Sales of Chrysler, Dodge, and Jeep vehciles are down a scary 36 percent year over year, which means even the somewhat interesting marketing gimmick of the $2.99 gas guarantee isn't working very well. Unfortunately, gas for just under $3 is all Chrysler, LLC had up its sleeve this summer, as the Pentastar has extended the deal through July 31. We'd reported earlier that only 5-10 percent of all Chrysler product buyers were opting for the seemingly attractive promotion, which leads us to believe that the deal isn't much of a deal after all. Maybe Chrysler can borrow the tried and true "Do you have a job? Do you have $199?" from Kia, because the Korean automaker's sales are up 21%.
Click above high-res gallery of the 2008 Dodge Grand Caravan SXT
Now that General Motors and Ford have completely abandoned the minivan market for good, the American originator of the species faces only Honda, Toyota, Nissan, Kia and soon Volkswagen as manufacturers that also offer competitive choices. Perhaps you'd think that Chrysler would be benefiting as the only domestic automaker currently playing in the segment, but it seems that sales are down this year by 13 percent for the Chrysler Town and Country while the Dodge Grand Caravan is down an alarming 35 percent. High gas prices are the obvious reason why the minivan market is seeing such a harsh downward trend, and likely the culprit behind Chrysler's impending move to idle its St. Louis South minivan plant as early as December, which would leave some 1,500 employees jobless.
Utility vehicles have been the biggest gas-price casualties, and slow sales are said to be forcing the Jefferson Avenue assembly plant in Detroit where the Jeep Grand Cherokee and Commander are assembled and the Toledo, Ohio North assembly plant which builds the Jeep Liberty and Dodge Nitro into extended shut-downs, as well.
Click image above for small gallery of the new Jeep Grand Cherokee SRT-8
While out in the Mojave testing the new Subaru STI, our buddy Rich Truesdell not only came upon a fleet of 2009 Acura TLs, but caravan of Mopars. There were "several Jeep Grand Cherokee SRT8s, a Dodge Challenger, with a camouflaged Jeep Grand Cherokee towing a trailer in tandem with a Mercedes ML towing a similar trailer." The ML was a tipoff that this could be a Grand Cherokee with the Mercedes-shared turbodiesel engine. But when the vehicles passed by, they knew they were listening to a Hemi under that hood. So maybe it is just an upgraded Hemi that was being load-tested against a similarly powerful ML550. Informed speculation says that a new fascia lies behind the camo and it was undergoing cooling testing. Rich also mentions tire upgrades and even a horsepower bump as possible reasons for the desert excursion. One intriguing theory is the adaptation of Chrysler's gas-saving multi displacement system to the hi-po Hemi, something Chrysler has said wouldn't work on this engine. We'll probably have to just wait and see, but for now, check out our mini gallery supplied by Truesdell and Automotive Traveler for the rest of the tale of the encounter in the desert.
Chrysler's Project Genesis plan has been gaining traction as of late. The goal is to cut out redundant models between the Chrysler, Dodge and Jeep brands, which would also mean consolidating its entire product line into one dealership which offers all three marques. While there are some dealership owners fighting the strategy, The Detroit News reports that Chrysler already has fifty-eight percent of its dealerships offering its three brands, and its been able to cut out some smaller, less profitable sites in the process. While franchise laws prohibit Chrysler from requiring the switch, reducing its model line can have the same effect, forcing its dealers to offer the entire product catalog from the company in order to offer a full line of vehicles.
As a side benefit, the automaker hopes that its dealers can upgrade their franchises, offering a modern look and high-tech features such as Wi-Fi and a cafe on site. Of course, Chrysler needs to do its part by producing some good vehicles for those dealers to offer.
It looks like car shoppers have been smart enough to see past Chrysler's cheap gas guarantee. Despite Chrysler's extension of the offer for an extra month, a very small percentage of actual consumers have actually chosen the gas guarantee over the old fashioned cash back options. As we've reported in the past, the incentive wasn't really as good as it seemed once the math was done. As was pointed out by the Union of Concerned Scientists, a 3 mpg bump in efficiency would be equal to the savings Chrysler was offering. Additionally, Chrysler not only has the worst fleet in terms of fuel efficiency, but many of its products haven't exactly set the world on fire based solely on their own merit. The performance of the incentive deal suggests that in today's world average consumers may not want to be seen driving gas guzzling vehicles, regardless of what they're paying for fuel. Good products are still the only real way to guarantee sales, though cash back incentives still have an impact. Perhaps Chrysler should have offered firearms.
Chrysler is apparently learning the hard way that you can lead a horse to water, but you can't make it drive out in a new Sebring. The $2.99 per gallon gas price guarantee that Chrysler launched last month has apparently been insufficient to actually stimulate sales. People are coming into showrooms, but evidently even a cheap gas offer isn't enough to convince customers to buy Chrysler products. Even with the special deal, Chrysler's sales are apparently down 18-percent for May. We can't fathom why cheap gas wouldn't be adequate inducement to spend the next three years driving a Sebring or Jeep Compass, can you? Hopefully Chrysler will have better luck than GM moving the Durango and Aspen Hybrid when they launch in a few months, because not much else is selling right now.
Chrysler's restructuring plan and new plan for product development named Project Genesis is facing some expected criticism from many dealers. However, others are praising the cost-cutting, model-trimming and dealer-consolidation program that's happening as a result. As Chrysler pressures its traditional dealer network to sell all three brands (Chrysler, Jeep and Dodge) under one roof – without any financial assistance to help those already struggling with slow sales – many dealers are having a difficult time with the expense of investing in larger facilities to meet the Project Genesis requirements.
According to Chrysler, a one-brand dealer won't be able to survive with its limited vehicle offerings after Chrysler trims down its model lines (expected to be complete by 2012). This is forcing dealers to add the other brands, or shut their doors as sales slowly dwindle. Conversely, the closure of some dealers is having a positive effect on others. With padlocks now on the front doors of their competition, the surviving dealers are experiencing significant growth in vehicles sales, parts and service.
Now that the newly-designed Wrangler has gained an optional extra set of doors, those wanting a little extra passenger-carrying capability with their off-road ready rough-and-tumble ride have been able to get it in the Unlimited model. Of course, there has been an important unanswered question looming ever since: how many people can fit inside comfortably? Sure, the standard answer might be four, with five being the limit in an absolute pinch, but some enterprising people in Poland had a bit more ambitious ideas in mind. In fact, a total of thirty-two intrepid souls upped the ante by cramming themselves inside a green Jeepie Jeep Wrangler Unlimited, setting some sort of offbeat Polish record in the process. While thirty-two people in any vehicle is impressive, it pales in comparison to what's been done in the lowly Beetle, not that we recommend trying to replicate any of these stunts yourself.
Click above for a high-res gallery of the 2009 Dodge Journey
Making a step towards a more fuel-efficient vehicle lineup, and reducing the number of overlapping vehicles between its brands, the plug has been pulled on a Chrysler-branded version of the 2009 Dodge Journey. Chrysler LLC will instead focus the resources on a Nissan-manufactured compact car.
While the automaker currently captures the bulk of its sales from light trucks and SUVs, Chrysler is trying to pare down its lineup significantly to cut costs. So far, they have cut four models. Moving forward, the Jeep Commander SUV is expected to be dropped next year, and the company has already said they were canceling the PT Cruiser Convertible. While the 2009 Dodge lineup gains the aforementioned Journey, Dodge Challenger, and a redesigned Dodge Ram pickup, Chrysler's product lineup for the next twelve months looks particularly bleak with nothing significantly new in the pipeline. Company officials are holding their breath for 2010, when the new Nissan-built compact, new Jeep Grand Cherokee, and redesigned Chrysler 300 sedans arrive.
In 1963, Henry Ford II wanted to win Le Mans badly and was all set to buy Ferrari to boost Ford's racing program. Enzo Ferrari pulled out of the deal at the last moment, angering Ford II so badly that he went on to fund development of the legendary GT40 that went on to take many motorsports victories.
A few years later, Mr. Ferrari pissed off yet another powerfully rich American businessman with the outcome being the automotive abomination you see before you. Bill Harrah of Harrah's Casino fame asked Ferrari to construct for him an Italian 4X4 wearing the prancing horse badge. While no one thought to archive the response from Ferrari, we imagine it involved the words 'hell' and 'no'. In Italian, of course.
Undeterred and with more money than taste, Harrah created the Jerrari. Its ass-end is a 1970 Jeep Wagoneer, the nose is from a 1969 Ferrari 365GT. On the day of its birth, this one-of-a-kind offroading Ferrari sported V12 power, but now all four wheels are turned by a 350 V8.
The eBay auction for this abomination includes numerous pieces of documentation, like a 1971 review of the car by "Road & Track." Another is a letter from a previous seller in 1984 that indicates there could be more than one of these hideous creations out there. Maybe that's what's been starting all these rumors.
Watch a walk-around video of the Jerrari after the jump, and check out an extensive gallery of photos below.