Chrysler to build smaller version of Pentastar engine, 2 sources say

Chrysler Group plans to produce a smaller version of its 3.6-liter Pentastar V-6 engine, likely at a plant in suburban Detroit, according to a union official and a source familiar with the project.

The new 3.2-liter Pentastar engine variant is to debut in the upcoming replacement for the Jeep Liberty, the union official said. Chrysler-Fiat CEO Sergio Marchionne has said the Liberty successor will be introduced in January at the Detroit auto show.

Bruce Baumhower, president of UAW Local 12 in Toledo, Ohio, where the Liberty replacement will be assembled, said the vehicle is expected to have a 3.2-liter V-6 Pentastar and a nine-speed transmission. The transmission was developed by ZF Friedrichshafen AG, which provides the eight-speed transmission for the Dodge Charger and Chrysler 300 sedans.

Baumhower made the remarks to Automotive News today and to Toledo TV station WTVG this week.

Another source familiar with the project verified Baumhower's information.

A Chrysler spokesman said the automaker would not discuss future product or production plans.

Work has begun on a $500 million renovation to the Toledo North Assembly plant to make the successor to the Liberty. The plant will close in early August for at least five months to retool for the new SUV, Baumhower said.

The automaker aims to improve its corporate average fuel economy, in part with new transmissions.

Marchionne hints

"You should not underestimate the weight of transmissions" to improve fuel efficiency, Marchionne said on the sidelines of the Geneva auto show this month. "If we had known the eight-speed [automatic transmission] was coming, we would have made the [3.6-liter] Pentastar a 3.2-liter" engine.

Chrysler has spent much of the last year removing tooling and equipment from the Trenton North Engine plant in suburban Detroit, a Trenton city official said. About 80 percent of the 2.1-million-square-foot plant is vacant, with the rest used to make engine parts for the 3.6-liter Pentastar.

The adjacent Trenton South Engine plant has been building the 3.6-liter Pentastar since its launch in March 2010, and along with a twin plant in Saltillo, Mexico, has been struggling to keep up with demand.

Trenton South and Saltillo are each designed to produce about 440,000 engines per year, but Marchionne said the automaker needs as many as 1.2 million Pentastar engines per year to meet demand.

The 3.6-liter Pentastar is available in 11 vehicles across the Chrysler Group lineup, producing between 283 and 305 hp, depending on the vehicle. It comes standard on several of the automaker's highest-selling vehicles, including the Jeep Wrangler, Chrysler Town & Country and Dodge Grand Caravan minivans, and its flagship sedans, the Chrysler 300 and Dodge Charger. The Pentastar also will make its debut this year in the Ram 1500 pickup.

Projects under way

Trenton South assembled the 1 millionth copy of the Pentastar on Jan. 27, about 18 months after its introduction.

In June 2011, Chrysler invested $114 million into the Trenton North plant to begin making parts for the 3.6-liter Pentastar in about one-fifth of the plant.

Chrysler plans to replace seven V-6 engines with displacements of between 2.7 and 4.0 liters with Pentastar engines. Two of the outgoing engines, with displacements of 3.8 and 4.0 liters, were assembled in the Trenton North plant before it closed in May.

The first hint that smaller-displacement Pentastars may be on the way occurred in November 2009 when the automaker laid out its five-year product plan. At the time, Chrysler said it was considering two versions of a 3.3-liter V-6, including one with Fiat's Multi-Air technology.

The automaker has not yet introduced Fiat's Multi-Air technology to the Pentastar, but plans to do so. Multi-Air uses small hydraulic pumps, along with a computer, to control the timing of each air intake valve of an engine to improve fuel efficiency and power and reduce emissions.

Chrysler takes Ram to Wal-Mart

Chrysler Group's Ram truck brand plans on expanding its experiential advertising into Wal-Mart stores across the country this fall, executives said during a Web chat with journalists this morning.

The promotion will be in "thousands of Wal-Mart stores" and will integrate another of Ram's partners, Mossy Oak camouflage, said Marissa Hunter, head of Ram advertising, during the chat.

"We recognize the alignment between truck buyers, the hunting/fishing lifestyle and Wal-Mart," Hunter said. "We are working on promotion that brings all three together."

Hunter declined to comment on further details of the program. A Wal-Mart spokesman was unavailable for immediate comment.

Ram also announced today that it will launch two new commercials for its "Code of the West" advertising campaign.

The campaign — created by the Richards Group, a Dallas advertising and marketing agency — and was rolled out earlier this summer.

Actor Sam Elliott will still lend his voice to the advertisements as Ram continues to build its brand identity. It was spun off from Dodge in 2009.

Hunter said: "The role of these spots is twofold. First, continue to create overall awareness about the capability of the full Ram lineup. Second, do so in a manner that inspires consumers to think differently about the Ram Truck brand."

Through the first seven months of 2011, Ram brand U.S. sales were up 25 percent. Fred Diaz, CEO of the Ram brand and Chrysler de Mexico, said during the chat that he expects sales to continue to grow for the rest of the year.

He said: "The fourth quarter always represents a key selling season opportunity for commercial business which historically increases commercial sales by up to 50 percent."

Chrysler prepares to build Dodge small car

Chrysler Group LLC said it plans to begin test production in the second half of this year of the small car that will trigger U.S. government requirements to increase Fiat S.p.A.'s ownership stake.

Tooling for the small Dodge brand car will be installed at Chrysler's Belvidere, Ill., assembly plant in August, said Fred Goedtel, head of Chrysler's vehicle assembly operations.

"We'll start pilots in the fall" and official production begins "sometime" in the first quarter, he said.

Design work on the car, which is the vehicle Chrysler expects will trigger the final government ownership milestone, is done, said Ralph Gilles, head of Chrysler design.

"The company is really focused on it," he said of the vehicle.

Fiat is moving fast to consolidate control over Chrysler.

The Italian automaker is buying the U.S. Treasury Department's final stake in the U.S. automaker that was acquired as part of Chrysler's 2009 bankruptcy reorganization.

That purchase will raise Fiat's stake to 52 percent. Chrysler must test and commit to building a vehicle in the U.S. that achieves 40 mpg for Fiat to gain another 5 percent stake.

Its deal with the U.S. and Canada allowed Fiat to gain as much as 35 percent in Chrysler without paying cash in exchange for giving management experience and technology to Chrysler.

Fiat was also required to achieve various performance milestones.

The 40 mpg vehicle is the final such milestone. Fiat also exercised an option to purchase 16 percent of the company after Chrysler repaid the U.S. and Canadian government loans in May.

Sergio Marchionne, chief executive officer of both automakers, has said he expects Fiat will get its final 5 percent tied to the 40 mpg car by year's end.

The small Dodge car is based on Fiat's Alfa Romeo Giulietta, Marchionne has said. Gilles said the new Dodge model's name was decided earlier this week.

But he declined to provide the name.

Toyota, Honda, Chrysler recalling nearly 80,000 vehicles

Toyota Motor Corp., Honda Motor Co. and Chrysler Group LLC are recalling nearly 80,000 vehicles over safety concerns, according to documents filed with the National Highway Traffic Safety Administration.

Toyota is recalling about 22,000 SUVs and pickups because of tire-deflation monitoring systems that may fail, U.S. regulators said.

Toyota Sequoia, FJ Cruiser, Land Cruiser, Tacoma and Tundra vehicles from the 2008 through 2011 model years may have tire deflation monitoring systems that fail to warn drivers, raising the risk of a crash, NHTSA said in a report.

The affected vehicles were shipped from assembly plants with working monitoring systems, but when accessory wheels were installed, the systems were not recalibrated and now lights to warn drivers of low tire pressure may fail, the report said.

Affected vehicles will be repaired at Toyota dealerships for free, Toyota Motor Sales U.S.A. Inc., the automaker's U.S. sales branch, told NHTSA.

Honda, meanwhile, has called back 36,656 Civic hybrids from the 2006 and 2007 model years after complaints that a faulty voltage converter could interrupt electrical signals to the headlights and engine. The problem could cause the vehicles to stall and fail to restart, a report filed with NHTSA said.

Owners of affected vehicles can have the voltage converter replaced for free at dealerships. The recall notice is expected to go out on March 18.

Finally, Chrysler is recalling 20,459 Jeep Wranglers built in 2010 and 2011. Certain Wranglers manufactured from July 12, 2010, through Sept. 10, 2010, may experience loosened fasteners on the front and rear axle attachments to the chassis, a report filed with NHTSA said. This could result in excessive noise and ultimately impaired steering and handling, increasing the risk of a crash, the agency said.

Dealers will retorque all 19 fasteners for free. The recall is expected to begin in March.

Retro style and street-rod flair made PT Cruiser a star

The recipe was simple.

Use an existing small-car platform, mix in some nifty retro styling inside and out, build it in a low-cost country, and command a higher price.

When it made its debut at the 1999 North American International Auto Show in Detroit, the Chrysler PT Cruiser with its street-rod flair was an immediate sensation.

Americans either hated or loved the little wagon born during the SUV craze. Those that adored it had to have one of their own to cherish.

And it didn't hurt that it went on sale during the U.S. auto industry's biggest sales boom.

The last PT Cruiser rolled off an assembly line in Mexico today, marking the end of one of Detroit's most celebrated product runs in recent years. A Chrysler spokesperson said the last model was stone white and destined for a U.S. dealership.

It wasn't the first retro-styled car to tap into America's penchant for nostalgia. It followed Volkswagen's New Beetle but rolled before the Ford Thunderbird, BMW Mini and Chevrolet SSR.

But the little five-door hatchback certainly has been a soldier, with more than 1.35 million sold worldwide -- generating early waiting lists and fan clubs, spawning imitators in the Mini brand and Chevrolet HHR, and the subject of more special editions than any other vehicle in recent memory.

It was a refreshing new model in an era populated with a lot of redundant designs.

Bob Casey, curator of transportation at The Henry Ford museum in Dearborn, Mich., said the PT Cruiser, unlike the minivan, mixed practical function with attitude.

"Every time I see one I smile," he said. "I can well understand why they sold more than 1 million."

Unlike the Thunderbird and Mini, the PT Cruiser also made retro styling affordable to the masses, regardless of income, without trading away utility.

"It was an ideal single car or second family car," said Erich Merkle, an automotive analyst and president of Autoconomy.com. "For Chrysler, it was a gamble that paid off for 5 to 7 years."

Cash cow

It is the most profitable small car in Chrysler history, according to Bryan Nesbitt, who designed the original PT Cruiser for the old Chrysler Corp. Nesbitt is now a top General Motors Co. designer, while his former employer has since been steered by Daimler AG, Cerberus and Fiat S.p.A.

With the end of the PT Cruiser, Chrysler is retooling the Toluca, Mexico, plant to build the Fiat 500 -- a tiny car to be sold in the U.S. market beginning next year.

The PT Cruiser was originally tapped to join the aluminum Prowler roadster to bolster the ailing Plymouth brand. But when Chrysler planners scrapped Plymouth, the PT Cruiser was spared and christened a Chrysler, eventually becoming one of the brand's top-selling models.

Its offbeat style immediately attracted a variety of buyers -- the young, tuners, entrepreneurs and retirees. Many owners quickly fell in love with its functionality and quirky interior. The wagon's rear seats were removable, allowing the tall interior to stow large cargo.

To keep consumers interested, Chrysler added a convertible version, a woody model and a turbo engine. Special editions -- dubbed Flames, Chrome, Couture and Dream Cruiser -- were routinely added.

But over the years it mostly stayed the same and the novelty slowly wore off.

As with many retro-styled cars, an automaker can paint itself into a corner. Where do you go next?

"Chrysler stopped caring about it and the interior suffered from a lack of upgrades," said Joe Kyriakoza, vice president of marketing for Jumpstart Automotive Group.

But in a testament to its lasting appeal, even in recent years, the PT Cruiser was one of the most researched vehicles in Chrysler's lineup on many online shopping sites.

Annual global sales peaked at 192,000 in 2001, and in the absence of a major redesign, demand dropped to just 25,200 last year. In a nod to the original, the last models are referred to by Chrysler simply as PT Cruiser Classics.

"In the end, it was a hard act to follow because it was a fairly unique," said Casey. "They got it right, right out of the box."

Dodge Caliber being probed for sticky pedal issue, U.S. says

Chrysler Group's 2007 Dodge Caliber cars are under federal investigation for unintended acceleration caused by a sticky pedal -- the same type of problem that led to a large Toyota recall this year.

The National Highway Traffic Safety Administration said it is investigating as many as 161,000 Calibers for an accelerator pedal that “can stick or bind and not return to the idle position when it is released.”

The safety agency has received five customer complaints but no reports of deaths, injuries or crashes.

Chrysler's own investigation has narrowed the population of suspect vehicles to 10,000 that were made during five weeks in March and April 2006, a company spokesman said.

Supplier issue?

The problem appears to be a mechanical one caused by parts made by CTS Corp., of Elkhart, Ind., Chrysler spokesman Nick Cappa said.

A NHTSA official said the automaker had been cooperative.

“The manufacturer is responsible for the performance of the car, and that's who we're investigating,” a NHTSA official said. “Chrysler has been cooperative.”

CTS also was blamed by Toyota Motor Corp. for its sticky gas pedals, which led to a January recall of 2.1 million vehicles.

The supplier denied the Toyota charge, noting that the automaker has recalled millions of other vehicles for unintended acceleration that were not equipped with CTS pedals.

CTS did not immediately respond today to a request for comment.

Electronic defects probed

In the wake of Toyota's worldwide recall of 9 million vehicles for unintended acceleration, NHTSA has been investigating the possible role played by electronic defects in triggering speed control problems across the auto industry.

Toyota's problems have been far more extensive -- and far more severe, with reports of dozens of deaths and injuries -- than the possible defects under investigation at Chrysler.

Chrysler said today that the sticky-pedal problem “is mechanical in nature and not a design or electronic issue.”

Cappa said Chrysler was able to narrow the problem population to 10,000 vehicles after being alerted to customer complaints by NHTSA on April 23 and then comparing complaints to warranty data.

On April 29, NHTSA opened a preliminary evaluation, the first stage of a formal investigation, the agency said on its Web site. This review can lead to an engineering analysis and, ultimately, a recall.

Four of the five complainants reported that they had found bushings -- bearings made of brass to allow the pedal to pivot -- on the driver's side floor, NHTSA said.

Without the bushings, the pedal arm “can become misaligned” and be prevented from returning to the idle position, the agency said.

Dodge vs. Toyota

The CTS pedals used in the Dodge Calibers are different from those used in the recalled Toyotas, a NHTSA official said.

Chrysler said that since 2003, the Caliber has been equipped with a brake override system that reduces power when both the brake and the gas pedal are depressed.

Most Toyota vehicles have not had a brake override system, which would be mandated under legislation to be discussed at a congressional committee hearing Thursday.

But some consumer complaints to NHTSA raise questions about the effectiveness of the Chrysler brake override system.

One complainant reported that while traveling at 65 mph, the Dodge Caliber accelerated suddenly to over 90 mph, a report on NHTSA's site said. Neither the brakes nor emergency brake could stop the car. It slowed only when the car was put in neutral, the driver said.

Another complainant said that while driving his Caliber at 15 mph, it “abnormally accelerated” to 75 mph. The driver reached over and lifted the pedal with his hand, he said.

One complainant expressed frustration with Chrysler's response to his reports and appealed to NHTSA to investigate.

“I am not getting any satisfaction from Chrysler; they continue to blow me off,” he said. “Please respond; no one else does.”

Chrysler and U.S. market to play key role in Alfa relaunch

Chrysler Group will play a key role in plans to revive Fiat S.p.A.'s ailing Alfa brand. The U.S. automaker will build two new Alfa crossover models for sale in North America and Europe.

Fiat S.p.A. CEO Sergio Marchionne made a strong commitment to the money-losing sporty brand, which will be 100 years old in June, during a presentation of Fiat's five-year strategy Wednesday.

Marchionne announced the launch of seven new Alfa models between 2010 and 2014 and said Fiat is determined to transform the brand into a "full-line premium carmaker."

Marchionne also said North America will account for 85,000 unit sales in 2014 out of 500,000 that Alfa aims to sell in that year.

The Chrysler-built vehicles for Alfa will be:

• A compact SUV based on the Compact architecture that underpins the Giulietta hatchback in Europe. Production will begin in 2012

• A large SUV, similar in size to the next Jeep Liberty, which is sold as the Cherokee in Europe. Production will start in 2014.

The crossover models will be built in two of the three U.S. plants that Chrysler Group plans to retool for new Chrysler, Dodge and Jeep models based on Fiat-Chrysler's Compact Wide architecture.

Alfa will also sell a mid-sized sedan and station wagon when in the U.S. starting in late 2012. These two vehicles will have the name Giulia and in Europe will replace the 159 range. They will be built in Italy.

Alfa will also sell in the U.S. a five-door version of its MiTo minicar, which is currently sold in Europe as a three-door. The five-door MiTo will be sold in Europe and North America starting in 2013.

Alfa will launch the Giulietta in North America after the car gets a face-lift in 2014. The Giulietta launches in May in Europe.

Alfa will continue to build the Mito and Giulietta in Italy.

Chrysler to build Alfa spider

Marchionne also said Chrysler will provide the platform for a new Alfa spider model, planned for 2013, but said the production location has not been decided.

Fiat's plan for Alfa to sell 500,000 cars in 2014 is five times more than Alfa sold last year.

Starved of fresh product as Fiat delayed key new models, Alfa sales have declined steeply as its lineup became older. This year's volume expected to be 120,000 units, compared with a peak of 207,000 in 2001. Alfa has lost between 200 million and 400 million euros ($288 million to $566 million) a year in the past 10 years, according to company sources.

Alfa quit the North American market in 1995 after the quality of the brand's cars was condemned in studies and its sales plummeted.

Daimler targets sales at double industry growth rate

Daimler AG, the maker of Mercedes-Benz cars and trucks, aims to increase deliveries twice as fast as this year's worldwide auto-market growth rate as the latest models of the E-class and S-class sedans attract buyers.

“Our global sales target for the year is ambitious but realistic,” CEO Dieter Zetsche said today at the annual shareholders meeting in Berlin. The sales gain includes a projected 50 percent jump in sales of the E class, including sedan, station wagon, coupe, and convertible versions.

Carmakers' deliveries will increase 3 percent to 4 percent this year, Daimler said in February. The Stuttgart, Germany- based manufacturer is seeking to close the gap with luxury-car market leader BMW AG while fending off efforts by Volkswagen AG's Audi division to become the world's biggest high-end automaker by 2015. Zetsche didn't specify Daimler's car-sales target for this year.

Daimler is targeting earnings before interest and taxes of at least 2.3 billion euros ($3.1 billion) this year after an Ebit loss of 1.51 billion euros in 2009. The manufacturer stuck to a forecast today that revenue in 2010 will exceed last year's 78.9 billion euros but be “significantly” below the 98.5 billion euros of 2008.

The global economy is “too fragile” to allow Daimler to commit to a timeframe for raising the automaking division's Ebit as a proportion of sales to 9 percent, Zetsche said. Munich-based BMW reaffirmed a target last month of achieving an Ebit margin in carmaking of at least 8 percent by 2012.

Sales at the Mercedes-Benz Cars division, which includes the Smart minicar and Maybach luxury nameplates, rose 11 percent to 271,200 vehicles in the first quarter, the company said on April 6. Including deliveries to dealers, Mercedes-Benz brand sales jumped by almost 27 percent in the period, boosted by a surge of more than two-thirds for the top-of-the-line S-Class, Daimler said today.

Daimler rose as much as 52 cents, or 1.4 percent, to 36.52 euros, the highest intraday price since Jan. 20, and was up 1.2 percent as of 1:59 p.m. in Frankfurt trading. The stock has declined 2.1 percent this year.

The company is also the world's largest truckmaker with Freightliner vehicles in the U.S. and Fuso models in Asia. Daimler said first-quarter truck sales rose 8 percent and orders nearly doubled, even as markets remain “weak.” Bus sales increased 23 percent in the first three months of 2010, and van deliveries jumped 62 percent, Zetsche said.

Reacting to rising international tensions with Iran over the country's nuclear research, Daimler said today that it's abandoning a 30 percent stake in a diesel-engine venture with Iran Khodro Co. Daimler also withdrew an application with the German government to export three-axle trucks to Iran and will halt delivery of such vehicles indefinitely.

“The policies of the current Iranian leadership have compelled us to put our business relationship with that country on a new footing,” Zetsche told about 5,000 shareholders. “Our business activities with Iran will now be limited to meeting our existing contractual obligations and continuing our cooperation with established customers.”

Cooperation With Renault

The manufacturer, seeking to expand its line-up of small cars while holding back costs, announced plans a week ago to cooperate with the Renault-Nissan alliance on developing compact Mercedes-Benz and Smart vehicles. A new line of Smart city cars, including two- and four-seat versions, will share a platform with Renault SA's Twingo. The French partner will supply 3- and 4-cylinder gasoline and diesel engines for Mercedes-Benz cars.

The cooperation represents “a decisive strategic step” that will help Smart enhance its position as a “young” brand, Zetsche said. While the project will help Mercedes-Benz hold back the expense of introducing smaller models, the brand “will not tolerate any compromises to our claim ‘the best or nothing,'” Zetsche added.

Working with Renault and Nissan Motor Co. may not bring the benefits that Daimler is planning, Ingo Speich, a Frankfurt- based fund manager with Union Investment, said at the meeting.

“We have grave doubts that the new partnership will be a success,” Speich said. “The traces of missteps run like a red thread through Daimler's cooperation history.”

After losing ground to Munich-based BMW in reducing vehicle emissions, Daimler aims to almost double annual spending to develop batteries and fuel-saving engines, to 1 billion euros in the next two years from an average 567 million euros in the past three years, Thomas Weber, the company's development chief, said on March 3.

Electric-car projects

The German company plans to develop an electric car for China with BYD Co., the Shenzhen-based automaker backed by billionaire Warren Buffett. It's also building a factory in eastern Germany to produce lithium-ion batteries by 2012 and has taken a stake in Tesla Motors Inc., the Palo Alto, California- based manufacturer of electric sports cars.

“Daimler aims to be, and will be, a pioneer in the field of electric mobility” as the car industry phases out oil-based powering systems, Zetsche said. “When alternative drive systems go into mass production in a few years, we will be ahead of the competition.”

A net loss of 2.64 billion euros last year because of the global car-market contraction prompted Daimler to cancel its dividend for the first time since at least 1999. Daimler posted the loss, its first for a full year since 2001, even after reducing spending by 5.3 billion euros by building fewer vehicles and cutting pay in response to the recession.

Daimler reiterated that it plans to resume dividend payments after returning to profit this year.

Chrysler shifts tone on dealers

Automaker offers reinstatement to 50 stores, signals settlement talks with more

Finally, some movement at Chrysler.

After nearly a year of taking a hard line with rejected dealerships, Chrysler Group changed course last week and offered to reinstate 50 stores.

The company also said it will enter settlement talks with an unspecified number of rejected dealerships and disclosed that 36 already have been reinstated nationwide.

One thing hasn't changed, though. Chrysler still favors dealerships that sell all four of its brands: Chrysler, Dodge, Jeep and the recently added Ram truck brand. All 50 offers of reinstatement are to stores selling all those brands.

But despite the actions by Chrysler, problems remain.

Dealer lawyers say Chrysler hasn't budged in its approach to arbitration -- for example, demanding that arbitrating dealers sign confidentiality agreements blocking them from sharing Chrysler information with other dealers.

One dealer who received a call from a Chrysler official saying a letter of intent for reinstatement was coming said he was taking a wait-and-see attitude.

"We're looking at it with guarded optimism," said the dealer, who declined to be identified. He remains skeptical because Chrysler had given no previous indication it had any interest in bringing back any rejected dealerships.

A company spokesperson said Chrysler would continue to explore "mutually beneficial options outside arbitration" to settle with dealers who have filed for arbitration.

By offering to reinstate the 50, Chrysler reduced its arbitration caseload to 337, said a company spokesperson.

Ed Tonkin, chairman of the National Automobile Dealers Association, called Chrysler's intention to reinstate 50 dealerships "a move in the right direction." This, coupled with previous contracts awarded to 36 other closed dealerships, brings the total to 86 dealerships that could be reinstated.

In U.S. Bankruptcy Court last year, Chrysler canceled 789 dealerships.

"NADA views this as a good-faith effort and hopes that this carries forward in Chrysler's continuing settlement and arbitration discussions with the other terminated dealers," Tonkin said.

Delays?

Eric Chase, an attorney representing four rejected Chrysler dealers, said the reinstatements do not change his opinion that the automaker won't give in easily on the remaining dealerships seeking arbitration. He said Chrysler has been "obstructive" at every phase of the arbitration process.

Chrysler's demand for a signed confidentiality pledge before it will agree to provide documents in discovery is prompting complaints from dealer lawyers accustomed to comparing notes on strategy.

The company also still is resisting dealers' efforts to find out the specific criteria used in terminating their stores -- information that Chrysler was required under law to provide in January, dealer lawyers said.

"Chrysler continues to resist and contest each and every step in arbitration," said Rob Byerts, a Tallahassee, Fla., lawyer whose firm represents 13 closed Chrysler dealerships. "It appears to be for no good reason other than delay."

Delays benefit Chrysler because if arbitrations aren't completed before the June 14 deadline set by Congress, the dealers lose their cases, said Mike Charapp, a McLean, Va., lawyer.

Chrysler's nine-page "Confidentiality Agreement and Order" -- a copy of which Automotive News obtained -- has touched off wrangling in dozens of arbitrations, seven dealer lawyers said.

Chrysler defended the confidentiality agreement.

"This is a standard request in litigation dealing with sensitive financial and competitive data," the company said in an e-mail last week.

It added that the new law setting up arbitration states that "discovery shall be limited to request for documents specific to the covered dealership."

Dealer lawyers disagreed, saying the standard approach in arbitration is to consider each particular document rather than the documents as a whole.

If a document deals with trade secrets or confidential business information, then it is addressed with the arbitrator, they said. But dealership performance documents rarely raise such sensitive issues.

Hearings in April

Meanwhile, the June 14 deadline looms over proceedings, although arbitrators have the discretion to extend them another month.

A total of 115 hearing dates, scheduled from April 21 into early June, had been set as of last week, said India Johnson, senior vice president of the American Arbitration Association, which is administering the cases.

Hundreds more have yet to be scheduled. The exact figure is a shifting number, as General Motors Co. and perhaps Chrysler move to reinstate dealerships.

A total of 1,550 GM and Chrysler arbitration claims have been filed, but GM has said it is reinstating 661 rejected dealerships and is willing to discuss possible settlement with as many as 499 more.

Johnson has little concern about the arbitrations meeting the congressional deadline. Said Johnson: "We have a lot of other arbitrators that we could throw at these cases."

2001 Chrysler Intrepid battery light on

I went to a mechanic a month ago and replace the alternator because my battery light came on.  After about one month, the battery light came on again.  I went to the same mechanic and he said that the oxygen senor is faulty.  If I unplugged one oxygen sensor and I did not fix that one oxygen sensor. Will the car still run and won’t shut down?  What are the problems that the car might cause?

Response:

the battery light coming on has nothing to do with an oxygen sensor. I would suggest going to a different shop and having it retested.
An Oxygen sensor has nothing to do with the battery light. If you unplug an oxygen sensor it will still run but have bad gas mileage and the check engine light will come on.

PR: wait...  I: wait...  L: wait...  LD: wait...  I: wait... wait...  Rank: wait...  Traffic: wait...  Price: wait...  CY: wait...  I: wait...  YCat: wait...  I: wait...  Top: wait...  I: wait...  L: wait...  C: wait...

1997 Dode Caravan - popping noise from engine on acceleration

I have a 1997 Dodge Grand Caravan and I took it to a mechanic and he said that there was low compression in the first cylinder what would cause this and how do i fix it there also appears to be no apparent leak as I have no loss of fluid? I have just recently picked up some K&W Permanent Metallic Block Seal Head Gasket Repair is this something that I should try ? Please help I am desperate as this is my only vehicle and I have four children. Sorry I feel like the biggest idiot i just talked with the mechanic about my car and i was not given all the info as my mother in law was the one that grabbed it for us and relayed the info he said that it was due to a bad valve and that i needed a valve job done on it which is expensive so because when the problem first presented it was making a popping noise so what he did was take off the plug to the first cylinder so it doesn't make the popping noise.

Answer:

The Block seal will not help the issue you have. A valve job or replacement of a valve in the #1 cylinder is eminent. Removing the plug wire from that cylinder will keep the engine from popping but it is important to make sure the Fuel Injector was also unplugged so it doesn't continue to inject fuel into that cylinder and cause the rings to wash out.

Defrost only on high and still wont clear up.

2001 LHS. Windows are fogging up in back. Defrost only on high and still wont clear up. Driver only in car and nothing wet inside. Does this model have an air exchange door that I can get at to check if it is stuck?

Answer:

You have it correct, the recirculation door for outside air is stuck closed and not allowing air to come in causing the fogging condition. The motor for this door is on the passenger side of the heater box. I believe that you can see this if you take the glove box out, but it has been a long time since I've worked on one of these for this issue. It is motor number 2. As I looked at the instructions it says the dash has to come out to get to this motor.

1996 Chrysler Town & Country started making a noise after I hit a pothole

My 1996 Chrysler Town & Country started making a noise after I hit a pothole and thought my tire was flat. Tires are fine, but they still make a small thud noise. There is no real noise when I accelerate, however, as soon as I take my foot off the gas, it makes a very loud growling sound like sticking something metal in a fan blade would sound. Thought is was CV joints, but everything I'm reading says the noise happens when you accelerate, not when you stop accelerating. What do you think?

Answer:

That sounds like your exhaust is hitting the frame. When the car decelerates the motor tilts back, the can cause the exhaust to rub or bad against the frame or car. There are rubber hangers that are supposed to prevent this from happening, but they tend to wear out. I would check all the hanger of the exhaust as well as the transmission mount and motor mounts. All these are rubber and known to go bad, which would cause noise while decelerating.

1996 Chrysler Sebring the key is stuck in the ignition

Question: I only had 1 key to my 1996 Chrysler sebring, so about a month ago I went to a local locksmith and they made me a copy of the original key. I am not for sure, but I am guessing that my original key has a chip in it because it is a factory or dealership key w/ black top. My sebring is equipped with the anti-theft system, of which when I purchased the car used, I did not receive the key-less remote to. Anyways, my question or problem is this: I have been using the copy key for the entire month with no problems until a week ago...the key is stuck in the ignition on acc. and will NOT turn all the way to lock so I can get it out! It is STUCK and WILL NOT COME OUT!!!! What could be causing this and how do I get it out? Is it because it isn't the chip key and if so how could I use it before now without any issues? HELP!!!! ANSWER: Any Chrysler's keys with a black top do not have a chip, they are usual blank keys. Keys with a chip ( transponder) have a gray top, like this one: Your anti-theft system contains the switches that are located inside the front doors and when you turn your door lock cylinder ( driver or passenger) a switch send an ON or OFF signal to the Body controller. Your problem with the stuck key is only mechanical failure of the ignition lock cylinder. There is nothing related to a "chip" technology. You should replace the ignition lock cylinder.

How Can I stop my 85 Chrysler 5th ave to pass emissions if it smokes

Oil smoke (blue) or coolant smoke (white) will not cause your vehicle to fail emissions test. If you have Fuel Smoke (Black) this will fail you. This is caused by a rich running condition. First place to start would be a complete tune up and if there is a check engine light on, have necessary repairs made to turn light off. If this is a carburetor engine, you may also need to have the carburetor tuned and the ignition timing set. No need to worry about the smoke if it isn't black.

Where is the low side ac port on a 98 Chrysler Cirrus?

Question:

I have a 1998 Chrysler Cirrus 2.5 V6 and need to find the low side port so I can add more freon to my Air Conditioning system.

Answer:

The low side is located near the evaporator and has a distinguished color blue cap.

Air Conditioning System Details and Diagnostics

My car AC quit working

Question:

I have a 2003 Chrysler PT Cruiser Tour 4 cyl . When the temperature reached 90 and the humidity was 100% last night, my car AC quit working, even put out warm, moist air. After it sat a while, it seemed to be working again. Could it have "iced over" like a home AC unit can?

Answer:

Could it have Iced Over? Most definitely! I have seen this occur under similar conditions. This can also occur when the Freon level is slightly lower than normal. But I the weather conditions are not normally at 100% humidity, I wouldn't worry about it.

Code P0720, P0731, P1790,P0700

Customer Problem:

I have a 1999 Chrysler 300M with a 3.5L engine. My Check Engine light came on and at the same time I lost my dash gauges and it will not shift out of first gear.

Solution:

Computer Diagnostics done to extract the codes for the check engine light. The coeds were:

P0720 = Output shaft speed sensor error

P0731 = First gear incorrect ratio

P1790 = Fault immediately after shift

P0700 = Transmission fault code

Since this situation all happened at once it would make sense that they are related. After removing and testing the Output shaft sensor that is supposed to be at 800 ohms, and was showing completely open, the Output shaft sensor was proven to have failed. Replaced the Output Shaft Sensor ( $20.00 ) and cleared the codes. Test drove the vehicle and all is working normal. Customer happy.