Chrysler is losing money by the truck-load, and its vehicles aren't selling, so common sense dictates that team Pentastar was going to start making cuts soon. That time is now, when Chrysler notified workers that it would be cutting 1,000 white collar workers. Chrysler spokesman David Elshoff told employees that the company would achieve its cut target through retirements, attrition, and buyouts, which means people won't be handed boxes and receive security escorts just yet. Chrysler management is making the cuts with the belief that the current economic situation here in the States isn't going to improve any time soon. A quick look at the Pentastar's car lineup shows the privately owned company would be in trouble even if the economy had a rosy outlook. No timetable was given for the white collar cutback.
During the recent What's New event at Chrysler's Chelsea Proving Ground, we had the opportunity to sample the new Dodge Challenger SRT-8. For the 2008 model year, Chrysler is only building SRT-8 versions of the Challenger with a combination of the 6.1L HEMI V8 and a five-speed automatic transmission. We first saw the production version of the Challenger earlier this year at the Chicago Auto Show and while we thought the styling was great with perfect muscle car proportions, it is undoubtedly a big car. The Challenger is built on Chrysler's LX platform shared with the 300 and Charger. Compared to the Mustang it looks huge and it hardly seems like it would actually feel sporty.
Fortunately, the dynamic behavior of large cars has made huge strides since the original Challenger went away in the mid-seventies. We first tried out the Challenger on the road at Chelsea before taking it for a hot lap around the evaluation track. The circuit was built back in the early '90s when a certain gentleman named Lutz was still occupying an office on the top floor of Chrysler's headquarters. It's basically a lovely little natural terrain road course, not quite as elaborate as the new road course that Maximum Bob built at the GM Proving Ground, but it's a good way to get a dynamic feel for a car. After lunch we had another opportunity to thrash the Challenger on the autocross course that Chrysler set up on the vehicle dynamics pad. Find out how the Challenger did after the jump, along with some video of our time behind the wheel.
Gas prices are up, which has led to increased interest in midsizers, more specifically, the midsize offerings from Chrysler's competition. The Sebring has taken a 30 percent sales whack this year, mostly due to reduced fleet sales. The Avenger's year has been a little brighter, posting a two-percent gain. Contrast that with everyone else; Malibu, Fusion, and Accord are up ten percent or more this year; and therein lies Chrysler's problem. Ditching Chrysler's outmoded V6 for the four-cylinder powertrain will deliver more competitive fuel economy, if you can stand the NVH increase.
Top heavy with trucks and taking fire over the Avenger and Sebring's interior quality and efficiency, Chrysler's seriously looking at re-jiggering the sedan twins, killing the top R/T and Limited trim levels and sliding some of the good stuff down to the SXT and Touring trim levels. The 3.5-liter V6 will be left out as standard equipment, though, as it doesn't post great fuel economy. The goodies that normally accompany the six, like heated leather power seats, dual exhausts, and 18 inch wheels, will end up as standard gear on the Sebring Touring and Avenger SXT. The prices of those models get bumped - 9.9 percent for the Dodge, now starting at $21,750, and 3.4 percent for the Sebring, offered for $21,670. What's up with the Avenger costing more than the Sebring? We don't know. The Journey is also being considered for this initiative, rumored to be called the "Fight Back" plan, and suppliers had until yesterday to give Chrysler a yes or no on feasibility.
We busted our humps getting to Podcast #100, and then promptly slacked off. Chris Shunk and Dan Roth make the effort this week to get Autoblog Podcast #101 out the door while the rest of the team remains difficult to corral. The usual banter about what's been in the Autoblog Garage starts us off before we dive headlong into the pithy GM news from earlier this week. Love it? Hate it? Send your comments, suggestions, or anything else to podcast at autoblog daht kahm. Thanks for listening!
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