The stretched 2004 Wrangler Unlimited is aimed at Jeep enthusiasts who find the Wrangler too small for carrying mom, dad, two kids and their camping gear.

Mike Accavitti, director of Jeep marketing and product planning, said the interior space is the third most common reason, after price and styling, why potential buyers reject the Wrangler.

"We asked those people, 'What did we do wrong?' " Accavitti said at a press event here. "They tell us, 'It's not you, it's me. It's my needs. I have children, I need some more space.' "

Engineers stretched the Wrangler 15 inches to create the Wrangler Unlimited. Sales began this month. It is being sold alongside the current Wrangler.

To create the Unlimited, engineers stretched the Wrangler's wheelbase 10 inches and the rear overhang 5 inches. This provided 2 additional inches of rear legroom and 13 more inches of cargo space. The Unlimited's cargo area can handle three small suitcases behind the second seat. The standard Wrangler's cargo area behind the rear seat has no space for suitcases.

Accavitti said noise is the fourth most common reason enthusiasts reject the Wrangler. So engineers padded the Unlimited's hood, the instrument panel and behind the rear seat, resulting in a 30 percent reduction in noise compared with the standard Wrangler. The rear padding reduced axle and exhaust noise.

Other changes include revised springs and gas-charged shock absorbers to handle the added vehicle weight and provide a smoother ride.

NEW YORK -- Wolfgang Bernhard's aggressive style and know-it-all approach has cost him the top job at Mercedes-Benz.

The DaimlerChrysler supervisory board decided Thursday that Chrysler's COO won't take over as head of the Mercedes-Benz passenger car division on May 1 as planned.

The move to oust Bernhard was driven by the man he was set to replace, Juergen Hubbert.

Hubbert, who has led Mercedes since the late 1980s, will stay in the post indefinitely.

Bernhard was only in Germany for two months, working with Hubbert. He and Hubbert were to jointly run Mercedes until Aug. 1, when Bernhard, 43, was to take full control.

Hubbert, 64, was to have stayed on as head of DaimlerChrysler's executive automotive committee until his retirement at year's end.

But in two months, Bernhard managed to alienate suppliers, union workers and Mercedes management, a DaimlerChrysler source said.

"There was such resistance to Bernhard that Hubbert decided to propose that he (Bernhard) not take over Mercedes-Benz," he said.

He said Bernhard approached Mercedes-Benz in much the way he did Chrysler -- by attempting to launch a massive restructuring plan.

In the first quarter of 2004, 460 employees took voluntary retirement, mainly at an electronics plant in Huntsville, Ala., which was sold to Siemens VDO Automotive Electronics Corp. What's more, 1,808 employees, mainly from the Huntsville plant, were forced to take early severance plans, for a cost of $1.2 million, the first-quarter report says.

In the first quarter of 2003, the Chrysler Group reported an operating profit of $166 million on revenues of $13.8 billion. So based on the improved performance and expectations that new products will be popular, the Chrysler Group upgraded its guidance for the year to "considerable positive earnings."

The Stuttgart, Germany-based parent company, however, saw net income decrease by more than 24 percent. That was largely blamed on the appreciation of the euro against the dollar, poor results in the Mercedes and financial service divisions, and losses from the company's 37-percent stake in Mitsubishi Motors Corp.

Net income for DaimlerChrysler decreased to $483 million, or 48 cents a share, on revenue of $39.8 billion. That compares with net income of $641 million, or 63 cents a share, on revenues of $36.7 billion, during the first three months of 2003.

DaimlerChrysler's operating revenue, however, increased 24 percent, to $1.9 billion from $1.5 billion.

Although worldwide sales of Chrysler Group's Chrysler, Dodge and Jeep vehicles were up 6 percent, to 684,800 vehicles, sales of Mercedes-Benz vehicles were down 9 percent, to 266,000 cars and trucks. Commercial vehicle sales, meanwhile, were up 18 percent, to 125,800.

Bernhard's fate is unclear. The supervisory board, during a meeting in New York, reversed a February decision to promote him. The former chief operating officer of the Chrysler Group is still a member of the DaimlerChrysler management board, which is separate from the supervisory board. He could leave the company or be assigned to another senior position that opens up. But little else would match the prestige of running the company's marquee brand and most profitable group, where some said he was seen as an abrasive cost-cutter and an outsider.

The kink in Bernhard's career also was a strike against Schrempp, one analyst said. The move overruled Schrempp on the prized assignment he gave to a loyal champion of his vision. It also showed that the supervisory board would flex its muscle, as it did last week in rejecting Schrempp's plan to bail out ailing affiliate Mitsubishi Motors Corp. In recent years, the board has been criticized as just a rubber stamp for Schrempp's strategies.

"This is the final, last warning for Schrempp," said a European industry expert, who asked that his name not be used. "It shows 'We can do this to your guy, so watch out.' "

A European auto expert who advises investors on what stocks to buy and sell noted that DaimlerChrysler shares were gaining value in the morning, when investors believed that Schrempp might be forced out over the Mitsubishi development. The shares then turned downward after the board voiced its support for Schrempp.

The stretched 2004 Wrangler Unlimited is aimed at Jeep enthusiasts who find the Wrangler too small for carrying mom, dad, two kids and their camping gear.

Mike Accavitti, director of Jeep marketing and product planning, said the interior space is the third most common reason, after price and styling, why potential buyers reject the Wrangler.

"We asked those people, 'What did we do wrong?' " Accavitti said at a press event here. "They tell us, 'It's not you, it's me. It's my needs. I have children, I need some more space.' "

Engineers stretched the Wrangler 15 inches to create the Wrangler Unlimited. Sales began this month. It is being sold alongside the current Wrangler.

To create the Unlimited, engineers stretched the Wrangler's wheelbase 10 inches and the rear overhang 5 inches. This provided 2 additional inches of rear legroom and 13 more inches of cargo space. The Unlimited's cargo area can handle three small suitcases behind the second seat. The standard Wrangler's cargo area behind the rear seat has no space for suitcases.

Accavitti said noise is the fourth most common reason enthusiasts reject the Wrangler. So engineers padded the Unlimited's hood, the instrument panel and behind the rear seat, resulting in a 30 percent reduction in noise compared with the standard Wrangler. The rear padding reduced axle and exhaust noise.

Other changes include revised springs and gas-charged shock absorbers to handle the added vehicle weight and provide a smoother ride.

A sales goal was not given for the Wrangler Unlimited. Accavitti said: "This is not a niche vehicle. We are not talking thousands, we are talking about tens of thousands." The Unlimited is assembled on the same line as the Wrangler in Toledo, Ohio.

Last year, Jeep sold 70,093 Wranglers, an 8.9 percent increase over the previous year. This year, U.S. Wrangler sales are up 54.2 percent through March. It carries a $2,000 rebate.

The Unlimited has a $24,995 sticker price, including $610 destination. The base four-cylinder Wrangler starts at $17,855, including destination.

Standard equipment on the Unlimited includes automatic transmission, air conditioning, steel doors, fog lamps, tow hooks, 30-inch Goodyear Wrangler GSA tires, 15-inch Ravine aluminum wheels and four-wheel disc brakes. Also standard is a removable fabric top that offers a Jeep first, a sunroof, which creates a 45-inch-by-23-inch opening.

Mitsubishi Motors said in a statement that a replacement will be chosen soon, but Keiichiro Hashimoto, chief financial officer, will be acting president until then.

The Tokyo-based automaker, which is burdened with a multibillion-dollar debt, plunging car sales and a spate of recalls, was dealt a serious blow by the announcement Thursday by the German-U.S. automaker that it would not provide a multibillion-dollar cash infusion as had been expected.

German-born Eckrodt, formerly president of Adtranz, the rail systems unit of DaimlerChrysler, was sent in by DaimlerChrysler in 2001 to lead a turnaround at Mitsubishi Motors.

He had recently hinted he would step down. But expectations had been for him to make way for leadership that would carry out a new revival plan with extra cash from DaimlerChrysler, which owns 37 percent of Mitsubishi Motors.

Eckrodt, 61, will retire from a 38-year career in the auto business although he will provide support for Mitsubishi Motors at the automaker's request, the company statement said.

Eckrodt said he was stepping down because of DaimlerChrysler's decision against financial support and the subsequent decision by the Mitsubishi group companies to hammer out a different revival plan.

Mitsubishi Heavy Industries owns 15 percent of the automaker, trading company Mitsubishi Corp. a 5-percent stake and Bank of Tokyo-Mitsubishi 3 percent.

Eckrodt said the Mitsubishi team under the leadership of chairman Yoichiro Okazaki will work out a plan within a month.

DaimlerChrysler has not said what it will do with its 37-percent stake in Mitsubishi Motors. DaimlerChrysler's chief financial officer Manfred Gentz has said the two automakers' joint projects in Chrysler, Smart and other passenger cars will continue.

But analysts say Mitsubishi Motors' lagging sales are likely to dip even further now and its chances for recovery are precarious because Mitsubishi companies are unlikely to have enough cash to fund a revival plan.

Shares of Mitsubishi rose 1.3 percent in early trading today in Japan, the first gain in four days.

In a special meeting on Thursday, the management and supervisory boards of the Stuttgart, Germany-based automaker decided "not to participate in a capital increase" and "to cease financial support" for Mitsubishi, according to a short statement DaimlerChrysler released late Thursday.

The surprise announcement seems to throw the fate of Mitsubishi into the air.

Mitsubishi has been a key piece in DaimlerChrysler CEO Juergen Schrempp's vision for a global automaker. But Mitsubishi, hammered by losses from buyers with bad credit in North America, expects to post a net loss of $664 million for its fiscal year, which ended in March. So DaimlerChrysler has been helping Mitsubishi craft a new business plan.

"According to this plan, substantial financial resources are required to guarantee a sustainable financial recovery of the company," DaimlerChrysler said in a statement, noting that it could not find an acceptable way to provide that financial support.

DaimlerChrysler spokesman Thomas Froehlich said Thursday the company had no comment beyond the statement.

Mitsubishi has scheduled a special shareholders meeting on April 30 to approve its new business plan. It's unclear whether DaimlerChrysler's decision will change that business plan.

Nancy Carollo, a spokeswoman for Mitsubishi, said it's too soon to know what DaimlerChrysler's announcement means for Mitsubishi or its relationship with DaimlerChrysler.

Mitsubishi has been working closely with Chrysler Group on several projects, such as developing small-car platforms for vehicles that would be built at Mitsubishi's plant in Normal, Ill. They are also working together on an engine plant in Dundee. Hyundai Motors Co. is also a partner in that engine plant. DaimlerChrysler also owns a stake in Hyundai.

Production at the Dundee facility is scheduled to begin in 2005.

Chrysler could not say what, if anything, might happen to those projects.

Schrempp was reportedly behind the plan to bail out Mitsubishi, but analysts and others were calling on the company to pull the plug, saying DaimlerChrysler could not afford to spend more resources to save another failing unit. The company is just now getting its Chrysler Group division, which oversees Chrysler, Dodge and Jeep vehicles, on its financial feet.

Private investment will put another $225 million into research over the next five years, bringing the total amount announced by Abraham to $575 million.

"The $575 million is just a down payment on new energy initiatives," Abraham said. "This is to show that hydrogen is not something that is just abstract, but something that is real."

Ford Motor Co. and DaimlerChrysler AG both used the event to announce new initiatives to put at least 67 fuel cell cars on U.S. roads by the end of the year. DaimlerChrysler said it wants to add 37 fuel cell cars to U.S. fleets as soon as this summer. Ford, during a news conference in Taylor, said it plans to build up to 30 fuel-cell cars late this year. Ford's vehicles would be distributed in Detroit, Sacramento, Calif., and Orlando, Fla. Out of those, Ford plans to split 10 cars between the City of Taylor and the University of Michigan in Ann Arbor.

BP plans to construct 30 hydrogen fuel stations in the same areas. Shell Oil, meanwhile, expects to complete its first hydrogen fuel station in Washington, D.C., by the end of the summer. Shell is working with General Motors Corp. on the project. GM is already supplying a fleet of hydrogen-powered cars used for test drives by members of Congress.

"The number of dealers should be reduced," Chrysler boss Dieter Zetsche told the FTD in an interview.

Zetsche declined to comment on how many would be closed, but he did say that the dealership consolidation should be brought about by "mergers or also acquisitions".

Chrysler has some 4,200 dealerships in the U.S.

Zetsche reiterated Chrysler's goal of posting a profit in the current year, and said this included potential one-off restructuring costs.

"We're letting ourselves be judged with the net result, and there's the clear statement that we want to close the year in positive territory," he said.

In 2003, Chrysler reported a loss of 37 million euros ($44.49 million), just missing its target of a slight profit from its operating business, but this excluded restructuring costs.

Chrysler took restructuring charges of 469 million euros last year.

Chrysler, which sponsored the show, said despite Trump's kind words, it is not looking at him to be its new spokesman.

"Donald is the spokesman for Donald Trump, and he's been very open and honest about that," said Jeff Bell, vice president for Chrysler. DaimlerChrysler AG's Chrysler Group sells Chrysler, Dodge and Jeep vehicles, but only the Chrysler brand division sponsored the TV program.

Chrysler hired Grammy Award winner Celine Dion in 2003 to help move its mainstream image upscale, but she received a lukewarm reception and has largely faded into the background.

So it's likely that the billionaire TV host with the goofy coif will be the one remembered for pinch-hitting for the Auburn Hills-based automaker.

Trump told Rancic that in addition to his dream job, he would win a 2005 Chrysler Crossfire Roadster. But he didn't just hand him the keys to the polished blue sports coupe convertible, on which the camera lingered. No -- not the Donald, a real estate mogul famous for shameless promotion, usually of himself.

Trump looked into the camera and earnestly thanked Chrysler for its support of the program, which included the Chrysler Trump Golf Tournament that Rancic managed as his final task.

This not-so-brief moment of product placement gushing took place on the most important episode of NBC's most popular show this season.

So make no mistake, it was a marketing home run for the struggling Chrysler brand, which made a series of promotional blunders in recent years but appears to be making a comeback.

"That was as big as any Fourth of July finish that we've seen for a company," said Michael Bernacchi professor of marketing at University of Detroit Mercy. "They certainly were able to strike while the iron was hot."

"Things are taking off," Wolfgang Bernhard, the outgoing chief operating officer of DaimlerChrysler AG's Auburn Hills-based division told journalists Wednesday. "We should start to see some lift in the second quarter and throughout 2004."

Bernhard's remarks were made during a media luncheon for his replacement, Tom LaSorda. Chrysler's former head of manufacturing, LaSorda will take over the COO post May 1, when Bernhard returns to Germany to head the Mercedes division.

During the event, Chrysler Group CEO Dieter Zetsche told reporters that he will take on a larger role with creating vehicles.

Bernhard, LaSorda and Zetsche all seemed positive -- relieved even -- about the company's future during the event, a sharp contrast to the anxiety that has overshadowed the automaker in recent years.

Chrysler lost a combined $4 billion in 2001 and 2002, and, despite a 3-year turnaround plan that intended to generate a profit last year, the company posted an operating loss of $637 million in 2003. Some industry insiders have said Chrysler needs to prove itself this year, calling this a make-or-break year for the automaker.

Sales of Chrysler, Dodge and Jeep vehicles were up 3 percent through March, as the company increased incentives to clear out old inventories.

"Now, all the new stuff is coming," said Bernhard, whose sentiments echoed that of other Chrysler executives who have said this is the quarter the company's been anticipating for years.

Nine new products are slated for this year. Among the new vehicles now being produced or already in showrooms: the Chrysler 300 series, Chrysler PT Cruiser convertible, Chrysler Crossfire roadster, Jeep Wrangler Unlimited and Grand Cherokee, Dodge Dakota pickup and Ram SRT-10 pickup truck, Dodge Magnum station wagon and Dodge and Chrysler minivans.

Even though the chief operating officer is typically responsible for issues such as cost, quality and operations, Bernhard was instrumental during his three-plus years in the job for creating, developing and scrutinizing new products.

"I reviewed every minute detail, on the interiors, the exteriors, and ride-and-drives," said Bernhard, who arrived at the company in November 2000 along with Zetsche after major financial losses in the division.

Mitsubishi Motors, 37 percent-owned by Stuttgart, Germany-based DaimlerChrysler, had a loss of 72 billion yen ($692 million) last fiscal year. DaimlerChrysler lost another 250 million euros ($305 million) on its Toll Collect GmbH joint venture after missing deadlines to build a satellite-based system for Germany.

Mitsubishi Motors needs 500 billion yen in fresh capital, people familiar with the situation said. This may fuel the anger of shareholders who have submitted 41 motions opposing management. DaimlerChrysler's annual meetings have developed into 12-hour attacks on Schrempp over the past five years after promised higher profits and share prices failed to materialize.

The company expects 10,000 shareholders to attend the annual meeting Wednesday at the International Congress Center in Berlin.

"Mitsubishi is threatening to replace Chrysler as the shareholders' nightmare," says SdK, an investor group with 12,000 members, in a motion opposing management. "With the Toll Collect fiasco, the board of management has managed to make DaimlerChrysler the laughingstock of Germany, Europe and the world."

Shares of DaimlerChrysler have lost more than half their value since Daimler-Benz AG bought Chrysler in 1998. The stock has fallen 5 percent so far this year compared with the 1 percent increase of Germany's benchmark DAX index. The maker of Mercedes-Benz cars and Jeeps had a 91 percent decline in profit last year.

Mitsubishi Motors, based in Tokyo, fell to a record loss in the year ended March 31 as sales of cars in the United States slumped 26 percent after the company cut back on loans to customers in its largest market because of rising defaults. The company had offered interest-free loans with no deposits or payments for a year.

Schrempp, 59, has dispatched Andreas Renschler, head of the Smart car unit, to Tokyo to come up with a reorganization plan for Mitsubishi Motors. Renschler will take over as CEO of the Japanese company from Rolf Eckrodt in June, according to people familiar with the situation.

None of that mattered when Shortt decided to dress up his Sunfire with off-the-shelf, bolt-on interior parts, special wheels, a trick exhaust and lowered springs. In response, his insurer of 15 years, State Farm, canceled his policy, citing the lowered springs as a big no-no.

As with muscle cars of yore, which faded away as much because of jacked-up insurance rates as the triple whammy of high gas prices, government emissions rules and safety regulations, insurance companies are embarking on a collision course with the booming population of drivers who insist on tuning their sport compact rides.

“The insurance industry may be able to accomplish what the police could never do,” says Shortt, “by making all these cars illegal to be on the streets because they can’t get coverage.” Shortt eventually wound up back with State Farm, but not before he reinstalled the factory springs and had the work verified by an insurance company adjuster.

Steve Budzinski of Ottawa also was dropped by State Farm because of performance upgrades to his Acura Integra Type-R. “My underwriter flat out told me it no longer wants to insure modified cars,” said Budzinski.

State Farm Canada spokes-man Derek Fee says the insurer has no blanket policy to refuse coverage to the sport compact segment, but he acknowledges some sport compact owners—particularly those involved in street racing—are a growing concern. “That subculture is causing difficulties for the rest,” Fee says.

WASHINGTON -- DaimlerChrysler AG is notifying owners of more than 2.3 million cars built in the 1993-99 model years that the shift mechanisms on their automatic transmissions should be modified or replaced.

The affected models are the 1993-99 Chrysler Concorde and LHS and Dodge Intrepid, 1993-97 Eagle Vision, 1999 Chrysler 300M, 1995-99 Chrysler Cirrus and Dodge Stratus, and 1996-99 Chrysler Sebring convertible and Plymouth Breeze.

The company discovered that in some cars with floor shifters, the transmission can be moved out of park with the key out of the ignition, or the key can be removed when the transmission is in a gear other than park. The condition creates the danger of a rollaway crash.

In documents filed with the National Highway Traffic Safety Administration, DaimlerChrysler says its research identified more than 600 complaints about the shifters. The complaints cited 127 rollaway crashes, resulting in 17 injuries and one death.

The automaker says the problem appears to be limited to vehicles that have had multiple and possibly abusive drivers, such as those from rental fleets. But the automaker is recalling all potentially affected cars.

The repair involves installation of a new push rod in the shift lever. If the shift assembly is damaged, the company will replace it. Some of the cars were recalled in 1998 for other ignition-park interlock repairs, records show.

They say the company secretly changed how the loan application program worked at their dealerships because they were in neighborhoods with a lot of minority residents. They also say company officials used racial slurs to characterize their customers.

The dealers contend that rather than allow the computer to review their applications, the computer change put loan decisions in the hands of subjective credit analysts.

DaimlerChrysler attorney Don Hubert maintains that the company's lending policies are fair, discrimination isn't tolerated and employees who made insensitive remarks have been dealt with appropriately.

The company acknowledges that it changed the computer system so that loans from one of Gorman's two dealerships would receive more scrutiny because it was investigating fraud allegations there. The company did not have any records indicating that it increased oversight of auto loans from the Perez dealership.

Less than a month after Gorman and his customers filed lawsuits against DaimlerChrysler in February 2003, someone anonymously faxed an internal DaimlerChrysler document from a metro Detroit area code to Gorman's lawyers. It provided instructions for changing the computer program so applications from certain dealerships would get more scrutiny.

Company spokesman William Porter said the company is investigating who leaked that document, which he acknowledged is authentic.

Porter said the company has no formal process to notify dealerships of changes to the computer program.

The Chrysler group is developing a Jeep model from a front-drive platform, a bold departure for a brand that specializes in rugged off-roaders.

Two industry sources say the new Jeep will be based on a small, fwd platform co-developed with one of Chrysler's alliance partners. One source says the partner is Mitsubishi.

The vehicle will be positioned as an inexpensive, entry-level SUV positioned below the Liberty. The vehicle is expected to offer four- or all-wheel drive.

Chrysler officials say the lineup will stay true to Jeep's robust brand image.

But the new vehicle represents a significant change for Jeep, a brand that has relied on dedicated 4wd platforms and assembly plants. Besides being built on a front-wheel-drive platform, the vehicle almost certainly will be assembled in a plant that also produces non-Jeep vehicles.

"Is there a chance that one of our alliance partners could use this same platform that we would use for one of the Jeeps? Absolutely," says a Chrysler source familiar with the project who asked not to be identified.

Mitsubishi and the Chrysler group are co-developing a fwd platform for a wide range of vehicles. The unnamed Jeep vehicle is expected to debut in 2006 or early 2007. "Final decisions have not been made on that," says the Chrysler source.

The vehicle is part of a plan to expand the Jeep line from three to at least five nameplates by early 2007, a source says.

The two-door Compass, a small, entry-level concept that debuted at the 2002 Detroit auto show, signals the styling direction for the new nameplate, an industry source says.

Some Jeep loyalists at the company believe creating Jeeps off shared platforms will erode its brand image. But Chrysler group CEO Dieter Zetsche has said Jeep can share parts, electrical systems, powertrains and portions of vehicle platforms, yet maintain its distinct identity.

Such sharing saves development time and money.

If a Jeep vehicle meets or surpasses a buyer's expectations, "nobody cares what's underneath," Zetsche says.

At a press event last month in Texas, Jeff Bell, Jeep's vice president for marketing, said, "You can take any type of platform" to create a Jeep. But Jeep characteristics, such as ground clearance and a tight turning circle, must be engineered into the platform from the beginning.

The exterior styling also must be true to the brand, he said.

Bell did not acknowledge the development of the new Jeep. But he did say that if Jeep shared a fwd platform used for cars, "it will be pretty unique. It is not going to be a car. It would be a Jeep 4x4."

Jeep will move into new territory, offering models that are less rugged than current entries.

The strategy will test Jeep's ability to retain the loyalty of die-hard off-roaders.

"It is such a well-accepted brand that you can take it in different directions without losing the heartbeat of it," says Ron Jelling, chairman of the Chrysler Jeep National Dealer Council and owner of Chrysler of Paramus in Paramus, N.J.

Jeep needs to expand its lineup because it has not kept pace with the SUV explosion in recent years.

In 1995, Jeep held a strong 24.3 percent of the SUV market in the United States excluding sport wagons. Last year, its share was 14.8 percent.

Historically, Jeeps have been capable of traversing the Rubicon Trail, an off-road route in California. But not all future Jeeps will be required to meet that rigorous standard.

Instead, the company will require that existing nameplates - including the Wrangler, Liberty and Grand Cherokee - retain their performance capabilities.

The new breed of Jeeps will be less rugged than current vehicles. But to safeguard the brand's image, the company is mandating that the new Jeeps be the most capable vehicles in the segments in which they compete, including in off-road capability.