It's official - Cerberus buys Chrysler

stever · July 2007

Still, for those of us who drive them forever, this is a pretty big deal. I got into a Voyager in '89 and the 7/70 powertrain warranty was a big factor for me back then.

Going to the dealer on the 5th anniversary will be hard for me. :shades:

fezo · July 2007

Yeah, that non-trasnferable didn't escape my notice.

I will say that that kind of warranty would remove my biggest concern about Chryslers.

qbrozen · July 2007

excellent point. The tranny is the ONLY reason we are giving serious thought to what we will do at the end of our Pacifica lease.

On one hand, we really like it and, for the right buyout, we'd like to keep it. But then I think about that tranny. I have one with a 75k mile warranty, so even if I keep it, it would probably only be until we hit 70k miles.

andres3 · July 2007

But the Caliber coming from the Neon means that it will never run reliably, ever.

qbrozen · July 2007

uhhh... no relation other than the fact that it REPLACED the neon. New engine, new tranny, new platform.

fezo · July 2007

I could see why one would want to hold onto a Pacifica. I haven't looked but I wonder what kind of incentives are on the new ones?

The vans are nuts! $4K off the top and another $1,500if you own any other Chrysler product for 30 days or more. Then they add that warranty.

I'll expect them to come drive one to my house....

british_rover · July 2007

I have been thinking about getting a work truck for a while now and this pretty much decided it for me assuming they still have it in effect when I decide to buy one.

urnews · July 2007

Even though it's non-transferable it is one helluva deal. I predict this will boost Chrysler sales considerably.

qbrozen · July 2007

We got something like $10k off sticker on our Pacifica almost 2 years ago when they were running that employee pricing for everyone. Someone recently posted a similar price in the prices forum because they get employee pricing. So it would seem it hasn't changed much.

fezo · July 2007

I see fitzmall is selling Pacificas at about $7K under MSRP. Close but not quite the deal on the minivans.

That sort of thing has me wondering. Now I just replaced the old Ody with a CPO early this year but the thought of a $30K T&C for $23K and a lifetime powertrain warranty certainly has my radar going....

volvomax · July 2007

By itself, I don't think it will do much to boost Chryslers sales.
Most new car buyers won't keep the car long enough to benefit.
Plus,being powertrain only,the benefits are limited.
Even chryslers powertrains are pretty reliable.
Plus,its not transferable,so it brings no vlaue @ trade in or re-sale time.

michaellno · July 2007

I've been giving this some thought ... the only folks who will benefit from this are the ones who buy new and keep forever. Which means that they would be out of the market for a new vehicle for many, many years.

Is the idea to get folks to try a Chrysler-bus product? Much like Hyundai did with its 10yr/100K warranty?

fezo · July 2007

I'm sure this is exactly that - an attempt to out-Hyundai Hyundai. The thing that keeps me from doing anything with it is it would mean committing to a Chrysler long term. I don't know if I have that in me.

michaellno · July 2007

The thing that keeps me from doing anything with it is it would mean committing to a Chrysler long term. I don't know if I have that in me.

Me, too. Just isn't anything that they make that I'd be interested in.

Of course, at the moment I'm all over the map thinking about my next car...

fezo · July 2007

All over the map is a good thing. It keeps your options open....

I'm still in a minivan in the family mode and since my wife puts on way more miles than I do these days she's got the regular car...

michaellno · July 2007

I'm still in a minivan in the family mode...

Well, with the size of your clan, I can certainly understand why!

So, you gonna trade that Odyssey in for a T&C?

andres3 · July 2007

Thats all fine and dandy, but the Neon was designed, engineered, and built by the same folks at Chrysler that dreamt, thought up, and produced the Caliber. Same people, same company, same result.

Expect an extremely unreliable experience. Don't say I didn't warn you.

wtd44 · July 2007

Past performance is no guarantee for future performance, neither for better or worse. I'm beginning to think the PT Cruiser may be one of the best buys in the small car market. I think I'd take one instead of a Caliber.

fezo · July 2007

I haven't completely ruled it out but I'm thinking I'll stick with the Ody.

I'm down to three kids in the car at most times. Ever since the oldest got a car she doesn't ride with us anymore....

qbrozen · July 2007

I'm not sure why you are in a chrysler topic if you hate them so much.

I also have to assume you don't trust Nissans and Mitsubishis.

jchan2 · July 2007

is probably an excellent marketing stunt; as someone said earlier they are trying to out Hyundai-Hyundai.

I know it's non-transferable, but this alleviates a lot of fears in regards to the powertrains and transmissions of their cars.
Who knows? With the deals on Chrysler products, it might be worth a look, and it certainly caught my eye.

british_rover · July 2007

I rarely see any positive posts from them on anything I think they just come here to rant.

fezo · July 2007

This warranty deal got me looking over in the Chrysler van forums. I don't think I'm that adventurous.

eugened · July 2007

Chrysler makes some nice looking cars, but ownership experience is not great. I purchased new PT Cruiser Limited in 2001 and put only 30,000 miles on it. Since then I had to replase rack and pinion for 1800$, onboard computer and side air bag computer for 1000$, and another repair was for engine harness - estimated cost 1600$. Total about 4500$ in repairs in 6 years. And I took great maintenance of the car. All repairs happen after warranty expires. My neighbor bought Toyota Camry at the same time. Hi did not spend a single cent on repairs. Just regular maintenance. I already get rid of PT, he still driving Toyota. My next car is mazda5, and no way I will buy or recommend Chrysler again.
They have to do something extra ordinary, like 10 years transferable bumper-to-bumper to win people back. The non - transferable lifetime powertranny is a joke. Who is going to drive the same (PT?) car whole life? And does not increase resale value.

KCRam · July 2007

This is always going to be a matter of personal experience. I'm on my second Dodge Ram 3500 dually 4x4 diesel. The first one was a 1996, ordered from the factory to my spec. I owned it nearly 9 years and put 127,000 miles on it. Even with that age and mileage, the dealer actually had it in their used car lot and even parked it at the main driveway entrance for a week. I had no mechanical or electrical failures. I replaced it with another ordered 2005 and have had it nearly 2 1/2 years. I drive more now, and it's already over 46,000 miles. Again, no failures. All that means is, I got two great Rams and you had a poor PT. These vehicles are machines built on assembly lines, and while most of them are just fine, you do get some bad ones... I had a bad Ford that led me to Dodge, but if someone else wants a Ford, it's not for me to stop them. I know people who have had Fords for years with no sweat.

kcram - Pickups Host

fezo · July 2007

I've actually owned only one Chrysler - a 98 Sebring convertible. I had to get rid of it because the family got bigger. It never gave me a bit of trouble. My brother had it a couple of years after that and did well with it. Same brother had maybe three Chrysler vans with not nearly the same results.

That said my daughter has a troublesome Toyota. It can happen.

bumpy · July 2007

the Neon was designed, engineered, and built by the same folks at Chrysler that dreamt, thought up, and produced the Caliber.

Not so much. The platform is mostly Mitsubishi (Lancer) and the engine is mostly Hyundai (GEMA).

jchan2 · July 2007

Chrysler was responsible for the interior design though, right? It's an awful lot of hard plastic that you don't really see in the Elantra or Lancer.

qbrozen · July 2007

2 schools of thought on this one. You see cheap, I see useful. Given its dimensions, it is going to be used for much more utility purposes. The interior design makes it VERY easy to keep clean.

Seems to me they took a page from the Element book on the interior design.

andres3 · July 2007

I'd say the difference is more the fact that you got trucks and not cars. The difference isn't from personal experience, because a majority of Chrysler owners go elsewhere after one stint.

They can make a truck, but they can't make a car last more than 3 years or 36K miles. And the warranty does not increase the resale value directly correlated to quality and durability.

jchan2 · July 2007

That's a good point. Those interiors do look very durable.

metro123 · July 2007

I have this strange picture in my mind. It's the year 2037 and someone is towing in a 30 year old Dodge Caliber to their local Dodge dealer. The car is trashed, it has like 300K miles on the odometer, with a blown engine. The owner smugly tells the service manager, "I want a new engine, fix it under warranty. !!

Boy would I like to see the look on his face.

british_rover · July 2007

You are assuming that there will be a dodge dealer in 2037.

qbrozen · July 2007

Oh. Ouch! Lol!

metro - if they would come out with the SRT4 already AND if they are around in even 10 years, that COULD be me. ;b

andres3 · August 2007

I don't hold anything against Dodge they didnt earn

iluvmysephia1 · August 2007

includes some engineering design work being done by Chery to build the new Hornet. The subject came up about engineering plans for the little stinger. Like for it's chassis, for instance. Dodge will oversee the new mini's production like doting parents but they won't be supplying all of the engineering for it. So says a particular Chinese car website I've been frequenting lately. The costs of building this car are significantly lower in China with Chery building it. Even with lower labor costs for Chery they will not even profit from building the car, how would anyone expect Dodge to make a penny from it building it in America? There's no way. Small cars don't return enough profit, yet, new fuel standards set forth plus skyrocketing fuel prices in the U.S.have even GM re-thinking the small car import to the U.S. GM will invest $6.4B in to their GM Daewoo subsidiary in South Korea and import some truly small rigs to the U.S. in "two years". Huh? Better late than never I spose.

I have read quotes of the new Hornet's U.S. price to be only $12,000 for the 6-speed manual version of the car. It will arrive in late 2008 or early 2009 to the U.S. Chery will barely make a dime off each Hornet but they are very hungry for the exposure and experience and chance to get their "foot in the door" to the potentially lucrative NA car market.

KCRam · August 2007

The deal has closed... Chrysler is now American and private:

DaimlerChrysler press release on Cerberus/Chrysler closing

And "The New Chrysler" announces a First Day celebration:

The New Chrysler press release

kcram - Pickups Host

iluvmysephia1 · August 2007

New Chrysler's initial stock price will be. Glad to see the deal is done and the company can move forward and concentrate on making good vehicles for the future.

KCRam · August 2007

There will not be a stock price. The new Chrysler is 100% private. Cerberus won't release Chrysler as an IPO for another 4-5 years at least.

kcram - Pickups Host

lemko · August 2007

...touting "The New Chrysler Corporation" back in the early 1980s. Is this the New New New Chrysler Corporation? Seems they've died and come back more times than the Smothers Brothers.

wtd44 · August 2007

We need to get behind the new Chrysler emergence, regardless of third edition status, and begin rebuilding our power base through independence from as many foreign sources as possible-- and NOW. I feel far less adamant about "captive" imports than those that are not.

andres3 · August 2007

Chrysler would have disappeared the first time they got into financial troubles.

The world would be so much happier and prosperous had that happened!

Oh well..

qbrozen · August 2007

Ya think?

Heck, it makes me sad to think we would not have the current revitalization of the full-size American RWD performance sedan. Ford and Chevy certainly weren't going to step up and do it.

wtd44 · August 2007

Daewoo and Daihatsu would have dominated the transportation world... :P

qbrozen · August 2007

Chrysler's new CEO.

I can picture it now. Chrysler stores become big warehouses where buyers stroll through, pick out the car they want (at a no haggle price), and call for the forklift to come and get it down off the rack.

british_rover · August 2007

I remember hearing all the stories on NPR about Nardelli RE: Home Depot and they were not good ones.

I don't think this looks good.

fezo · August 2007

Yeah, I saw that and I'm thinking maybe the selling off for parts might be the strategy after all. He doesn't strike me as who you want leading the charge for a revitalized company.

wtd44 · August 2007

I guess we'll have to wait and see...

dsirias · August 2007

He's a failed CEO (google naregelli + home depot); pretty much screwed HD. They had to get rid of him. His specialty is slashing cost, at all cost. The premise that Cerberus intends to make Chrysler a competetive and profitable company is mistaken.....Cerberus does not want Chrysler to be a good profitable car company. They simply want Chrysler to be worth more than they paid for it so they can sell it for a profit. Quality and long term health are irreleant. I foresee Nardelli as the broker who makes the deal that brings cheap Chinese cars here...... So I take back my old prediction that at least the minivan will stay made here in the USA. I think Chrysler is now dead man walking.

wtd44 · August 2007

But you can say pretty much the same about the cheap Korean cars that somebody brought here not so long ago, and the cheap Japanese cars before that. Who brought those? Did we get a "dead man walking" out of those ventures?

It's official - Cerberus buys Chrysler

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