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Discussion Starter #41
Old Chrysler liquidation plan moves ahead

January 21, 2010 Old Chrysler liquidation plan moves ahead | detnews.com | The Detroit News

Old Chrysler liquidation plan moves ahead



Washington -- A federal bankruptcy judge today approved the voting process for the former Chrysler LLC to liquidate its assets.

In New York, U.S. Bankruptcy Judge Arthur Gonzalez approved the 343-page disclosure statement filed by Chrysler LLC -- also known as Old Carco LLC -- in a written order.

He set a hearing to confirm the bankruptcy plan on March 16 after the company's debtors vote whether to approve it.

Chrysler's best assets were sold in a government-backed transaction to a group led by Fiat SpA in July after the government forced it into bankruptcy on April 30. The new company is called Chrysler Group LLC.

The United Auto Workers owns a majority stake in Chrysler, but doesn't have voting rights control over the automaker. Fiat's CEO Sergio Marchionne is also running Chrysler. The U.S. Treasury is unlikely to recover most of the $4 billion in loaned to Chrysler LLC under the Bush administration.

Chrysler LLC still faces objections from Michigan taxing authorities and the Michigan Department of Environmental Quality.

In an objection filed last week, the MDEQ says Old Carco must pay nearly $3 million for environmental clean-up costs, including $116,000 already spent by the state.

"Additional work needs to be done to address environmental conditions at several facilities, including, but not necessarily limited to the Trenton Engine Plant, Evart Products Facility, Chrysler Plymouth Road Office Center, and the former Chrysler Corporation Introl division facility in Dexter," Michigan said in a court filing.

MDEQ says it believes it will cost $2.8 million to finish cleanup at those sites. Old Carco LLC and Michigan are still in talks over the issue.

Chrysler's statement discloses some sales that Chrysler LLC has made to raise funds, including 71 robots from the Newark, Del. assembly plant., They were sold for $284,000.

The company sold a foundry in Indianapolis for $177,500 and property in Indiana for $295,000.

Old Carco also sold a property in Detroit at 20250 Mt. Elliot for $2,000, but it wasn't immediately clear what the property had been used for previously.

The largest transaction to date is Chrysler's sale of its Newark, Del., plant on 271 acres. The property was sold to the University of Delaware for $24.2 million in November.

Old Chrysler is also selling off 7,600 company cars to raise funds.

Chrysler Group LLC agreed to buy 5,000 of the cars for $91.2 million -- or roughly $17,500 each. Another nearly 2,600 cars remain to be sold.

Old Carco has also decided to abandon property it deems to have no value or is in separate bankruptcy proceedings, including Action Chrysler Jeep Dodge Inc.; Chrysler de Venezuela S.A.; Chrysler Motors de Venezuela S.A.; Des Plaines Chrysler Jeep Dodge Inc.; Grapevine Chrysler Jeep Dodge Inc.; Lone Star Chrysler Jeep Dodge Inc.; Long Beach Chrysler-Jeep Inc.; and South Charlotte Chrysler Jeep Dodge Inc.
 

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Discussion Starter #42
Statement Regarding Dealer Arbitration Process

Statement Regarding Dealer Arbitration Process

Auburn Hills, Mich. , Jan 28, 2010 - Chrysler Group LLC is going forward with the arbitration process mandated by House of Representatives Bill 3288, Section 747. The company looks forward to the expeditious completion of the process. A robust dealer network is a critical component of the Group’s strategy of rebuilding a strong and resilient American automaker.

409 dealers whose contracts were rejected have filed for arbitration as of Wednesday, January 27 and Chrysler is readying itself to actively participate in the arbitration process.
 

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Discussion Starter #43
February 16, 2010 Chrysler gets bid for Twinsburg, Ohio, plant | detnews.com | The Detroit News

Chrysler gets bid for Twinsburg, Ohio, plant


A Cleveland-based consortium has made a $27.5 billion bid for Chrysler's Twinsburg, Ohio, stamping plant, which is among the bankrupt assets held by Old Carco LLC.

A series of bankruptcy documents filed this week identify the buyer as Twinsburg Industrial Park LLC, which entered into a purchase agreement Feb. 12. The court approved.

The industrial group solidified its intent to buy the 2-million-square-foot plant and equipment with a $2.75 million deposit.

The offer makes Twinsburg Industrial Park the "stalking horse" bid that other interested parties must outbid by at least $750,000 to be considered.

The deadline for competing bids is March 5 and if there are more qualified offers, an auction would be held March 10.

A hearing to approve the sale of the plant and its equipment is set for March 11 before Judge Arthur Gonzalez in New York.

Documents show the Chrysler estate received inquiries from 31 parties initially about acquiring the Twinsburg assets, but the interest translated into only seven letters of intent and finally, one offer to purchase.

Twinsburg was initially slated to close next month but the need to stamp a supply of parts for vehicles such as Chrysler's family of minivans will keep the plant and its roughly 400 workers employed until June 26.

Chrysler Group LLC, which was formed with partner Fiat SpA last June and which purchased most of the old Chrysler's assets, is legally entitled to use the Twinsburg property through July 31.

The automaker said carrying costs to maintain the facility and property amounted to about $2.4 million annually.

Old Carco's largest transaction to date is last November's sale of its Newark, Delaware plant to the University of Delaware for $24.2 million.
 

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Discussion Starter #44
Chrysler Group LLC Announces Executive Appointments

Auburn Hills, Mich. , Mar 4, 2010 -

In a continued effort to focus on core competencies and efficiencies, Chrysler Group LLC today named two appointments within its executive ranks.

Steve Williams has been named Head of Advance Engineering, Planning and Regulatory Affairs. In that role, Williams continues his responsibility for all advance engineering and assumes the Company's regulatory and planning activities.

In addition, the Company appointed Stephen J. Bartoli Head of International Product Planning, Business Development and Integration. In this position, Bartoli will be responsible for leading Product Planning, Market, Brand and Business Strategy and Alliance Planning for International markets.

Williams joined Chrysler in 1990 and has held a series of positions with increasing responsibility in engineering. He received both a master's degree in mechanical engineering and business administration from Wayne State University. He holds a bachelor's degree in mechanical engineering from Michigan Technological University.

Bartoli holds a master’s degree in business administration from Kellogg Graduate School of Management, Northwestern University and a bachelor’s degree in mechanical engineering from the University of Notre Dame. He joined Chrysler in 1986 and has held various positions in product planning, marketing and international operations where he was the head of Chrysler's European sales, media relations and marketing.
 

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Discussion Starter #45
Treasury sees Chrysler meeting pension obligations

April 6, 2010, 3:02 p.m. EDT
Treasury sees Chrysler meeting pension obligations



SAN FRANCISCO -- The federal government could be on the hook for billions if General Motors Co. and Chrysler Group LLC fail to turn profits and terminate their pension plans, the Government Accountability Office concluded on Tuesday.

But the U.S. Treasury believes both will be able to make the payments, which are pegged at more than $12 billion for GM and about $2.2 billion for Fiat-controlled Chrysler in 2013 and 2014 combined, according to the GAO.

The Pension Benefit Guaranty Corp., however, could be on the hook for about $14.5 billion if the two domestic automakers remain mired in losses and move to terminate plans, the GAO said in a statement, citing prior estimates.

The GAO, the investigate arm of the U.S. Congress, said it sees some potential conflicts of interest arising, particularly if decisions must be made between allocating funds to company assets or to pension funds assets.

"Until Treasury either sells or liquidates the equity it acquired in each of the companies in exchange for the TARP assistance, its role as shareholder creates potential tensions with its role as pension regulator and overseer of PBGC in its role as pension insurer," the GAO said.

LINK:GM, Chrysler likely to keep paying pensions: GAO - MarketWatch
 

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Discussion Starter #46
* April 14, 2010, 4:46 PM ET

Chrysler Sells Old AMC Headquarters, Other Sites For $2.3M


Chrysler has reached a deal to sell the former headquarters of American Motors Corp. and three other aging automotive facilities for $2.3 million.

The auto maker’s Chapter 11 estate is set to sell the 54-acre complex on Detroit’s west side, two smaller plants in the city and property in Syracuse, N.Y., to Manchester Plymouth LLC of Mt. Clemens, Mich., according to papers filed with the U.S. Bankruptcy Court in Manhattan.

The portion of Chrysler that remains in bankruptcy is selling off the unwanted remnants of the auto maker in an effort to repay creditors.

Chrysler obtained the AMC headquarters, known as the Plymouth Road complex, when it acquired the smaller auto maker in 1987. Chrysler retained the site as an engineering center.

Workers often called the 1.4-million-square-foot building Jeep/Truck because that’s where Chrysler engineers designed products such as the Dodge Ram pickup and the Jeep Grand Cherokee.

At one time, nearly 2,000 Chrysler employees worked at the location. The company began moving workers out of the facility in recent years as part its downsizing.

The Plymouth Road complex was built in 1926 as a Kelvinator refrigerator factory and later produced helicopters during World War II, according to the Chrysler history site Allpar.com.

A spokesman for Chrysler declined to comment on the sale. Manchester Plymouth did not respond to requests for comment.

All four parcels were left with the bankruptcy estate when Chrysler’s most valuable assets were sold to a new company managed by Fiat S.p.A. That company is now known as Chrysler Group LLC.

LINK: Chrysler Sells Old AMC Headquarters, Other Sites For $2.3M - Bankruptcy Beat - WSJ
 

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Discussion Starter #47
Chrysler Group LLC statement

Chrysler Group LLC statement regarding Bankruptcy Court approval of an agreement between Chrysler Group and the State of North Carolina that the State will not enforce its rejected dealer laws against the Company

Auburn Hills, Mich. , Apr 19, 2010 -

Chrysler Group is pleased to reach an amicable resolution to our issues with the State of North Carolina. Such state dealer laws grant rejected dealers specific statutory rights previously afforded only to existing dealers, and are preempted in accordance with the Bankruptcy Court’s prior rulings.

The actions to reduce Chrysler’s dealer network were a necessary part of Chrysler Group’s viability and central to the interim financing and partnership with Fiat.

The process to determine which dealership contracts were rejected evaluated dealership performance and market factors using data driven criteria and was applied to every dealer. The only alternative would have been complete liquidation of the Company, which would have resulted in all 3,200 dealers closing, hundreds of thousands of lost jobs, and defaults on billions of dollars in taxpayer loans.

There is no denying that Chrysler Group’s and the public’s economic interests are inextricably linked. Chrysler Group not only employed sound business judgment in restructuring its dealer network, but is acting in the greater public interest by protecting the dealer network that was created during bankruptcy.

Chrysler Group is confident the difficult decisions made during bankruptcy will continue to position the company for sustainable success and will enable the company to repay the U.S. Taxpayers in a timely manner.
 

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Discussion Starter #48
Chrysler Group LLC Reports Audited Financial Results for the Period From June 10, 2009, to December 31, 2009

Auburn Hills, Mich. , Apr 21, 2010 - Chrysler Group LLC today announced its 2009 Audited Financial Results for the period from June 10, 2009, to December 31, 2009.

Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, “The steady progression of our financial results from June through December 2009 shows that Chrysler is on track to meet the ambitious, yet achievable goals announced in November. As a result of improving trading margins, operational efficiencies and rigorous cost discipline, we continued to strengthen our cash position through 2009.”

Please see these attached files for the full news releases.

http://www.media.chrysler.com/dcxms/assets/attachments/2009_financial_news_release.pdf

http://www.media.chrysler.com/dcxms/assets/attachments/2009_Financial_Statements.pdf
 

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Discussion Starter #49
Financial Results for the Period Ended March 31, 2010

Chrysler Group LLC Reports Financial Results for the Period Ended March 31, 2010

Auburn Hills, Mich. , Apr 21, 2010 - Chrysler Group LLC today announced its Financial Results for the period ended March 31, 2010.

Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, “This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 targets we have set for ourselves are achievable. We are also generating cash to finance the investments being made in our product portfolio and brand repositioning,” said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. “There has already been an uptick in customer traffic in our dealerships in Q1 and we are confident that Chrysler sales will continue to increase as we launch new products in the second quarter, beginning with the all-new 2011 Jeep® Grand Cherokee. Moreover, later this year, Chrysler will launch 16 all-new or refreshed products including the all-new Chrysler 300, Dodge Charger, E-CUV, the iconic Fiat 500, and the Sebring replacement.”

Please see this attached file for the full news release.

http://www.media.chrysler.com/dcxms/assets/attachments/Q1_2010_Financias_news_release1.pdf
 

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Discussion Starter #50
Statement - Chrysler Group LLC Prevails in Ohio Dealer Network Arbitration

* Arbitration case was with Joe Kidd Dodge - a Cincinnati-area dealership whose contract was rejected during bankruptcy in 2009

* The arbitration was conducted on April 14, 2010, in Cleveland, Ohio

* This was the first scheduled arbitration case

Auburn Hills, Mich. , Apr 30, 2010 - The following statement can be attributed to Chrysler Group LLC:

Chrysler Group is pleased the arbitrator agreed with the difficult dealer network decisions made during the bankruptcy proceedings. There is no denying that Chrysler Group’s and the public’s economic interests are inextricably linked. Chrysler Group not only employed sound business judgment but is acting in the greater public interest by protecting the dealer network that was created as a result of the bankruptcy proceedings.

We are confident we now have the dealer network in place that allows dealers to be successful, which will result in greater investment in their communities, employees and customers and, ultimately will enable the Chrysler Group to repay the U.S. Taxpayers in a timely manner.
 

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Discussion Starter #51
Chrysler Financial, Old CarCo repay $1.9 Billion loan
May 17th, 2010

The U.S. Department of the Treasury today announced that it has received a $1.9 billion repayment from Chrysler Holding (CGI Holding) in settlement of one of the loans that the Treasury Department extended to finance Chrysler LLC, the “Old Chrysler” automobile company. This repayment, while less than the $4 billion face value, is significantly more than the Treasury expected to recover on this loan and is greater than an independent valuation of the loan provided by investment banking firm Keefe, Bruyette and Woods, which was hired by Treasury in connection with the transaction.

As a result of the repayment, CGI Holding and Chrysler Financial no longer have outstanding obligations to Treasury under the Troubled Asset Relief Program (TARP).

The loan was originally made on January 2, 2009 to Chrysler Holding, the parent company of Old Chrysler. The loan went into default when Old Chrysler filed for bankruptcy in April 2009.

In June 2009, the assets of Old Chrysler were sold to New Chrysler pursuant to the bankruptcy court proceeding. The loan was reduced by $500 million as “New Chrysler” assumed that amount of the debt. The liquidation of Old Chrysler was recently completed and did not result in any recovery on the loan.

CGI Holding was the owner of both Chrysler Financial and Old Chrysler. The loan also provided for potential recoveries from Chrysler Financial consisting of the greater of $1.375 billion or 40 percent of any distributions that Chrysler Financial made to CGI Holding. Because of the uncertainty regarding the amount and timing of any income distributions by Chrysler Financial that would be applied to the loan, Treasury had not expected a material recovery on the loan.

Separate from this loan and payment, in January 2009 Treasury also provided a $1.5 billion loan to Chrysler Financial to enable it to finance the purchase of Chrysler vehicles by consumers. This loan was fully repaid with interest in July 2009. A separate debtor-in-possession loan of $1.9 billion provided by Treasury to Old Chrysler, on which Treasury had not expected any recovery, was extinguished last month in the liquidation. Treasury retains the right to recover the proceeds from the sale of specific collateral attached to that loan.

CGI Holding has no ownership interest in Chrysler Group LLC, the “New Chrysler,” and Treasury’s investments in New Chrysler are not affected by today’s repayment. Those investments consist of 9.9 percent of the equity and $7.1 billion of loans including undrawn commitments.

Of the $14.3 billion in loans to Old Chrysler, New Chrysler and Chrysler Financial outstanding at various times under TARP (includes undrawn commitments), Treasury has received $3.9 billion to date. Treasury also retains the investments in New Chrysler described above.

Total TARP repayments now stand at $189 billion – well ahead of last fall’s repayment projections for 2010.
 

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Discussion Starter #52
Chrysler 8, Dealers 1
May 22, 2010


Chrysler is doing better than GM. At least when it comes to winning arbitration cases brought by culled dealers. GM lost both cases brought against them. Chrysler bats much better.

Out of nine arbitration cases brought so far by eliminated dealers, Chrysler won 8, reports Automotive News [sub]. This week alone, Chrysler won three. The unlucky dealerships were Hinckley Dodge in Ogden, Utah, Tenafly Chrysler Jeep in Tenafly, N.J., and Midway Motors in Framingham, Mass. Out of the 9 cases that have been decided, Florida’s Deland Dodge was the only dealer to prevail.

After going bankrupt, Chrysler terminated 789 dealers last year. In December, law was passed to give any rejected dealers of Chrysler or GM the right to seek arbitration.

Chrysler reinstated 36 dealers and sent letters offering reinstatement to 50 more. Approximately 400 Chrysler dealers initially went for arbitration. That number dwindled to less than 250, as cases were withdrawn, dismissed, or settled.

LINK: Chrysler 8, Dealers 1 | The Truth About Cars
 

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Discussion Starter #53
Chrysler Group LLC Continues to Prevail in Vast Majority of Dealer Arbitration Cases

* 27 determinations have been rendered to date
* 21 on behalf of the Company
* 6 on behalf of arbitrating dealers
* Fewer than 115 arbitration cases remain

Auburn Hills, Mich. , Jun 3, 2010 - The actions to reduce our dealer network were a necessary part of Chrysler Group’s viability and central to the interim financing and partnership with Fiat. The only alternative would have been complete liquidation, which would have resulted in all 3,200 dealers closing, hundreds of thousands of lost jobs, and the Company defaulting on taxpayer loans. While we are pleased that the decisions of many arbitrators reflect a keen appreciation of these circumstances, Chrysler Group is disappointed that some decisions undermine the Federal Bankruptcy Court Order that affirmed the rationalization process used to reject the dealership agreements. Despite this, we are confident we have the dealer network in place that allows dealers to be successful, which will result in greater investment in their communities, employees and customers and, ultimately will enable the Chrysler Group to repay the U.S. Taxpayers in a timely manner.
 

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Discussion Starter #54
Arbitration Update: Chrysler Group LLC Looking Forward to Moving Beyond the Arbitration Process

* Company continues to prevail in great majority of dealer arbitration decisions
* Meeting statutory requirement to provide prevailing dealers with Letter of Intent within seven business days, looking forward to further discussions with prevailing dealers
* Arbitrator decisions reflect understanding that Genesis Project and dealer network decisions essential to Company's future success

Auburn Hills, Mich. , Jul 2, 2010 -

Chrysler Group is looking forward to moving beyond the arbitration process and completing its dealer network plans. The Company is complying with the federal statute by issuing a customary and usual Letter of Intent to dealers that prevail in arbitration and is looking forward to discussions with prevailing dealers. These discussions are - and will remain - private business matters. The decisions to select dealers for the Company's right-sized dealer network were carefully considered as part of Chrysler's Genesis Project. Placing all four brands under one roof in modern facilities has already resulted in enhanced profitability for the Genesis dealerships. The decisions of a great majority of the arbitrators reflect the belief that the Company's dealer network decisions were not only appropriate, but essential to its future success.

About the process: While difficult, the actions to reduce Chrysler’s dealer network were a necessary part of its viability and central to the interim financing and proposed sale to Fiat. Among the requirements placed on Chrysler was to reduce its dealer network by 25 percent. As such, on June 9, 2009, Bankruptcy Court Judge Arthur Gonzalez approved Chrysler’s motion to “reject” the contracts of 789 dealers. In its approval, the Court concluded the Company used sound business judgment, and affirmed the rationale used by the Company to determine which dealers were affected. On December 16, 2009, the U.S. Congress passed H.R. 3288 enabling the 789 affected dealers to pursue binding arbitration in order to secure an opportunity to join Chrysler's dealer network. The bill stipulates that dealers who prevail in binding arbitration would receive a customary and usual Letter of Intent to enter into a sales and service agreement with Chrysler Group LLC provided they meet financial and operational prerequisites. In May, 2010 arbitration hearings began for 418 of the 789 affected dealers who opted into the binding arbitration process. It is expected the process will conclude in late July.

Results as of July 2, 2010: More than 125 of the 418 filed arbitration cases have been dismissed, withdrawn or abandoned, 66 decisions have been rendered by arbitrators to date wiith Chrysler prevailing in 49 cases. An undisclosed number of cases have been settled and about 15 cases still remain to be arbitrated.
 

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Discussion Starter #55
Arbitration Update: Chrysler Group LLC Looking Forward to Moving Beyond the Arbitration Process

* Company continues to prevail in great majority of dealer arbitration decisions
* Meeting statutory requirement to provide prevailing dealers with Letter of Intent within seven business days, looking forward to further discussions with prevailing dealers
* Arbitrator decisions reflect understanding that Genesis Project and dealer network decisions essential to Company's future success

Auburn Hills, Mich. , Jul 9, 2010 -

Chrysler Group is looking forward to moving beyond the arbitration process and completing its dealer network plans. The Company is complying with the federal statute by issuing a customary and usual Letter of Intent to dealers that prevail in arbitration and is looking forward to discussions with prevailing dealers. These discussions are - and will remain - private business matters. The decisions to select dealers for the Company's right-sized dealer network were carefully considered as part of Chrysler's Genesis Project. Placing all four brands under one roof in modern facilities has already resulted in enhanced profitability for the Genesis dealerships. The decisions of a great majority of the arbitrators reflect the belief that the Company's dealer network decisions were not only appropriate, but essential to its future success.

About the process: While difficult, the actions to reduce Chrysler’s dealer network were a necessary part of its viability and central to the interim financing and proposed sale to Fiat. Among the requirements placed on Chrysler was to reduce its dealer network by 25 percent. As such, on June 9, 2009, Bankruptcy Court Judge Arthur Gonzalez approved Chrysler’s motion to “reject” the contracts of 789 dealers. In its approval, the Court concluded the Company used sound business judgment, and affirmed the rationale used by the Company to determine which dealers were affected. On December 16, 2009, the U.S. Congress passed H.R. 3288 enabling the 789 affected dealers to pursue binding arbitration in order to secure an opportunity to join Chrysler's dealer network. The bill stipulates that dealers who prevail in binding arbitration would receive a customary and usual Letter of Intent to enter into a sales and service agreement with Chrysler Group LLC provided they meet financial and operational prerequisites. In May, 2010 arbitration hearings began for 418 of the 789 affected dealers who opted into the binding arbitration process. It is expected the process will conclude in late July.

Results as of July 2, 2010: More than 125 of the 418 filed arbitration cases have been dismissed, withdrawn or abandoned, 73 decisions have been rendered by arbitrators to date wiith Chrysler prevailing in 54 cases. An undisclosed number of cases have been settled and fewer than 10 cases still remain to be arbitrated. Of the Letters of Intent issued so far to arbitrating dealers, 29 have been accepted.
 

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Discussion Starter #56
Key dates in the GM, Chrysler dealer appeals


Key dates in GM and Chrysler's efforts to pare down their U.S. dealer network.

-- April 30, 2009: Chrysler LLC files for bankruptcy protection.

-- May 14: Chrysler says it wants to shed 789 of its 3,200 U.S. dealerships by June 9 in a motion filed with the U.S. Bankruptcy Court in New York.

-- May 15: As it heads toward bankruptcy protection, General Motors Corp. tells 1,100 of its 6,150 U.S. dealers that it won't renew their franchises in fall of 2010.

-- June 1: GM enters bankruptcy protection.

-- June 9: Chrysler Group LLC exits bankruptcy protection.

-- July 10: General Motors Co. exits bankruptcy protection.

-- Dec. 3: GM and Chrysler say they will reconsider dealership closures as part of an effort to stave off federal legislation requiring them to keep dealerships open.

-- Dec. 10: Congress requires a binding arbitration process for the 2,800 GM and Chrysler dealers threatened with closure as part of a $1.1 trillion spending bill.

-- Jan. 26, 2010: Nearly 1,600 GM and Chrysler dealers meet a deadline to appeal their closures, according to the American Arbitration Association, a resolution service selected to conduct the hearings.

-- Late February: The American Arbitration Association begins hearings.

-- March 5: GM says it will reinstate 661 dealers because it doesn't have time to negotiate with all 1,100 of its dealers who applied for arbitration.

-- March 26: Chrysler offers to reinstate 80 dealers.

-- June 14: Original deadline for the hearings to end. The hearings are extended for another month.

-- June 29: GM North American President Mark Reuss says GM will end the arbitration process with around 4,500 U.S. dealers.

-- July 14: Arbitration hearings are scheduled to end.

-- July 23: Due date for final decisions.
 

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Discussion Starter #57
Arbitration Summary: All Hearings and Arbitrator Decisions Completed for Chrysler Group LLC

* Company prevails in more than 70 percent of arbitrator decisions, meeting statutory requirement to provide prevailing dealers with Letter of Intent
* Arbitrator decisions reflect understanding that Genesis Project and dealer network decisions essential to Company's future success




Auburn Hills, Mich. , Jul 26, 2010 -

Chrysler Group LLC is pleased that hearings in the dealer arbitration process have concluded and is looking forward to completing its dealer network plans. The decisions to select dealers for the Company's optimized dealer network were carefully considered as part of Chrysler's Genesis Project. The decisions of a great majority of the arbitrators reflect the belief that the Company's dealer network decisions were not only appropriate, but essential to its future success. What is needed are more profitable, better performing dealers to provide better customer service. Indeed, plans to place all of our brands under one roof in well-located facilities has already resulted in enhanced dealer profitability and greater investment by existing dealerships on track with the $500 million investment plan Chrysler announced on November 4, 2009.

Chrysler prevailed in 76 of 108 arbitration decisions. Abour 3 percent of the 789 dealers rejected during the bankruptcy process prevailed in arbitrations.

About the process: The actions to optimize Chrysler’s dealer network were part of its viability and central to the interim financing and proposed sale to Fiat. Among the requirements placed on Chrysler Group LLC was to reshape its dealer network to better meet the requirements of the market. As such, on June 9, 2009, Federal Bankruptcy Court Judge Arthur Gonzalez approved Chrysler’s motion to “reject” the contracts of 789 dealers. In its approval, the Court concluded the Company used sound business judgment, and affirmed the rationale used by the Company to determine which dealers were affected. On December 16, 2009, the U.S. Congress passed H.R. 3288 enabling the 789 affected dealers to pursue binding arbitration in order to secure an opportunity to join Chrysler's dealer network. The bill stipulated that dealers who prevailed in binding arbitration would receive a customary and usual Letter of Intent to enter into a sales and service agreement with Chrysler Group LLC provided they meet financial and operational prerequisites. The arbitration process began in May, 2010 and concluded on July 23, 2010.
 

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Discussion Starter #58
Chrysler Group LLC Confirms Company-released Final Results of the Dealer Arbitration Process

* Confirms that it prevailed in more than 70 percent of arbitrator decisions (76 of 108 decisions)
* Clarifies misreporting of arbitration results
* Reiterates that arbitrator decisions reflect understanding that Genesis Project and dealer network decisions essential to Company's future success



Auburn Hills, Mich. , Aug 2, 2010 -

Clarification: On July 26, 2010, Chrysler Group LLC reported final results of the dealer arbitration process. In that report (which appears below), the Company noted that it prevailed in 76 of 108 arbitration decisions. On July 27, the trade publication Automotive News -- citing the Company as its source -- misreported these results. ("Arbitrators sided with the company 73 times and with dealerships 32 times, Chrysler said today.”) This was incorrect and unethical. Unfortunately, this attribution was never corrected and created confusion among other media outlets. Chrysler Group LLC confirms the final arbitration results posted to this web site on July 26.

For the record, Chrysler Group LLC notes further that it prevailed in seven of the remaining eight arbitration decisions that were rendered in the span of time between publication of the SIGTARP report on July 19 and the conclusion of the arbitration process for the Company on July 26.

Original media release: Chrysler Group LLC is pleased that hearings in the dealer arbitration process have concluded and is looking forward to completing its dealer network plans. The decisions to select dealers for the Company's optimized dealer network were carefully considered as part of Chrysler's Genesis Project. The decisions of a great majority of the arbitrators reflect the belief that the Company's dealer network decisions were not only appropriate, but essential to its future success. What is needed are more profitable, better performing dealers to provide better customer service. Indeed, plans to place all of our brands under one roof in well-located facilities has already resulted in enhanced dealer profitability and greater investment by existing dealerships on track with the $500 million investment plan Chrysler announced on November 4, 2009.

Chrysler prevailed in 76 of 108 arbitration decisions. Abour 4 percent of the 789 dealers rejected during the bankruptcy process prevailed in arbitrations.

About the process: The actions to optimize Chrysler’s dealer network were part of its viability and central to the interim financing and proposed sale to Fiat. Among the requirements placed on Chrysler Group LLC was to reshape its dealer network to better meet the requirements of the market. As such, on June 9, 2009, Federal Bankruptcy Court Judge Arthur Gonzalez approved Chrysler’s motion to “reject” the contracts of 789 dealers. In its approval, the Court concluded the Company used sound business judgment, and affirmed the rationale used by the Company to determine which dealers were affected. On December 16, 2009, the U.S. Congress passed H.R. 3288 enabling the 789 affected dealers to pursue binding arbitration in order to secure an opportunity to join Chrysler's dealer network. The bill stipulated that dealers who prevailed in binding arbitration would receive a customary and usual Letter of Intent to enter into a sales and service agreement with Chrysler Group LLC provided they meet financial and operational prerequisites. The arbitration process began in May, 2010 and concluded on July 26, 2010.
 

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Discussion Starter #59
April 13, 2012
Chrysler Group VP to take medical retirement



Chrysler Group LLC's senior vice president, purchasing and supplier quality, Dan Knott, will take a medical retirement, Chrysler announced Friday. Prior to his current position, Knott, who joined Chrysler 24 years ago, helped develop the Viper, Jeep Grand Cherokee and SRT lineup.

"Dan Knott's leadership has been vital in the effort to revitalize Chrysler by fostering a new culture based on a commitment to meritocracy, excellence and accountability," Sergio Marchionne, Chrysler Group LLC chairman and CEO said in a statement. "He has done an outstanding job in rehabilitating Chrysler's relations with suppliers and, in so doing, enhancing our ability to offer more competitive products."

Scott Kunselman will assume Knott's postion. Kunselman was previously senior vice president, engineering.

In another related move, Mark Chernoby was appointed senior vice president, engineering, taking Kunselman's position. Chernoby continues his Fiat-Chrysler Group Executive Council responsibility for product portfolio management and will continue to serve as product committee coordinator for the NAFTA region.

From The Detroit News: Chrysler Group VP to take medical retirement | The Detroit News | detroitnews.com
 

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Discussion Starter #60
Statement Regarding the Passing of Dan Knott


April 29, 2012 , Auburn Hills, Mich. -

Sergio Marchionne, chairman and CEO Chrysler Group LLC, statement regarding the passing of Dan Knott: “The Chrysler Group family is profoundly saddened today. Dan Knott was an inspirational leader, who cared deeply about the company and, most of all, his people. His passion for products shone through, and I will always remember how his child-like smile lit up the room when we talked about vehicles like the Viper or our Jeep brand. He made a huge contribution to Chrysler by improving our relations with suppliers with an approach based on honesty, transparency and accountability. Dan will be missed on a professional basis, and even more on a personal level. Our thoughts and prayers are with his family. ”

Knott's medical retirement was announced April 13 after 24 years with the Company. Knott was Senior Vice President, Purchasing and Supplier Quality. Prior to that, Knott played an integral role in the product development of such iconic products as the Viper, Jeep Grand Cherokee and the SRT line up.
 
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