Chrysler Corp

With thousands of Chrysler and General Motors Corp. dealerships closing, customers could be confronted with problems over warranty coverage, trade-ins or other matters. Both automakers pledge to make the contraction as painless as possible, but that doesn't mean there won't be problems. "When all of these relationships are disrupted, you can't help but have some elements of chaos, and some practical problems occur," said Aaron H. Jacoby, a Los Angeles lawyer who represents car dealers.

Declaring that the country had reached the end of the road with Detroit's automakers, President Obama on Monday mapped a new course for bailed-out General Motors Corp. and Chrysler in a series of moves designed to force the hands of workers, creditors and others with a stake in the companies. Obama, using the threat of bankruptcy as a weapon, vowed to transform the U.S.

The U.S. auto executive responsible for Chrysler Corp.'s so-called merger of equals with Daimler-Benz defended the deal in court Thursday, saying Chrysler probably would have gone bankrupt without it. "I believe that shareholders have been served very, very well by the merger," former Chrysler Chief Executive Robert Eaton testified on the fourth day of a trial in federal court here.

Chrysler Corp. lost its unprecedented challenge of a government recall order as a federal judge ordered the auto maker to recall 91,000 Cirrus and Stratus cars because their rear seat belt systems are unsafe. The government's highway safety agency wanted the 1995 Cirrus and Dodge Stratus cars called for repair, without charge, of the belts' anchoring system, which failed a federal strength test.

Chrysler Corp. said discounts it's offering to longtime customers could trim second-quarter earnings by as much as 15 cents a share, an early indication that the latest battle in the industry's price wars could prove painful. Chrysler had been expected to earn $1.45 a diluted share in the second quarter, up from 70 cents in the year-ago period, when profit was depressed by a strike, according to an analysts survey by IBES International Inc. Auburn Hills, Mich.

Chrysler Corp. said Monday that second-quarter earnings more than doubled as it offset higher incentives with strong sales of high-profit vehicles and a broad cost-reduction program. The results were better than analysts' expectations and came despite an auto price war that forced Chrysler to increase rebates to nearly $1,500 a vehicle, about 50% higher than a year ago. The Auburn Hills, Mich.-based auto maker reported net income of $1 billion, or $1.

Chrysler Corp. is heading into next month's planned merger with German auto maker Daimler-Benz richer and more profitable than even Wall Street's optimists expected. Chrysler said its profit jumped a surprising 46% in the third quarter and entered its final weeks as an independent U.S. company with a $9.6-billion cash reserve, which should ease any fears across the Atlantic about its financial strength. The No. 3 U.S. auto maker said its net income rose to $682 million, or $1.

Chrysler Corp. won an important battle with U.S. auto safety regulators Friday when a federal court ruled that it does not need to complete a 91,000-car recall because it wasn't told of stricter test procedures. The court said the National Highway Transportation Safety Administration should have told the auto maker it was using stricter procedures before ordering the recall in 1996 after rear seat-belt anchors flunked a stress test.

The merger of Chrysler Corp. and Daimler-Benz moved closer to completion Friday as shareholders of the two storied companies overwhelmingly approved the $38-billion deal at separate meetings that were as different as their corporate cultures. The Chrysler meeting was held in Wilmington, where the company was incorporated in 1925, in the ornate ballroom of the Hotel Du Pont. A vocal minority of the 150 shareholders present criticized Chairman Robert J.

Despite offering steeper discounts on its vehicles, Chrysler Corp. reported record first-quarter earnings of more than $1 billion on the strength of hefty profit from its newest sport-utility vehicle and sedans. The Auburn Hills, Mich.-based auto maker overcame rebates averaging $1,230 per vehicle--$520 higher than a year ago--with increased sales of such high-profit vehicles as the new Dodge Durango sport-utility. The No.