2001 Chrysler Sebring Lxi Limited Convertible 2-door 2.7l on 2040-cars

Auto blog

Treasury says auto bailout tally drops to $20.3 billion

In December, the US Treasury announced that it was going to sell all of its shares in General Motors within 12 to 15 months. The first tranche of the 500-million total shares was purchased by GM, which took 200 million of them at $27.50 per share. That price represents an eight-percent premium over the market price at the time. The remaining 300 million shares will be sold "through various means in an orderly fashion."
Of the $418 billion disbursed through the Troubled Asset Relief Program (TARP), a report in Automotive News indicates that "about 93 percent" has been paid back, and the latest figures put Treasury's loss from the program overall at $55.58 billion. That's a $4.1 billion improvement on the last figure, when the expected red ink added up to $59.68 billion. The auto industry's portion of that loss is estimated to be $20.3 billion, a 16-percent drop from the earlier estimate of $24.3 billion.
The Treasury now owns 19 percent of GM, but if all goes well, there will be no more cause for anyone to utter "Government Motors" by the end of Q1 next year. A loss of some kind is still expected, however. Although GM's stock price is close to $29 at the time of this writing, that's still $4 below its IPO price and well below the $72 share price necessary for the government to come out even on its GM investment. On second thought, maybe the ribbing will continue.

Bob Lutz, UAW rep commend Chrysler for not bowing to NHTSA recall pressure [w/poll]

Bob Lutz, the well-known executive with a range of automakers including both General Motors and Chrysler, says he supports Chrysler for not caving under federal pressure to issue a recall on 2.7 million Jeep vehicles. The National Highway Traffic Safety Administration is arguing that the plastic fuel tanks positioned behind the axles of certain 1993-2004 Grand Cherokee models and 2002-2007 Liberty models may become punctured in a collision and potentially catch fire, so it has called upon Chrysler to recall the vehicles. 15 deaths and 46 injuries have been attributed to the issue. For its part, Chrysler has maintained that its models "met and exceeded" all safety applicable mandates when they were manufactured, and furthermore, they argue that the government agency's own data proves that the vehicles are no more dangerous than similar SUVs produced by other automakers at the time. As a result, it is taking the unusual step of refusing to recall the vehicles.
According to The Detroit News, Lutz says Chrysler is right to push back when the government is out of line. Lutz also said that he wished he could have done the same when NHTSA urged Chrysler to issue a recall on certain minivans back when he was with the automaker 25 years ago.
Meanwhile, United Auto Workers Vice President General Holiefield also defended Chrysler by saying, "Our legendary Jeeps are crafted with pride by our dedicated UAW American workforce who work tirelessly to ensure the utmost quality of each Jeep that is produced for customers."

Ram helps power Chrysler to 11% gain in May

Increasing consumer demand for Ram pickup trucks and big SUVs has helped to boost May sales for Chrysler. Ram sales were up a total of 24 percent year-over-year for the month of May. In addition, Dodge sales increased by 23 percent in May, with the standout Durango clocking a 24-percent year-over-year improvement (with an updated 2014 model in the wings, incentives are thick on the ground for 2013 inventory). Fiat and Jeep were up only a modest one percent, however, and Chrysler brand sales were down by two percent against last year's figures.
Chrysler is quite pleased overall with brand performance, saying that this May marks the company's strongest in the past six years. It was also the 38th consecutive month showing year-over-year sales gains.
Eight of the automaker's vehicles set sales records for May, as well: Jeep Wrangler and Compass, Dodge Avenger and Challenger, Fiat 500, Chrysler 200 and Ram pickups. Scroll down to read more detail in Chrysler's press release.