Chrysler is losing money by the truck-load, and its vehicles aren't selling, so common sense dictates that team Pentastar was going to start making cuts soon. That time is now, when Chrysler notified workers that it would be cutting 1,000 white collar workers. Chrysler spokesman David Elshoff told employees that the company would achieve its cut target through retirements, attrition, and buyouts, which means people won't be handed boxes and receive security escorts just yet. Chrysler management is making the cuts with the belief that the current economic situation here in the States isn't going to improve any time soon. A quick look at the Pentastar's car lineup shows the privately owned company would be in trouble even if the economy had a rosy outlook. No timetable was given for the white collar cutback.
During the recent What's New event at Chrysler's Chelsea Proving Ground, we had the opportunity to sample the new Dodge Challenger SRT-8. For the 2008 model year, Chrysler is only building SRT-8 versions of the Challenger with a combination of the 6.1L HEMI V8 and a five-speed automatic transmission. We first saw the production version of the Challenger earlier this year at the Chicago Auto Show and while we thought the styling was great with perfect muscle car proportions, it is undoubtedly a big car. The Challenger is built on Chrysler's LX platform shared with the 300 and Charger. Compared to the Mustang it looks huge and it hardly seems like it would actually feel sporty.
Fortunately, the dynamic behavior of large cars has made huge strides since the original Challenger went away in the mid-seventies. We first tried out the Challenger on the road at Chelsea before taking it for a hot lap around the evaluation track. The circuit was built back in the early '90s when a certain gentleman named Lutz was still occupying an office on the top floor of Chrysler's headquarters. It's basically a lovely little natural terrain road course, not quite as elaborate as the new road course that Maximum Bob built at the GM Proving Ground, but it's a good way to get a dynamic feel for a car. After lunch we had another opportunity to thrash the Challenger on the autocross course that Chrysler set up on the vehicle dynamics pad. Find out how the Challenger did after the jump, along with some video of our time behind the wheel.
Gas prices are up, which has led to increased interest in midsizers, more specifically, the midsize offerings from Chrysler's competition. The Sebring has taken a 30 percent sales whack this year, mostly due to reduced fleet sales. The Avenger's year has been a little brighter, posting a two-percent gain. Contrast that with everyone else; Malibu, Fusion, and Accord are up ten percent or more this year; and therein lies Chrysler's problem. Ditching Chrysler's outmoded V6 for the four-cylinder powertrain will deliver more competitive fuel economy, if you can stand the NVH increase.
Top heavy with trucks and taking fire over the Avenger and Sebring's interior quality and efficiency, Chrysler's seriously looking at re-jiggering the sedan twins, killing the top R/T and Limited trim levels and sliding some of the good stuff down to the SXT and Touring trim levels. The 3.5-liter V6 will be left out as standard equipment, though, as it doesn't post great fuel economy. The goodies that normally accompany the six, like heated leather power seats, dual exhausts, and 18 inch wheels, will end up as standard gear on the Sebring Touring and Avenger SXT. The prices of those models get bumped - 9.9 percent for the Dodge, now starting at $21,750, and 3.4 percent for the Sebring, offered for $21,670. What's up with the Avenger costing more than the Sebring? We don't know. The Journey is also being considered for this initiative, rumored to be called the "Fight Back" plan, and suppliers had until yesterday to give Chrysler a yes or no on feasibility.
We busted our humps getting to Podcast #100, and then promptly slacked off. Chris Shunk and Dan Roth make the effort this week to get Autoblog Podcast #101 out the door while the rest of the team remains difficult to corral. The usual banter about what's been in the Autoblog Garage starts us off before we dive headlong into the pithy GM news from earlier this week. Love it? Hate it? Send your comments, suggestions, or anything else to podcast at autoblog daht kahm. Thanks for listening!
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Click above for a high-res gallery of the Challenger Drag Race Package
This weekend, Dodge officially unveiled two Challenger Drag Race Package cars that made their inaugural runs down the 1/4 mile track in front of thousands of race fans at the Mopar Mile-High Nationals near Denver, CO. Based on the standard Challenger SRT8, each of the Drag Race Package cars features a completely stripped body that has the body sealer, sound deadener, and undercoat all removed. Additional components are also left out including the windshield wipers, HVAC system, air bags, rear seats, power steering, exhaust system, side-impact beams, rear bumper beam, and more. Further weight is saved by using composite and poycarbonate components, and overall a total of 1000 pounds has been shaved off the car.
Additional changes include repositioning the engine for a better driveline angle, a slightly shortened wheelbase, a bolt-in crossmember, and solid engine mounts. Engine options include the 6.1L and 5.7L HEMI or the 5.9L Magnum Wedge. Mopar will build at least 100 of the cars to meet NHRA requirement, and they will be eligible to run in Comp, Super Stock, and Stock categories. Pricing will start in the low $30,000 range, and Mopar will begin taking orders in late August or September. Full details can be found in the press release after the jump.
Click above for a high-res gallery of the 2008 Dodge Challenger SRT8.
For those of you desperately waiting for the next batch of Dodge Challenger SRT8s to be built after the announcement that the first 6,400 2008 models were already spoken for, fret not, supply is on your side. The Detroit News is reporting that while the majority of limited edition SRT8s were already sold before they were built, about one-quarter of the Challengers were set aside for dealer orders.
Several retailers across the U.S. have between two and twenty Challengers sitting on the lot, with one dealer advertising in Michigan's Macomb Daily that nine Brilliant Black, eight Hemi Orange and two Silver Metallic HEMI-powered coupes are available for the taking. Naturally, supply is dependent on where you live. One dealer in Naples, Florida sold out all eight Challengers in three days, while others have only sold only one out of their allotment. And just because you can find one, doesn't mean it will be selling for sticker. Markups are to be expected, with one dealer charging $45,145 – or about $7,000 – above the SRT8's MSRP.
UPDATE: We've been informed that the 0% financing for 72 months offer is only available for the 2008 Dodge Ram. Financing details for the 2009 Dodge Ram will be announced at a later date.
The 2009 Dodge Ram appears to be a top-notch competitor in the light truck market, but that won't keep the soon-to-be-released model from feeling the pinch of high gas prices. Chrysler told dealers in a July 8th conference call that the new Ram would be launched with 0-percent financing... for 72 months. To put this into perspective, an all-new $30,000 vehicle with 7-percent financing would translate into a $511 per month car payment over 72 months. With 0-percent financing, the payment would be only $417, for a savings of nearly $7,000.
When the 2009 Dodge Ram was unveiled to the public at the Detroit Auto Show, it was looked at as a potential savior for the Pentastar. Only seven months later and two months before its scheduled to go on sale, It's going to be launched with the same financing as the slow-selling outgoing model. Ouch.
With a name like Challenger, Dodge's new muscle car had better put down some serious quarter-mile times or else be able to propel itself into outer space. Fortunately, Chrysler's performance parts division Mopar is preparing to do one (if not the other) when it unveils its new Drag Race Package for the Challenger at the annual Mopar Mile-High Nationals at the Bandimere Speedway in Denver next week.
While specific details on the package – which we previewed in our exclusive video last week – remain scarce before the official debut, the Challenger Drag Race Package marks the 70th anniversary of Mopar and forty years since the company's last factory-built drag-race package. Based on the Challenger SRT8, the Drag Race Package features a composite "Body-in-White" direct from the factory and a host of lightweight components, to say nothing of all the parts being deleted for drag-strip use. The engine has been repositioned and the wheelbase actually shortened to optimize weight distribution and driveline angle. Designed in cooperation with the National Hot Rod Association (NHRA) and previewed back in 2006 by the 392 HEMI Dodge Challenger Super Stock concept at SEMA (pictured above), Mopar will build 100 examples of the race-prepped Challenger with three different engine packages available.
Stay tuned for more information on July 13, but don't blink or you just might miss it. Press release after the jump.
Most automakers are struggling with horrible US market conditions right now, but unlike competitors such as Toyota and Ford, Chrysler doesn't have sales in other areas of the world to fall back on. The Pentastar is looking to improve its fortunes overseas while also benefiting from low labor costs by partnering with the Great Wall Motor Company. The young Chinese automaker doesn't specialize in the small vehicles Chrysler needs here in the States, however, as the company's primary focus is on trucks and SUVs. The goal of the union is to share distribution channels, technology, and components, which should save both companies money in R&D and improve economies of scale. The deal is unrelated to a separate pact with Chery to produce a small, Dodge-branded car for sale in North America.
With sales down in the states by 28% in June, Chrysler appears to be in the most trouble of the Detroit automakers in the near term. Branching out to other markets to drive down costs and add sales could be the automaker's best hope for survival in the future.
Okay, we'll admit it. Most of us here at Autoblog aren't big NASCAR fans. But we have been intrigued by the recent migration of championship-winning open-wheel racers to the stock car series. Former Indy 500 and Monaco GP winner Juan-Pablo Montoya seems to be making a go of it, while fellow Indy and F1 champ Jacques Villeneuve has all but given up hope of ever making it with the good ol' boys. But how about Dario Franchitti? After winning both the Indy 500 and the IRL title, Franchitti made the move to NASCAR. Unfortunately, however, his skills in open cockpits have yet to translate to closed ones in the same way as they have for his Colombian team-mate, and his sponsorship cash in the top-level Sprint Cup has run dry after Coors Light dropped the No. 40 Dodge.
Team principal Chip Ganassi has had no choice but to shut down Franchitti's ride as a result. Ganassi emphasized that Dario is encouraged to continue in the second-tier Nationwide Series, and after Franchitti finds his speed again we hope to see him rubbin' bumpers and taking names back in the Sprint Cup soon. In the meantime he'll just have to take solace in the arms of his wife Ashley Judd... poor guy.
[Source: AutoWeek, Photo by Todd Warshaw/Getty Images]
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