New Lancia and Chrysler May Share Some Models

Not only will Fiat move to have Chryslers built in Italy, but Chrysler's European offerings may be shared with the Lancia brand.

Although Lancia has a long and storied history of producing luxury automobiles, modern Lancia products are mostly more luxurious versions of existing Fiat models. Recent offerings, like the new Delta, offer a fair amount of style, but other products are due for a refresh.

Fiat hopes to breathe fresh air into both brands by having the two share vehicles. Lancia is expected to replace its outgoing Thesis flagship with a version of the next-generation Chrysler 300, and may also see a variation of the Sebring replacement as well. Chrysler will possibly -- at least in Europe -- make use of Lancia's Ypsilon compact car, allowing the company to finally play in the premium-subcompact segment (something it's contemplated since it unveiled the 1999 Java concept).

While the move may seem somewhat surprising, given the executive appointments made yesterday, it's not completely out of the blue. Lancia CEO Oliver Francois officially assumed similar duties at Chrysler yesterday.

Source: Automotive News

Chrysler Drops 'Double Cash' Incentive Due to Lack of Inventory

Both Chrysler and the U.S. government seem to have the same problem this week: their incentive programs have worked a little too well. While the government is working to drudge up money to continue funding its CARS rebates, Chrysler reportedly has ended its $4500 cash-back incentive program because of low inventory on eligible models.

The Wall Street Journal reports that Chrysler will drop the "Double CA$H For Your Old Car' incentive program on Tuesday because of dealer complaints that inventory is low. The incentive program, which started simultaneously with the government's CARS program on July 23, gives consumers $4500 off their purchase of most 2009 Chrysler, Dodge, and Jeep models--regardless of whether or not they are eligible for the government's program.

Dealers are reportedly running out of Chrysler's most popular models, like the Jeep Wrangler and Chrysler Town and Country.

"Unfortunately the problem that we face with Chrysler is the lack of inventory," said one dealer, Bill Rosado, who owns a Chrysler, Dodge, and Jeep dealership in Pennsylvania. "I can't believe I'm saying this, I need more Chrysler inventory. My goodness, I've got to rehearse that line a couple times."

Chrysler spokesman Jodi Tinson said the double cash incentive "did what it needed to do" in terms of drawing consumers into Chrysler showrooms. A revised campaign will see Chrysler change its message "to focus less on the deal but more on the products" she said. The new incentives will reportedly vary the size of the rebates based on the brand and model a customer selects.

Chrysler restarted its factories just last week, after a two-week summer shutdown. The company has produced one-third fewer vehicles this year than last year, as it attempts to minimize the damage from a 45 percent drop in sales.

Chrysler's Photos

Profile : Chrysler Company

The Chrysler Corporation was founded in 1925 by Walter P. Chrysler. Chrysler was a veteran in the automotive business by that time, having been president of Buick Motor Company and vice president of Willys-Overland Motor Company. When he was hired to revitalize the Maxwell Motor Company, Inc. he, instead, purchased its assets and launched his own car company.

Following General Motors' multi-car brand strategy, Chrysler created the Plymouth and Imperial brands to compete against Chevrolet and Cadillac respectively. Later, the company would purchase Dodge from the Dodge brothers and have it, with the internally-created DeSoto brand, compete in the mid-segment market. Later, Chrysler would purchase the remains of the American Motors Corporation to obtain the Jeep brand.

The 1970s proved disastrous for the automaker. The gas crisis, new emission standards, Japanese and German competitors, and changing consumer taste drove the company to petition the federal government for $1.5 billion to avoid bankruptcy. Using the funds, the company bounced back, using the profits from its "K-Car" platform and sales of minivans to repay its loans seven years early.


In 1998, German automaker Daimler-Benz merged with Chrysler to form DaimlerChrysler. Some of the new vehicles resulting from the new company include the phenomenally successful Chrysler 300, the Dodge Magnum, and the Chrysler Crossfire (discontinued).

In 2007, DaimlerChrysler announced it was separating its two parent companies.

2009 Chrysler 300 Specifications

• 2,736 cc 2.7 liters V 6 front engine with 86.0 mm bore, 78.5 mm stroke, 9.7 compression ratio, double overhead cam and four valves per cylinder EER
• Unleaded fuel 87
• Multi-point injection fuel system
• 18.0 gallon main unleaded fuel tank 15.0
• Power: 133 kW , 178 HP SAE @ 5,500 rpm; 190 ft lb , 258 Nm @ 4,000 rpm