25% of Americans Couldn’t Afford a US$2,000 Car Repair Bill

The former American Automobile Association, now known by its acronym AAA, is probably the most recognisable organisation of its type in the world.
And with some 52 million members, it’s also one of the world’s largest if not the largest automobile associations in the world.
Suffice to say, when the AAA speaks, the world listens. In a recent telephone survey of 1,009 adults in the continental United States, the AAA found that 12.5% couldn’t cover a US$1,000 (€701) car repair bill and 25% couldn’t cover US$2,000 (€1,402) car repair bill.
Additionally, 50% of those surveyed are holding on to an older vehicle until the economic climate improves and 25% have neglected repairs or basic maintenance on those vehicles over the last twelve months. Doing so, the AAA says, can greatly increase the risk of major and costly repairs.
Marshall L. Doney, AAA’s VP for Automotive and Financial Services explains:
“Economic conditions have taken their toll on many Americans resulting in them neglecting their cars and leaving them at increased risk for very expensive repair bills. Many Americans rely on their cars for their livelihood and losing access to them could be financially devastating during an already troubling economic time."
"It’s important for drivers to not only continue to maintain their vehicles, but also have a financial emergency plan in place should they be faced with a sudden unexpected auto repair bill,” continued Doney.
Of those who can afford the US$2,000 repair bill, 38% said they would pay with their savings account, 20% said they would pay by credit card and 11% would have to borrow money from friends, family, their retirement fund or home equity to pay it.
Things are a little less grim for those can afford the US$1,000 bill. 46% said they would pay with their savings account, 22% would pay with their credit cards and 14% would need to borrow money.
Such bills are not unheard of with older vehicles, especially those that have been mistreated or improperly maintained. A transmission repair can cost anywhere from US$2,000 (€1,402) to US$4,000 (€2,804) and engine repairs can exceed US$5,000 (€3,506).
Similarly, major brake repairs or a new set of tires can pull US$300 (€210) to US$1,000 (€701) depending on the make and model.
All in all, the AAA survey should give owners of older vehicles something to think about in the coming months or years of ownership.

 

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Nearly 300,000 Chrysler and Dodge Minivans Recalled Over Airbag

The Chrysler Group has issued a recall on 299,718 Dodge Grand Caravan and Chrysler Town & Country minivans from the 2008 model year to fix a problem that could cause the airbags to deploy unexpectedly.

The automaker said that the issue is related to the Occupant Restraint Control (ORC) modules that controls the airbags. According to Chrysler, the OCR module may have been exposed to moisture. If this happens, it could lead to the airbag warning light going on while in some cases, the airbag could deploy for no reason.
Chrysler had previously recalled the same batch of vehicles in January of 2011 to replace the Heating, Ventilation and Air Conditioning (HVAC) drain grommet, which had the potential to leak moisture into the area of the ORC module.
The company said that its engineers determined that "that the printed circuit board in ORC modules previously exposed to moisture could delaminate over time, despite the elimination of the source of prior moisture".
The Detroit automaker added that it is unaware of any accidents or injuries related to the condition in vehicles that have had the prior recall completed.
“Despite the lack of field reports, we believe it is in the best interest of our customers to replace these modules to ensure the proper functionality of the minivan’s advanced safety system,” said David Dillon, Head of Product Investigations and Campaigns.
The majority of the affected minivans were sold in the United States, but Chrysler said there are also 50,251 vehicles in Canada; 3,748 vehicles in Mexico, and 13,633 export models.
The company will begin sending letters to the owners of the affected models in September to schedule an appointment with dealers to replace the OCR modules free-of-charge.

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Marchionne Says 54.5 mpg “Doable”, Hints at Retirement

Chrysler and Fiat CEO Sergio Marchionne gave a speech today at the 2011 CAR Management Briefing Seminars. He quoted philosopher Albert Camus, talked about the reason geese fly in a V formation (they create uplift for those that follow, thus extending their range by 70%) and even used an excerpt from Alice in Wonderland, specifically a dialogue between Alice and the Queen in “Through the Looking Glass”.

Marchionne did all this to convey the message that he feels vindicated. For effectively taking over Chrysler, for receiving the bailout money when most were skeptical or openly opposed it (and paying them back six years before schedule) and for wanting to merge the American group with Fiat.
The Group's CEO explicitly stated that the US administration’s proposed 54.5 mpg by 2025 is “very doable”. He cited the example of the new Chrysler 300 full-size sedan, which is rated at 31 mpg on the highway. Although it is a far cry from the proposed targets, he said that the automotive industry has 14 years to utilize current and future technology and thus should have no trouble conforming to the 54.5 mpg target.
Marchionne believes that Chrysler is on the right track, having presented “16 all-new or significantly refreshed products” and that the integration of the two management teams was inevitable.
He also warned his audience about the rise of China “which cannot be ignored. It is the largest car producer in the world. If it exported even 10% of this production, the risk we face at our home markets is enormous”. He also hinted at his own retirement, saying that Chrysler’s future “is up to guys after me… after 2015 or maybe a year later”.
Last, but not least, Marchionne revealed later, at a radio show, that his everyday car is a “black on black” Dodge Charger SRT8. Not a “green” car, but not a bad choice at all. After all signore Marchionne and his team have 14 years ahead of them to make even the SRT comply with the new rules.

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Marchionne Merges Fiat and Chrysler Group

Sergio Marchionne, the CEO of Fiat and Chrysler, has announced the unification of the two automakers’ management teams in one, smaller unit. As Fiat said in a statement, from September 1, the group will have four regional managers for both companies’ operations in Europe, Asia, North America and South America.
These regional chiefs, along with Marchionne himself, and other 17 managers will form a “group executive council". Not surprisingly, Fiat execs dominate the new consolidated management team, with 14 people sourced from the Italian-based carmaker and only five from Chrysler.
Until now, the executives of both companies have worked together in all industrial functions like engineering, design, manufacturing, quality control etc. Marchionne has admitted that he aims to merge the two groups in order to reduce costs and increase their revenue to $140 billion (€100 billion) ‘till 2014.
In comparison, last year Fiat and Chrysler’s combined revenue was $81.47 billion while production reached 3.58 million units. Marchionne’s grander plan is to create a global group strong enough to compete against the biggest names in the industry such as VW, Ford, GM and Toyota.

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More American Car Buyers Opting for 4-Cylinder Over V6 and V8 Engines

Once upon a time, in the land of the free and the home of the brave, most consumers liked their cars with six- or eight-cylinder engines. Blame the rising costs of fuels or advances in technology, but now, American buyers are turning to smaller 4-cylinder units in increasing numbers.

According to a report from IHS Automotive, in the first half of the year, more than 43% of the light vehicles sold in the US were equipped with four-cylinder engines, compared to just 30% five years ago.
It was the opposite in 2006, when V6s had a 43% market share. In the meantime, four cylinders’ sales rose and those of six-cylinders declined, with the former overtaking the latter in 2009. The V8 is losing ground even faster: its sales account for one in every six vehicles, whereas in 2005 that number was one in three.
The four-cylinder domination is even bigger if you do not take into account fleet sales, where many vehicles are trucks or vans with V6 or V8 engines.
The choice of fewer cylinders in new cars is explained by the downsizing trend, due to the increasing oil prices and the manufacturers’ efforts to build more fuel-efficient cars in order to meet the 35.5 mpg average consumption target set by the government for 2016.
For example, Ford’s new Ecoboost turbocharged four-cylinder coupled with six-speed transmission as standard has been introduced in many new models in its US line-up.
In addition, sales of smaller vehicles in the US are increasing, with small and mid-size sedans accounting for 44% of sales in 2001, compared to 36% six years ago.

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2011 Chrysler 300 gets into the Limo Business

Even though Chrysler’s new 300 is being marketed as a more elegant and mature proposal than its predecessor, that doesn’t mean it won’t garner the same amount of attention from extreme tuners, rappers, professional athletes and of course, your occasional limo builder, as the previous model did.
Only a few months after it hit U.S. showrooms, and we have if not the first, at least one of the first stretch limousine transformation of the 2011 Chrysler 300.
It is based on the 3.6-liter V6 model and is virtually brand new having clocked only 71 miles.
As the seller notes on eBay, it comes with “all the bells and whistles”, which translates to a 140-inch stretch, more LEDs than you can possibly count, laser lights and the compulsory disco floor.
If you’re interested, it could be yours for $78,500 (Buy it Now price).

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Chrysler Surpasses Ford as Canada’s Biggest Seller

Canada’s economy seems unaffected by most of the Western World’s woes, where markets are struggling and unemployment is booming. In fact,Canada’s economy is growing and as a result, unemployment is falling and people are getting jobs. Therefore, they have money to buy cars, or light trucks, pickups and SUVs.
“People who are getting jobs are opting for practical vehicles such as a crossover to get better mileage than a traditional SUV”, said Carlos Gomes, an economist at Scotia Capital. “You have the construction sector holding up very well, and that is positive for the pickup segment.”
This has worked very well for Chrysler, which in the first half of the year has overtaken Ford in light truck segment. That is because, with oil prices rising, new truck buyers are opting for more fuel-efficient models.
For instance, Chrysler’s Dodge Journey sales increased more than the SUVs of rivaling carmakers Ford and GM, the Escape and the Chevrolet Equinox respectively.
However, in total vehicles sales including cars, Ford still leads the market with a 17.4% share, having also beaten GM in 2010 for the first time in many decades. GM is second, with a 15.5% market share, but it can feel Chrysler breathing down its neck with 15.0% and only 4,000 vehicles difference in the first half of the year.

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Alfa Romeo’s Return to the US Delayed Until 2013

It’s 2003, 2004, 2006 – you get the idea- happening all over again; Alfa Romeo’s return to the US market has been delayed and will not happen in 2012 as was the most recent plan. Instead, Fiat Group and Chrysler LLC CEO, Sergio Marchionne, has pushed the Italian brand’s arrival back for another year, or so until he announces another delay.
Technically, Alfa has already returned to the market it abandoned in 1995 by selling 100 units of its 8C Competizione supercar. And Marchionne won’t exactly break his promise about 2012: the small detail is that it will be only with a few examples of the limited-edition 4C coupe.
If –and that’s a very big IF- everything goes according to schedule, Alfa’s actual second coming to the US will happen in mid-2013 starting with a compact crossover model.
The reason for the latest delay is the fact that Marchionne has thrice in the last 18 months rejected proposals for the new Giulia, the compact sport sedan that will replace the 159 and will be the second model, after the SUV, to be sold to the US market through Fiat dealerships.
Let’s keep our fingers crossed that this time it’s for real. Because since 2000, when the then-CEO Paolo Cantarella announced a return to the US in alliance with GM, which was subsequently pushed back to 2002 before being abandoned, we’ve already heard more than enough reports on the matter.
And this is all starting to sound like TV televangelists who every other day, and twice on Sundays, predict the end of the world yet, despite their "prophecies", planet Earth is still here.

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New Chrysler 2012 SRT8 Models With Prices

The Chrysler Group’s newly formed Street and Racing Technology (SRT) brand has released pricing on its latest crop of models, which include the 2012 Chrysler 300 SRT8, the 2012 Dodge Charger SRT8, the 2012 Dodge Challenger SRT8 392 and the 2012 Jeep Grand Cherokee SRT8.

Prices together with an $825 destination fee start at $47,995 for the Chrysler 300 SRT8, $46,660 for the Dodge Charger SRT8, $44,077 for the Challenger SRT8 and $55,295 for the Jeep Grand Cherokee SRT8.

All four SRT8 models are powered by the Chrysler Group’s new 6.4-liter HEMI V8 with Fuel Saver Technology that cranks out 470 horsepower (351kW) and 470 lb-ft (637Nm) of peak torque (465 lb.-ft. / 630 Nm in the Grand Cherokee SRT8).

The key performance numbers for the four SRT8 models are as follow:

• 2012 Chrysler 300 SRT8: 0-60 mph (96km/h) acceleration in the high 4-second range; quarter mile in high 12-second range; 0-100-0 mph (0-160km/h-0) in less than 16 seconds, top speed of 175 mph (281km/h) and stopping power from 60-0 mph in 120 feet.

• 2012 Dodge Charger SRT8: 0-60 mph acceleration in the high 4-second range; quarter mile in the high 12-second range; 0-100-0 mph in less than 16 seconds; top speed of 175 mph (281km/h) and stopping power from 60-0 mph in 120 feet.

• 2012 Dodge Challenger SRT8 392: 0-60 mph in the high 4-second range; runs the quarter mile in mid-12-second range with the automatic transmission (high 12-second range with the manual); goes from 0-100-0 mph in the low 15s, reaches a top speed of 182 mph (293 km/h) with the manual transmission (175 mph with the automatic) and stops from 60-0 mph in 117 feet.

• 2012 Jeep Grand Cherokee SRT8: 0-60 mph in 4.8 seconds, 0-100-0 mph in the mid-16 second range, can cover the quarter mile in the mid-13 second range, has a top speed of 160 mph (257 km/h) , and brakes from 60-0 mph in 116 feet.

The Detroit automaker recently elevated the SRT in-house performance division to a separate company brand, which will design, engineer and build high-performance vehicles for the Chrysler, Jeep and Dodge brands.

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