UPDATE: Chrysler to up ad spending... way up

CORRECTION: The AdAge article misinterpreted the information presented. Spending will only be doubled in certain sectors of specific months of Chrysler's second half, not double the total amount spent on advertising for the first half. Thanks to Chuck for the info.In a speech to the Automotive Press Association, Chrysler's President and CEO, Tom LaSorda is quoted by AdAge as saying that advertisement spending "is going up dramatically."How dramatically? The Chrysler Group dropped over $500m on ads during the first half of 2006 and the plan is to double that figure through the end of the year.So what will approximately $1b in ads be focused on? Three models: new, compact and mid-sized.The Dodge Nitro, Avenger and Ram will be pushed hard over the next three months, along with the Chrysler Aspen and Sebring. Jeep needs more bennies for its new Wrangler and the new four-door variant of the iconic off-roader, plus the Compass is going to need a strong push if it doesn't take off as expected.The Caliber, although doing very well, will see a few more dollars thrown in its war chest to get the word out about the C-segment/crossover/compact/sport wagon. Additionally, if rumors of a sub-compact come to fruition, additional funds will need to budgeted accordingly.And what of Dr. Z? We may see more of the iconic, if not mildly tarnished, head of the chairman, but the real focus will be on the German-engineering side of things, for better or worse.[Source: AdAge]

Chrysler drops prices on Durango and Pacifica

The average sticker price for the Chrysler wing of DaimlerChrysler only rose $38 for the 2007 model year. The slashing of prices on the Durango and Pacifica lines is partially to blame for this relatively low increase in average MSRP. Chrysler cut the Pacifica down by $1,318 on average and the Durango by $1,852 from the final sale prices of 2006 models. The Durango also fell victim to the public's movement away from full-size SUVs in general, with sales down 40.1 percent for the first eight months of this year. The Pacifica is not faring too well either, with a 13.1 percent drop over the same period.

We wonder if Chrysler's plans to introduce a hybrid version of the Durango will help reverse the vehicle's recent decline in popularity. It should help, but it's very unlikely that it'll return things to the way they once were. Life isn't going to get any easier for the Pacifica,either. It faces a lot more tough competition in the near future. GM's eight-passenger Saturn Outlook and GMC Arcadia will be arriving soon, and Ford is preparing to bring its Fairlane people-mover concept into production as well.

Chrysler continues to seek partner for B-car production, China still in the mix

DaimlerChrysler has been looking for a partner to produce subcompact cars, like the Dodge Hornet concept the company unveiled in Geneva last year, and according to Chrysler Group CEO Tom LaSorda, a Chinese company may be the lucky recipient of the business. Speaking at an Automotive Press Association luncheon in Detroit on Monday, LaSorda said that the company is finishing up its research, and when asked if the partner would be Chinese, LaSorda said that Chinese automakers have not been ruled out.

D.C., which currently has no infrastructure in place to build and sell subcompacts, has said that it wants to make Dodge an international player -- a classification that all but requires the company to produce subcompacts. Earlier this year, LaSorda met with China's Chery Automobile Co. to discuss the topic further and if the partnership is given a green light, it will be the first such alliance of its kind.

[Source: Reuters]

2006 Chrysler Imperial Concept

Like the great Imperials of Chrysler’s storied past, the 2006 Chrysler Imperial concept vehicle is designed as Chrysler’s flagship, a luxury sedan that is elegant, provocative, aspirational, yet attainable. Read more... 2006 Chrysler Imperial Concept