Chrysler

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Chrysler Group LLC
Type Limited liability company
Industry Automotive
Predecessor Chrysler LLC
(2007-2009, Ownership returns to the United States)
DaimlerChrysler AG
(1998–2007, merger/demerger with Daimler AG)
Chrysler Corporation
(1925–1998 - Independent company)
Founded June 6, 1925
Founder(s) Walter Chrysler
Headquarters Auburn Hills, Michigan, U.S.
Number of locations List of Chrysler factories
Area served Worldwide
Key people Sergio Marchionne
(Chairman and CEO) & Fiat CEO
Products Automobiles
Automotive parts
Revenue increase US$ 55.0 billion (2011)[1]
Operating income increase US$ 2.0 billion (2011)[1]
Net income increase US$ 183 million (2011)[1]
Total assets increase US$ 35.449 billion (2010)[1]
Total equity decrease US$ -4.489 billion (2010)[1]
Owner(s) Fiat S.p.A. (58.5%)[2]
United Auto Workers (41.5%)[3]
Employees 51,623 (December 2010)[1]
Divisions Chrysler
Dodge
Jeep
Ram
Fiat (USA)
Mopar
Website ChryslerGroupLLC.com

Chrysler Group LLC (play /ˈkrslər/) is a multinational automaker, formed in 2009 from a global strategic alliance with Fiat, produces Chrysler, Jeep, Dodge, Ram, SRT, Fiat, and Mopar vehicles and products, that is headquartered in Auburn Hills, Michigan, United States.[4] Chrysler was first organized as the Chrysler Corporation in 1925.[5]

Contents

Models

List of Chrysler models


Return to the Main Page


History

In December 2008, U.S. President George W. Bush agreed to a $4 billion bailout for Chrysler[6][7] followed by an additional $8.5 billion bailout extended by President Barack Obama early in his administration.[7] In total, the government granted a $12.5 billion dollar bailout for Chrysler using Troubled Asset Relief Program funds provided by Congress and Canadian government funds. Chrysler received loans for three months in order to come up with specific plans to restructure into viable companies. An additional $1.5 billion was loaned to Chrysler Financial, its credit affiliate.[8]

On June 10, 2009, Chrysler LLC emerged from a Chapter 11 bankruptcy reorganization and substantially all of its operations were sold to a new company, Chrysler Group LLC, organized in alliance with the Italian automaker Fiat.[9][10] Initially holding a 20% interest in Chrysler Group, Fiat's stake was increased to 58.5% (fully diluted) following acquisition of the equity interests held by the U.S. Treasury (6% on June 3, 2011) and Canada (1.5% on July 21, 2011) [11][12]

The company was founded by Walter Chrysler (1875–1940) on June 6, 1925,[13][14] when the Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation.[15][16]

Chrysler's world headquarters in Auburn Hills, MI

Walter Chrysler arrived at the ailing Maxwell-Chalmers company in the early 1920s. He was hired to overhaul the company's troubled operations (after a similar rescue job at the Willys car company).[17] In late 1923 production of the Chalmers automobile was ended.[18]

In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler was a 6-cylinder automobile, designed to provide customers with an advanced, well-engineered car, but at a more affordable price than they might expect. (Elements of this car are traceable to a prototype which had been under development at Willys during Chrysler's tenure).[19] The original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication, and an oil filter, features absent from most autos at the time.[20][21] Among the innovations in its early years were the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to Lockheed, and rubber engine mounts to reduce vibration. Chrysler also developed a wheel with a ridged rim, designed to keep a deflated tire from flying off the wheel. This wheel was eventually adopted by the auto industry worldwide.

Following the introduction of the Chrysler, the Maxwell was dropped after its 1925 model year run, although in truth the new line of lower-priced 4-cylinder Chryslers which were then introduced for the 1926 model year were basically Maxwells which had been re-engineered and rebranded.[22] It was during this time period of the early 1920s that Walter Chrysler assumed the presidency of Maxwell, with the company then ultimately incorporated under the Chrysler name.

Brands

Following the introduction of the Chrysler, the Maxwell brand was dropped after the 1925 model year. The new, lower-priced four-cylinder Chryslers introduced for the 1926 year were badge-engineered Maxwells.[23] The advanced engineering and testing that went into Chrysler Corporation cars helped to push the company to the second-place position in U.S. sales by 1936, a position it would last hold in 1949.

In 1928, the Chrysler Corporation began dividing its vehicle offerings by price class and function. The Plymouth brand was introduced at the low-priced end of the market (created essentially by once again reworking and rebadging Chrysler's four-cylinder model).[24] At the same time, the DeSoto brand was introduced in the medium-price field. Also in 1928, Chrysler bought the Dodge Brothers[25] automobile and truck company and launched the Dodge line of automobiles and Fargo range of trucks. By the late 1930s, the DeSoto and Dodge divisions would trade places in the corporate hierarchy.

The Imperial name had been used since 1926, but was never a separate make, just the top-of-the-line Chrysler. In 1955, the company decided to spin it off as its own make and division to better compete with its rivals, Lincoln and Cadillac. Imperial would see new body styles introduced every two to three years, all with V8 engines and automatic transmissions, as well as technologies that would filter down to Chrysler corporation's other models.

The Valiant was also introduced as a distinct brand. In the U.S. market, Valiant was made a model in the Plymouth line and the DeSoto make was discontinued for 1961. With those exceptions per applicable year and market, Chrysler's range from lowest to highest price from the 1940s through the 1970s was Valiant, Plymouth, Dodge, DeSoto, Chrysler, and Imperial.[26]

The Chrysler Corporation acquired the Jeep brand in a purchase of American Motors in 1984, and launched the Eagle brand, which was discontinued. Currently Dodge is the full line brand, with the Chrysler brand marketing upscale cars. The Jeep brand offers SUVs and the RAM brand offers small commercial vans and pick-up trucks.

Discontinued automobile brands operated by Chrysler

Daimler Chrysler

In 1998, Chrysler and its subsidiaries entered into a partnership dubbed a "merger of equals" with German-based Daimler-Benz AG, creating the combined entity DaimlerChrysler AG.[28] To the surprise of many stockholders, Daimler subsequently acquired Chrysler in a stock swap,[29] after the retirement of Chrysler CEO Bob Eaton. Under DaimlerChrysler, the company was named DaimlerChrysler Motors Company LLC, with its U.S. operations generally called the "Chrysler Group". On May 14, 2007, DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management, L.P., thereafter known as Chrysler LLC, although Daimler (renamed as Daimler AG) continued to hold a 19.9% stake.[30] The deal was finalized on August 3, 2007.[31] On April 27, 2009, Daimler AG signed a binding agreement to give up its remaining 19.9% stake in Chrysler LLC to Cerberus Capital Management and pay as much as $600 million into the automaker's pension fund.[32]

The sale of substantially all of Chrysler's assets to "New Chrysler", organized as Chrysler Group LLC was completed on June 10, 2009. The federal government provided support for the deal with US$6.6 billion in financing, which was paid to "Old Chrysler", and a newly formed company called Old Carco LLC took over the remaining assets and liabilities, which remained in Chapter 11 bankruptcy.[33] This transfer excluded eight manufacturing sites, the majority of real estate holdings, and equipment leases. Contracts with 789 dealers in the U.S. were also excluded.[34][35] On May 24, 2011, Chrysler repaid its $7.6 billion loans to the United States and Canadian governments.[36]

Mopar

  • Mopar — Replacement parts for Chrysler-built vehicles.
    • Mopar Performance, a subdivision providing performance aftermarket parts for Chrysler-built vehicles.

Fiat

Fiat Auto plans to sell seven of its vehicles in the U.S. by 2014, while Fiat-controlled Chrysler Group is to supply nine models to sell under Fiat brands in the European market, according to a five-year plan rolled out on April 21, 2010 in Turin, Italy, by Fiat and Chrysler CEO Sergio Marchionne. At least five of the Fiat Auto models are expected to be marketed in the U.S. under its Alfa Romeo brand. Showing the level of integration envisioned, a product introduction timeline shows Chrysler-built compact and full-size SUVs going on sale in 2012 and 2014, respectively, in both European and North American markets.[37]

Sales and marketing

Domestic sales

It is reported that Chrysler was heavy on fleet sales in 2010, hitting as high as 56 percent of total sales in February of that year. For the whole year, 38 percent of sales of Chrysler were to fleet customers. The industry average was 19 percent. However, the company hopes to reduce its fleet sales to the industry average in 2011 with a renewed product lineup.[38]

Global sales

Chrysler is the smallest of the "Big Three" U.S. automakers (Chrysler Group LLC, Ford Motor Company, and General Motors). Chrysler is the world's 16th largest vehicle manufacturer as ranked by OICA in 2009.[39] Total Chrysler vehicle production was about 0.96 million that year.

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 "Form 10: General Form for Registration of Securities, Chrysler Group LLC". United States Securities and Exchange Commission. http://www.sec.gov/Archives/edgar/data/1513153/000119312511047098/d1012g.htm. 
  2. "Fiat increases its interest in Chrysler Group LLC to 58.5%" (<<pdf). fiatspa.com. 2012. http://www.fiatspa.com/en-US/media_center/FiatDocuments/2012/January/Fiat_increases_its_interest_in_Chrysler_Group_LLC_to_58,5_per_cent.pdf. Retrieved 2012-01-05. 
  3. Peter Whoriskey (July 21, 2011). "U.S. concludes Chrysler rescue with sale to Fiat". Washington Post. http://www.washingtonpost.com/business/economy/us-concludes-chrysler-rescue-with-sale-to-fiat/2011/07/21/gIQAzPDZSI_story.html. 
  4. "About us". Chrysler Group. http://www.chryslergroupllc.com/company/Pages/AboutUs.aspx. Retrieved 22 February 2012. 
  5. "Chrysler Reviews and History". JB car pages. http://www.jbcarpages.com/chrysler/. Retrieved 2008-09-22. 
  6. Shepardson, David. "Bush on auto bailouts: 'I'd do it again'" The Detroit News. Retrieved February 7, 2012.
  7. 7.0 7.1 Glenn Kessler (June 7, 2011). "President Obama’s phony accounting on the auto industry bailout". Washington Post.com. The Washington Post. http://www.washingtonpost.com/blogs/fact-checker/post/president-obamas-phony-accounting-on-the-auto-industry-bailout/2011/06/06/AG3nefKH_blog.html. Retrieved February 10, 2012. 
  8. Financial Crisis Inquiry Commission, The financial crisis inquiry report (2011) pp. 375, 400
  9. "Court Approves Sale of Chrysler LLC Operations to New Company Formed with Fiat". News.prnewswire.com. http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/06-01-2009/0005035600&EDATE=. Retrieved 2009-06-06. 
  10. "Fiat May Increase Chrysler Stake to 51% Before IPO". Bloomberg BusinessWeek. http://www.businessweek.com/news/2011-01-04/fiat-may-increase-chrysler-stake-to-51-before-ipo.html. Retrieved 2011-01-04. 
  11. Higgins, Tim; Welch, David (2011-06-03). "Fiat Buys Rest of U.S.'s Chrysler Stake, Right to UAW Shares". Business Week. http://www.businessweek.com/news/2011-06-03/fiat-buys-rest-of-u-s-s-chrysler-stake-right-to-uaw-shares.html. Retrieved 2011-06-04. 
  12. "Fiat completes acquisition of Chrysler equity from Canada". Fiat. http://www.fiatspa.com/en-US/media_center/FiatDocuments/2011/July/Fiat_acquista_partecipazioni_in_Chrysler_del_Canada_e_del_Tesoro_Usa_ing.pdf. 
  13. Davis, Mike; Tell, David (1995). The Technology Century: 100 years of The Engineering Society 1895-1995. Engineering Society of Detroit. p. 53. ISBN 9781563780226. 
  14. Lockwood, Cliff (October 18, 1968). "Early Chrysler Corporate History: 1903 - 1928". Chrysler Club pages. http://www.chryslerclub.org/walterp.html. Retrieved June 28, 2010. 
  15. "A Brief Look at Walter P. Chrysler". WPC News. http://www.chryslerclub.org/walterp.html. 
  16. Malis, Carol (1999). Michigan: celebrating a century of success. Cherbo Publishing Group. p. 76. ISBN 9781882933235. 
  17. Kimes, Beverly R.; Clark, Jr., Henry A., eds. (1996). Standard Catalog of American Cars 1805-1942. Krause Publications. p. 292. ISBN 9780873414289. 
  18. Kimes, p. 257.
  19. Kimes, pp. 292, 1498.
  20. Zatz, David. "Chrysler Technological Innovations". http://www.allpar.com/corporate/technology.html. Retrieved 2008-01-05. 
  21. Yost, Mark (January 31, 2012). "A Nation of Drivers". The Wall Street Journal: p. D5. 
  22. Kimes, pp. 292–293, 901.
  23. Kimes, pp. 292–293, 901
  24. Kimes, pp. 296, 1156
  25. "Dodge Car History", Timeless Ride,
  26. "Chrysler Brands, Subsidiaries, and Related Companies", Allpar; http://www.allpar.com/cars/auto
  27. Though the first Humber was produced in 1898, Chrysler bought the company in 1967 and stopped production of the Humber the next year.
  28. "Chrysler History". JB car pages. http://www.jbcarpages.com/chrysler/history/. Retrieved 2008-09-22. 
  29. "Company News; Daimler-Benz and Chrysler Revise Ratio for Stock Swap". The New York Times. 9 June 1998. http://www.nytimes.com/1998/06/09/business/company-news-daimler-benz-and-chrysler-revise-ratio-for-stock-swap.html. Retrieved 2011-10-07. 
  30. ""Cerberus Takes Majority Interest in Chrysler Group and Related Financial Services Business for EUR 5.5 Billion ($7.4 billion)". DaimlerChrysler. http://www.daimlerchrysler.com/dccom/0-5-7145-1-858191-1-0-0-0-0-0-11979-0-0-0-0-0-0-0-0.html. 
  31. "Cerberus gains control of Chrysler". San Jose Mercury News. http://www.mercurynews.com/arts/ci_6534916. 
  32. "Daimler Reaches Agreement On Separation From Chrysler". April 27, 2009. http://online.wsj.com/article/BT-CO-20090427-717397.html.  Template:Dead link
  33. Ramsey, Mike and Kary, Tiffany. "Chrysler Assets Said to Have Little Net Proceeds for Creditors", Bloomberg, 2009-06-23, retrieved 2009-07-10.
  34. de la Mercel, Michael; Micheline Maynard (June 10, 2009). "Swift Overhaul Moves Ahead as Fiat Acquires Chrysler Assets". New York Times. http://www.nytimes.com/2009/06/11/business/global/11chrysler.html. Retrieved June 10, 2009. 
  35. Forden, Sara Gay; Mike Ramsey (June 10, 2009). "Fiat Said to Buy Chrysler Assets Today to Form New Automaker". Bloomberg. http://www.bloomberg.com/apps/news?pid=20601103&sid=a59MFT3OCDBs. Retrieved June 10, 2009. 
  36. "Breaking: Chrysler repays the rest of its federal loans... are SUVs to thank?". autoblog.com. http://www.autoblog.com/2011/05/24/chrysler-repays-the-rest-of-its-federal-loans-are-suvs-to-tha/. Retrieved 2011-05-24. 
  37. Healey, James R. (2010-04-21). "7 new Fiat models bound for U.S.; 9 Chryslers to go abroad". USA Today. http://www.usatoday.com/money/advertising/2010-04-21-fiat-splits_N.htm. 
  38. Drew Johnson (2011-02-15). "Chrysler to Bring Fleet Sales in-line with Industry Average". Left Lane News. 
  39. "World Motor Vehicle Production – World Ranking of Manufactures 2009". OICA. http://oica.net/wp-content/uploads/ranking-2009.pdf. Retrieved 2011-02-19. 

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