Dec
31
Chrysler holds to tool plans
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Although Chrysler officials haven’t said so publicly, the company and its weld-assembly system and automation suppliers are going ahead with work on the second minivan production line, which should be finished, installed and ready for use in the 1987 model year. It will be capable of turning out both existing sizes and extended versions of the compact front-wheel-drive vans, the Plymouth Voyager and Dodge Caravan.
The tooling program was held up late last year because of a problem invovling production sites, but this problem will be resolved over the next six to 12 months, Chrysler sources last week.
Chrysler sources said last week.
Chrysler isn’t going to let the lifting of import restraints affect its plans for an import-fighting small car, either. Prototypes of that car, which is known as the Concept 90 or “Liberty” project, already are being tested, and chrysler may speed up the development of the car in order to bring it out in the fall of 1988 as a 1989 model.
The third largest domestic automaker also is proceeding with another tooling project that some industry observers thought would be interrupted by the removal of voluntary restraints on cars imported from Japan: the J-car program for 1987.
Dec
31
Chrysler balks at Uberlease
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In the interests of cost-cutting, Daimler Chrysler has retreated from its commitment to lease five-floors of prime Chrysler Building office space. The news comes after Daimler Chrysler’s announcement that they will cut 26,000 jobs — 20 percent of their North American work force.
But they are apparently left with five floors of prime, Chrysler Building space ideal for subleasing. According to one informed source who asked that his name not be printed, Daimler Chrysler — which has not “backed out of its lease” — will indeed explore subleasing potentials for this trophy space.
Recently, the Chrysler division reported a third-quarter loss of $512 million while their fourth-quarter loss could exceed $1 billion. Both a slower U.S. economy and heavier light-truck competition are being blamed for the company’s problems.
Dec
31
UAW and Chrysler will not reopen contract
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Chrysler rebuffed the union’s request for a reopening because the union wanted to set a deadline for completing the talks, backed by the right to strike. However, Chrysler did offer to discuss modification of the pay and benefit provisions of the contract, despite its contention that matching Ford’s and GM’s pay and benefit levels would result in labor costs higher at Chrysler than those at GM and Ford because of a higher proportion of retired employees drawing pensions and medical benefits at Chrysler.
The union responded to Chrysler’s decision by calling for a meeting of its Chrysler Council, composed of 150 local union officials. At the meeting, the union leaders decided not to accept Chrysler’s offer because of the lack of the strike weapon. As a result, bargaining will not start until August 1985.
Dec
31
Making a difference at Chrysler
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The current method, adapted from Japanese manufacturers and since imitated by others, is to assemble representatives from each of the key functions into platform teams. (A platform is a basic chassis from which several vehicles may be made.) Team members from the different functions work simultaneously and communicate frequently to assure, for instance, that the shape of a particular body part will accommodate adjacent components. In addition, a manufacturing representative may suggest that a minor change in the design of a component will facilitate more error-free assembly, or a supplier may suggest that a change will not only increase the reliability of a component but also save cost. Under the old, chimney-style way of producing vehicles, most of these suggestions would have virtually no chance of being adopted. With platform teams, most of them become reality. The result is a reduction of the time it takes to bring a new vehicle to market from about five years to less than half that in many instances. Commensurate savings are achieved in costs, and defects average about one per vehicle currently.
These changes have, fortuitously, enhanced the impact that the economics function has on decisionmaking at Chrysler by pushing decisionmaking down to the lowest appropriate level. Although no system is perfect, the effect on the economics function has been to increase the demand for economic analysis throughout the company.
WHAT WE DO
Forecasts
The economics function provides many services to various parts of the corporation. We provide the usual array of economic forecasts and analysis for economies throughout the world, with an emphasis on the United States. More importantly, we also have the responsibility for forecasting sales of new vehicles for the countries in which we do business. More than 90 percent of Chrysler’s sales occurs in North America, although that percentage continues to drop as we expand more rapidly overseas than domestically. As a result, our forecasts of the North American market are more detailed and are made more frequently (monthly) than are our forecasts of overseas markets (twice a year or more often if needed). The short-term (two-year) forecasts are the starting point for the scheduling of production at plants, and the longer-term (five- and ten-year) forecasts form the basis of the product and business plans. Because our forecasts of the industry include a breakdown to seventeen segments and include estimates of the country of origin of sales, we are forced to understand the details of the market in ways similar to those who work in sales and marketing, product planning, design, and pricing.
Analysis
Dec
31
USA TODAY - Choice For Chrysler Ceo Blasted
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Dec
31
Open Question: My climate controls light went out on my Chrysler 300 and I want to know how can I get it fix?
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Dec
30
Stainless on way out at Chrysler
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Aluminized steel set for exhaust unit parts
DETROIT–As part of its sweeping cost-reduction program, Chrysler Corp. is going ahead with plans to remove stainless steel from the mufflers, intermediate pipes, tailpipes and other exhaust system components behind the catalytic converters on most of its passenger cars and minivans.
For the 1991 model year, at least, Chrysler is expected to use aluminized steel as a substitute for stainless in those applications.
Aluminized steel is less expensive than stainless but is regarded by most engineers as less durable in high-temperature, corrosive environments. Exhaust system components are subject not only to considerable heat from the engines but also salt used to melt ice in the winter.
While the switch will save money, it is expected to put Chrysler behind General Motors Corp. in the unit average content of stainless steel exhaust system parts. GM is increasing its use of stainless mufflers, intermediate pipes and tailpipes as well as exhaust manifolds in 1991 models.
Chrysler’s actions could trim an average of 18 to 20 pounds of stainless steel from each car that’s being converted to aluminized steel exhaust parts for 1991. At that rate, 18 million pounds of stainless could be dropped from Chrysler applications in a single year.
Company officials declined to comment or to indicate which car lines are involved.
Dec
30
New York Limo
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