Out of a hole and going into a new one. This is the scenario that Chrysler seems to be projecting as it has announced a new advertising campaign that comes in the heels of their strategic global alliance with Italian automaker Fiat SpA. The new ads will begin appearing on primetime television on Monday, May 11.

Under the tagline introduced on May 3, “We’re building a new car company. Come see what we’re building for you,” the campaign talks directly to consumers by highlighting the features of Chrysler LLC’s product line in a fresh, new and memorable way. The messaging focuses on the quality, technology, safety and value built into every Dodge, Chrysler and Jeep vehicle.

“When we asked consumers what they wanted to know about Chrysler, they told us to tell them about our products, tell them why they should buy our vehicles and give them a reason why they should be confident in the future of this company. We believe this campaign delivers on all of those objectives,” said Steven Landry, Executive Vice President – North American Sales, Marketing, and Mopar Parts and Service, Chrysler LLC. “In addition, this campaign gives us the opportunity to reinforce that it’s business as usual and demonstrate a bright future ahead for Chrysler.”

(Source) Press

Tags: advertising campaign, bright future, car company, dodge chrysler, executive vice, Fiat, fiat spa, global alliance, italian automaker, jeep vehicle, mopar parts, new advertising, new car, president north, primetime television, quality technology, sales marketing, steven landry, tagline

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After careful deliberation of their restructuring plan, Chrysler has announced that they and Fiat SpA will be forming a new company for a global strategic alliance. Under the new terms, Chrysler and Fiat will fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.

“This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages,” said Bob Nardelli, Chairman and CEO of Chrysler. “It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution.”

Chrysler initiated discussions with Fiat more than a year ago to develop plans for a global product alliance. Over the past several months, these discussions have evolved and expanded. Chrysler and many of its stakeholders worked tirelessly to agree upon concessions that will result in a significantly lower cost base and enable fulfillment of a broader strategic alliance.

“Even though total agreement was not possible, I am truly grateful for all that has been sacrificed, on the part of many of Chrysler’s stakeholders to reach an agreement in principle with Fiat,” said Nardelli. “My number one priority has been to preserve Chrysler and the thousands of people who depend on its success. While I am excited about the creation of the global alliance, I am personally disappointed that today Chrysler has filed for Chapter 11. This was not my first choice. ”

Chrysler also will file a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler’s principal assets to the new company. The benefit of this type of filing is speed. It should allow a leaner new company to emerge in a matter of 30 to 60 days, well positioned for long-term viability.

During the restructuring process, the government will provide sufficient debtor-in-possession (DIP) financing to allow continuation of “business as usual.” The company will seamlessly honor warranty claims, pay suppliers and keep our dealer body operating to continue to serve our valued customers.

Chrysler’s Mexican, Canadian and other international operations are not part of any bankruptcy filing.

(Source) Press

Tags: bankruptcy code, ceo of chrysler, Chapter 11, concessions, fiat spa, first choice, global alliance, global distribution, global supplier, stakeholders

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To calm some jumpy workers on their end, Chrysler has boldly announced that it will weather the crisis whether Fiat will come in or not. While the deal with the Italian automaker would bring an estimated $10 billion, a big help especially now that the economies are crashing for most business sectors.

“During the dialogue [with the presidential task force], and in the additional data we have supplied in response to their requests, we have continued to emphasize that Chrysler is a viable business on a stand-alone basis and our future is further enhanced through the proposed global alliance with Fiat,” he wrote.

Nardelli also estimated that the deal with Fiat, which would give the Italian car maker a 35% stake in Chrysler, would bring the company between $8 billion and $10 billion.

“There is still considerable work and negotiations that must be completed to meet the government’s target date of March 31,” Nardelli added. “I can assure you that we are working tirelessly to continue our progress with the assistance of the U.S. auto task force to meet the requirements set for us by the government.”

(Source) Market Watch

Tags: car maker, Chrysler, Fiat, global alliance, italian automaker, italian car, u s auto

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