The payments to Visteon include compensation for already-completed parts and for tools used to make components in Chrysler vehicles, according to an agreement filed last week in U.S. Bankruptcy Court, the trade publication said.

The automaker also will pay Visteon every 15 days and cover Visteon’s cost of winding down operations that make parts for Chrysler interiors, the Automotive News said. Visteon no longer views those operations as beneficial, the court documents say.

Under the agreement, Chrysler will buy equipment at Visteon’s plants in Saltillo, Mexico, and Highland Park, Mich., a Visteon spokesperson told the publication. Chrysler may sell that equipment to another supplier, who would presumably take over those factories, which Visteon leases. If Chrysler can’t find a buyer by March 31, 2010, the automaker will assume ownership of the equipment, the paper reported. (Automotive News)

The facility’s flexible manufacturing system enables diesel engine models and right-hand drive versions to be built on the same line as the left-hand drive and gasoline engine minivans.

Called the Chrysler Grand Voyager in markets outside North America, the vehicle is sold in more than 80 countries. Chrysler first began offering right-hand drive versions of the minivan in 1997 for markets such as the United Kingdom, Japan, Australia, New Zealand, South Africa, Singapore and the Philippines. For international markets, the Chrysler Grand Voyager is equipped with an optional 2.8-liter common-rail diesel (CRD) engine that which accounts for approximately 90 percent of sales in some European countries.

“In spite of an extremely challenging first half-year, Chrysler is continuing to invest in Canada,” Reid Bigland, President and CEO—Chrysler Canada, said. “In July, we announced that we will retain the third shift at the Windsor Assembly Plant. Today we are stepping up our commitment by expanding the products we build at the plant and preserving jobs in Ontario and Canada.”

The Windsor Assembly Plant was constructed in 1928 and began production of the award-winning Chrysler minivans in 1983. The 4.01 million square-foot facility occupies 176.92 acres and employs approximately 4,627 workers, many of whom are represented by the Canadian Auto Workers (CAW). The facility remains Chrysler’s only auto assembly plant operating on three shifts.

The Chrysler Group has sold more than 12 million minivans worldwide since the company invented the minivan segment more than 25 years ago, including more than 1.6 million in Canada. In 2008, the company sold 21,513 minivans outside North America.

Chrysler minivans have received more awards than any other—more than 260. The vehicle offers more than 65 minivan-first features, such as the innovative Stow ’n Go® and Swivel ‘n Go™ seating and storage systems.

Chrysler Group LLC announced today that the 2010 Chrysler Sebring and 2010 Dodge Avenger have earned the 2009 Top Safety Pick rating from the Insurance Institute for Highway Safety (IIHS).

“We are proud to receive the highest possible ratings from IIHS for the Chrysler Sebring and Dodge Avenger,” said Scott Kunselman, Senior Vice President – Engineering, Chrysler Group LLC. “These sought-after achievements highlight Chrysler’s leadership in safety and security technology and occupant protection.”

When it comes to safety and security, the 2010 Chrysler Sebring and 2010 Dodge Avenger employ a two-fold approach: passive features, including pre-tensioning seat belt retractors and supplemental side-curtain air bags, are combined with accident-avoidance features, including responsive steering, braking, handling and Electronic Stability Control (ESC).

“A vehicle that earns the Top Safety Pick designation provides the best overall protection in the three most common kinds of crashes,” said Adrian Lund, President – Insurance Institute for Highway Safety. “Top-level crash-test performance plus electronic stability control to help keep drivers out of crashes are the tough criteria needed to earn this award.”

Available safety equipment on the 2010 Chrysler Sebring and Dodge Avenger includes ESC with traction control, Brake Assist and ABS, driver and front-passenger active head restraints, front seat-mounted side airbags and advanced multi-stage front airbags. The two vehicles also are equipped with Lower Anchors and Tethers for CHildren (LATCH) for child safety seats.

The 2010 Chrysler Sebring and 2010 Dodge Avenger offer more than 30 safety and security features, including:
•  Active head restraints
• Advanced Multi-stage Air Bags
• All-speed Traction Control
• Anti-lock Brake System (ABS)
• Auto-reverse Sun Roof
• Auto-reverse Window
• BeltAlert
• Brake Assist
• Brake/Park Interlock
• Child Seat Anchor System (LATCH)
• Child-protection Rear Door Locks
• Crumple Zones
• Digressive Load-limiting Retractors
• Electronic Stability Control (ESC)
• Energy-absorbing Steering Column
• Enhanced Accident Response System (EARS)
• Height-adjustable Front Seat Belts
• HomeLink® Universal Transceiver
• Inside Emergency Release
• Interior Head-impact Protection
• Knee Bolsters
• Remote Keyless Entry
• Remote Start
• Safety Cage Body Structure
• Seat-belt Pretensioners (both front seat belts)
• Sentry Key® Engine Immobilizer
• Side Guard Door Beams
• Side-curtain Air Bags
• Tire-pressure Monitoring (TPM)
• Uconnect phone
• Vehicle Theft Security Alarm

In celebrating the announcement of continued production of the Chrysler PT Cruiser, two Brazilian journalists expanded their auto beat travels to participate in the Detroit area’s annual Woodward Dream Cruise by driving a 2009 Chrysler PT Dream Cruiser Series 5, the last ‘special edition’ PT Cruiser.

From the top two national newspapers in Brazil, Glenda Pereira and Nicolas Borges, traveled from Sao Paulo to drive the PT Dream Cruiser and meet members of the Toledo, Ohio-area PT Cruiser owner’s club on Friday at the Walter P. Chrysler Museum. The pair conducted one-on-one interviews, heard anecdotal stories about their cars and took photos of their customized PT vehicles. These passionate owners were eager to play a part in this media program as it provided an opportunity to display their cool vehicles and have fun at the same time.

“My plan is to write about the PT Cruiser, the museum and the Dream Cruise when I get back to Brazil,” Pereira, an editor with O Globo and Diario de Sao Paulo, said. “It’s an icon and, in Brazil, it’s still a very different and interesting car.”

Borges noted that the PT is a niche vehicle but with a substantial following. A lot of people still like it because it’s so different, he said.

“This is really unique,” Borges, a writer with the Journal da Tarde, said of the Dream Cruise. “We don’t have anything like this in Brazil.”

The PT Cruiser was the company’s best-selling vehicle in 2008 in Brazil, and continues to be a top-volume seller in the company’s line-up in many Latin American markets.

Kurt Busch (fourth) and Kasey Kahne (seventh) continue to be Dodge’s strongest Chase contenders as the top-12 drivers in the point standings after 26 races will compete for the championship and the Sprint Cup in the final 10 races of the season.
 
Kasey Kahne (No. 9 Budweiser Dodge Charger) looks to double up on road course victories this season. Kahne gave Dodge it’s last road course win in June at the Toyota/Save Mart 350 at Infineon Raceway. It was Dodge’s second road course win (Juan Pablo Montoya at Infineon in 2007).

The win was Kahne’s first road course victory and 10th Sprint Cup win of his career. Kahne has top-10 finishes in five of the last six races and top 15s in nine of the last 10 Sprint Cup races. Consistency has paid dividends for the Richard Petty Motorsports driver. He’s seventh in the driver point standings, 180 ahead of the 13th-place driver. 
 
“I feel like we’re getting in a better spot (in making the Chase),” Kahne said. “But, you know, last year right before the Chase, we had an engine problem at Michigan. We were running top 10, right around 10th. Then at Bristol, we were running top 10, about eighth, but got in that wreck a few other guys caused on the front stretch that took out eight or 10 cars. We lost a ton of points really quick.

“I feel like if we keep it up, we’re going to be in good shape,” he added. “But things can happen so easily, by your own error or just by racing situations. It’s just the way racing goes. I’ll feel really good if we can have a big lead going into Richmond and we don’t have to worry about it.”
 
Kurt Bush (No. 2 Miller Lite Dodge Charger) is excited to race the hallowed grounds at The Glen. The race will be the first NASCAR event at Watkins Glen to use double-file restarts. Busch, who had already placed Turn 1 among his top-five “action-packed turns” in NASCAR Sprint Cup racing, feels that turn may be worthy of a No. 1 ranking after this weekend.
 
“It’s all relative to the new double-file restarts,” Busch said. “We all saw—and experienced—what the double-file restarts did to the racing at Sonoma. It was wild out there. It bit me, but it worked in our favor late in the race.”
 
Bush enters the race fourth in the Sprint Cup standings and has scored one win, six top-five and 11 top-10 finishes this season.  He has finished 15th or better in 14 of the 20 races in 2009 while leading the field in 12 different races for 368 laps.  The 2004 series champion is seeking his first win at The Glen.
 
Driver standings after 21 races:
(Chase field set following race 26)

Pos., Driver, points, (lead over 13th)
 1. Tony Stewart, 3,188 (726)
  2. Jimmie Johnson, 2,991 (529)
  3. Jeff Gordon, 2,989 (527)
  4. Kurt Busch, 2,751 (289)
  5. Denny Hamlin, 2,713 (251)
  6. Carl Edwards, 2,665 (203)
  7. Kasey Kahne, 2,642 (180)
  8. Juan Montoya, 2,631 (169)
  9. Ryan Newman, 2,627 (165)
10. Mark Martin, 2,622 (160)
11. Matt Kenseth, 2,564 (102)
12. Greg Biffle, 2,563 (101)

Seven Dodge teams are entered at The Glen seeking to give Dodge its 204th victory in NASCAR’s premier series. All seven drivers are assured berths as they sit inside the top 35 in car owner points. Dodge is seeking its first win at The Glen.
 
Other notes
• Elliott Sadler (No. 19 Best Buy Dodge) leads all current Dodge drivers with a best Watkins Glen finish of seventh (2006).
• Sam Hornish Jr. (No. 77 PPG Dodge) earned the first top-five finish (fourth) of his career last weekend at Pocono.
• AJ Allmendinger (No. 44 Stanley Dodge) finished 11th in his only Watkins Glen start.
 
What you need to know
The Race: Heluva Good! Sour Cream Dips at The Glen
The Place: Watkins Glen (N.Y.) International
The Date: Sunday, Aug. 9
The Time: 2 p.m. (EDT)
The Track: 2.45-mile road course
The Distance: 90 laps/220.5 miles
Television: ESPN, 2 p.m. (EDT)

“The heritage-styled Chrysler PT Cruiser continues to be a global success story,” said Peter Fong – President and Chief Executive Officer – Chrysler Brand and Lead Executive for the Sales Organization, Chrysler Group LLC. “With more than 1.3 million PT Cruisers sold in more than 60 countries since 2000, we’re excited to announce we’re re-energizing the iconic and award-winning PT Cruiser.”

The Chrysler Group changed the landscape of the automotive market when it introduced the segment-busting Chrysler PT Cruiser nearly 10 years ago. Its one-of-a-kind exterior styling and Swiss Army knife-like interior flexibility, offered at a compact car price, redefined the small-car segment and became an instant hit with consumers.

High-quality, craftsmanship, performance and functionality continue to give the award-winning Chrysler PT Cruiser a leg up on the competition. For years, leading consumer magazines and third-party studies have recommended the PT Cruiser for its consistently high levels of quality and refinement—tying for first place in J.D. Power’s Initial Quality Survey (IQS) this July.

Some of the Awards the vehicle has won are the following:
• 2008 Chrysler PT Cruiser, Consumer Reports “Recommended”
• 2006 Chrysler PT Cruiser, Consumer Guide, “Best Buy – Compact Cars Category”
• 2006 Chrysler PT Cruiser, Consumer Reports, “Recommended”
• 2005 Chrysler PT Cruiser, Edmunds.com, “Most Significant”
• 2004 Chrysler PT Cruiser, AutoPacific, “Top Vehicle customer satisfaction”
• 2001 Chrysler PT Cruiser, North American International Auto Show, “North American Car of the Year”
• 2001 Chrysler PT Cruiser, African Americans on Wheels and Latinos on Wheels, “Car of the Year”
• 2001 Chrysler PT Cruiser, Strategic Vision, “Compact Car Segment”
• 2001 Chrysler PT Cruiser, Industrial Design Excellence, “Gold Award”
• 2001 Chrysler PT Cruiser, Automobile Magazine, “Best Small Car”

Since production of the Chrysler PT Cruiser began in February 2000 (as a 2001 model), the PT Cruiser lineup has been a continuous hit. The latest flavor, the 2009 Chrysler PT Dream Cruiser 5 marked the 14th customized version of the segment-busting small car. The Chrysler PT Dream Cruiser Series 5 joined the Flames, Woodie, PT Dream Cruiser Series 1, 2, 3 and 4, PT Turbo and Chrome Accents models, the Chrysler PT Cruiser Convertible, the refreshed 2006 Chrysler PT Cruiser, the Chrysler PT Street Cruiser Route 66, Street Cruiser Pacific Coast Highway Edition and Street Cruiser Sunset Boulevard Editions.

About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep®, Dodge and Mopar® brand vehicles and products. With the resources, technology and worldwide distribution network required to compete effectively 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. Headquartered in Auburn Hills, Mich., Chrysler Group LLC’s product lineup features some of the world’s most recognizable vehicles, including the Chrysler Town & Country, Jeep Wrangler and Dodge Ram. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group LLC to offer an expanded product line including environmentally friendly vehicles.

Chrysler Mexico Operations
Chrysler initiated operations in Mexico in 1938, it actually has 5,000 employees. Its manufacturing operations include 5 plants which are localized in Saltillo and Toluca, as well as the Corporate Building in Mexico City. The products that the company manufactures, imports and commercializes with the Chrysler, Dodge, Jeep, Mopar and Mitsubishi brands, are sold in the domestic market through over 160 dealers in the country. The Chrysler Foundation, recognized by the Latin American Center of Social Responsibility of the Anahuac University for its excellent philanthropic work, supports corporate social responsibility programs in the areas of education, health, culture, community development and natural disasters in Mexico.

“The formal creation of our Board of Directors is another important step toward building a viable Chrysler Group for the long term,” said C. Robert Kidder, acting Chairman of the Board which is expected to hold its first meeting on July 29. “Our board members bring a wealth of talent and experience in areas such as transportation, finance and investing, energy and government. We will work together as a Board of Directors to support Chrysler Group’s success to the benefit of all stakeholders.”

Kidder, currently Chairman and CEO of 3Stone Advisors LLC, was previously announced to the Chrysler Group LLC Board of Directors on May 20. Joining Kidder on the board are: Alfredo Altavilla, CEO of Fiat Powertrain Technologies; James Blanchard, former U.S. Congressman and Governor of Michigan; George F.J. Gosbee, Chairman, CEO and President of Tristone Capital Inc.; Sergio Marchionne, CEO of Chrysler Group LLC and CEO of Fiat S.p.A; Douglas Steenland, former CEO of Northwest Airlines; Scott Stuart, a founding partner of Sageview Capital LLC; Ronald L. Thompson, Chairman of the Board of Trustees for Teachers Insurance and Annuity Association (TIAA); and Stephen Wolf, Chairman of R.R. Donnelley & Sons Co.

“While Chrysler Group LLC is a private company, the Board is focused on supplying the strong governance that would be expected of a public company,” Kidder said. “We are looking forward to working as a single team to provide the oversight, guidance and expertise that will help make Chrysler Group successful.”

Chrysler Group LLC’s Board of Directors includes the following individuals:

Alfredo Altavilla is the Chief Executive Officer of Fiat Powertrain Technologies and Senior Vice President of Business Development of Fiat Group Automobiles. He joined Fiat Auto in 1990 as manager of product development, playing roles of increasing responsibility in the field of international ventures and strategic planning.

James J. Blanchard, Partner and Co-Chairman, Regulatory and Government Affairs at DLA Piper, one of the world’s largest law firms. He is former ambassador to Canada, served two terms as governor of Michigan and four terms as a member of the United States Congress.

George F.J. Gosbee, Chairman, CEO and President of Tristone Capital Inc., a global energy advisory firm that provides fully integrated investment banking, property acquisitions & divestitures, and global equity capital markets services. Mr. Gosbee founded the firm in 2000, creating a unique model to assist oil and gas companies by combining technical expertise with financial professionals.

C. Robert Kidder, who currently serves on the boards of Morgan Stanley, where he is the lead director, Schering-Plough Corporation, and Microvi Biotech Inc. He previously served as Chairman and Chief Executive Officer of both Duracell International Inc. and Borden Chemical Inc. and as director of such companies as Electronic Data Systems Corporation and General Signal Corporation. During his tenure with McKinsey and Co. Inc., he worked with a major OEM client in the automotive industry. He currently is Chairman and CEO of 3Stone Advisors LLC, an investment firm that focuses on clean-tech companies.

Sergio Marchionne, CEO of Chrysler Group LLC since June 2009. Previously, he was appointed Chairman of CNH Case New Holland in April 2006 and CEO of Fiat Group Automobiles in February 2005. He was appointed CEO of Fiat S.p.A. in June 2004 and has been a Member of the Board since May 2003. He is Chairman of SGS Group of Geneva, and among other positions he was CEO of SGS Group of Geneva and was Chairman and CEO of Lonza Group Ltd.

Douglas Steenland, former CEO of Northwest Airlines. He joined Northwest Airlines in 1991 as Vice President and Deputy General Counsel. After becoming CEO in 2004, he successfully reshaped Northwest Airlines into a financially viable airline. Mr. Steenland also worked as a Senior Partner at the Washington, D.C. law firm of Verner, Liipfert, Bernhard, McPherson, and Hand and served in the Office of the General Counsel of the U.S. Department of Transportation.

Scott Stuart, a founding partner of Sageview Capital LLC, and former partner and member of the investment committee at Kohlberg Kravis Roberts & Company (KKR). He currently serves on the board of EverBank Financial Corp., Aveos Fleet Performance Inc. and previously served on such boards as Borden Chemical, Inc., Duracell International Inc., Nabisco, Inc. and Sealy Corporation.

Ronald L. Thompson, Chairman of the Board of Trustees for Teachers Insurance and Annuity Association (TIAA), a for-profit life insurance company that serves the retirement and financial needs of faculty and employees of colleges and universities, hospitals, cultural institutions and other non-profit organizations. He previously owned and operated Midwest Stamping Company of Maumee, Ohio, and rapidly grew the business into a first tier automotive supplier and one of the largest minority-owned companies in the U.S.

Stephen Wolf, Chairman of R.R. Donnelley & Sons Co. His career in the aviation industry began in 1966 with American Airlines. After positions at Pan American World Airways, Continental Airlines and Republic Airlines, he served as Chairman and Chief Executive Officer of UAL Corporation and United Air Lines, Inc. from 1987 to 1994. He became Managing Partner of Alpilles LLC in 2003.

To the Men and Women of the New Chrysler:

Today marks a new beginning for Chrysler and the North American automotive industry, as Chrysler Group LLC, a new company formed in alliance with Fiat Group, has completed its acquisition of substantially all of Chrysler LLC’s assets and will begin operations immediately. 

It is my great privilege to greet you as your new chief executive officer and to join all of you in building a great future for the new Chrysler.  Although we have many challenges yet to overcome, there is no doubt in my mind that we will get the job done. Chrysler will be back—strong and competitive and a rewarding place to work.

You have been through a great deal of hardship and uncertainty over the recent past and I want to start by recognizing your commitment to Chrysler and acknowledge the many sacrifices you have made to help get an American icon back on its feet.  Because of your commitment, and the hard work of a range of interested parties, including President Obama and his Automotive Task Force, Chrysler is now a more focused and nimble company that will benefit greatly from its new global strategic alliance with Fiat. The new company moves forward with significant strategic advantages, including a healthy balance sheet, a competitive cost structure, a leaner and more efficient dealer network, sound supplier agreements and significantly improved product quality and operational efficiency.

For those reasons, today is a day for optimism. Chrysler, Jeep and Dodge vehicles will once again roll out of our plants, into our dealers’ showrooms, and soon thereafter onto America’s roads and highways. We have much to look forward to. But we must also not forget what we have learned. The past few years have offered several painful lessons on what it will take to survive in the modern-day automotive industry. The alliance is a bold first step to implement those lessons we’ve learned, but it is only a first step. Now we must prove we can make it work.

We are already moving in that direction. Over the next several months, we will begin the process of transferring Fiat’s technology, platforms and powertrains for small- and medium-sized cars into Chrysler’s manufacturing facilities. This award-winning technology will be critical to helping Chrysler round out its product line and give the company a strategic advantage in many markets around the world. Work is already underway to develop new environmentally friendly, fuel-efficient, high-quality vehicles, including Chrysler’s electric-vehicle program. In the meantime, we will begin working together to find the most effective ways to combine our R&D and distribution networks so that we can begin to reap the many benefits this alliance will provide.

On the leadership side, we are very fortunate that Bob Kidder has agreed to serve as our board chairman. Bob is an experienced executive with a great track record of helping grow companies, and I’m looking forward to working with him. Several other Board seats will be filled in the coming weeks. We will keep you updated as appropriate.

As you know, Chrysler is now majority owned by the Voluntary Employee Beneficiary Association (VEBA). Fiat will initially hold a 20 percent ownership stake in Chrysler, with the ability to increase its ownership stake an additional 15 percent over time by delivering on its commitments to the company. The U.S. and Canadian governments own the rest.

Combined, Chrysler and Fiat today rank as the world’s sixth largest automaker, giving us the scale to compete and win in nearly every market in the world. But while this scale is critical, events have proven that only size managed well will be effective.  I ask each one of you to take on a leadership role and work with me to restore Chrysler to being a fully competitive and profitable company once again.  Numbers are important in assessing performance, but more important in my mind is how we lead people and lead change..

Five years ago, I stepped into a very similar situation at Fiat. It was perceived by many as a failing, lethargic automaker that produced low-quality cars and was stymied by endless bureaucracies. But most of the people capable of remaking Fiat had been there all the time. Through hard work and tough choices, we have remade Fiat into a profitable company that produces some of the most popular, reliable and environmentally friendly cars in the world. We created a far more efficient company while investing heavily in our technologies and platforms. And, importantly, we created a culture where everyone is expected to lead.

We can and will accomplish the same results here. The people who will lead that charge are for the most part already at Chrysler.  We plan to bring that same drive and commitment to innovation to Chrysler as we look to make it one of the driving forces again in our industry.

I am confident that we can get there together.

Thank you again for your commitment to Chrysler.  I look forward to meeting and working with all of you in the months and years ahead.

Sincerely,

Sergio Marchionne

U.S. Bankruptcy Judge Arthur Gonzalez issued a six-page decision after hearing about four hours of legal arguments Tuesday morning from the automaker, its committee of unsecured creditors and more than a dozen lawyers representing more than 300 objecting dealers that Chrysler wants to shutter Tuesday, the News reported. He said it represented “an exercise of sound business judgment by (Chrysler), made in good faith and for legitimate commercial reasons … and is appropriate and necessary.”

Chrysler said Tuesday it would allow its closing dealers until June 15 to transfer their unsold inventory to other dealers, the paper reported.  ”The company is trying to be compassionate toward its dealers,” said Kevyn Orr, a lawyer for Chrysler. (The Detroit News)