There were a lot of good pranks listed in our Best Car Prank QOTD, but one answer from PatFromGundo tops them all:

A few years back, I purchased a flagging Detroit automaker and told the world it was a "marriage of equals."

"Without the burden of the Smart brand, the Mercedes group would have achieved a record operating profit of more than 4 billion euros last year, or $5.34 billion at current exchange rates. Instead, the group posted a 2.4 billion euros, or $3.20 billion, operating profit."

Report: Smart cost DaimlerChrysler 3.9 billion euros over four years (sub. req.) [Automotive News]

Related:
Detroit Auto Show Preview: The Smart Cars Are Coming...Still; A Prospective Smartamino; Smart Reveals 2007 Fortwo [internal]

How To [Apple.com]

Related:
iPhone "Should" Synch With Ford's Sync Infotainment System [internal]

"making the rounds at Chrysler's design studios, pointing out in detail what he likes and what he doesn't like and doling out assignments to employees the way he used to when he was No. 2 at Chrysler to Dieter Zetsche, now Daimler's chief executive, people familiar with the matter said...Company officials have stressed that Mr. LaSorda will remain chief executive. Mr. Bernhard, however, is poised to have a prominent role, as well...A person familiar with the matter says he will answer to Mr. Feinberg, not Mr. LaSorda, on Chrysler's performance. Mr. Bernhard already has an office on the executive floor at Chrysler's headquarters."

...be reporting to Cerberus chief Stephen Feinberg. So if you're wondering what he'll be doing — it's really plainly obvious and you shouldn't be fooled by his title as "Adviser to Feinberg." In actuality, Wolfgang Bernhard is running the Chrysler Group. Remember, Wolfgang's got a two-year non-compete clause worked into his contract with Volkswagen. So, when he separated from the automaker representing Deutschland back in January, we knew then he wouldn't be able to take over the Chrysler Group outright without some kind of a workaround. The adviser role? Enter the workaround. – Ray Wert

A Familiar Face Back at Chrysler (sub. req.) [WSJ]

Related:
One Down: Wolfgang Exits Stage Left At VW, Will Chrysler Group's LaSorda Be Next? [internal]

Related:
All our sales figures coverage [internal]

The only question we've got for Wert is: Fake bake much there? The only question we've got for you is: How many drinks was that?

On The Money [CNBC.com]

Related:
All of our Official Car Pundit Drinking Game coverage [internal]

On The Money [CNBC.com]

Related:
All of our Official Car Pundit Drinking Game coverage [internal]

ABC's Good Morning America knows that Cerberus isn't a car company, so they're quick to point the obvious fact out this morning in their coverage of the unwinding of the "merger of equals." Because they're a private equity company in addition to never manufacturing a vehicle before, it means they're looking at making some money on this whole venture (as opposed to what traditional US auto manufacturers have more or less been submitting on earnings forms for the past couple of years) doing one of two things. They could decide to make money immediately, via selling the Chrysler group off part and parcel — or they could decide to look at getting Chrysler all fixed up again with Wolfgang Bernhard (now an adviser to the Cerberus Group) at the helm. We're more inclined to believe the second of the two options is the most likely course of action — what with Bernhard's involvement as well as the UAW's tacit blessing of the decision. But either way, we're feeling this story's going to be the gift that keeps on giving to the automotive news media and talking heads pundits for quite a while to come — or at least until UAW negotiations grind everything to a halt later this year. – Ray Wert

Good Morning America [ABCNews.com]

Related:
Lasorda E-mail on the Unmerger of Equals; Corporate Unmerger of E-mails: Dieter Style [internal]

More news from the top on the de-Americanization of the German-American hybrid. Chrysler CEO, Tom Lasorda has followed Dieter with an e-mail of his own, but with less management speak and more nitty-gritty. The shocker here is that Tom tells us there are no further cuts planned and no interruption in the UAW contracts. What? Cerberus will have to actually reorganize the company and make it functional? Weird. He also touches on the topic of DaimlerChrysler Financial, which will apparently be split up in the deal as well. Some speculation is already brewing regarding a possible merger of GMAC and the Chrysler Financial businesses, since Cerberus has control of both. This of course is based on nothing, but that's what makes speculation fun. The contents of the programs representing that 19.9% retained have also come to light, consisting of...

..."clean diesel engines, two-mode hybrids, fuel cells and other alternative powertrains that are especially important in this climate of rising consumer demand for more fuel-efficient vehicles. Other ongoing joint projects with Mercedes-Benz also will continue." So now I guess even though we'll no longer have a German-American hybrid, we will still have German-American Hybrids.– Ben Wojdyla

Dear Colleagues,

We are very pleased about the news today that DaimlerChrysler has signed a definitive agreement to sell Chrysler Group, including Chrysler Financial, to Cerberus Capital Management, L.P. I would like to take this opportunity to discuss this exciting news and what it means for the future of the Chrysler family.

We are confident that this transaction will create a stand-alone Chrysler that is financially stronger, with a winning combination of people, industry know-how, operational expertise and spirit of innovation that will accelerate the company's recovery and help us regain our position as a competitive industry leader.

As you know, DaimlerChrysler looked long and hard for the right partner for Chrysler in a competitive marketplace. We are confident that Cerberus is the right strategic buyer for Chrysler, with a long-term commitment to our growth and success. Cerberus has expressed great confidence in and respect for the people of Chrysler and our leadership team, and is committed to working constructively with both union leadership and Chrysler's management team to help us realize our full potential.

As a private (non-public) company, we will be better positioned to concentrate on our long-term plan for recovery, rather than on short-term results. With the financial strength and additional operational expertise brought by our investment partner Cerberus, Chrysler will renew its focus on what has always made us special: the passion, creativity and commitment of our employees, suppliers and dealers to delivering exciting Chrysler, Jeep and Dodge vehicles and quality Mopar parts to our customers.

The finance arm — DaimlerChrysler Financial Services Americas — also is affected by this decision. The most important piece of information is that Chrysler Financial will continue to support us and our dealers. However, the framework for DCFS will change. The company will be split up into two legal entities with Chrysler Financial as one company and Mercedes-Benz and DaimlerChrysler Truck Financial as another.

Our future success will be supported by our continued relationship with Daimler. We will continue to work together on technologies to bring even better products to our customers. In particular, we will continue to collaborate on technologies for clean diesel engines, two-mode hybrids, fuel cells and other alternative powertrains that are especially important in this climate of rising consumer demand for more fuel-efficient vehicles. Other ongoing joint projects with Mercedes-Benz also will continue.

For those of you who may not be familiar with Cerberus, it is one of the leading private investment firms in the world, with approximately $23.5 billion under management in funds and accounts. Currently, Cerberus has significant investments in more than 50 companies that, in aggregate, generate more than $60 billion in annual revenues worldwide, including Air Canada and GMAC. Cerberus is highly respected for its long-term investment horizon and focus on value creation. In addition, Cerberus has a team of experienced operational professionals that includes industry veterans with management backgrounds in the automotive industry.

You should know that there are no new plans — other than those previously announced — to reduce headcount. There are no additional job cuts planned in connection with the transaction announced today. This announcement also will not impact the provisions of the early retirement and buyout packages previously announced.

Additionally, we do not foresee any impact on current union contracts; all of the collective bargaining agreements remain in place, and the upcoming negotiations will take place as scheduled. Cerberus has worked together with unions in the past, and recognizes the important role they play for Chrysler.

The transaction is expected to close this summer. In the meantime, we will continue to operate under the vision established by the Recovery and Transformation Plan (RTP), which will return us to profitability in 2008 and will deliver 2.5 percent return on sales by 2009. There are several forward-looking elements in the RTP that take into account the realities needed to succeed in the global marketplace. We must grow our brands with strong, customer-focused products. We must defend our areas of strength in the North American markets, while growing internationally. And we must continue to build with alliances, partnerships and innovative approaches to our business challenges.

Also attached to this message is a Q&A document with answers to other questions you may have today. In addition, you should expect frequent communication from the leadership team as this process moves forward.

As a stand-alone company, with strong backing from Cerberus, we must demonstrate once and for all that we can win in this global marketplace. It is ours to win. And we have it in our DNA to do just that.

On a personal level, as a fourth-generation Chrysler employee, this is a dream come true for me to be given an opportunity to work with you to restore Chrysler back to greatness. It will take hard work, but I know that I can count on you to do whatever it takes to get the job done.
Sincerely,
Tom

Related:
Corporate Unmerger of Emails - Dieter Style

May 14, 2007

Dear Colleagues,

This morning, we announced Cerberus will take an 80.1% equity position in Chrysler and its related financial services business, with Daimler retaining the remaining 19.9%. Following a relatively short but very carefully prepared and thorough review of options, we're confident that we've found the best solution for Chrysler and for Daimler. We are now working hard to formally conclude our agreement as quickly as possible.

Endorsing this decision is the toughest thing I've done in my professional career. Like so many of you, I have made a personal investment in and commitment to both Chrysler and Daimler. And this is exactly the reason that we explored all options to find the best solution for Chrysler's long-term future.

That said, I firmly believe this is an exciting day for Chrysler. It's a new beginning. Backed by a strong partner in Cerberus, Chrysler, as a privately held company, has the best opportunity for success and to realize its full potential.

Chrysler will be more agile and flexible. You'll also be better-positioned to seek out the automotive partners that best fit your needs. You can more sharply focus on the continued implementation of the Recovery and Transformation Plan, the first results of which we can already see.

Daimler and Chrysler will continue to work together, now as business partners, on key joint programs including procurement, powertrain development, logistics and financial services. Through a Joint Automotive Council, we'll coordinate and evaluate current and future programs that can help drive our mutual success.

You should all be proud of what you've accomplished in recent years at Chrysler. You've made significant gains in productivity, quality and cost reduction; launched a record number of new products; and fought it out in the toughest market in the world. You've built the strongest of the North American-based auto companies. I'm personally very proud to have been a part of that.

I know the road ahead won't always be easy. It never is. But I'm confident that Chrysler will come back strong as it has done so many times in its long history. And I look forward to working with Chrysler, our new business partner under Tom's able leadership, in the years ahead.

I wish you all every success.

Sincerely,

Dieter

Related:

Speculation No More! Chrysler Group Sold To Cerberus Capital Management!

Chrysler Group to Be Sold for $7.4 Billion [NYT]

Related:
All of our Chrysler Group Sales Speculation coverage [internal]

Russian billionaire buying Magna stake [Report On Business]

Related:
GAZ-ooks, Check Out The Plastic Rims! Russian Automaker Unveils Tiger-2 SUV Concept; Breaking Crazy Chrysler Speculation! Chrysler Swap For GM Ownership Stake; GAZ To Buy Or Not To Buy? [internal]

Despite the fact the German side of the German-American hybrid no longer wants anything to do with the 'merican side, the 'mericans are still trying to feel pretty inside. That's why they've released a set of four new ads touting their vehicles as being "engineered beautifully." That phrase apparently is the distillation of the fact that "...at its core, the Chrysler brand stands for stylish products, agile performance, refined quality and the confidence of being proud without being arrogant." Well, considering the fact that they're now seen as being Daimler-Benz's little whipping boy, I somehow don't know how much I agree with the fact that they're looking all that "proud" now, much less "arrogant." And don't even get us started on "agile performance" and make us bring up the new Sebring. But whatever it takes this jilted lover to get through the day, you know? Full release below the jump. – Ray Wert

Chrysler Brand Debuts Campaign with New "Engineered Beautifully" Theme Line Auburn Hills, Mich., May 7, 2007 -

Stunning design and innovative technology take center stage in the new Chrysler brand TV and print ads, which break on May 8, featuring the new theme line "Engineered Beautifully."

"More than 80 percent of the Chrysler brand product portfolio is all-new or refreshed in the last 12 months with the recent introduction of the all-new 2008 Chrysler Sebring Convertible and the debut of the all-new 2008 Chrysler Town & Country later this year," said David Rooney, Director - Chrysler Marketing and Global Communications, Chrysler Group. "This is the perfect opportunity for us to showcase that there is more behind the sheet metal and distinctive style, and that every Chrysler possesses world-class quality and engineering at an extraordinary value."

Additionally, the all-new 2008 Chrysler Sebring Convertible marketing launch is May 8. The Sebring Convertible ads mirror the tone and style of the new Chrysler brand creative.

The all-new Sebring Convertible offers a sleek and elegant design, exhilarating performance with excellent fuel efficiency and a spacious interior. It also offers what no other convertible has offered before - three automatically latching convertible top options: vinyl, cloth and a body-color steel hard top, all of which can be retracted with a push of a button on the key fob.

"Chrysler is, and always has been, a brand made by and built for people with a passion for great cars," said Rooney. "Products like the 300 and Town & Country put us at the forefront of the industry in terms of style and design. At the same time, we have made great strides to become competitive and even surpass our competition in terms of quality and engineering. While we have made great strides, the perception has not caught up with reality in the marketplace. Our new communications direction will help get that engineering message across."

At its core, the Chrysler brand stands for stylish products, agile performance, refined quality and the confidence of being proud without being arrogant. The new Chrysler brand direction will communicate these core values through a unique combination of both striking design and innovation technology. Overall, Chrysler promises superior engineering and stunning designs built around customer's needs ... at a price that will surprise and delight. No other manufacturer can make this claim. It's the way our vehicles come together that sets us apart. Simply put, Chrysler vehicles are ... Engineered Beautifully.

Following are descriptions of the new broadcast spots, including those for the Chrysler brand, Chrysler Sebring sedan, Chrysler Sebring Convertible and Chrysler 300.

Technology Throughout (Chrysler Brand :60)
This lead spot focuses on the innovative features within every Chrysler vehicle and the engineering behind those features. It uses a unique and original CGI technique to showcase the technology and engineering behind key features that enable Chrysler vehicles to seamlessly adapt to everyday driving situations.

The vehicle is slowed down on the film at the very instant that a feature is engaged. The viewer is then taken inside to see the technology and craftsmanship that lies beneath. This spot showcases and links together the Chrysler 300, Aspen, Sebring Convertible and all-new Town & Country, along with shared technology of Multi-displacement System (MDS), Electronic Stability Program (ESP) and MyGIG™ Multimedia Infotainment System. It closes with a shot of the Chrysler brand lineup and the new tag line "Engineered Beautifully."

Taking Care (Sebring sedan :30)
This spot clearly demonstrates how every Chrysler Sebring sedan is meticulously designed and built to meet the everyday needs of customers through purposeful technology, not superficial features. It also shows how each feature has been designed and incorporated to further enhance their driving experience.

This commercial begins with the customer. The car and its features build around the customer piece by piece, via a unique CGI technique, as they interact with the various features of the vehicle. At the end, all the pieces come together to deliver the best possible driving experience - a beautiful "custom built" Sebring sedan.

Key to Happiness (Sebring Convertible :30)
This commercial features a highly energetic and emotional execution of the new brand essence. The Sebring Convertible is featured in a stylized setting designed to showcase its beautiful design and advanced engineering. The main product features are set in unique type on black art cards to maximize impact. The emotional music track provides a consistent undertone for the overall message of styling, design and technology.

The commercial begins with a shot of the all-new 2008 Sebring Convertible, showcasing its beautiful styling. The new Convertible hard top is shown along with the unique art cards to match. We see a few of the new technological features of the vehicle as well. These features, technological advancements and stylish design messages culminate to invite the consumer to hold the key to happiness.

Success (300 :30)
This commercial maintains a consistent tone with the Sebring Convertible "Key To Happiness" spot as it features the beautiful Chrysler 300 in a stylized setting. The main product features are set in unique type on black art cards to maximize impact. The emotional music track provides a consistent undertone for the overall message of styling, design and technology.

The commercial begins with a reveal of the distinctive front end of the Chrysler 300. As the 300 approaches the city, art cards are displayed showcasing the many premium features it has available. The spot culminates in a bold statement that captures what the Chrysler 300 is all about.

Multiple vehicles (300/PT Cruiser/Sebring Sedan :30)
Again, keeping with the tone of "Key to Happiness" and "Success" this spot features the Chrysler 300, PT Cruiser and Sebring sedan in beautifully attractive and stylized settings that capture the essence of what the Chrysler brand is all about. The main product features are set in unique type on black art cards to maximize impact. The emotional music track provides a consistent undertone for the overall message of styling, design and technology.

This commercial communicates the Chrysler brand's leadership in fuel efficiency, as well as its commitment to building quality vehicles that are unique in their distinctive styling and incredible value. No more is that present than with the award-winning 300, the technologically advanced Sebring sedan, and the stylish, yet functional PT Cruiser.

The television schedule features prime-time network and cable shows such as Grey's Anatomy, Boston Legal, Ugly Betty, Dancing with the Stars, Conan O'Brien, The Tonight Show, NBA Playoffs, Big Break 7, Larry King, Anderson Cooper, Nancy Grace, Headline News, Law and Order CI, Law and Order SVU and Dog Whisperer. The ads will also appear on other channels including TNT, TBS, Food Network Style Network, ESPN, CNBC, Fine Living Network, Bravo and The Golf Channel.

The print ads follow the same creative direction for a consistent tone and message. Product is the star with bold photography on colorful backgrounds along with highlighted technology features. The Chrysler print ads will run in Automobile Magazine, Aspen Peak Magazine, Car and Driver, Food Wine, Forbes, Golf Digest, Golf For Women, Jet, Martha Stewart Everyday, Motor Trend, National Geographic, The New Yorker, Road and Track, Southern Accents, Sunset, Tennis Magazine, Traditional Home and Travel and Leisure.

In addition to the new advertising, the Chrysler brand will showcase the all-new Sebring Convertible through two programs done with Hearst and Forbes magazines. The Hearst Awaken Your Senses program includes advertising, Web activity (www.awakenyoursenses.com), product displays and test drive components with the grand prize of an all-new 2008 Chrysler Sebring Convertible. The Chrysler brand is also the exclusive sponsor of one chapter of the Forbes 90th Anniversary Issue and Networking Special Report covering lifestyle elements surrounding careers, entertainment, leisure and design.

Chrysler Brand
Driven by award-winning new models, the Chrysler brand has seen a dramatic increase in sales, market share and brand image. Since 1990, Chrysler brand sales have more than tripled. No other American automotive brand has grown as much during the same time frame.

The Chrysler brand's succession of innovative product introductions continues to solidify the brand's standing as the leader in great design, purposeful technology and value. With the launch of the all-new 2007 Chrysler Sebring sedan and the 2007 Chrysler Aspen - the first-ever full-size sport-utility vehicle for the brand - the momentum is sure to continue with the launch of the all-new 2008 Chrysler Sebring Convertible and 2008 Chrysler Town & Country.

Exklusiv: Magna einziger Bieter für Chrysler [Automobilwoche via CNBC.com]

Related:
Chrysler Group Sales Speculation: UAW Mulls Chrysler Bid, CAW Says "Hell No!"; Chrysler Group Sales Speculation: Magna Confirms "Involvement"; Chrysler Group Sales Speculation: Some Guy In London Says Chance Of Chrysler Group Sale "Very Low" [internal]

"We're not interested...the workers already have everything invested in that company today including their jobs and their pensions."

UAW weighs Chrysler bid [Detroit News]

Related:
Chrysler Group Sales Speculation: Magna Confirms "Involvement"; Chrysler Group Sales Speculation: An Inconvenient Sale? [internal]

Magna Confirms Involvement in Potential Sale of Chrysler Group

AURORA, Canada, April 13 /PRNewswire/ — Magna International Inc. (TSX: MG.A, MG.B; NYSE: MGA) today confirmed that it continues to review potential alternatives regarding the future of the Chrysler Group. Magna has previously commented that, as DaimlerChrysler is one of its largest customers, Magna is seeking a full understanding of the situation regarding the future of the Chrysler Group, and any constructive role Magna may play in a potential transaction.

There is no assurance that any transaction will result from Magna's current involvement.

Related:
Former Chrysler CEO Rips Into "Clueless Bozos" — Err — The Bush Administration; Chrysler Group Sales Speculation: An Inconvenient Sale?; Chrysler Group Sales Speculation: Some Guy In London Says Chance Of Chrysler Group Sale "Very Low" [internal]

Column: Gore should make a play for Chrysler [MLive]

Related:
Chrysler Group Sales Speculation: Some Guy In London Says Chance Of Chrysler Group Sale "Very Low" [internal]

"Achieving an appropriate buyer and right price will not be an easy task...We believe the possibility of Chrysler being sold is very low and the current valuation level of the common stock is not sustainable."

Report: Analyst rates chances of Chrysler sale "very low" [Detroit News]

Related:
Chrysler Group Sales Speculation: It's Not So Much The Size Of Your Offer As What You'll Do With It [internal]

"The Chrysler brand probably needs the most work — its perception now is "vaguely premium" — and the company has too many similar models, he said, citing the Dodge Durango and Chrysler Aspen. Management tried to stretch the Jeep brand too far...with the Commander hurting the Grand Cherokee and the Jeep Compass competing with the Dodge Caliber...Jeep's crown jewel, the Grand Cherokee, has been ignored..."

...the Dodge brand and the iconic Ram pickup, right? Oh wait: "..the Dodge Ram should be redone so it can compete again as a key player in the full-size-pickup segment. The last time the model got a total redo was in 2001; it is the oldest in Detroit."OK, so we're beginning to wonder why anyone would want to be buying this company — maybe they really like the PT Cruiser? – Ray Wert

For $7 Billion, You Get Chrysler ... and a Marketing Quagmire [AdAge]

Related:
Chrysler Group Sales Speculation — Taken For A Ride II: Judgement Day; Breaking! Kirk Kerkorian's Tracinda Offers $4.5B To Purchase Chrysler [internal]

CNBC has learned people friendly with Tracinda Corp. have had cursory discussions with the UAW regarding a possible purchase of Chrysler.

Tracinda feels there's genuine interest among the leadership of the UAW about taking an equity stake in Chrysler.

On The Money [CNBC.com]

Related:
Chrysler Group Sales Speculation — Taken For A Ride II: Judgement Day; Breaking! Kirk Kerkorian's Tracinda Offers $4.5B To Purchase Chrysler [internal]

CNBC reported a little earlier this morning that a private equity group along with Canadian supplier Magna International's readying, or already has submitted, a bid for the Chrysler Group of between $4.6 and $4.7 billion dollars. Just wanted to tell you so that you can get ready to start blaming Canada for something more than that hockey hullabaloo and that bitch Anne Murray. – Ray Wert

Magna, Partner Offer to Buy Chrysler Stake For $4.7 Billion: Analyst [CNBC.com]

Related:
Even More Chrysler Group Sales Speculation: Jedi Council Edition [internal]

"Article 1 of the Articles of Incorporation, currently worded

"The name of the corporation is DaimlerChrysler AG. The registered office of the corporation is in Stuttgart."

is amended as follows:

"The name of the corporation is Daimler-Benz AG. The registered office of the corporation is in Stuttgart."

Reason: Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products. This is all the more true as unflattering nicknames such as Doting Daimler, Daimler-Crisis or even Crime-ler have long been in circulation. The disadvantages this entails for shareholders, customers and employees can only be borne at most for a short transition period until there is a proper separation from Chrysler. If a proper separation cannot be effected within one year, this would only serve to underscore the need to remove this affliction on the image from the corporation's name.

DaimlerChrysler Looking to Change Name [Kicking Tires]

Related:
More Chrysler Group Sales Speculation: Bernhard's Back On The Back Of A Three-Headed Dog; Continuing The Chrysler Group Sales Speculation: What Gettelfinger Wants, Gettelfinger Gets! [internal]

Cerberus gets Bernhard to advise on Chrysler bid [Reuters]

Related:
Continuing The Chrysler Group Sales Speculation: What Gettelfinger Wants, Gettelfinger Gets!; Even More Chrysler Group Sales Speculation: Jedi Council Edition [internal]

"We want to keep Chrysler Group in the family...I'm not ready to concede Chrysler Group is going to come out of DaimlerChrysler."

Report: UAW president says Chrysler shouldn't be sold [Detroit News]

Related:
Even More Chrysler Group Sales Speculation: Jedi Council Edition; More Chrysler Group Sales Speculation: SAIC Doesn't Want Your Damn US Auto Manufacturer! [internal]

With a starting price of $14,985, Patriot displaces the Compass, its platform prostituted sister, as the new entry-level price point for the Jeep brand. Just in case you've forgotten what the mini-Commander looks like, gander at the gallery below. For those of you who do remember, let's continue. The ad campaign for the Patriot's going to be all about "Choosing Your Own Adventure" which forms a nice little acronym that could just as easily stand for "Cover Your Own Ass," which very well could be the reason the trail-rated version of the Mitsubishi GS even exists. From the first spot we've seen, called "Wolf" (above) we're a bit curious about one thing — if the Patriot's supposed to be the "male version" of the Compass, why the hell does it have a girl using a wolf to kick the ass of two hapless guys? Just sayin'...full press release after the jump. We hear there's a conference call for this badge-engineered ad campaign, however we're afraid we may vomit if we're forced to listen in. – Ray Wert

An Offer to "Choose Your Adventure" and an Online Interactive Film Drive the Marketing Campaign for the all-new 2007 Jeep Patriot

* Unique film helps viewers experience the features and capabilities of the Jeep Patriot
* TV spots, print ads and online ads are among other elements launching March 15
* "March Madness" media will play a big role in the campaign

Auburn Hills, Mich., Mar 12, 2007 - For the second time in as many months, the Jeep brand has created a cutting-edge Internet experience designed to provide consumers an online immersion into the features and capabilities of the all-new 2007 Jeep Patriot compact sport-utility vehicle (SUV).

In February the Jeep brand and Marvel Comics unveiled "The Patriot Factor," an online adventure comic book whose story line is being provided by consumers at www.patriotadventure.com.

Today, as part of the nationwide marketing launch for the Jeep Patriot, the brand introduced "The Way Beyond Trail," an online interactive film. Consumers can join three characters who drive a Jeep Patriot while www.patriotadventure.com searching for a buried treasure. Consumers directly impact the evolution of the plot through their viewing choices, making "The Way Beyond Trail" a unique and truly interactive experience.

Product features of the Jeep Patriot are integral to the story line. In one scene, for example, the lead female charactor invites a group of people to a tailgait party by cranking up the music on the Patriot's two articulating speakers packaged in the liftgate.

"'The Way Beyond Trail' and 'The Patriot Factor' combine the timeless magic of story-telling with the power and reach of the Internet," Jay Kuhnie, Director-Jeep Communications, said. "Both applications allow us to engage prospective customers of the Jeep Patriot in an environment that is interactive and entertaining, which resonates well with them."

"The Way Beyond Trail," which goes live on March 15 at www.patriotadventure.com, is a unique element of the marketing campaign for the 2007 Jeep Patriot. The campaign also includes two new 30-second TV spots, print ads, online advertising, a Hispanic campaign, product integration, events, direct mail, billboards and other out-of-home elements.

Overall, the theme of the Jeep Patriot marketing campaign, "choose your adventure," is reinforced within the major elements of the campaign. For example, "The Way Beyond Trail" has 44 scenes (ranging from 15-30 seconds in length) and participants choose their path through the adventure.

Even the print ads allow readers to choose how they will interact with them.

Ultimately, the campaign theme takes its cue from the 2007 Jeep Patriot. That's because the all-new vehicle delivers the fun, freedom, utility and best-in-class Jeep 4x4 capability that allows anyone to "choose your adventure."

"The Jeep Patriot is targeted at young, active men and women who always wanted a Jeep but couldn't afford one," John Plecha, Director - Jeep Marketing and Global Communications, said. "Now, these consumers can choose their adventure in a Jeep Patriot because it delivers the Jeep experience at an affordable starting price - $14,985."

Among the key elements of the campaign are:

Media
From now until April 1, Jeep Patriot advertising will be prominent wherever there's news about March Madness, the NCAA Men's College Basketball Championship. For example, sports-themed banners about the Jeep Patriot will appear on virtually every Web site devoted to sports, including ESPN.com, SportingNews.com, SportsIllustrated.com, as well as the home pages of AOL and Yahoo, among others. The two TV spots will get frequent airing on TV sports programming such as CBS Sports, College Sports TV, Fox Sports and College Hoops Network. Print ads already have appeared in USA Today and will continue during March Madness.

The Way Beyond Trail
The main characters are Gary, Srini and Jodi. (The same trio appears in the TV commercials for the 2007 Jeep Patriot.) Each online participant becomes the fourth member of the group of friends on a backwoods camping trip. The story starts around a campfire when Gary reveals an old family treasure map handed down from his uncle. The three friends, plus the viewer, decide they'll be the ones to find it.

It is possible to complete the adventure without viewing all 44 scenes. Part of the challenge and fun is that some scenes are dead ends. However, players can simply go back and make a different choice to keep the story going. There is only one correct path that leads participants to the ending scene of the interactive film.

Participants can customize their experience by uploading photos and personal information that will reappear as embedded content within the film.

There is also a viral component. Participants have the option to provide an Emergency Contact person (name and e-mail address) in the event they get "lost." On the first instance of encountering a dead end, an e-mail is automatically sent to their Emergency Contact, inviting them to try their own luck on "The Way Beyond Trail."

TV Spot Descriptions
"Wolf" - At a riverside campsite, Gary and Srini pull a prank on Jodi by taking her canoe from the roof of her 2007 Jeep Patriot. As they head to the river to make their escape, Jodi can't awaken her male partner. So she fires up the Jeep Patriot and pursues the pranksters on a path that goes parallel to the river. After driving through rugged terrain which the Jeep Patriot handles effortlessly, Jodi stops ahead of the fleeing canoe. On the opposite bank of the river she spots a wolf on a rock. She takes her forefinger and thumb and puts them in front of her face. She picks up the wolf with her fingers and drops it into the canoe. Terrified, Gary and Srini jump into the river and escape.

"Wake Up" - The interior features of the Jeep Patriot are highlighted as two campers load their gear into the rear of the vehicle. A third camper, however, is asleep in his tent. Nothing rouses him: not his friends raising the volume of the Patriot's MP3 player, or pointing the flip-down speakers directly at the tent and blasting music. Finally, one of the campers takes his forefinger and thumb and puts them in front of his eye and picks up the guy's tent. He lifts it over the water and dumps his friend into the lake.

"Wolf" will first air on March 15 during the NCAA Men's College Basketball Tournament. "Wake Up" debuts March 20. Both will run on sports, music, entertainment and news programming, on late-night shows, and on networks such as Fox, ABC, NBC, E!, MTV and FX.

"Animales" is the title of the TV campaign targeted at Hispanics. There are two Spanish-language 30-second TV spots scheduled to start airing in April on Univision, Telefutura, Galavision, ESPN Deportes, GolTV, LatiNation and Mun2.

"Mosquito" - A chameleon is interrupted by his friend the mosquito moments before he prepares for lunch. The mosquito explains how he noticed a new animal — the Jeep Patriot — in the forest. Intrigued, the chameleon follows and tries to make it his next meal. As the Jeep Patriot drives through the forest, showcasing the capability of its Freedom Drive II Off-road Package, the mosquito follows it's every move. Just as mosquito begins his final approach the Patriot kicks up mud in his face and the mosquito flies blindly into a tree head first.

"Weasel" - An amorous weasel wanders through the forest and stumbles upon a new animal — the Jeep Patriot — which seems to be singing a beautiful song. The Weasel eagerly approaches the Patriot, admiring its classic angles and modern features, such as the rear-liftgate speakers which projects the beautiful song throughout the forest. The Weasel is overcome with emotion and falls in love with the Jeep Patriot.

"Family Tree" is a print ad in English and Spanish that will appear in such Hispanic publications as Billboard Latino, F tbol Mundial, Latino U, Urban Latino, Fox Sports en Espa ol, ESPN Deportes, among others.

Print Ads
There are two versions of an ad called "Connect the Dots." Each has a photo of the Jeep Patriot in a field of dots that are assigned to numbers. One set of numbers and dots is red, the other is blue. Readers can choose to connect the red dots or the blue one. Each yields a different image.

The other print execution is a full-page spread with a sticker insert. There are two versions of this ad. One spread shows a forest scene. It is divided by an insert that has stickers on both sides. The stickers are removable pictures of the Jeep Patriot, plus people, clothing and gear that would be found in a forest. Readers can remove the stickers and arrange them any way they want on the forest page. The possibilities for this version of "choose your adventure" are limitless. The second version of this ad uses a beach scene, with related stickers that also can be placed wherever the reader likes.

A sampling of the print placements includes sports publications (Sports Illustrated; ESPN, the annual March Madness Preview Section of USA Today), music (Rolling Stone, and Spin,), men's lifestyle (Maxim, Details, GQ, Men's Health,) outdoor/adventure (Surfer, Four Wheeler, Runner's World) and women's lifestyle (Jane, Marie Claire, Cosmopolitan).

Jeep Brand
With the introduction of the Jeep Patriot, the Jeep brand has expanded to seven models in the 2007 model year, the most available to retail consumers at one time in the brand's 66-year history.

At the start of 2004, the brand's trio of tough, capable, rugged SUVs included the venerable Jeep Grand Cherokee, Jeep Liberty (Cherokee outside North America) and the icon of the brand, the Jeep Wrangler. In 2005, the Jeep Commander was introduced. In 2006, the redesigned Jeep Wrangler was unveiled. Also debuting in calendar year 2006 were three more all-new Jeep vehicles: Jeep Patriot, Jeep Compass and the four-door Jeep Wrangler Unlimited.

YODA : Your thoughts dwell on your potential to be a takeover target.
DIETER : I'd miss my job.
YODA : Afraid to lose it ... I think.
DIETER : (a little angry) What's that got to do with anything?
YODA: Everything. Fear is the path to the dark side ... fear leads to anger ... anger leads to hate ... hate, leads to suffering.
DIETER: (angrily) I am not afraid!
YODA: A automaker CEO must have the deepest commitment, the most serious mind. I sense much fear in you.
DIETER: (quietly) I am not afraid.
YODA : Then continue with the sales presentations, we will.

Zetsche feared takeover without sale of Chrysler [Detroit News]

Related:
More Chrysler Group Sales Speculation: SAIC Doesn't Want Your Damn US Auto Manufacturer! [internal]

"We have just floated...on the A-share market through the injection, so we are focusing on improving the A-share company...we need to further improve the quality of our growth instead of further boosting the size of our assets. At the moment, all domestic automakers are working on plans to expand their production as the Chinese market is still growing steadily"

...whatever super serum the Chinese have created to give them super automotive powers to allow them to take over the world. Yeah, we're really hoping he means the assets thing. Either way, it looks like we can cross SAIC off of the list of potential suitors for the 'merican side of the not-so-much equal merger. Hmm, what is the pundit class going to do now? Wait, I know — come on reporters, let's head back to Germany to get more nonsensical quotes from labor leaders! – Ray Wert

China's SAIC focuses on home growth, rules out puchases (sub. req.) [Automotive News]

Related:
More Chrysler Group Sales Speculation: DaimlerChrysler Wants To Keep Jeep Brand?; Breaking Crazy Chrysler Speculation! Chrysler Swap For GM Ownership Stake; GAZ To Buy Or Not To Buy? [internal]

We'd heard initially the Dodge Avenger campaign might be something more hoontastic, so we already knew we'd be a bit disappointed by the campaign no matter how good it ended up. However, even through the disappointment, we tried to do our level best to keep our minds on a level playing field. Still, despite the attempts at mustering the positive energy, we couldn't get all that jacked up about this Sebring clone. Of the three ads, the best one's got to be the one above, which is called "tuned up" is supposed to "illustrate the fun that's available from Avenger's 3.5-liter V-6 engine and six-speed Auto Stick transmission." All it really ends up doing in our mind is illustrating how much better looking the sheet "metal" looks on the Avenger than it does on the Sebring, and that "Smoke On The Water" can't be done justice with the sounds emanating from a 3.5-liter V6 engine. But that's just the first ad. The second two, found below the jump, are not much better. The first one, "superhero," is supposed to illustrate how you can be "Batman" to your kid. The third ad, which like all non-truck commercials targeting the Hispanic community, is called "passion," and is supposed to illustrate how you can have salsa dancers dance for you if you buy a Dodge Avenger. At least that's what we think it's supposed to do. Anyway, the press release for the clone-of-Sebring's also below. – Ray Wert

Marketing Campaign for the All-new 2008 Dodge Avenger Launches March 4 Auburn Hills, Mich., Mar 2, 2007 - The unique technologies, gutsy performance and bold styling that are helping the all-new 2008 Dodge Avenger shoulder its way into the mid-size car market are the linchpins of the marketing campaign kicking off this weekend for the Dodge brand's newest car.

"Tuned Up," for example — a 30-second TV spot that debuts Sunday, March 4 during NHL hockey on NBC — illustrates the fun that's available from Avenger's 3.5-liter V-6 engine and six-speed Auto Stick transmission. Reinforcing the message that the 2008 Dodge Avenger is a high quality sedan that is a blast to own and drive, are new print ads, a second general market TV spot, multicultural TV and print ads, lifestyle and experiential events, gaming integration, interactive marketing, promotions and sweepstakes.

Still, it is at www.dodge.com/avenger where the tech-savvy target buyers of Avenger will find the mother lode of information about the all-new sedan. There, the key attributes of the 2008 Dodge Avenger are detailed in more than 70 engaging and interactive product story-telling modules using animation and video content.

"Our strategy is focused on appealing to import-inclined and multicultural consumers who are younger and more affluent than the segment," said Mark Spencer, Senior Manager - Dodge Marketing and Global Communications. "While the mid-size car segment tends to skew more female, the 2008 Dodge Avenger will be targeted toward a healthy balance of 30-somethings, and professional men and women who are outgoing, confident and independent. These people are heavy Internet users, so we've developed a robust Dodge Avenger Web site that will entertain and inform them."

"Dodge Avenger — with its bold, aggressive styling, innovative interior features, high levels of safety and reliability, great performance and handling, excellent fuel economy and affordable price — has along list of selling points that will impress consumers," said Tom Loveless, Director - Dodge Marketing and Global Communications. "Avenger is also important because it continues the brand's product offensive, which included the Dodge Caliber and the Dodge Nitro. The Dodge brand product portfolio has never been stronger."

Male targeted media placements for the Dodge Avenger will focus on sports, men's interest and active lifestyles, while female targeted placements were chosen to attract today's fashionistas. Connectivity platforms in key areas of music, social networking and fitness will be leveraged to bridge the gender split and appeal to both young men and women.

Dodge Home Page - As the focal point of the Dodge Avenger marketing campaign, the Dodge brand Web site continues to undergo enhancements and content improvements to meet the needs of Internet-savvy shoppers who routinely visit the Web long before they visit a dealer. Following in Dodge Nitro's footsteps, the Avenger Web site will carry more rich media, more dynamic photos, animation, video and sound. The site has information on more than 70 product features in four key categories — exterior, interior, performance and safety/security. Deeper navigation leads to product feature storytelling, or "why buy" discussion on key features such as the heated/cooled cupholder, the Chill Zone beverage cooler, MyGIG Multimedia Infotainment System, the 2.4-liter World Engine, available all-wheel drive, and Electronic Stability Program with Traction Control.

Online - Complementing the Dodge site will be marketing elements for the Dodge Avenger that address the target lifestyle passions at such online sites as SI.com, MSN, FOX Sports, ESPN and Yahoo! Sports, The Onion and askmen.com. And for women, elle.com, Fandango, AOL Instant Messenger, Evite and Batanga will be leveraged to engage the consumer through social connectivity.

Television - The schedule has heavy sports and prime-time focus: the NBA on ABC and TNT, the NHL on NBC and Versus, and NASCAR on FOX. Prime-time shows include "Desperate Housewives," "The Nine," "Brothers and Sisters," "20/20," "Boston Legal," "House," "Prison Break," "24," "Law and Order," "Crossing Jordan," "Medium," and "Friday Night Lights," among others. On Monday, March 5, the 30-second TV spot "Tuned Up" will air on key networks including NBC and FOX, and in late night talk shows (Jay Leno, David Letterman, Craig Ferguson and Jimmy Kimmel). In the coming weeks, key African American programming includes "Girlfriends," "The Game," "Everybody Hates Chris," "CW," and "All of Us," and the "BET Awards." Hispanic network TV programming includes "Primer Impacto," "Despierta America," "el Gordo," "E la Flaca," and the Billboard Latin Music Awards.

DIRECTV - Dodge is the exclusive automotive sponsor of NASCAR Hot Pass, the satellite TV program for auto racing fans. Dodge Avenger will be advertised in rotation with other car lines on many of the program's outlets including the Hot Pass Mix Channel, the DVR showcase, online banner ads and via eNewsletters sent to over 500,000 subscribers.

Print - A custom unit to gauge handraiser interest in the Dodge Avenger was featured in the March issue of Lucky magazine. It is called the "Avenger sticker unit." Readers can pull branded stickers from the sticker page in the upfront section of the magazine to flag pages noteworthy for online or in-store shopping. Three ad pages wrapped the bold and beautiful Avenger sticker page and hit newsstands on Feb. 23. Meanwhile, three new print ads will run in over 50 magazines: Sporting News, ESPN, Sports Illustrated, Spin, Elle, Glamour, Marie Claire, Jane, Men's Fitness, GQ, Maxim and People. African American, Hispanic American and Asian print will be featured in Essence, DUB, Rides, Audrey, Asian Week, Complex, and Latina to name a few.

Gaming integration - Later this month, Dodge Avenger will be featured in the Tom Clancy "Ghost Recon Advanced Warfighter" video game produced by Ubisoft. Robust in-game active and static product integration will be further complemented via a cross channel promotion plan to include retail POS, print, online promotion and TV promo spots. Starting in April, players will engage in an online competition and one lucky grand prize winner will drive off in an all-new 2008 Dodge Avenger.

Promotion/Sweepstakes - In a tie-in with NASCAR driver Juan Montoya and his Dodge Charger Texaco/Havoline #42 Race Car, an online question-and-answer game called "42 Days of Racing" launches in mid-June. Consumers can test their NASCAR racing knowledge and win thousands of instant prizes. One grand prize winner will drive home in a 2008 Dodge Avenger.

Events - Through early summer, Dodge Avengers will be on hand at high profile events, including presenting sponsorship of " Self magazine's "Rock Bodies," and Elle magazine's "Fantasy Fashion League Draft Party." Branded events such as Hot Import Nights (in Chicago, Boston, and Washington, D.C.) and Taste of Chicago and Taste of Dallas will also showcase the all-new Dodge Avenger throughout the calendar year.

TV Commercials

"Tuned Up" opens in an indoor testing facility where a row of Dodge Avengers are being evaluated on dynamometers, their engines running. A technician is in the control booth, standing at a panel of scientific instruments. They include a row of Auto Stick gear shifters, just like those in the Dodge Avengers. Each shifter controls the speed of one of the 3.5-liter V-6 engines. Each time the technician engages a shifter, it causes one of the Dodge Avengers to emit a distinctive engine note. Eventually, he realizes that by "playing" the Auto Stick shifters, he can make the engines play the opening bars of "Smoke on the Water" by Deep Purple. The ad closes with a voice-over: "The all-new Dodge Avenger. It's a natural performer."

"Hot Pursuit" is another 30-second general market TV spot debuting in mid-March. It focuses on Dodge Avenger's heated/cooled front cupholder that keeps cold beverages cool and hot beverages warm. A man enjoying a Sunday drive in his 2008 Dodge Avenger presses a button to warm his hot drink in the cupholder. Above him, a fighter pilot radios to his co-pilot, "Commence heat-seeking missile test." A missile launches from the jet and begins chasing the Dodge Avenger. The driver is unaware that the missile is in hot pursuit because he's too busy enjoying his drive across winding roads. Finally, he turns off the heated cupholder, and the heat-seeking missile flies past him. The ad closes with a voice-over: "Did we mention it cools also? The all-new Dodge Avenger."

"Superhero" is a 30-second spot opens on the Dodge Avenger driving through a dark alley. It turns out of the alley and onto a bridge. The African-American driver says, "Home." As he continues over the bridge, then onto a more rural street, supers appear on the screen that list features of the Dodge Avenger: Electronic Stability Program (ESP), the MyGIG Multimedia Infotainment System, 6-speed Auto Stick, and 3.5-liter V-6 engine. The Avenger pulls into a garage. Our hero gets out of the car, walks around the back, and opens the rear door. His small son is asleep on the back seat . The announcer asks, "What does your child's favorite superhero drive?" Our hero lifts his son out of the car and carries him into the house. The voice-over ends with: "Technology, innovation, power. Perfect for the everyday superhero."

"PASION" is in two versions, Spanish and English. (The latter is titled "Passion.") It communicates the passion that lives within Hispanics and the all-new Dodge Avenger. Passion is reflected through quick cuts of a woman dancing the flamenco, a musician tuning his guitar, a person playing castanets, juxtoposed with shots of the vehicle in action. On-screen supers show the heated/cooled cupholders, the 3.5-liter V-6 engine and MyGIG Multimedia Infotainment System. The voice-over ends with: "The all-new Dodge Avenger. Change your step."

Related:
Dodge Avenger, Assembled! Press Shots Of The Not-A-Concept 2008 Dodge Avenger R/T [internal]

On The Money [CNBC.com]

Related:
More on the Official Car Pundit Drinking Game [internal]

Chrysler Group Announces February 2007 U.S. Sales

* Dodge Avenger off to a great start with 5,205 units sold
* Jeep Wrangler posts record February month
* Dodge Caliber sales of 9,900 units, up 14 percent over the last month
* March will be the Chrysler Group's "National Truck Month" — no-extra-charge HEMI upgrade for Dodge Ram

Auburn Hills, Mich., Mar 1, 2007 - Chrysler Group reported sales for February 2007 of 174,506 units; down 8 percent compared to February 2006 with 190,367 units. All sales figures are reported unadjusted.

"In a generally soft market environment in February, the Chrysler Group had good traffic and solid customer interest especially for our newly launched, fuel efficient models like the Dodge Avenger, Dodge Caliber and Jeep Compass. Also, the Jeep Wrangler had its best February ever," said Steven Landry, Vice President - Sales and Field Operations, Chrysler Group.

The Dodge Avenger posted sales of 5,205 units. The vehicle is one of the Chrysler Group's five new models that achieve 30 miles per gallon or better in highway driving.

Jeep Wrangler and Wrangler Unlimited continued to post strong sales in February with 9,240 units, a rise of 63 percent over February 2006 sales of 5,673 units. February 2007 marks the best month of February in the history of the Jeep Wrangler.

Sales of the Jeep Compass increased 3 percent over the previous month with 4,071 units compared to 3,965 units in January 2007.

The Dodge Caliber finished February with sales of 9,900 units, an increase of 14 percent compared to last month with 8,672 units.

Dodge Ram pickup sales continued to increase after an already strong January and posted sales of 28,633 units, up by 17 percent over the previous month with 24,379 units.

"Building on the sales momentum of the Dodge Ram in the first two months of 2007, March will be the Chrysler Group's 'National Truck Month.' Our marketing approach will primarily focus on our biggest volume model, the Dodge Ram, and tie it with the value of one of our most successful product features, the legendary HEMI engine," said Michael Manley, Vice President - Sales and Dealer Operations, Chrysler Group. "Customers have the opportunity to get a no-extra-charge HEMI engine upgrade for the Dodge Ram 1500 as well as the Dodge Durango. We are confident that 'National Truck Month' will resonate well with our customers."

Chrysler Group finished the month with 492,230 units of inventory, or a 68-day supply. Inventory is down by 8 percent compared to February 2006 when it was at 532,534 units.

Related:
Bear Stearns Predicts February US Auto Sales Are Sucktastic, Like January [internal]

DaimlerChrysler moots retaining Jeep brand, selling rest of Chrysler - report [AFX News Limited via Forbes]

Related:
Breaking Crazy Chrysler Speculation! Chrysler Swap For GM Ownership Stake; GAZ To Buy Or Not To Buy?; You Better Shop Around: Chrysler Group Shopped To Private Equity Firms; Chrysler Group CEO Tom LaSorda Says "There's Nothing To See Here, Folks — Move Along" [internal]

This deal's been in the works for what seems like forever. We'd even heard the 'merican side of the German-American hybrid was all set to go in October of this past year, but held off for "political reasons." So it's really no surprise that the deals' done — the DaimlerChrysler supervisory board's approved the "framework of a limited partnership to develop small vehicles between the Chrysler Group and Chery Motor Company of China." Under the agreement, Chery-built vehicles would be distributed under Chrysler brands, primarily in North American and Western Europe. That means we'll be talking about a Dodge, as it's the only brand the 'merican side of the not-so-much merger of equals is building any brand equity with. And that means it'll be the little horn-dog of a Hornet, and this will be an easy and quick win for Tom "Need To Lose Weight Of Excess Employees Fast" LaSorda. Of course the deal's still contingent on the approval of the Chinese government, but we're assuming that'll happen — unless the Hornet's some symbol of uncleanliness to a minority religion in China. But probably not. Full press release after the jump. – Ray Wert

DaimlerChrysler Supervisory Board Approves Small-Car Agreement Auburn Hills, Mich./Stuttgart, Germany, Feb 27, 2007 - The DaimlerChrysler Supervisory Board today approved the framework of a limited partnership to develop small vehicles between the Chrysler Group and Chery Motor Company of China. The deal is still contingent upon approval by the Chinese government, but the final pact of the framework is expected to be signed by the end of March. Under the non-equity partnership, Chery-built vehicles will be distributed under Chrysler brands, primarily in North America and Western Europe.

Chrysler Group indicated that the partnership would allow the company to become a bigger player on the global automotive stage by giving it access to products in new segments more quickly, with less capital spending.

Small vehicles such as these will allow Chrysler Group brands to compete in segments in which the brands do not currently compete, and which are especially important in price- and fuel-economy sensitive markets. Some 67 percent of all vehicles sold outside of North America are in these segments. Chrysler Group's major competitors in the U.S. and Western Europe have similar arrangements with Asian manufacturers for vehicles in these segments.

Related:
Chrysler Would Prefer A Chery-Flavored Hornet Rather Than Plain Chery; Chrysler Boss: Company Even Closer to Choosing China's Chery to Build Subcompact [internal]

Bear Stearns previews February Auto Sales

Bear Stearns notes Feb auto sales data are due out Thursday. They expect the SAAR to be down 3% y/y with Feb 2006 (vs. a 4% y/y decrease in Jan). Among the Big Three, they expect GM, F, and DCX to be down 7%, 15%, and 7% y/y in Feb, respectively (vs. down 20%, 23%, and 4% in Jan). Firm says there's no impact to their y/y comparisons from selling days this month. Their biggest focus will be on...

...F's retail market share and GM's ATPs. Firm says one potential headwind for the month could be an uptick in industry inventories among several Asian OEMs. This could indicate that industry sales are slowing. Alternatively, they say the negative impact could be limited to domestic automakers if the Asian OEMs react by increasing incentives significantly.

Related:
December To Forget? Report Forecasts Downturn In December Sales For US Automakers, Big Boost In Luxury Sales [internal]

Daimler mulls GM stake to pay for Chrysler unit: FT [Reuters]
Russia's OAO Gaz Group eyeing Chrysler [MarketWatch]
Russia's GAZ denies report may bid for Chrysler [Reuters]

Related:
You Better Shop Around: Chrysler Group Shopped To Private Equity Firms; Chrysler Group CEO Tom LaSorda Says "There's Nothing To See Here, Folks — Move Along"; Not So Many Briefcases Left: Does Dr. Z Really Want To Make A Deal On Chrysler? [internal]

Special Early Retirement (SER)

* Eligibility - All NBU salaried employees, age 53 to 61 with 10 or more years of service, with earnings in 2006 of less than $100,000 and select NBU salaried employees, age 55 to 61 with 10 or more years of service with 2006 earnings of $100,000 or greater.
o This is in compliance with IRS guidelines.
o Eligibility requirements must be satisfied by June 30, 2007.

* Program Terms:
o Offers will be made to select employees June 4, 2007, and returned by June 29, 2007.
o Retirements effective June 30, 2007.
o Retirement benefits will not be reduced by an early retirement reduction percent.
o 100% Retiree Choice medical credits through age 64 and at age 65 100% credits in the Health Care Retirement Account. Ordinarily, an employee must be age 60 with 30 years of service to receive 100%.

Separation Incentive Program (SIP)

* Eligibility - All NBU salaried employees age 62+ with 10 or more years of service as of May 31, 2007.

* Program Terms:
o Offers made May 7, 2007 and returned by May 31, 2007
o Retirements effective May 31, 2007.
o Program incentives include 3 months salary and either a $20,000 car voucher grossed up for taxes, or a $20,000 contribution to the Retirement Health Care Account.
o 100% Retiree Choice medical credits through age 64 and at age 65 100% Credits in the Health Care Retirement Account. Ordinarily, an employee must be age 60 with 30 years of service to receive 100%.

Similar programs are being finalized for the salaried bargaining-unit (SBU) workforce, which is represented by unions.