What the post-bankruptcy Chrysler means to you

A smaller and leaner Chrysler has emerged from bankruptcy and is now owned by a group that includes Italian automaker Fiat, United Auto Workers union, and the governments of the United States and Canada. So, what should buyers expect? Initially, the vehicles on the remaining showroom floors will be more of the same for at least 18 months, after which time the first new product from the Fiat alliance may arrive.

What are the new models to watch for?
Don’t expect changes to the Chrysler lineup for quite some time. It will continue to be skewed toward large vehicles, in the form of rear-drive, full-sized sedans and pickup trucks. Likewise, there is a lack of smaller, fuel-efficient models and hybrids. From Chrysler, the next models in the pipeline include the 2011 Jeep Grand Cherokee, then 2011 Chrysler 300C—traditional, large vehicles.

The first new Fiat model expected in the U.S. since 1982 is the 500, or Cinquecento, due in about 18 months. Already a hit in Europe, the 500 is a small, two-door hatchback with retro styling and seating for four. Often compared to the Mini Cooper, the 500 is slightly smaller.

We have also heard that the next-generation Caliber may be based on the Fiat Punto, and that the next Sebring might also be based on a Fiat platform. These small European models would complement Chrysler’s existing product line, which is biased toward large cars and trucks.

What does Fiat bring to the table?
Fiat can help Chrysler address its critical lack of small cars, by sharing powertrains, technology, and platforms, thereby enabling the truck-heavy American company to better balance its product portfolio. Any models considered for import will first need to be federally certified for U.S. sale, including both emissions certification and crash testing. It will be about 18 months or more before a Fiat product is sold in the States.

Should buyers be concerned about Fiat reliability?
It will take some time for Consumer Reports to gather data on new Fiats sold in the United States. But British consumer publication Which? Car ranks Fiat as 35 out of 38 makes in reliability. At 38th, Chrysler is at the bottom of their list. (Read: “Chrysler and Fiat reliability–Merger of equals?”) Be less concerned about Fiat’s decades-old reputation than its current performance.

Will Chrysler vehicles have the same warranty coverage as before?
We have not seen any announcements about a change in Chrysler warranty coverage post-bankruptcy. Their consumer Web site still lists a lifetime powertrain warranty and comprehensive coverage for the first three years or 36,000 miles, which is the same coverage the company offered pre-bankruptcy. Despite previous concerns to the contrary, the new Chrysler LLC will honor lemon law obligations on vehicles sold prior to the reorganization.

What about getting my car serviced?
Chrysler recently notified 789 dealers that their franchise contracts would not be extended beyond June 9. That is, they would no longer be authorized to service or sell Chrysler, Dodge, or Jeep vehicles. If your local dealership is one of the “rejected” dealers and you want to have your vehicle serviced by another authorized dealership, go to the automaker’s Web site and search for dealerships in your area. Alternatively, you can call the automaker's customer-assistance number: (800) 992-1997.

But you don't have to take your car to a dealership for regular servicing. A good independent shop should be able to handle routine maintenance and repairs. Moreover, independent repair shops are often less expensive than dealerships and, according to our Annual Auto Survey, generally provide a higher level of satisfaction.

You will need to go to a dealer to have a repair fixed under the automaker’s warranty or to have recall work performed. Since dealership mechanics are specifically trained to service its brand’s vehicle, you might also want to take your car to a dealership to have a proprietary system serviced, such as a GPS navigation or other sophisticated electronics system.

Should I buy a Chrysler product now?
Now that Chrysler is emerging from bankruptcy proceedings, its future is brighter than it has been in years, but they are not out of the woods yet. The company is offering some tempting sales incentives on many of its models, and dealers may be eager to negotiate. So, if you’re planning to keep a car for a long time and you’re not worried about resale value, now could be a great time to make a deal. But, keep in mind that no current Chrysler, Dodge, or Jeep is recommended by Consumer Reports, due to shortcomings in reliability and/or test scores. (See how the models compare in our interactive New Car Selector.)

We have been impressed with their newest model, the redesigned Dodge Ram pickup, and the Jeep Grand Cherokee due next spring looks promising. But good trucks alone will not save Chrysler. Eighteen months is a long time to wait for smaller, thriftier models from a rejuvenated Chrysler, and the company faces a challenge until its product portfolio is better aligned with consumer tastes. Before joining forces, both Fiat and Chrysler had issues with reliability and customer satisfaction. Combined, they will need to improve both along with offering more competitive products. (Read "Detroit report cards.")

We will continue to monitor this fast-moving story, reporting here in the Cars blog and also updating advice and news on the Auto Crisis hub.

Comments

[Carz]

With this recent collapse brought by GM, I just hope a good customer service database should be established to answer customer inquiries, such as those you stated above. I hope they do not overlook this important issue.

[Jay]

It is borderline insanity to even consider buying anything from Chrysler, Fiat or any other spin-offs. For the amount of public money being poured into this ridiculous arrangement, we should be entitled to receive a vehicle free of charge, and even then I would promptly try to unload my free vehicle in exchange for the tax money I have paid to nationalize this company.

[Jeremy Warriner]

The article mentions that warranties will be covered and that you should go to a dealer for all recall work, however, it doesn't mention the fact that Chrysler no longer has any liability for injuries caused by parts that should be recalled. I can only assume that this is part of why no current Chrysler Dodge or Jeep is recommended by Consumer Reports. Chrysler will pay to fix any part that is covered under warranty as long as that part doesn't injure or kill you, but they won't have to pay anything if that part does injure or kill you. What incentive do they have to issue recalls? And yes, our money has been used to give them this freedom.

[George]

I think that many of the car magazines and consumer reports have bashed the American cars and not rated them as well as they should be, thus contributing to their demise. There is a definate unfair bias towards Asian/Euro cars in most publications and this is the result. I have owned a Chrysler Grand Caravan for 10 years and 130k miles with little trouble. My friend had his Honda Odyssey transmission replaced and traded it in for a Toyota Sienna that has nickled and dimed him for 3 years. My Grand Caravan keeps on going.

[Ryan]

George please stop the nonsense. Dodge has some good products but to compare them to Toyota or Honda is simply a joke. I owned a Dodge Ram which gave me a plethora of problems. Since then I've owned a GMC which was the same as the Dodge. So I purchased a Tundra and never had one single problem. I traded that on a Titan and still have it. The Tundra and Titan are both great trucks. Dodge doesn't compare.

[Keith]

I have a 2000 durango and a 2003 dodge 1500 quad cab. both of which I would not trade for the world. other than a minor bug with the power lock mechanism in the hatch of the durango which was replaced under warrenty. I have not had trouble with either one.

[Zero]

I have a 2008 Dodge Avenger R/T. I got rid of a 2007 Camry V6 (hated it) and replaced it with the Dodge. Best car decision I ever made!!! Even the little things are covered with the Dodge. The Dodge's power window buttons light up so they can be seen at night but NOT the Toyotas. Handling is so much better with the Dodge. I don't understand why US manufacturers and especially Chrysler get such a bad rap. I am totally pleased with my Dodge. I'll never even consider a Toyota again.

[Ryan]

Wow, look at the Fiat, I mean Chrysler cheerleaders jumping on the bandwagon now. Keith, I am glad you being the minority have had little problems with your Dodge. Consumer reports, JD Power, Edmunds, and Intellichoice to name a few do not agree with you. Chrysler is crap and has always been the lowest ranked vehicles for reliability.

Zero, come on? Best decision? I guess if that's what you want to call it. You traded a great car with great reliability and residual value for one of consumer reports lowest rated sedans. As a matter of fact, in terms or reliability, you have the worst rated vehicle in its class. Congratulations! As for handling, well, that is subjective from driver to driver. Controls that light up, all mine did in my Tundra, and I know the Avalon’s do as well. But if lighted controls are what you based your decision on, I would have to say that is poor decision making on your part. Good luck and hopefully you purchased an extended warranty.

[Red Oscar]

Not having a crystal ball, I have no idea if Chrysler will honor warranties in the long term or not. However, we decided to "take a chance" and traded in our 1990 Astro Van for a new 2009 Dodge Caliber under the CARS rebate program. With factory incentives, we got the Dodge out the door for right at $11,000.

I know that the Astro Van was never one of CR's favorites, but we got 183,000 miles and over 19 years of nearly trouble-free service out of it. My initial perception of the Dodge quality is that I should have little problem getting 15 or more good years out of it. At the price we paid, I think it was a bargain; no matter what the outcome.

[David]

My brother's 1998 Chrysler Sebring has nearly 200k miles on it with only a battery replacement. I bought my 2006 Sebring Convertable based on his experience. Never a problem with it. In fact, I am now buying a 2009 Jeep Wrangler Unlimited because of Chrysler's reliablity and quality. Just lucky I guess.

[Jay]

Just a few words about Chrysler products...
CHRYSLER+TRANSMISSION=LONGTERM PROBLEMS