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In the last two months, I've driven From Texas to North Carolina and back; from Texas to Michigan to Indiana, to New York, back to Indiana, then back to Texas; to St. Louis and Back; and to Memphis and back.
Along the highways I always look on the lots of Chrysler, Jeep, and Dodge dealers -- and all I see are trucks spread out to make the lot look fuller -- and late model used cars in the new car lot.
I called a reliable contact of mine, who is a retired Chrysler Exec with strong corporate connections, to ask what the deal on the cars are.
He says that the Charger, 300, and Challenger all use front cradles (front engine suspension) that are supplied from Mercedes, and Chrysler feels that the bankruptcy protects that contract.
However, Chrysler was suppose to buy $86,000,000 of diesels from Mercedes for European Chryslers -- and bailed out -- saying the bankruptcy protects them when breaking that contract. Mercedes says they can't have it both ways and won't sell them the engine cradles until Chrysler pays $86,000,000 for diesels they can't use.
This is all tied up in court -- without Obama's fast track, and as such none of these cars have been built since the bankruptcy.
So there's your inside track on why you see all of these Camaros being built since their bankruptcy -- yet not a single new Challenger started.
Will they ever build another Challenger? They have been losing miney on every one built -- especially the 6-speeds (because of warranty reserve required from the anticipated race breakage that will show up for warranty -- swearing it wasn't abused).
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Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
Dispute between Chrysler Financial, GMAC traps Chrysler dealers
Alisa Priddle / The Detroit News
An undetermined number of Chrysler Group LLC dealers are at risk of closure within a month, caught in a dispute between their former finance company and their new lender.
Imperiled dealers are those with mortgages and capital loans with former captive finance company Chrysler Financial but who need a line of credit from new lender GMAC Financial Services to buy vehicle stock with a wholesale or "floor plan" loan. They have temporary financing but face a mid-November deadline to secure permanent financing to stay in business.
Central to the spat is who has first dibs on assets if a dealer goes under and two finance companies hold debt. Caught in this dilemma are Chrysler dealers who don't have enough equity in their business to pay off the old loans to Chrysler Financial to alleviate any obstacles to securing new loans from GMAC or another, independent source. Without new GMAC money to buy vehicles a dealer has little choice but to liquidate.
About half the 1,500 Chrysler dealers seeking GMAC financing have been approved, but the possible loss of dozens of dealers or more would be a blow to an automaker that cannot afford to lose further sales outlets as it scrambles to restructure and pay back about $15 billion in government loans that helped it exit bankruptcy and form a new company in partnership with Fiat SpA. Chrysler is to unveil a five-year business and product plan Nov. 4 under new Chief Executive Sergio Marchionne.
Chrysler shed 789 dealers in bankruptcy, keeping almost 2,400 franchises deemed key to the automaker's future based on their performance and location. Any dealers forced to close now because they cannot secure financing will come from the handpicked group that remains.
"Everybody's nervous," said Jim Arrigo, a Florida dealer and co-chairman of the Chrysler Dealer Council. "There is a large group of dealers waiting to see if they can get refinanced."
Most at risk are smaller dealers and those whose equity has fallen below the value of the real estate and capital loans they have with Chrysler Financial. For example, a dealer could have a $10 million mortgage on a dealership that today is valued at $7 million.
The average floor plan loan for a dealer is $4.9 million, according to the National Automobile Dealers Association.
"It's a huge cloud looming over Chrysler's attempts to restructure," said a dealer who asked not to be identified because he's trying to resolve his own financing issues.
The automaker is working with both finance companies and "all parties want it to work," said Chrysler spokeswoman Kathy Graham. "We're not seeing anything to cause us alarm or that we didn't expect."
But dealers said they are getting very different updates from the Chrysler, Chrysler Financial and GMAC officials, who have told them hundreds of dealers could be left without financing. GMAC refutes that number as exaggerated.
The impact on Chrysler is being described as potentially devastating, said the unidentified dealer who was updated on the transition efforts this week by officials with Chrysler and GMAC.
Affected dealers started receiving letters from GMAC this week warning they need to settle their finance issues by early November, said the dealer. GMAC spokeswoman Sue Mallino confirmed letters were sent.
Graham said Chrysler is optimistic matters will be resolved by the deadline and that the number of dealers that could fail is not out of line with projections that as many as 10 percent of dealers are in danger of going out of business anyway in today's smaller automotive market.
Bankruptcy fallout
The situation is messy and dates to April 30 when the U.S. Treasury mandated that Chrysler file for bankruptcy protection.
As part of the automaker's restructuring, the government announced the new Chrysler would enter into an agreement with GMAC to provide dealer and customer financing in the future -- business that had long been the domain of Chrysler Financial.
GMAC was seen as a more viable institution and was granted bank holding company status earlier this year, allowing an expansion of its retail banking business and subjecting the bank to government regulations that don't apply to captive lenders owned by carmakers. Chrysler Financial applied for similar status in 2005 but withdrew its application earlier this year, said spokeswoman Amber Gowen.
Cerberus Capital Management LP divested itself of Chrysler when the automaker filed for bankruptcy but still owns Chrysler Financial. Many dealers think Cerberus is trying to collect its loans to wind down the finance company with a portfolio of $26 billion, down from $60 billion at the start of the year. The company's global work force has shrunk from 4,000 in January to less than 2,700 employees.
"Chrysler Financial is going out of business and being difficult," said Mike Hancheruk, chief financial officer of DARCARS Automotive Group in Silver Spring, Md. The dealers interviewed think Chrysler Financial would like to settle all loans and be free of Chrysler business by year end.
Chrysler Financial remains active, "has no plans to file for bankruptcy," and has enough capital to meet its obligations, Gowen said.
Cerberus spokesman Peter Duda declined to comment.
GMAC offers loans
Meanwhile, the Treasury said in April it would ensure GMAC had the capital needed to take on the new Chrysler business, provided $4 billion to help cover additional loans and said Chrysler Financial would cooperate in the transition of its business to GMAC.
GMAC began offering retail loans to buyers of Chrysler, Dodge and Jeep vehicles immediately.
So that dealers could start ordering cars again, GMAC also provided temporary floor plan financing -- good until next month, by which time GMAC expected to have conducted the due diligence of each individual dealer to approve permanent financing. Without financing in place, the automaker won't ship new vehicles to a dealer. The timing is crucial as dealers are starting to receive their new 2010 models.
GMAC reallocated extra manpower to evaluating the new dealers, and most of the 1,500 requests for permanent financing should be approved by Nov. 15, Mallino said. As of this week, more than half have been notified that their financing has been approved, she said.
A small but unspecified number lack the collateral to meet GMAC's lending criteria and will not qualify for loans, Mallino said.
Dealers who still have loans with Chrysler Financial say they have been told by GMAC that permanent floor plans will not be approved without a transfer of paperwork from Chrysler Financial that guarantees first rights to collect on assets -- no exceptions.
Chrysler Financial says it has a fiduciary responsibility to its shareholders and won't give up first-lien rights until all loans are paid.
Arrigo said he is not aware of dealers going out of business yet, but said that will likely come to a head in the next few weeks.
The above calendars are printed on demand, the evening of the order, and are shipped anywhere in the world. They make great Christmas gifts.
The NSS Monster logo can be replaced with your company logo (or your personal message) on the cover for $15 per calendar, with a minimum order of 100 calendars; plus $56 shipping for the first 100, and $.75 for each additional. These make great Company Christmas gifts. Email Dave Schultz with your questions. The bulk company orders of 100+ are through Dave Schultz only -- while individual calendars are through the NSS on-line gift shop.
Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
Originally Posted by [url]http://newsbusters.org/blogs/tom-blumer/2009/10/06/chrysler-may-not-make-it-another-year[/url]
By Tom Blumer
October 6, 2009 - 09:50 ET
In early July, following the very first month after Chrysler LLC emerged from bankruptcy, the Associated Press, in an unbylined report about changes in the company's board, saved this little nugget for the last of its eight paragraphs:
Chrysler's poor June performance also casts doubt on whether the U.S. government's $7 billion allocation will be enough to get the automaker through the U.S. sales slump, which is projected to last into next year.
Those doubts are growing. In a report on Chrysler's just-announced management shakeup, AP auto writers Tom Krisher and Dee-Ann Durbin began their report by ringing the alarm (bolds are mine):
With sales down sharply and pressure to start generating cash before government loans run out, Chrysler CEO Sergio Marchionne shook up his executive team Monday, replacing two of his brand managers after just four months and splitting Dodge into car and truck units.
The changes show Marchionne's penchant for moving quickly and demanding performance, industry analysts say. But it's also a sign that all is not well inside the company's sprawling headquarters complex in the Detroit suburb of Auburn Hills.
I mention the AP reports because they support what might otherwise be dismissed as hyperbole coming from a blog for auto buffs. But even if AP hadn't taken notice, there are plenty of other reasons not to dismiss what follows out of hand, not the least of which include Chrysler's continued string of steep sales declines, its apparently politicized and possibly reverse discrimination-driven decisions about which dealers it would keep after emerging from bankruptcy, and the financial health of Fiat, its supposed savior.
Rumors, credible rumors, are beginning to circulate in the car industry and the automotive press, that Chrysler may not make it another year primarily due to its falling sales and growing financial losses at partner Fiat.
Chrysler sold a 62,197 cars in September, down 42% from the same month last year. The figure was down from 93,222 in August when traffic to dealers was pushed up by the ”cash for clunkers” program.
Chrysler’s problems may only be beginning and, if so, Fiat, the ”managing partner” among Chrysler’s owners may not be able to keep the American company intact.
.... The daily management of Chrysler is controlled by Fiat which owns 20% of the U.S. company with options which could take that amount to 35%. Fiat has not put any money into Chrysler, so if the American firm becomes a significant operational or management burden there are very few reason for the Italian company, which has sales troubles of its own in Europe, to stay long term. Fiat lost $254 million in the second quarter, so its board may eventually believe that Chrysler is a distraction and one without a future.
.... At this point, the Chrysler product line is still dominated by mid-sized sedans, SUVs from Jeep, minivans, and pick-ups like the Dodge Ram. The company has no real product in the alterative (sic) energy/hybrid segment. Chrysler’s domestic market share in September 2008 was 11.1%, according to Edmunds. Based on sales figures released by the industry today, that share is now closer to 7.5%.
.... Chrysler sales are now running at the rate of 750,000 a year. It probably does not have the capital to wait through another year of low US car sales with a market share that is almost certainly to stay below 8%. It does not have models tailored to the current market tastes. Chrysler is going out of business. The company just hasn’t made it official.
To be crystal clear, the final two sentences represent DiOssi's opinion, not mine.
As far as I can tell, AP has thus far been virtually alone in even recognizing the existence of immediate survival issues at Chrysler. That media neglect can't last, can it?
Given that the U.S. government holds a 9.85% stake in Chrysler and has $7-8 billion out in post-bankruptcy loans (the more recent AP report says the total lent is "roughly $8 billion"), you would think that the company might release the kind of detailed quarterly financial statements an SEC-regulated publicly held company ordinarily would, so we could see for ourselves how bad things are. Though you have to believe that the company is already reporting the gory details to the Treasury Department, I doubt that the American will ever get to see them.
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Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
Chrysler Group LLC today announces brand and commercial organization changes.
“The brand-focused strategy has been refined further with the unbundling of the Dodge Brand which now consists of the Dodge RAM Brand and the Dodge Car Brand organizations. This reorganization will allow us to protect and develop the unique nature of the product offerings within the Dodge Brand,” Mr. Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC said.
Fred Diaz Jr. is appointed President and CEO, Dodge RAM Brand with profit and loss responsibility for the Dodge RAM product portfolio. Mr. Diaz will also be the lead executive for the Sales organization in the United States. He was previously the Director of the Denver Business Center. Mr. Diaz has been with the Company since 1989 in positions of increasing responsibility. The Company will announce Mr. Diaz’s replacement with a separate announcement.
Ralph Gilles is appointed President and CEO, Dodge Car Brand with profit and loss responsibility for the Dodge Car product portfolio. Mr. Gilles will continue to lead the Product Design organization of Chrysler Group which he joined in 1992.
Olivier Francois is appointed President and CEO, Chrysler Brand, with profit and loss responsibility for the Chrysler product portfolio. Mr. Francois joins the Company from Fiat Group Automobiles where he serves as head of the Lancia Brand, a position he retains. Mr. Francois will also be the lead executive for the Marketing organization with responsibility to coordinate worldwide marketing strategies, brand development and advertising for the Chrysler, Jeep®, Dodge Car and Dodge RAM brands. He will continue to lead these functions within Fiat Group Automobiles. Mr. Francois joined Fiat in 2005.
Michael Manley will continue as the President and CEO, Jeep Brand with profit and loss responsibility for the Jeep Brand product portfolio. Mr. Manley will also be the lead executive for the international activities of the Company outside of NAFTA and will be responsible for implementing the co-operation agreements for distribution of Chrysler Group products through Fiat’s international distribution network. Mr. Manley has been with Chrysler since 1998.
Joseph Veltri joins the Management Team as Head of Product Planning. Mr. Veltri started with the Company in 1988. His career has included positions in product planning, marketing, business strategy, and finance. He served most recently as Product Planning Lead and Head of Truck/SUV Planning.
Peter Fong, head of the Chrysler Brand has resigned for personal reasons. Michael Accavitti, head of the Dodge Brand has resigned to pursue other interests.
About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep®, Dodge, Mopar® and Global Electric Motors (GEM) brand vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler’s culture of innovation – first established by Walter P. Chrysler in 1925 – and Fiat’s complementary technology – from a company whose heritage dates back to 1899.
Headquartered in Auburn Hills, Mich., Chrysler Group LLC’s product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Dodge Ram. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.
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Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
Chrysler seeks luxury market, but analysts see tough sell
Brand faces hard sell with luxury buyers, analysts say
Alisa Priddle / The Detroit News
Chrysler Group LLC wants to push its namesake Chrysler brand upscale, an ambitious strategy that has been tried before -- and failed.
The automaker is eyeing a position "a notch above Lincoln, a notch above Cadillac," Chrysler brand chief Peter Fong told reporters at the Frankfurt Motor Show last month.
The Auburn Hills automaker declined to comment further as it prepares an overall business and product plan expected to be made public in November.
Chrysler's new management team from Italy's Fiat SpA has experience at the upper end of the market through Alfa Romeo, which is positioned as a sporty premium/luxury brand in Europe. Alfas could be paired with some Chrysler products as the two automakers share technologies and vehicle platforms.
But making Chrysler a standalone luxury brand, where it would compete head-to-head with Cadillac, Lincoln, Audi, Lexus, Mercedes, BMW and others, is likely to be a hard sell, analysts said.
A few years ago, then-parent DaimlerChrysler AG tried to upgrade the brand but abandoned the effort when consumers resisted paying premium prices for such models as the Pacifica crossover and Crossfire roadster.
The challenge becomes even more formidable in light of the sagging auto market, the poor image of many Chrysler models, a lack of significant new products, and the company's post-bankruptcy struggles.
"I can understand why they want to do it," said Tom Libby, president of the Society of Automotive Analysts. "They don't have a luxury brand and luxury brands are more profitable."
But Chrysler staking a claim against established luxury brands in the U.S. is "going to be an extremely difficult task requiring patience and perseverance," Libby said.
It will take time and money -- two things Chrysler doesn't have.
"GM spent $2 billion over 10 years on Cadillac -- and it was already upscale," said Rebecca Lindland, head of industry research for the Americas for IHS Global Insight in Lexington, Mass.
Chrysler is surviving on about $15 billion in government loans since its emergence from bankruptcy in July.
With few all-new products launching in the next 18 months compared with the competition, analysts believe Chrysler has more pressing matters than moving Chrysler up-market.
"At this stage of their rehabilitation, I think that's real folly," said analyst Joe Phillippi of AutoTrends Consulting Inc. in Short Hills, N.J.
Safeguarding current sales
The carmaker also must be careful not to jeopardize Chrysler sales in the process.
Chrysler brand sales totaled more than 335,000 vehicles last year. While that is down from about 650,000 in 2005, the brand represents 30 percent to 45 percent of the Chrysler Group's overall sales, which also include Dodge and Jeep, said John Sousanis, director of information content for Ward's Information Products.
"To maintain anywhere near their former healthy volumes, they would be counting heavily on Dodge vehicles to capture current Chrysler buyers, which is in no way a given," he said.
The strategy may be ill-considered, analysts said.
Lindland believes Fiat managers don't fully understand the U.S. market and domestic buyers who appreciate the elegant American muscle of the Chrysler 300 and don't want it to change. "Fiat needs to do a tremendous amount of market research before jumping into this," she said.
High hopes, low sales
When DaimlerChrysler had premium aspirations for Chrysler, it launched the Pacifica, but buyers balked at high prices for the feature-laden crossover and it was killed in 2007.
The Chrysler Crossfire roadster -- one of the few true luxury vehicles Chrysler has had this decade -- also was conceived under DaimlerChrysler and based on the Mercedes SLK. But the Crossfire, too, never met sales expectations and production ended in 2007.
Luxury concepts such as the Chrysler Imperial full-size sedan, which would have been a luxury flagship, never got the go-ahead.
After Daimler sold Chrysler to Cerberus Capital Management LP, the image of the Chrysler brand became "extremely blurry and not distinctive," Libby said.
By this year, with the automaker struggling financially, there was talk the brand would be discontinued altogether.
Chrysler spokesman Rick Deneau would not comment on discussions to kill the brand, and said the automaker's position under Fiat is clear.
"This brand for us is vitally important," Deneau said. "It shares a name with the overall organization."
A key product is the new Chrysler 300, to be introduced next year as a 2011 model. Under Fiat, the car has undergone significant change, with a new front end and hood, and a lower, sleeker look that is more upscale and appears designed to do battle with Lexus, according to people familiar with the changes.
There is room in the premium car market. The segment accounts for less than 800,000 vehicle sales now, but will grow to almost 1.4 million by 2013, said George Magliano, director of North American auto research for IHS Global Insight. He sees room for Cadillac and Lincoln to cash in, but is far more skeptical about Chrysler.
Libby said Chrysler would need a complete makeover of existing vehicles to justify raising prices and would have to radically change its lineup, including the addition of a flagship sedan in the $70,000 range, and its starting point is "not nearly as strong as Cadillac or Lincoln."
It would not be an easy shift, said John Casesa, managing partner of Casesa Shapiro Group in New York. "It's much easier to go downmarket than upmarket."
Competitors stay focused
As for the competition, Ford Motor Co. spokesman Mark Schirmer said the Lincoln brand is being enhanced and "nothing Chrysler does will pull us off of our plan."
Cadillac spokesman David Caldwell declined to comment.
Even if Chrysler develops competitive vehicles, it has little experience marketing to luxury buyers, Sousanis said.
"They'd be faced with the problem of introducing a new luxury brand to a public that already has misgivings about the Chrysler brand name in general," he said.
Quality issues have dragged down consumers' perceptions of the brand, Phillippi said, and people shopping for a luxury car are unlikely to think of Chrysler.
The big question, Lindland said, is the thinking behind Chrysler's plan. "I don't know why they need to go there to be successful."
Sousanis has one possible explanation.
"It may turn out that this is the last best gambit for the division to distinguish itself in the market," he said.
Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
With Fiat now calling the shots in Auburn Hills, many have wondered what the future holds for Chrysler. While the Pentastar won't say, information has been leaking out over the past week that points to new product, revised existing product, and possibly a spinoff of the Ram as a brand.
The biggest piece of scuttlebutt that's been floating around the automotive world is that Chrysler plans to spinoff the Dodge Ram as its own truck, SUV, and large van brand, much like GM's GMC. Separating Dodge Ram trucks from the Dodge brand would allow Chrysler to refocus the Dodge brand on performance cars rather than vehicles for every need. It would also allow Chrysler/Fiat to sell off the truck brand should circumstances become dire enough.
Also rumored is that Fiat will soon instigate rapid-fire changes to existing products and even a new model. Answering calls from customers, dealers, and auto journalists alike, Fiat is said to be working the design studio overtime to get new interiors into Chrysler's products as soon as possible and bring them up to industry standards.
Also in Fiat's sights are the Chrysler Sebring and Dodge Avenger twins. In an abrupt about-face, Fiat has stayed their long-awaited execution and will instead work to revamp the oft-panned mid-sizers. No less than Fiat CEO Sergio Marchionne himself is promising a drastic improvement, saying "They have a great future. You'll love the cars." A big gamble to hang one's hat on, but the payoff could be big if Marchionne pulls it off. Also saved from the scrap heap and slated for an overhaul is the long-in-the-tooth Chrysler PT Cruiser, which will soldier on for a few more years with an update of unknown scale.
Fiat isn't just focusing on sprucing up Chrysler's aging lineup. Rumors indicate that the company is hot for new product for Chrysler, and we're not just talking about the Chrysler dealer-sold Fiat 500. Word is, Fiat is ramming a new model through the Chrysler design and engineering studios as fast as possible, hoping to get it on the road by the end of 2011. Little is known about this new model, but it could be a production version of the Chrysler 200C, the new Jeep Grand Cherokee, or an all-new model. While the new model will give Dodge/Chrysler/Jeep dealers their first all-new model since the Dodge Challenger, Fiat is hoping to keep the momentum going with more new models rolling out in 2012.
Of course, it's important to stress that these are all rumors and claims substantiated by anonymous sources. Fiat and Chrysler have refused to comment on any of them for the time being, though the official company revival plan is expected to be shown to the government's automotive task force sometime this week. Chrysler's board was reportedly briefed on the plan last week, but Chrysler has said that it will not make any of its product plans public until it unveils its five-year plan in November. Until then, we'll keep you up to date on the latest Pentastar news as we become aware of it.
Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
I've been working on this for a long time -- and I think I finally have all of the kinks worked out -- at least in Firefox and IE8.
If you look in the Top NavBar -- you will see a link for "Member's Garage". In it, you can upload up to five of your Mopars -- and ten photos (under 800px wide and 1MB ea) for each Mopar -- and if a race car -- your best time slip. I've uploaded Big Red Ram -- to give you an idea.
While I have created every Mopar make -- I haven't created all of the models. As you add your car, add the model if you don't see your model yet.
One little issue is if you try to upload too many big photos at once -- it will time out, so I suggest uploading three photos at first, and then add more photos after the record is created.
Frankly, this cool feature eats up both bandwidth and disk space -- which will greatly increase my monthly expenses. Initially I created this just for the Premium members to be a Premium feature -- but it would be better if everyone was included -- and so it is a feature available to all members. That gives a much greater variety of cars -- if every member was to list at least one of their Mopars. I ask a few of you who can afford to upgrade to Premium Member with a one-time small $20 donation towards the monthly expenses. Premium Membership entitles you to a whole bunch of additional features exclusive to the Premium Membership. If you can't afford it -- that's kool, but I do spend far more than I take in to administer this site.
Please jump in and start uploading your cars with your better photos, and replace the weaker photos with better as time goes on. In time, you may find that you are contacted by Magazines via PM wanting to do a feature on the more unique Mopars.
If you have any problems -- post a detailed explanation of the problem -- including what your browser is and the error message received.
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Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
In the above video, you see one of the requirements of your government's new "Cash for Clunkers" program initiated this past Monday. This is a program where your government pays $4500 to get those nasty pick up trucks and SUVs off the road -- so that you instead drive a nice green little toy car. In this perverse program using our tax dollars, dealers have to drain all of the liquids out of the motor and pour liquid glass into the motor -- running it until she blows. Personally, I think it is the program that blows.
__________________
Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country, our banking system, our auto industry and possibly our health plans to the same nit-wits who couldn't make money running a whore house and selling whiskey!
Rebates start Monday; new rules target fraud, include more vehicles
Detroit News Washington Bureau
Washington -- The long-awaited cash for clunkers program, which starts Monday, will include more vehicles than previously expected, thanks to changes unveiled in the final rules that were officially released Friday.
In the National Highway Traffic Safety Administration's final regulation, some new provisions were included to broaden the number of eligible clunkers and new cars, and dealers were told they will be responsible for disabling the engines of clunkers before they get sent to the junkyard.
NHTSA's Web site said consumers can start getting rebates Monday. NHTSA spokesman Rae Tyson said more than 1,700 dealers were approved to take part the first day, while another 2,100 were pending approval or in the draft stage.
Another 148 applicants had been rejected.
Congress said new eligible vehicles must have a manufacturer's suggested retail price of no more than $45,000, but that applies only to the base price -- meaning customers could pick out a pricier car loaded with options and still use the rebate.
Consumer purchases after July 1 can be eligible for the program, which offers a rebate of up to $4,500, if they meet all the requirements.
Under the rules set by Congress, most clunkers must average no more than 18 miles per gallon in combined highway/city driving.
In the 2008 model year, the Environmental Protection Agency revised its mpg calculations, dropping the average mileage by about 10 percent.
"Older vehicles can qualify if the vehicles meet the 18 mpg or less under the newer test procedures. Eligibility is determined by the revised ratings rather than the original EPA sticker on the vehicle," NHTSA's regulation says.
Another new detail in the program: Dealers will have to disable the clunkers' engines.
Dealers will have to remove "the engine oil from the crankcase, replacing it with a 40 percent solution of sodium silicate (a substance used in similar concentrations in many common vehicle applications, including patching mufflers and radiators), and (run) the engine for a short period of time at low speeds (rendering) the engine inoperable," NHTSA said. In a July 21 letter, the National Automobile Dealers Association argued that Congress did not assign the task of making the engine inoperable to the dealers, and that if required to do so, the dealers should be paid.
"We believe that having the engine permanently disabled at the dealer greatly reduces the risk of fraud," said NHTSA, adding that disabling the engines will cost dealers no more than $30.
NHTSA will spend $33 million running the new program and hire about 230 people. It also will launch a $10 million advertising campaign to promote it.
NHTSA said officials from Texas, California and Germany, which all have programs to pay consumers to scrap older vehicles, cautioned the agency "to be vigilant to guard against fraud."
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