedals, auto headlamps, rain-sensing wipers, the trick radar-guided Blind Spot and Cross Traffic Alert functions, along with a rearview camera — not many excuses for backing into a pole with this.

Most to our liking is the Performance Package. Built around higher-grip Goodyear F1 summer tires on unique 20-inch wheels, the Performance Package delivers improved brake pads, sport tuning on the suspension, electric steering assist, an off switch for the traction control and a lower 3.16:1 final drive ratio. Enthusiast drivers will definitely want the Performance version, since it sharpens response and glides on smooth pavement. But frost heaves mean a mandatory test drive to ensure an acceptable ride — it's a firmer ride than the standard SHO, which is in turn firmer than the standard Taurus.

Under the Hood
The heart of the SHO is its high-tech twin-turbocharged direct-fuel-injected 4-valve 4-cam 3.5-liter V6. Belting out 102 more horsepower than the Taurus' rank-and-file 3.5 liter, the SHO engine whips up a horse a day: 365 horsepower. Even better, its boost "curve" is actually a massive 350 lb-ft shelf that magically punts the SHO into motion, and its fuel economy is a mile or two better per gallon than the competition's, at 25 mpg on the highway. Credit the low fuel burn to direct injection, which squirts fuel directly into the cylinders, allowing a higher, more efficient compression ratio.

All SHOs are full-time all-wheel drive, too. This squelches all traction worries, either from power-induced wheelspin or nasty weather. Another given is the 6-speed automatic transmission. Both center console and paddle shifting are provided.

Noteworthy as well is the stiff unibody chassis. This supports the extra precision provided by the SHO's electrically assisted power steering, along with the sport sedan's stiffer suspension tuning. Performance all-season 255/45VR-19 tires are standard, with 20-inch summer tires on the Performance Package.

Inner Space
Ford designers pressed for a dramatic, twin-cockpit interior for the new Taurus, and they got it. With its dramatically sloping dashboard and strong detailing, there was little need to amp up the interior spectacle for the SHO. Compared with the regular Taurus, the SHO's standard leather seats sport suede inserts, as does the steering wheel. Finally, the SHO pedals wear aluminum pads. That's about it for SHO interior perks.

SHO seating is comfortable, if not overly bolstered against cornering loads. Generous tilt and telescoping steering, plus no-excuses seat travel, seat massage and seat heating and cooling accommodate nearly everyone in comfort. Rear-seat room is also better than expected, and trunk room is spacious in this full-size car.

On the Road
SHO owners love surprising the unwary with unexpected speed and stability, both highlights of the new car. Throttle response is immediate and torque generous, so the heavy SHO feels lighter and more dexterous than it should. And yes, it's downright fast. Pleasant mechanical sounds emanate from the engine compartment at full throttle, but turbo noise is nonexistent. In fact, with the turbos hidden low against the engine and invisible during underhood inspections, there's little chance of guessing the engine is turbocharged.

The paddle shifters — of limited usefulness on the standard Taurus — feel natural and are put to constant use on the SHO because the responsively tuned chassis encourages driver engagement. We wish the paddle shifters didn't travel with the wheel, because they get lost to the driver in tight turns, but generally they work well. Almost all downshifts and lightly loaded upshifts are butter smooth, but hard-charging acceleration brings on distinct shift feel. Left in automatic mode, the 6-speed transmission selects gears intelligently and quickly.

Steering precision is good and the chassis is stable. The quiet cabin provides something of a detached driving experience, and a 4,300-pound sedan can be only so agile on twisting country lanes. Still, the enthusiast driver feels rewarded on challenging roads because of precise steering, never-ending traction and ample, torquey power. High-speed cross-country jaunts are the SHO's natural habitat, and with its coddling interior, it makes a good, albeit large, commuter.

Thanks to the AWD, the SHO provides tenacious, reassuring grip on wet roads and even more grip when the sun comes out. The feel is of a well-balanced rear-drive sedan with high limits. It takes racetrack antics to lose traction, and there are plenty of electronic aids to help should things degrade that far.

Ride quality is better than expected, the important variable being the road. Smooth pavement definitely is smooth, and little jitters are ably dampened, but sharp-edged imperfections will undeniably distract.

Right for You?
Abstain from the option sheet and the $37,995 Taurus SHO is an especially good performance-car buy. But splurge on all the options and your bargain performance sedan arcs into the $45,000 troposphere. That price excludes many enthusiasts, but compared with its Audi A6, Cadillac STS and perhaps Chrysler 300C or Lincoln MKS competition, the SHO is either tens of thousands of dollars less expensive or offers so much performance, style and fuel economy that there really is no comparison. Like its V6 and V8 predecessors, the SHO cuts its own niche, appealing to those who have an appreciation for nicer things, but who also revel in hearty performance and don't want to spend a bundle or attract undue attention in the process.

Ford Racing Announces Limited Edition (50 units) 2010 Boss 302R Mustang

To celebrate the 40th anniversary of the Mustang Boss 302's iconic 1970 Trans-Am championship, and to build
on the success of the Mustang FR500C (winner of 2005/2008/2009 Grand-Am Championships), Ford Racing is
proud to announce the development of a new race-prepared road racing Mustang – the 2010 Ford Racing
Boss 302R. Details of this exciting program have already begun to surface, and we want to ensure our dealers
hear about it from us first.

The Ford Racing Mustang Boss 302R will be a factory-built race car, ready for track days and road racing in a
number of SCCA and NASA classes. An optional Grand-Am Homologation Package will be available for the
Grand-Am KONI Challenge series. While details are intentionally limited at this time, the following should help
you assess the product and its appeal.

Program Intent
• Continue the winning tradition of Mustang racing
• Build limited to 50 units
• Off-road only (VIN replaced by serial number)
• Estimated pricing, $75,000 WD, $79,000 MSRP
• Build/delivery in 3rd -4th Qtr 2010
• Ford Racing Part #: M-FR500-BOSSR

Optional - Grand-Am Homologation Package
2010 Grand-Am spec/approved package (Part Number: M-FR500-BOSSR1) for KONI Challenge includes:
• Sealed high output race engine with upgraded cooling system
• Close ratio 6-speed transmission with integral shifter
• Seam-welded body
• Race suspension/KONI dampers and ABS brake tuning
• Race wheels/tires
• Race performance exhaust
• High speed balance 1-piece driveshaft
• Racing fuel cell
• Race data acquisition
• Grand-Am spec vehicle is estimated to be $129,000 MSRP ($124,000 WD)

Orders / Feedback
• Vehicle orders should be placed with the Ford Racing warehouse, 800-367-3786.
o Priority delivery will be given to multiple vehicle orders.
o An "off-road only" competition release will be required prior to delivery of the race car to the dealer.
• Production of only 50 units is under consideration for 2010, so dealers are encouraged to submit their
orders before December 31, 2009.
• Questions about ordering should be directed to Wayne Geoffrey (wgeoffre@ford.com).

Vehicle Content:
• 400 hp (est.) 5.0L 4V engine
• 6-speed manual transmission
• Roll cage
• Race dampers/springs, brakes, tire
• Race seats, safety harness

Plug-In Cars Are Almost Here, but Charging Stations Lag

DETROIT — Even though several automakers plan to begin selling electric vehicles next year, their sales may be limited by the lack of a national infrastructure to support them, speakers at a conference here on plug-in cars said on Wednesday.

Utilities that serve most of the nation’s electricity customers said they were aware of the issue, and would take several steps, including working to help develop plans for charging stations, and would use battery-powered vehicles themselves.

Among the biggest challenges for automakers is overcoming consumers’ fears of becoming stranded with a dead battery — what the industry calls “range anxiety.”

“This isn’t just an experiment for us,” said William Clay Ford Jr., Ford Motor’s executive chairman. “We can provide the vehicles; we can provide the hardware. But we cannot unilaterally solve all of the national issues.”

Though automakers are testing numerous propulsion technologies, including hydrogen fuel cells, batteries are seen as the most promising near-term answer for reducing oil imports and emissions. President Obama has called for a million plug-in hybrids and electric vehicles to be on the nation’s highways by 2015.

To encourage adoption of electric vehicles, charging stations that follow a nationwide standard eventually will be needed at every shopping mall, parking garage and apartment building and at countless other locations, said Anthony F. Earley Jr., the chief executive of DTE Energy in Detroit.

“The beauty of electricity is it’s already there,” said Mr. Earley, who also is chairman of the Edison Electric Institute, which represents publicly traded utility companies in the United States. “If we change the building codes to say every time you build an apartment building, build in a charging station, that is not a large cost, as opposed to telling every gas station to put in a hydrogen tank just in case we might need hydrogen later on. So we’ve kind of got a jump-start.”

Among the issues that utilities hope to address are how to keep electric vehicles from overloading the electrical system, especially as their numbers grow.

“The last thing you want is millions of electric vehicles plugged in at 5 o’clock on a hot summer afternoon when the grid is already being taxed,” Mr. Earley said.

Ford is one of several carmakers with concrete plans for electric vehicles in the near future. It intends to start selling a battery-powered version of its Transit Connect commercial van next year, followed by an electric Ford Focus sedan in 2011 and other plug-in vehicles in later years.

Nissan is introducing its electric car, the Leaf, to businesses next year and to consumers by 2012. General Motors plans to sell its Chevrolet Volt, a plug-in vehicle with a range-extending gasoline engine, late next year.

Once an infrastructure starts to develop, electric vehicles are expected to grow in popularity — not just because of their environmental benefits, but also because they cost less to operate than a gas-powered vehicle.

“The price in the future is going to be cents per mile, said Tom Kuhn, the Edison Electric Institute’s president. “It’s not miles per gallon.”

NASCAR-Version Mustang Unveiled

CHARLOTTE, North Carolina — Ford will enter a new version of its Mustang in select races in next year's second-tier NASCAR Nationwide Series. The car was unveiled in a ceremony in Charlotte Tuesday.

Dodge is expected to race a version of its own iconic 2+2, the Challenger, next year as the Daytona Beach, Florida-based sanctioning body attempts to reinvent its junior division, previously known as the Busch Series. The new car will be used in four races, starting with the July 2 race at Daytona International Speedway.

"It's been a long project that we've worked on, changing the identity of the Nationwide Series, giving us our own look and our own unique competition out on the racetrack," series director Joe Balash told the Charlotte Observer.

For the past decade and a half, the cars competing in the series were nearly identical to the top-level Sprint Cup Series machines with only minor variations in dimensions and engine components.

The Nationwide Series car remains similar to the old Cup car, predecessor to the new model introduced in 2007 and labeled the Car of Tomorrow, or COT. The new Cup car was introduced in 16 selected events in 2007 and last year became the standard piece.

Roush Fenway Racing provided the model that was unveiled. The No. 16 car will be driven by Colin Braun.

The car is designed to bear a stronger resemblance to its production counterpart than other NASCAR machines. It will utilize a traditional blade rear spoiler, unlike the wing spoiler on the Cup COT, but will have a front splitter similar to the COT's.

Chevrolet has no plans to use NASCAR to market its reprised Camaro, and Toyota, the fourth manufacturer participating in NASCAR's national series, does not have a representative with the heritage of the U.S.'s "Big Three" automakers. They will continue to race the Impala and Camry body styles, modified to new Nationwide Series rules.

Ford commits to new vehicles at U.S. plants

Ford Motor Co. has promised the United Auto Workers that its U.S. plants will receive a flurry of new vehicles, transmissions and other work during the next few years, while refusing so far to allocate new products to two Canadian plants.

Three Ford assembly plants – in Chicago, Louisville, Ky., and Wayne, Mich. – will begin building new vehicles in the next two years, and a commercial van called the Transit Connect that is now imported from Europe will be built at a UAW plant if North American assembly becomes necessary, according to investment commitments contained in a new contract between Ford and the union.

“The company reaffirmed its commitment to the UAW and its manufacturing presence in the U.S.,” Joe Hinrichs, Ford's group vice-president of global manufacturing, said in a letter to UAW officials that is part of the new contract.

The Canadian Auto Workers will seek similar investment promises when contract talks between the union and Ford resume next week, CAW president Ken Lewenza said on Monday.

“We'll ask for the same ratio of support in Canada,” Mr. Lewenza said, although he added that the CAW's analysis of the UAW deal is that promises of new products simply repeat commitments Ford has already made to the U.S. union.

The key demand from the CAW is that Ford maintain 13 per cent of its North American manufacturing footprint in Canada.

Ford refused to do that in talks that broke off last month and has said it has no new products for an assembly plant in St. Thomas, Ont., and an engine plant in Windsor, Ont.

The CAW and industry analysts and sources believe Ford will close the St. Thomas plant when it stops building the full-sized Crown Victoria, Mercury Grand Marquis and Lincoln Town Car in 2011.

In Windsor, Ford has reopened the Essex Engine Plant, but at the nearby Windsor Engine Plant, “all of the component allocations have been made and there isn't any more in the cupboard,” Mr. Lewenza said.

Ford Motor Co. of Canada Ltd. would not comment.

The UAW tactic of securing new investments in return for concessions on wages, cuts in benefits and surrendering the right to strike over wages in the next round of negotiations, mirrors one adopted by Mr. Lewenza's predecessor Buzz Hargrove during the 1990s.

Mr. Hargrove managed to lever promises of new products or large capital investments out of each of the Detroit Three during several rounds of bargaining in the 1990s and this decade. Some of those commitments were broken as markets changed.

The CAW approach of bargaining to win new investments “now makes perfect business and political sense,” given that the UAW has endured more than 100 plant shutdowns in recent years, said Sean McAlinden, executive vice-president of research and chief economist of the Center for Automotive Studies, an industry think tank based in Ann Arbor, Mich.

The UAW contract says that assembling a new Focus compact beginning next year at Michigan Assembly Plant will add 200 jobs, a new vehicle in Chicago will add 300 jobs there, and a new vehicle in Louisville in 2011 will add more jobs.

Among Ford's engine, transmission and components plants, one in Ypsilanti, Mich., will assembly battery packs for hybrid-electric vehicles.

Sources said the Michigan Assembly Plant will also begin assembling the C-Max minivan now imported from Europe, while the vehicle earmarked for Louisville is the Ford Kuga, a compact crossover utility vehicle.

Second Drive: 2010 Ford Flex SEL EcoBoost

Second Drive: 2010 Ford Flex SEL EcoBoost
Swift and Stylish: The Crossover for Moving People in a Hurry
/ By Zach Gale

Amidst a virtual sea of conservative crossovers, the Ford Flex EcoBoost stands out for its unmistakable design and an engine producing enough power to actually make this people-mover fun.

Drive the Ford up a freeway onramp and you’ll understand: This EcoBoosted Flex is fast. Should you decide to pass a slower crossover (most in this price range are), the Flex will respond – after a moment’s hesitation – with 355 horsepower that will put a smile on your face until passengers start wondering why they’re in such a hurry.

Of course, Ford’s now familiar EcoBoost engine gets full credit for the much-improved acceleration. The engine, which also appears in the Ford Taurus SHO and Flex-based Lincoln MKT, is a direct-injection V-6 with twin turbos. Over the regular AWD Flex, the EcoBoost engine adds 93 horsepower but matches the fuel economy: 16/22 mpg city/highway.

Well, on paper, it’s the same rating. Although our mix of city and highway driving yielded about 17 mpg from a possibly optimistic trip computer, lead feet attracted to the EcoBoost model should expect fuel economy on the lower end of the range.

If you’re worried about fuel economy, there’s always the front-drive, non-EcoBoost Flex, with a 17/24-mpg city/highway rating, in line with the competition. Go that route and you’ll save quite a bit of money too. The least expensive Flex EcoBoost is $39,995, not exactly a screaming deal but significantly less than the Lincoln MKT EcoBoost, which starts at $49,995. Topline Limited Flexes add HID headlights, LED taillights, a navigation system with eight-inch screen, and what Ford calls a “satin-aluminum liftgate applique.”

All Flex owners should consider whether they truly appreciate the bold styling since the next-generation Explorer isn’t too far off. The new Explorer will likely have improved fuel economy, a third-row option, and an EcoBoost engine wrapped in more traditional SUV styling. The Flex, with its $395 white- or silver-colored roof, recalls the Mini Cooper more than a basic two-box SUV.

Of course, successful crossovers do more than just go fast and look good. For the most part, the Flex is family-friendly. The ride is comfortable, yet there’s enough room for improvement here so the Lincoln MKT can distinguish itself from the Flex. Handling is predictable for a vehicle this size: Take it easy around corners, and the Flex will respond positively. Its low-effort steering is acceptable for this class, though we would appreciate more brake feel. The brake pedal has too much travel before anything actually happens.

The Flex can function as a potential replacement vehicle for those who want to step down from a tall SUV or up from a car. The second row can seat two passengers in captain’s chairs or three across if seven-passenger capability is desired. Be careful with the one-touch folding and manually adjustable second-row seats, though, as the ones on our tester were far too quick to fold forward.

Access to the third-row seats is easy enough, and once you’re back there, Flexes without the Vista Roof (sunroof up front, two small skylights in the second row, and one large skylight for third row passengers) have adequate headroom. The Flex is about as tall as a Toyota Highlander but 2.4 inches shorter than a Chevrolet Traverse and 3 inches shorter than a Honda Pilot. With the Flex about 2.5 inches narrower than the Pilot and the Traverse, the Ford isn’t more difficult than you’d expect to park. We’d like to see Ford use body-color sensors in the Reverse Sensing System which is standard equipment on every Flex.

We might not use the word “premium” to describe the interior, but quality is still high. Once you’re accustomed to the controls, they’re intuitive. In six-passenger models like our $41,850 Flex EcoBoost SEL, second-row armrests should be standard equipment even without the second-row floor-console option selected. A second-row refrigerated compartment is also available: It’ll cool drinks down to 23 degrees.

The Flex EcoBoost is a thoroughly competent carpool-ready vehicle with enough power to make you temporarily forget how large the Ford really is. Crossover shoppers who want to blend in should look elsewhere.

Ford Fusion Hybrid Review

Ford Fusion Hybrid review provides additional information on price and mileage. The 2010 Ford Fusion is a hybrid car that is equipped with an instrument panel designed to achieve maximum fuel efficiency.

By: John Lester

Review - 2010 Ford Fusion Hybrid Electric Mode Features

More than a month ago, we wanted to bring you additional information about the Ford Fusion Hybrid car. The 2010 Ford Fusion can operate on pure electricity at speeds up to 47 mph (miles per hour). The Fusion Hybrid has an MPG (miles per gallon) rating of 41 in the city and 36 on the highway.

Ford Fusion is powered by a V6 gasoline engine and electric motor. The vehicle includes a new propulsion system which handles the gas to electric transition more efficiently and seamlessly. More importantly, the propulsion system allows the car to operate longer at higher speeds while running on its electric mode. This mode is also known as the EV-mode.

The hybrid car comes with a base MSRP of $27,270. However, you get exactly what you desire in a hybrid. The vehicle includes advanced green car technologies and consumers can still get a hybrid tax credit to help offset the purchase price. One feature in particular is called SmartGauge. This is a new technology that helps the driver achieve maximum fuel efficiency.

The instrument panel was designed to coach the driver. The driver has all the necessary read-outs to improve their fuel efficiency. The vehicle gauge cluster features daytime backlighting with a black lens and some nice 3-D elements to create a high tech appearance. There is also a great ambient lighting system that illuminates the front and rear foot wells and cup holders.

SmartGauge is designed to help Fusion Hybrid owners to maximize fuel efficiency. High-resolution, full-color LCD screens can be configured by the driver to show different levels of information, including fuel and battery power levels, as well as average and instant miles-per-gallon. The gauge needles move from left to right.

There is also a lot of quality embedded in the interior. It is finished with a soft upper and lower skin that carries through the center console, doors, and steering wheel. The panel display shines a has a nice contemporary iced-blue lighting. The leather wrapped steering wheel was completely redesigned with form fitting palm swells and a new shifter.

Ford also has approximately 17 global patents for the 2010 Fusion. The car is based on several innovations and designs by Ford. This hybrid isn't your ordinary car, and when you drive it, you can appreciate all the breakthrough technologies that were built into the vehicle.

The Ford Fusion price might seem a bit steep for many, but again, you won't find a cheaper car that has this level of quality. I must admit, I've been a fan of imported hybrids from Japan, including Toyota and Honda. However, this might change after driving the latest Fusion.