NEW YORK — The 2011 Jeep Grand Cherokee and Dodge Charger launches are likely to be delayed by Chrysler's Chapter 11 bankruptcy filing and the company's extensive plant shutdowns, according to an affidavit filed in court by Frank Ewasyshyn, Chrysler executive vice president of manufacturing.
Using strong language, Ewasyshyn made it clear that the shutdown of Chrysler's plants for 30-60 days — a situation he referred to as "hibernation" — will "obviously jeopardize our launch" of the 2011 Jeep Grand Cherokee. The SUV was set for launch in April 2010.
Chrysler had slated tooling and stamping to begin on the redesigned Grand Cherokee in September to meet the April 2010 launch target.
"Due to the shutdown, this phase of the development will cease completely, something that has never happened before and that will obviously jeopardize our launch," according to the declaration Frank Ewasyshyn filed with the court. "A week's delay during this period does not simply translate into an additional week when we restart.
"The longer we are down, the greater the multiplier that must be used to calculate the amount of time to achieve launch. We will lose some of the learning and expertise we have developed with regard to the new model."
He also testified that the redesigned 2011 Dodge Charger will likely face delays, too.
He said Chrysler's Brampton assembly plant had been scheduled to be converted for tooling specifications for the 2011 Dodge Charger over the period the automaker is shut down.
"That conversion will now be delayed and will take four weeks, perhaps delaying our planned September 2010 launch of this model well into the first quarter of 2011," the affidavit said. "If the new Dodge Charger model launch is delayed significantly, our 'new 'models [when eventually launched] would be late to the market compared to our competitors, severely undermining our ability to compete.
"Thus, delay will cost us significant revenue, perhaps totaling over $100 million, and could jeopardize the success of the new company."
Inside Line says: It looks as if the bankruptcy filing will delay the launch of at least two critical Chrysler models. — Anita Lienert, Correspondent
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