Chrysler disbands ENVI electric car group

At last year’s LA and Detroit auto show, back when it was owned by Cerberus Capital Management, Chrysler’s concept cars were all electric, including a battery-powered Town & Country minivan, 200C sedan, Dodge sports car, and Jeep Patriot. The message was clear: electric cars would were to play a key role in the company’s future.
 
Now that the company has been bought by Fiat, it has announced new product plans that  focus on improving its conventional cars. (See "Chrysler’s business plan: The Fiat platforms.") Consumer Reports was not able to recommend a single Chrysler model from 2007 or 2008. For 2009, we were finally able to recommend the redesigned Dodge Ram pickup. (See “Detroit report cards.”)
 
Now Chrysler has emphasized its fresh product plans by disbanding its electric vehicle division, ENVI (short for environmental), announced last year. Chrysler says its electric car development will now be rolled into its standard product development, according to Reuters.

In Chrysler’s future product plan presentation earlier this month, company Chairman Sergio Marchionne said electric cars are expected to account for less than two percent of Chrysler’s sales by 2014, far less than the 300,000 envisioned under ENVI.
 
—Eric Evarts

NHTSA launches investigation of Jeep Grand Cherokee fires

After reports that the Jeep Grand Cherokees may be three to four times as likely to catch fire in a rear-impact collision than other midsized SUVs, the National Highway Traffic Safety Administration (NHTSA) has agreed to open an investigation.

Based on NHTSA data, the Center for Auto Safety (CAS) determined that the Grand Cherokee has a higher fatality rate than the Ford Pinto, which became infamous in the 1970s for bursting into flames in rear impacts.

The plastic gas tank in the Grand Cherokee is mounted behind the rear axle and hangs down below the rear bumper, making it vulnerable in accidents.

In 2005, Jeep redesigned the Grand Cherokee and moved the gas tank in front of the rear axle. This design reduced the likelihood of fires in these later Grand Cherokees, according to the CAS petition.

NHTSA investigations often lead to recalls, although they can take years.

Meanwhile, if you own a Grand Cherokee, the Center for Auto Safety says an optional skid-plate over the gas tank (available on Grand Cherokees with the off-road package) will provide some protection. 

 —Eric Evarts

Dodge's "Major Product Intervention"

Just how widespread are the problems with many current Chrysler products? It’s to the point where the company itself declared Wednesday that they will have a "Major Product Intervention" across the Dodge lineup. Many of these changes also affect their platform-mates in the Chrysler and Jeep brands.

That includes:

• A previously announced "all-new" interior for the 2010 Caliber, whose current interior one of us likened to "sitting in an Igloo cooler." It looks like the Caliber continues until 2012 when a new compact sedan comes on line; its Patriot and Compass platform-mates move to a Fiat-based platform in 2013.
• The Avenger midsized sedan also gets an all-new interior, a new engine, and better attention to noise and vibration isolation. That all happens later in 2010 with a new Fiat-based sedan coming in 2013.
• The Journey three-row SUV gets the same treatment as the Avenger in 2010, but it soldiers on through 2014.
• The Grand Caravan gets a whole new interior, a new engine, a complete suspension retune--with claimed "best-in-class" ride and handling--and more attention to noise, comfort, and features. A redesign comes for 2014. The Town and Country will see similar changes.
• The Charger claims to be "all new" with a "class-leading" interior, "class-leading" features, a new engine and "lifestyle oriented packaging." That comes in 2010.
• The 300 also gets a major update.
• The Nitro sees a "major modification" for 2011, but its future is uncertain beyond that. Its Liberty platform-mate will get a new platform and shed 600 lbs in 2013.

What do we take from this?

• Chrysler is pinning a lot on their new 3.6-liter "Pentastar" V6 engine, which replaces an array of other V6s across a wide variety of products and platforms.
• 2013 is a long time to wait for a new midsized sedan. Despite substantial modifications, the Avenger/Sebring sedans platform has limited potential. The cars are narrow and changing the roofline enough to improve visibility, a major complaint with those cars, is likely to be too expensive for an interim step.
• If you design interiors for Chrysler, you’re very, very busy right now.
• Chrysler once ruled the minivan segment, but they have their work cut out for them to beat the agility of the Honda Odyssey and the quietness and ride of the Toyota Sienna.
• Most of these products score near the bottom of our Ratings in their particular classes. While any improvements would be welcome, it’s very rare that even a major freshening transforms a design enough to propel it to the top of its class. The Ram was an exception to this rule.
• Finally, keep in mind that the competition isn’t standing still, either.

—Tom Mutchler

Also read: Chrysler's business plan: The Fiat platforms

Chrysler’s business plan: The Fiat platforms

Fiat-based platforms will have a big influence on Chrysler’s small and midsized products, based on a multi-hour presentation given today to the industry, media, and anyone else who wanted to monitor. Chrysler currently has no small cars, but by 2014, they will have three models based on two Fiat platforms, one being the 500.
 
The biggest platform shift is in the larger segments. According to Chrysler, this now has eight different platforms: 

• Wrangler
• PT Cruiser
• Compass/Caliber/Patriot
• Liberty/Nitro
• Sebring/Avenger
• Journey
• Dakota
• Viper

Click the links above for model overview pages featuring ratings and road tests, available to online subscribers.

By 2014, nine different products will stem from just two platforms – and one of those platforms is exclusive to the Wrangler. The Wrangler’s product line and reach will be extended, with major product modifications in both 2010 and 2011. Wranglers have an iconic image, they sell well, and their low-tech design is likely provides a handsome profit. While they perform well off-road, Wrangler’s don’t perform well on the road or in CR’s Ratings; the Wrangler is currently our lowest-scoring vehicle.

Wrangler aside, this means that eight products, covering vital products like midsized sedans and small and crossover SUVs, will all come from one Fiat Group platform. (Given that Dodge said that the Viper will be redesigned, perhaps this slide shown here from the presentation is short a platform for that low-volume street rocket.) While the decision isn’t finalized, the midsized Dakota may move to a unibody platform, like the Honda Ridgeline.
 
Moving to larger products, things remain pretty much status quo. Those platforms will continue to be sourced from Chrysler, with a large sedan platform (300, Charger, Challenger), a minivan platform, and another midsized SUV platform (Grand Cherokee, Durango). The Ram brand keeps its own platform—no surprise.
 
The first domestic-badged Fiat-based product is expected in 2012, a compact sedan sold by Dodge. That year will also bring Ram-badged large and small commercial vans, filling the big hole left from the Mercedes/Freightliner-shared Sprinter.
 
—Tom Mutchler

1993-2004 Jeep Grand Cherokee - Safety group calls for recall due to potential fire hazard

Jeep Grand Cherokees built between 1993 and 2004 are three to four times as likely to catch fire in a rear-impact collision than other midsized SUVs, according to a petition (download pdf) filed by the Center for Auto Safety. The document asks the National Highway Traffic Safety Administration (NHTSA) to recall the as many as 2.3 million of these Grand Cherokees still on the road.
 
“The fuel system in the 1993-04 Grand Cherokee is defectively designed in that it contains a plastic fuel tank subject to rupture, degrades in performance over time, a fuel filler neck that tears off in a range of crashes, a hostile environment with sharp objects such as suspension bolts that can puncture the tank, extends below the bumper and is unshielded,” writes CAS Executive Director Clarence Ditlow in the petition. (Ditlow also serves on the board for Consumers Union.)
 
Examining NHTSA data, the Center determined that the named Grand Cherokees were involved in 172 fatal fires, resulting in 254 deaths between 1992 and 2004. According to the petition, that is a higher fatality rate than for the Ford Pinto, which was subject to a similar recall in 1978.
 
An optional steel skid-plate, available for off-road applications, would protect the fuel tank, Ditlow says in the petition.
 
In 2005, Jeep redesigned the Grand Cherokee, and moved the gas tank in front of the rear axle. Only one of these later Grand Cherokees has been involved in a fatal crash involving a fire. In that case, the vehicle rolled over, and the occupants were thrown from the car, so the fire was not a factor in their deaths.
 
The petition filing indirectly raises an interesting question of whether the U.S. government now faces a conflict of interest as a vehicle regulator and an owner with a 10 percent stake in Chrysler, plus the majority stakeholder in General Motors. (Read: "Buzzword: Government Motors.")

So far NHTSA has not responded to the petition.

Update: Chrysler has posted a response on its corporate blog, excerpt below:

Statistically, rear impacts that result in serious injury are rare occurrences. Chrysler Group is confident that a proper study which considered all factors in all collisions including rear collisions with fire would show that the 1993-2004 Jeep Grand Cherokees perform as well as or better than other vehicles in their class.

The 1993-2004 Jeep Grand Cherokee meets or exceeds all applicable federal safety standards and, as noted, has an excellent safety record. There are many millions of 1993-2004 Jeep Grand Cherokees on the road whose owners and families continue to enjoy tens of millions of miles and hours of safe vehicle operation each year.

Also read the New York Times report "Asserting risk of Jeep fires, safety group urges recall."

—Eric Evarts

2010 Chrysler, Dodge, and Jeep owner's manuals go digital

Many owner’s manuals have grown to over 500 pages, clogging glove boxes, overwhelming readers, and killing trees. (Read “The Ultimate Reading Room - BMW owner's manual.”) Chrysler has announced for the 2010 model year, it will replace the traditional owner’s manuals with abbreviated 60-80 page guides and DVDs. The move will save a claimed 930 tons of paper, also known as 20,000 trees. Customers can also receive a printed manual for free, if desired.
 
The DVDs will provide instructions for the operating and maintaining the vehicle. Moving these publications into the digital era means that video can be used to show how features work. This can be particularly useful in demonstrating how to lower and raise a cloth Jeep Wrangler top--a tricky procedure for a new owner. Emergency-focused information, such as how to change a tire, will be included in the printed supplement.
 
As presented, this does sound like a good way to save resources and even shed fuel-consuming pounds from each vehicle. However, watching the video demonstration of the DVD has me wondering if analog manuals are quicker and easier to use. Just open, scan the index, and flip to the page. Any answer delivered in seconds. Flipping pages is certainly quicker than running into the house and firing up a DVD player or computer and clicking through menus. For those who truly venture off-road with their Jeeps, it would be a good idea to carry a printed manual among your essential survival gear.
 
Chrysler could take the digital concept further by making the owner’s manuals and videos available for access via smart phones. This would be the best of both worlds, providing instant access and multimedia, so long as there is cellular service. As an alternative, the digitized manual could be downloadable as an application. With either approach, any updates by Chrysler would be automatically made available to customers, rather than ship a supplement or new DVD.
 
I can see it now, tomorrow’s Wrangler driver will be armed with the proverbial bailing wire and duct tape while referring to an iPhone for instructions. At least the paperless manuals would be advancing the Tread Lightly cause.
 
—Jeff Bartlett

Chrysler restarts car leasing program

Yesterday, Chrysler announced its return to leasing, with special rates on the 2010 Chrysler Town & Country, Dodge Caravan, Ram 1500 pickup, and Journey, and the Jeep Liberty and Wrangler. Lease programs are available on all 2010 Chrysler, Dodge, and Jeep models.

The company also announced special purchase incentives on remaining 2009 models, including zero-percent financing and up to $4,500 cash back through GMAC. On 2010 models, up to $3,000 cash back is available with reduced-rate financing.

While leasing is convenient, we have found that it is almost always more expensive than financing. For more information, check out our advice on leasing versus financing. 

Before buying or leasing, be sure to check our ratings to see how vehicles perform in our more than 50 tests, safety, and reliability. Available to online subscribers, our interactive new car selector allows users to sort and filter vehicles by the factors that matter most. Remember: you’re buying a car, not a deal.

—Eric Evarts

Chrysler changes stance, it will accept product liability claims

In a reversal of its earlier position, Chrysler Group LLC has announced it will accept product liability claims for vehicles manufactured before Italian automaker Fiat took a controlling interest in the new company June 10. (See "Chrysler out of bankruptcy.")
 
The move has the potential to affect owners of millions of vehicles built before Chrysler filed for bankruptcy on April 30, 2009 and idled its factories.
 
As part of the bankruptcy agreement that led to formation of the new company, Chrysler Group LLC was absolved of liability for defects in vehicles built by the “old” Chrysler that might have led to accidents or injuries.
 
Company officials say the reason for the change is they now feel the business is more viable than originally thought, and that they want the public to feel more confident about buying their vehicles. (Read: "Chrysler bankruptcy leaves injured consumers without recourse" and "Chrysler bankruptcy affecting lemon-law payments.")

The company also says the new arrangement is more consistent with policy of General Motors following their bankruptcy. (Read: "What post-bankruptcy GM means to you.") 

Learn more about the auto crisis in our special guide.

 
—Jim Travers

Chrysler ends lifetime warranty for 2010

Chrysler Group LLC is discontinuing its lifetime powertrain warranty beginning with 2010 models. In its place will be five-year, 100,000- mile warranty. The new warranties will be transferable if covered vehicles are resold during the warranty period. The lifetime warranty was not transferable.
 
Powertrain warranties typically cover engine, transmission, and other driveline components. Some vehicles that were excluded from the lifetime warranty will now be covered, including the Dodge Viper and SRT performance models. Police, taxi, and some fleet vehicles will also now have coverage. The Dodge Sprinter van and Dodge Ram trucks with diesel engines will not get the new coverage.
 
Spokesman Rick Denneau says the company is making the change because market research indicated customers prefer a warranty with a fixed time limit. The lifetime powertrain warranty was introduced in the fall of 2007, and it replaced three-year, 36,000-mile overage.
 
In choosing your next car, the warranty protection can provide peace of mind, but be sure to check what it covers. And research the reliability for the company and model—a prime indicator of how much you may need to rely on a warranty and later, your checkbook, to keep a car running.
 
—Jim Travers

How do Chrysler's "Double Cash for Your Old Car" incentives add up?

Today, Chrysler rolled out a new incentive plan that offers rebates of up to $4,500 on most new 2009 models, targeted at drivers contemplating trading in an older model under the government’s "cash for clunkers" program. The Chrysler plan is being pitched as a way to double the federal incentives of up to $4,500 for a discount up to $9,000 on a new Chrysler, Dodge, or Jeep vehicle. But more than half the vehicles eligible for this Chrysler incentive will receive just $3,500 from the automaker, with just eight models qualifying for the full $4,500 including the Ram 2500 and Ram 3500. 

Comparing these new offers against the incentives available earlier this month show that the campaign is much more than a clever tag line. Chrysler is putting significant money on the hood, certain to help dealers clear the lots and make way for 2010 models. In many cases, the offer is at least $1,000 greater than what was available last week. The Chrysler PT Cruiser gets the largest boost, with $3,500 more on the hood.

Billed as "Double Cash for Your Old Car," the program runs through August 31, 2009. Drivers have the option of choosing 0-percent financing for up to 72 months instead.

The vehicles exempted from the new rebates are the Dodge Challenger, Jeep Wrangler, all SRT performance models, and the Dodge Sprinter truck. But buyers looking to trade for one of those models should take heart. Most of them, including both two- and four-wheel-drive versions of the Jeep Wrangler, are ineligible for the federal program anyway, because they fail to meet the minimum mileage requirement.

For a trade-in to qualify for the federal program, vehicles must have been registered and insured by the current owner for at least the past year, be less than 25 years old, and have an EPA overall fuel economy rating of 18 mpg or less. Drivers must trade for a new car rated at 22 mpg or better, or a light truck rated at 18 mpg overall or more, that makes a significant fuel economy improvement. (Learn more about cash for clunkers.) 

Tempting as a potential savings of as much as $9,000 may seem, our advice remains to look beyond the short term. There’s more to owner costs and satisfaction than a low purchase price. Chrysler vehicles have not performed as well as competing models in our recent testing, and our Annual Owner Survey results show reliability lags behind, as well. No current Chrysler, Dodge, or Jeep vehicles make our list of Recommended models. (See how Chrysler stacks up in our Detroit report cards.) 

Model	Overall EPA mpg range	New Chrysler incentives	Previous Chrysler incentive range
Chrysler 300	15-20	$3,500	$0 - $4,000
Chrysler Aspen	15-16	4,500	1 ,500
Chrysler PT Cruiser	21-23	4,500	500-1,000
Chrysler Sebring	20-24	4,500	0 - 500
Chrysler Sebring Convertible	20-23	3,500	1,500
Chrysler Town & Country	18-20	3,500	1,500-2,000
Dodge Avenger	20-24	4,500	500-1,000
Dodge Caliber	23-27	3,500	500-1,000
Dodge Grand Caravan	18-20	3,500	1,500-2,000
Dodge Charger	18-20	3,500	2,000-3,000
Dodge Dakota	15-18	3,500	1,000
Dodge Durango	15-16	4,500	1,500
Dodge Journey	17-21	3,500	1,500-2,500
Dodge Nitro	17-18	3,500	2,000
Dodge Ram 1500	15-16	4,500	2,500-3,000
Jeep Commander	15-16	4,500	3,000
Jeep Compass	22-25	3,500	2,000-3,000
Jeep Grand Cherokee	15-18	4,500	3,000
Jeep Liberty	17-18	3,500	2,000
Jeep Patriot	21-25	3,500	1,000-3,000

—Jim Travers, with Jeff Bartlett and Mike Dempsey