Dodge Caliber Production Boost Announced

When it comes to small vehicles, Chrysler Group LLC – parent to the Chrysler, Dodge and Jeep brands – has few models to offer. This is too bad because customers are demanding higher mileage vehicles, particularly those cars which get at least 30 mpg on the highway.

The Successful Dodge Caliber

Good news for Dodge -- Caliber production will be increased beginning this October, with a second shift added to its Belvedere (IL) plant.

One model that has given Chrysler at least some reason to smile is the Dodge Caliber, the compact crossover like vehicle which replaced the Dodge Neon. Though the smallest car in the Chrysler fold, it is also one of the newest and most popular cars sold by Chrysler. That was made evident this past month when demand for the Caliber shot up thanks to the federal government’s cash for clunkers program.

With showrooms virtually empty of Calibers, Chrysler has decided to increase production and will add a second shift at the Belvidere (Ill.) Assembly Plant effective October 5, 2009. That move will allow Chrysler to build an additional 10,000 Calibers for the remainder of the year, giving dealers some much needed inventory to replenish what has been sold.

“We are taking this action in response to increasing demand for our most fuel-efficient products,” said Michael J. Accavitti, President and CEO, Dodge Brand, Chrysler Group LLC. “However, we are cautious about the continued volatility in the industry and will monitor demand in order to respond to market conditions.”

Production Ramp Up Means More Jobs

The move will impact 850 employees who be added to the workforce. In addition to expanding Caliber production, 50,000 additional units of other models will also be built by Chrysler through the remainder of the year which means more furloughed workers will be called back. Chrysler hasn’t said how many people will be impacted, but that number will certainly add thousands of jobs.

As for the Caliber, the 2009 model offers top government safety ratings, value, conspicuous styling and numerous interior innovations in a compact car that the automaker says combines Dodge attitude, SUV versatility, fuel efficiency and affordability.

Dodge SRT4 Discontinued

In related Caliber news, Chrysler announced that the sporty SRT4 model would be discontinued with the 2009 model year. The SRT4 is the top of the line model that offers sporty handling and utility in a compact form. No word yet from Chrysler whether a new model will be developed to replace the SRT4 or whether the Caliber line would contract accordingly.

Source: Chrysler Group LLC

The Last of the Clunkers!

I am so glad that the federal government’s Cash Allowance Rebate System (CARS) program is over. Not because I didn’t think it was a good idea (I have mixed thoughts about that), rather the program has dominated the automotive news for the past month.

Let’s Hear For the MKT!

Now that CARS has finally been laid to rest, let’s hear it for several new models waiting in the wings including the Lincoln MKT as well as all of the bright and beautiful cars that will be making their world debut at the Frankfurt Motor Show in Germany later this month.

I promise that I won’t be writing about CARS again unless I must make a point about a particular make or model. But the most significant thing about Cash For Clunkers is that it came in under budget. Yes, a government program that actually spent less than what had been announced — that’s news in and of itself!

Quickly Depleted and Replenished

Launched in July, the initial program quickly ran out of money requiring Congress to seek additional funding to raise the one billion dollar taxpayer backing up to three billion. I believe the program would have eclipsed the three billion dollar mark had some quick thinking dealers not pulled the plug on their programs early.

As the last weekend approached several dealerships, including Auto Nation, exited the program early. They wanted to make sure that they got paid and that all of their paperwork was processed on time. That was wise because the federal government gave everyone until 8 pm on August 24th to get their paperwork in, extending it by 24 hours when it became apparent that backlogs were keeping dealers from finishing up on time.

Lots of Trucks Traded In

According to The Detroit News, nearly 700,000 cars were scrapped because of CARS.   $2.877 billion will end up helping consumers while related administrative costs drove the final expense up to $2.977 billion. Notably, 84% of the vehicles turned in were truck based (SUVs, trucks, minivans) with consumers choosing to replace these vehicles with passenger cars 59% of the time.

The top selling model was the Toyota Corolla, followed by the Honda Civic and Toyota Camry. Only two US models made the list — the Ford Focus (#4) and the Ford Escape (#10). Honda and Toyota each were represented by three cars on the Top Ten list.

Interestingly, the domestic models were the most traded in vehicles with Ford, GM and Chrysler dominating the Top Ten trade in list.

Source: The Detroit News