All Entries Tagged With: "chrysler"

Ram’s Growth Good/Bad for FCA – EPA Credits, CAFE Fines, New Powertrains

The sales growth of Ram Trucks is a good/bad news scenario for Chrysler. Why? The convoluted system of EPA credits, CAFE fuel economy targets and Chrysler’s failure to sell small, fuel-efficient cars. This system means long-term the FCA is in trouble. Here’s why.

The Ram EcoDiesel may be helping move product it is helping to create a long-term problem at FCA.

Car Commercials Super Bowl 2012

Here’s a recap of the most important car commercials of the 2012 Super Bowl – if you like this post, please share it on Facebook!

In no particular order:

Clint Eastwood Super Bowl Commercial is a Big Fat Lie

By this time, we’ve all seen the Clint Eastwood “Halftime” ad from Chrysler. It’s well produced, classy, and – depending on your point of view – inspiring. The ad wants you to believe that, much like Detroit, America can bounce back from tough times stronger than before.

The trouble is, this whole notion of Detroit “bouncing back” is a lie. Detroit was saved from collapse by an Italian conglomerate, the American taxpayer, and good timing. Let me explain:

Chrysler’s Super Bowl LIE

If you watched the commercial breaks during yesterday’s Super Bowl – you know, the one where the Steelers dug themselves a huge hole before eventually losing the game – you might have seen a very well-done Chrysler commercial staring the new Chrysler 200 and hip-hop mogul Eminem.

While this commercial is definitely compelling, it’s based on a tremendous lie: While the new Chrysler 200 is built in Detroit, it’s no more “American” than any vehicle built on U.S. soil by Honda, Toyota, or Hyundai. Why, you ask?

Because Chrysler is owned by FIAT, and Fiat is based in Italy. See the ad below:

Chrysler’s Future Still Uncertain – Would You Buy A Hyundai-Made Ram?

Despite receiving a massive bailout from U.S. and Canadian taxpayers, the long-term future of Chrysler-Fiat is still up in the air. According to Steve Rattner, the former Obama administration “car czar” who orchestrated the Chrysler bailout package, there were serious misgivings about Chrysler’s future by many in the Obama administration in 2009. Rattner’s book Overhaul indicates that Chrysler was bailed-out more to prevent job losses than based on any certainty that Chrysler could remain a viable automaker.

As reported recently by the Detroit News, financial analysts at international mega-lender Deutsche Bank echo these same concerns. While Chrysler has generated operating profits in the past year, they’re still a money-losing company (nearly half a billion year to date). Deutsche Bank’s analysts believe that Chrysler’s future hinges on new Fiat-based product due out next year – starting with the Fiat 500.

Deutsche Bank's analysts believe the future of Chrysler hinges on new products from Fiat, including the Fiat 500

While a new line of Fiats might just save Chrysler, it’s also possible that they won’t. If Chrysler-Fiat has to throw in the towel, the Ram brand would be made available for sale…something Hyundai might love to see.