Chrysler’s troubled relations with its dealers took another turn for the nasty this week, as culled dealers teamed up with lawmakers to criticize Chrysler’s decision to open new dealerships near the sites of several culled dealers. As with GM’s dealer struggles, this latest controversy centers around Colorado, where culled dealers are protesting Chrysler’s behavior in the Denver Post. Culled dealers have seen franchises in their former areas awarded to chains like AutoNation before congressionally-mandated arbitration had even given them the opportunity to contest their culling during last year’s bankruptcy proceedings. “This is not right,” said one dealer. “We specifically asked (Chrysler) not to redistribute the franchise before our arbitration.”

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Chrysler fan site Allpar.com got its paws on a list that it says depicts Chrysler’s upcoming production plans. If true, this list confirms that many of Chrysler’s refreshed products won’t be hitting the streets until 2010 is nearly over, and that the debuts will come thick and fast. So don’t expect much to improve in the way of sales for Chrysler until at least December. Even then, every other TV ad will have to be for a Chrysler, Jeep or Dodge if the firm hopes to educate the buying public about these re-launches. The chances are good that Chrysler will survive until December, barring any supplier issues, recalls or further sales dips. Come December, when we have seen and driven this new generation of Fiat-refreshed products, we’ll have an idea of Chrysler’s chances of survival until 2013, when the next wave of fully Fiat-developed projects arrive. This should be interesting.

It’s both annoying and strangely prophetic (we think) that Lancia and Chrysler don’t have one of those convenient “Brangelina” names, like Lancsler or Chrycia. Fiat’s execs aren’t exactly being subtle about the merging of the two brands, but then they’re also not giving us a lot of glimpses at the stunning execution that it will take to turn two marginal marques into a single, halfway viable brand. It’s almost as if the two are just being pushed together in a forced, unnatural manner, and the results thus far show a distinct lack of inspiration. Not convinced? Hit the jump for your morning glass of has it really come to this? [via unica-strada.com].

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Chrysler sold exactly 399 more vehicles in February than it did in February of 2009, which would be a respectable performance if the comparison weren’t with one of Chrysler’s worst months on record. GM may be tentatively nosing its way out of the bottom of a sales trough, but Chrysler is treading water at unsustainable levels (CEO Sergio Marchionne has said he “needs” Chrysler to sell 1.1m units in the US this year). Considering that a huge amount of Chrysler’s sales release [PDF format here] is spent detailing the company’s many consumer incentives, Marchionne’s goal of turning ChryCo into a 1.1m-unit, incentive-less juggernaut seems less realistic with every passing month.

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Chrysler’s long-disfunctional “Five Star Dealer” program may be on its way out, reports Automotive News [sub], as a new Fiat-created dealer rewards program rolls out to a Chrysler dealer body that’s fighting for survival. The new program, which may still be merged with Five Star, addresses several longstanding dealer complaints about Five Star, perhaps the most important of which is third-party verification [to be done by the Swiss audit firm SGS Group]. Given the deep mistrust that exists between Chrysler dealers and the mothership, bringing in outside auditors to perform certification was probably a prerequisite (and brings the Chrysler program in line with Ford’s practice of independent dealer rewards program auditing). But the biggest change also helps explain why Chrysler employees will no longer judge dealerships: instead of a mere star rating system, now there’s money at stake.

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Chrysler Group LLC has some serious faith in its planned Sebring “intervention,” as it has purchased the Sterling Heights Assembly Plant back from the estate of its bankrupt predecessor for $20m. According to the Detroit News, the move was necessary to secure $8.2m in local tax abatements, and as a result, the Sebring and Avenger will continue to be built there until 2012. But, warn ChryCo spokesfolks, “There is no commitment on the future of SHAP beyond 2012,” when the refreshed Sebring will finally be replaced by a new midsize sedan based on a Fiat platform.

Well, the death of the Sebring name anyway. The Detroit Free Press reveals some of the first details about Chrysler’s all-important refresh of the Sebring/Avenger, a vehicle that CEO Sergio Marchionne recently admitted (in what was surely a Lutzie-award-worthy understatement) is “not the most loved car by car enthusiasts.” The biggest detail: it won’t be named Sebring. This shouldn’t come as much of a surprise, considering that the Sebring’s issues are less related to a tepid reaction from the enthusiast market, and have more to do with the fact that even the least car-literate Americans recognize the Sebring name as a symbol for all that is wrong with America’s auto industry.

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Fiat/Chrysler CEO Sergio Marchionne seems ever more committed to the idea of bringing the Alfa Romeo brand to the United States, telling Automotive News [sub]:

I’m a lot more confident now that Alfa Romeo will reconstitute a product offering that is acceptable globally, and more in particular in the United States and Canada. There is a strong likelihood that the brand will be back here within the next 24 months

It’s not a question that should leave many folks on the fence, but apparently there are at least a few Detroit-area journalists who might be willing to consider the career change. “Dealers optimistic about Chrysler’s future” proclaims the Detroit News headline from NADA’s annual convention. A more accurate headline (such as USAToday‘s “Chrysler dealers face new-model drought”) probably should have included the term “punch-drunk” to better explain this unexpectedly sunny outlook. One grizzled ChryCo dealer sums up the mood with aplomb:

We’re the toughest fighters. We’ve always been 3 or 4 (in the marketplace). We’ve never been spoon-fed. We have to fight for every piece of ground… There’s light at the end of the tunnel; I just don’t like the length of the tunnel.

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Last week we took the counter-intuitive step of calling out Chrysler for refusing to hype its forthcoming products. “Let’s face it:” we wrote at the time, “Chrysler needs buzz, hype, awareness, or some kind of excitement surrounding its future generally and its forthcoming products in specific (if only in the irritating “teaser” format) almost as much as it needs anything else.” Well our wish has been granted, sort of, as this rendering of a 2013 B-segment Dodge hatchback has hit the internet [via AutoBirdBlog] to inspire rare optimism about the Chrysler Group’s future. For a number of reasons though, this is not the buzz-builder we were looking for.
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[Note: A significantly expanded and updated version of this article can be found here]

That air presented the greatest obstacle to automotive speed and economy was understood intuitively, if not scientifically since the dawn of the automobile. Putting it into practice was quite another story. Engineers, racers and entrepreneurs were lured by the potential for the profound gains aerodynamics offered. The efforts to do so yielded some of the more remarkable cars ever made, even if they challenged the aesthetic assumptions of their times. We’ve finally arrived at the place where a highly aerodynamic car like the Prius is mainstream. But getting there was not without turbulence. (Read More…)

Having recently posted a nearly $5b loss, bailed-out auto finance giant GMAC says it needs more help from automakers to remain competitive. Automotive News [sub] reports that GMAC CEO Mike Carpenter told reporters that “the success of GMAC Financial Services hinges on more loan and lease subsidies from General Motors Co. and Chrysler Group,” and that “GMAC requires additional marketing funds from the automakers to provide competitive loans and leases to the GM and Chrysler dealer networks.” GMAC’s Chrysler business has nearly doubled in the last quarter of 2009, now providing about 26 percent of Chrysler’s retail financing and about 30 percent of GM’s.

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Fiat/Chrysler CEO Sergio Marchionne was supposed to give a speech in conjunction with the Chicago Auto Show today, but backed out at the last minute, sending Dodge honcho Ralph Gilles in his place. The Chicago Sun Times was able to snag an interview with the globetrotting CEO though, and it features some of Sergio’s more candid (if confusing) comments on the state of new product development at the New New Chrysler. Of particular interest is his very apt criticism of Cerberus’s mismanagement of new product development, specifically the decision to replace the 300 before the Sebring.

The biggest market segments in the United States are the C [midsize cars] and D [large luxury vehicles] segments. If you only have a dollar to spend that’s where you go spend it, especially if you’ve got products that are structurally not working.

The decision was made to invest elsewhere. So we developed a brand-new platform for the 300, a decision that took capital that may have been required elsewhere to go play in a different sandbox. Until you’re clear about where you need the money, where the money needs to be spent to ensure longterm survival – that part of it was substantially missing.

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Yes, they’ve got themselves one heck of a problem down Pentastar way: the boffins have done the math and reckon some 67 percent of Chrysler Group minivan buyers are previous owners. That’s a good thing when it comes to polishing your R.L. Polk Owner Loyalty award, but it’s not exactly helping Chrysler make inroads on volume or market share. Which is where the “Minivan Pledge” comes in. “It’s Time To Drive Detroit Again: The Best Minivans In The Industry Just Got Better,” shouts the headline of Chrysler’s release announcing a 60-day money-back guarantee for buyers who trade in a competitive product towards a 2010 minivan. “‘Minivan Pledge’ gives competitive owners the peace of mind to ‘try us again,’” is the pitch. The only problem: everyone knows it takes at least 90 days for a Chrysler minivan to eat its own transmission.

Automotive News [sub] reports that Fiat/Chrysler will become the latest in a line of third-rate global automakers to form a joint venture with the Russian firm Sollers, with plans to produce half a million units of nine Fiat and Chrysler models at a new plant in Naberezhnye Chelny. Previously Sollers had formed joint ventures with such notable automakers as Ssangyong and Isuzu. Reuters reports that Russia’s state-owned banks will provide most of the venture’s $2.9b in start-up costs. But Fiat/Chrysler has a tough road ahead of it. An analyst for BrokerCreditService describes Sollers’ challenge thusly:

The main object of this plan is to take some, I think, little market share in Vladivostok and Primorsky Kray Russian region, because over 80 or 90% of cars in this region are used cars of Japanese production.

Chrysler has yet to prove that it can handle that kind of competition in the US market, and it will be interesting to see how new Chrysler models sell against the previous-generation Sebring/Stratus, which is produced in Russia as the GAZ Volga Siber.