Can Chrysler Turn It Around in Bankruptcy?

rockylee · January 2007

Investors' lawsuit says carmaker waited too long on Schrempp statement.

http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070124/AUTO01/701240325/- 1148

Rocky

rockylee · January 2007

City Man campaign aimed at younger buyers, but analysts have trouble deciphering its meaning.

http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070127/AUTO01/701270353/- 1148/AUTO01

Rocky

hwyhobo · January 2007

I don't get that commercial, either. "It's time to have some fun in the city"? Huh? This is supposed to be an SUV, but the commercial appears to be designed to create an image of a Mini. And I have no clue how that huge robot-like figure is supposed to contribute to it. It seems a bit confused to me.

I do love the new VW "Unpimp Your Auto" commercials, but I don't know if they will be enough to help the sales of the GTI.

rockylee · January 2007

http://www.freep.com/apps/pbcs.dll/article?AID=/20070130/BUSINESS01/70130038/100- 2

Rocky

carguy58 · February 2007

for a compact car out that isn;t a hatchback like the Caliber?

rockylee · February 2007

AUBURN HILLS, Mich.  Dodge rolled out something for its commercial customers today with the debut of a "super-sized" Sprinter commercial van that is longer, taller and wider than the vehicle it replaces.

http://www.edmunds.com/insideline/do/News/articleId=119589

You look at this and you can see why they are losing money !
:sick:

I'd fire the designer of this van. :mad:

Rocky

rockylee · February 2007

http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070214/UPDATE/702140419

DaimlerChrysler fourth-quarter profit falls 40 percent

http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070214/UPDATE/702140420

Rocky

rockylee · February 2007

Chrysler's Project X

Anxious workers across U.S. brace for today's decisions on cutbacks.

http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070214/AUTO01/702140382

Rocky

wale_bate1 · February 2007

From the article:
"Chrysler's just like any other business. If their costs exceed revenue, they have to do something," he said. "Obviously, people have moved away from big SUVs."

BZZZZZZZZT! WRONG!

Look at the activity around newer offerings like Mazda's CX-9, Saturn's Outlook, Audi's Q7, etc., etc. Obviously, people won't buy a second-rate SUV is more like.

Lordy, I'm a MOPAR fan, but they do seem so intent on shooting off all their toes.

hwyhobo · February 2007

Look at the activity around newer offerings like Mazda's CX-9, Saturn's Outlook, Audi's Q7, etc., etc.

Curious - what activity? I see commercials, but I have yet to see a single one of the aforementioned vehicles on the road.

BZZZZZZZZT! WRONG! [...] Obviously, people won't buy a second-rate SUV is more like.

The previous poster said "big SUVs". You haven't really contradicted him with your examples, and the sales haven't yet proved your assertion about the popularity of the new mid-sized SUVs.

lemko · February 2007

I don't know WHY Chrysler got rid of the old normal-looking Dodge van. Just about every plumber, contractor, electrician, etc. in Philly has one or several of those white Ford or Chevy vans. Almost nobody has a Sprinter van. The old Dodge vans were excellent vehicles. My uncle had a green 1977 Dodge work van and it went 250K+ miles easy.

gearhead4 · February 2007

There are many reasons the old Dodge van went away.
The design was over a decade old.
These old beasts sucked up alot of fuel.
And most importantly, the decision was made in Germany.
The new Freighliner/White/Daimler/Chrysler van is a European design. It looks European, holds alot of cargo and is relatively fuel efficient (deisel).
Yes, the old design worked and was dependable. But even though production stopped over 3years ago, there are still brand new units sitting on dealer lots. If they were so desirable, why are they still sitting around?

The newest design is proimaruly meant to haul a lot of freight. That's is why it looks like a big box on wheels.
If you want a mini motorhome, this is a good platform to start with.
If you want sporty handling, forget this platform. If you want style instead of cargo capacity, Daimler-Chrysler has other products.
If you really want trhe old Dodge van, her is what you can do...
Wait another 6 months, Daimler will be selling off it's Chrysler division. Whovever takes over will be desperately crying for buyers. Go to the new "New Dodge" dealer with cash in your hands and tell them you want a new van designed with the spirit of the old Dodge van. If 10,000 more buyers do the same, they will build it.
To paraphrase the Field of Dreams mantra, "If you come, they will build it"

rockylee · February 2007

Well those vans had one of the most reliable, maintence free engines with the 318.

Rocky

P.S. My Aunt and Uncle had one out in Salt Lake City with 270,000 miles on it but they got divorced and I'm not sure what ever happen to it ????

lemko · February 2007

Your uncle is probably living in it. You know how divorce goes.

rockylee · February 2007

My uncle was by marriage and trust me he isn't living in it. He got half of the money which was a good chunk of change.

Rocky

bumpy · February 2007

I don't know WHY Chrysler got rid of the old normal-looking Dodge van.

Because it was designed in the '70s, and DCX didn't feel like throwing any more money into a low-margin niche product that had no hope outside of North America.

wale_bate1 · February 2007

Hwy, you didn't read the link. The article referenced Durangos, which is what the person quoted therin supposedly meant by big SUV's.

What I meant was that the Durango is a second-rate SUV. I'll stand by that I think.

We're looking at vehicles along those lines now, and not at my behest, I can tell you. The models mentioned are being heavily shopped, where they can be found in desired trims, I can tell you from personal walking-the-lot experience.

I have made five Mopar purchases since 1995. I think I've been supportive. They aren't getting my business next go round, and it surely ain't because I'm a Mopar-hater...

rockylee · February 2007

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070215/AUTO01/702150405/1148-

Another blow To Michigan, when is the bleeding going to stop ? :sick:

Rocky

hwyhobo · February 2007

What I meant was that the Durango is a second-rate SUV

We fully agree on Durango. I could never figure out its reason for existence, particularly considering its mind-numbing fuel consumption.

rockylee · March 2007

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070314/AUTO01/703140430&them- e=Autos-DCX-finances

Rocky

andre1969 · March 2007

We fully agree on Durango. I could never figure out its reason for existence, particularly considering its mind-numbing fuel consumption.

I think the Durango sort of made sense when it came out. At that time, Chrysler was trying to make one vehicle that could cover both the midsize and fullsize categories. Honestly, I think they would've been better off just keeping the Durango about the same size as the first-gen, and then building a true full-size SUV off the Ram platform.

Probably would've been cheaper, too, because then they could've perhaps kept one platform for the Dakota/Durango and one for the Ram and a full-sized SUV. As is now, they ended up with three platforms, as the Durango is substantially different from the Dakota nowadays.

rockylee · April 2007

Cerberus visits Auburn Hills again; analyst says Magna is frontrunner

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070428/AUTO01/704280362/1148-

Rocky

rockylee · April 2007

Chrysler plans to link V-8 with electric motors in 2008 Chrysler Aspen and Dodge Durango.

Chrysler Group will power hybrid versions of the 2008 Dodge Durango and Chrysler Aspen SUVs with its brawny 5.7-liter Hemi V-8 engine, the automaker said Monday.

The vehicles -- the first-ever gasoline-electric hybrids from Chrysler -- are slated to hit the market next year and will feature a two-mode hybrid technology that improves fuel efficiency for both city and highway driving.

con't.........

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070501/AUTO01/705010331/1148-

-Rocky

rockylee · May 2007

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070505/BIZ/705050354/1148/AU- TO01

-Rocky

rockylee · May 2007

Magna International Inc. Chairman Frank Stronach told Bloomberg News he has banks lined up to back his car-parts maker in its bid to buy Chrysler, and has asked DaimlerChrysler AG to retain a stake in the U.S. automaker if it's sold.

"Financially we have a viable concept," Stronach said in a Toronto interview with Bloomberg today.

Stronach, who didn't disclose the amount of Aurora, Ontario-based Magna's offer for Chrysler, said he would be open to having other investors join if he is successful in purchasing the Auburn Hills carmaker.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070509/UPDATE/705090468/1148- /AUTO01

Well it looks like the Canadians get their first car company !!!!!

-Rocky

rockylee · May 2007

DaimlerChrysler AG, the world's second-largest luxury carmaker, will invest $67 million to build a factory in India, where an expanding economy and rising disposable incomes have spawned a set of high-spending customers, Bloomberg News reported today.

The factory, to be located at Chakan in the western state of Maharashtra, will employ 350 people initially, Joachim Schmidt, chairman of DaimlerChrysler India Pvt., told reporters in the industrial city of Pune. It would have a capacity to produce 5,000 vehicles a year, he said.

"There is a lot of potential because India is improving dramatically in all aspects," Schmidt said. "That's why we see double-digit growth from the luxury car market in India."

DaimlerChrysler currently assembles the E-Class, C-Class and S-Class models at a factory in Pune in Maharashtra, Bloomberg reported. The land for the existing factory is owned by Tata Motors Ltd., India's biggest truck and bus maker.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070509/UPDATE/705090446/1148- /AUTO01

Well Fintail, you might get your Ind-E class :P

-Rocky

rockylee · December 2007

http://www.detnews.com/apps/pbcs.dll/article?AID=/20071214/AUTO01/712140353/1148-

I guess Ghosn, found a new bed partner ? :surprise:

-Rocky

stever · December 2007

"Chrysler LLC has slipped into a serious financial crunch just four months after Cerberus Capital Management LP swept in to save the auto maker.

At a meeting earlier this month, Chief Executive Robert Nardelli told employees the company is headed for a substantial loss this year and is scrambling to sell assets to raise cash, according to an account by two people present that Mr. Nardelli confirmed.

"Someone asked me, 'Are we ?'" Mr. Nardelli said at the meeting. "Technically, no. Operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with."

Wall St. Journal

dtownfb · December 2007

Very interesting but what does that really mean? Ford is essentially operating off borrowed money.

stever · December 2007

Good point - Ford has sold or mortgaged many assets to generate operating capital. Chrysler is selling assets to raise money too. With new CAFE standards rolling in and high gas prices, and low margins on econoboxes, you have to wonder if Ford or Chrysler will hang in there for the coming rough years. Maybe China and India will save them.

dtownfb · December 2007

Chrysler has already made the deals with China. With all the recalls for the children's toy (lead paint) and the negative press, i can't see a Chinese car doing well in the US anytime soon. My personal opinion is this could be the initial stages of a Chrysler breakup.

dtownfb · January 2008

Last week MSNBC was covering the Detroit Auto Show. They said some nice things about GM. They were neutral on Ford. When they talked about Chrysler, one of the analyst pretty much said, It's a matter of the For Sale sign going up in April or September. He sees no way Chrysler can turn this around. I can see it now, the new Nissan Ram.

stever · February 2008

"Chrysler LLC scrambled to maintain its inventory of plastic parts after a supplier filed for bankruptcy protection."

Chrysler Supplier Files for Bankruptcy (AP)

stever · February 2008

Chrysler Plan Kills Models; Consolidates and Reduces Dealerships (AutoObserver)

and from Reuters

"Shrinking the number of dealers will be difficult, however, because of laws in all the states protecting those businesses, analysts said. If Chrysler, with about 3,600 dealers, wants to move quickly, it likely will have to offer financial incentives."

And you thought union featherbedding and the jobs bank was bad. :shades:

iluvmysephia1 · February 2008

"buyouts" come to, anyway? Chrysler gives the ones they choose to tell to go away, what...umm...$500,000, or something similar? Imagine Dr.Evil with his little finger precariously pointed in towards the corner of his mouth here.

Yikes. :surprise:

stever · March 2008

"It is common for automakers to shut down plants in July, but the Chrsyler announcement will also affect salaried workers."

Chrysler to Take Two-Week Break in July (New York Times)

fezo · March 2008

Can a Toyota Man Fix Chrysler? (NY Times)

Karen_S · May 2008

Consumers Sniff Around Chrysler's Gas-Price Guarantee

Karen_S · May 2008

A reporter would like to talk consumers who expressed interest in Chryslers $2.99 gas promotion and either purchased a vehicle or had considered purchasing one because of the promotion . Please respond to ctalati@edmunds.com with your daytime contact information no later than Friday, May 31st.

jchan2 · June 2008

the right phrase to sum up Chrysler right now is:
a disaster.

Notice how it's Chrysler's SUVs and minivans that have the biggest incentives and price drops among any automakers that are in those segments.

And Chrysler's fuel efficient cars (consisting of.. Caliber.. and umm.. maybe the base Sebring/Avenger?) don't seem to be appealing to buyers.

stever · June 2008

It doesn't look too rosy, does it?

"Surging oil prices and a slump in sales have exposed the weakness of Chrysler's position and its reliance on trucks and SUVs and the U.S. market, raising more urgent questions about the end game for the automaker under private ownership"

"Chrysler's U.S. sales are down 19 percent so far this year"

"Two Honda models -- the Accord and Civic -- outsell all of Chrysler's car models combined."

Chrysler bet poses dilemma: double-down or fold? (Reuters)

fezo · June 2008

Interesting article. I am beginning to doubt Chrysler's long term viability.

They pointed out Chrysler's need for a partner. Fair enough, but what does Chrysler bring to said partnership?

When Cerberus bought them I thought they'd sell off the Jeep name and whatever else could bring in quick cash. In the current market the Jeep franchise isn't worth what it was a year ago.

If there's a plan to get out of the hole I don't see it.

stever · June 2008

I dunno either.

But both of us could be cruising around in a VW minivan in a few years and having all the women yelling at us - "hey, does that thing have a HEMI?".

ok, maybe not.

hpmctorque · June 2008

Just what every soccer mom needs, with gasoline at >$4/gallon.

mattandi · June 2008

Hey, even Scott Oldham gave the long term test Grand Caravan the high praise "It's fast." He did admit that he was searching for something, anything positive to say about the van though.

stever · June 2008

Perhaps we spoke too soon?

"Now, as we sit at $4-a-gallon gasoline, a full two years after its debut in Geneva, Chrysler is ready to commit to bringing the Hornet to market -- with Nissan's help. It will sit on the same subcompact platform as the Cube and hit showrooms in 2010."

Talk Back Tuesday: Dodge Hornet Coming...FINALLY! (Karl on Cars)

nippononly · June 2008

"I can see it now, the new Nissan Ram."

My oh my, wasn't this prescient! Isn't that pretty much exactly what they have now announced they will do: Nissan will quit making the Titan and rebadge Rams trucks as Nissans instead? I am pretty sure I read that somewhere.

It is really hard to get a grip on exactly what Chrysler is any more. On the one hand it seems like Chery of China will be co-designing some models for them over the next few years, then building them with Chrysler badges for export to the U.S.

OTOH, they are also striking up bold new partnerships with Nissan for some small cars (some of which will then be built in Korea, as I understand it?). They are totally bankrupt except for the cash from the Cerberus purchase deal. Ram/Durango/Dakota sales (and sales of some of the more superfluous models, like Aspen and Journey which never got out of the starting gate, and even now Grand Cherokee) have fallen so fast some peoples' heads spun until they just plain fell off. The $2.99/gallon gas promo is going down in the books as the worst incentive ploy in the history of the car industry.

They have little actually in the works (looking, say, two years out or less) that addresses even remotely the huge market shift to fuel-efficient cars. (I am not including the proposed Hornet there, as I would strongly bet against it being here and on dealer lots in two years' time).

How will they stay in business long enough to get models from their new partnerships to market? Will they still be building rebadged Town and Countrys for VW in the fall? Are they still about to take the month of July off (as in EVERYONE taking the month off) as they announced previously? If they manage to reorganize and stay solvent, will there still be an R&D division on American soil, or will it just be Chinese, Japanese, and French rebadges we see from then on at Dodge/Chrysler dealerships? And if so, what's the point of that?

In that case, I would say Cerberus is better off selling the whole thing to the Chinese and be done with it.

iluvmysephia1 · June 2008

our man Lee Iacocca can come once more to Chrysler's rescue.

dtownfb · June 2008

In that case, I would say Cerberus is better off selling the whole thing to the Chinese and be done with it.

After the Chinese crash tests earlier this year, this is not a bad idea to get into the US market.

And then there were two........

xelement · June 2008

Cerberus should sell whatever they can, that's if they can get anything for Chrysler. Daimler got out when they had to and the acquisition was a disaster on several fronts. The problem with Chrysler is that they have no strategic planning for future products. They just continue to release rehashed SUV's and mini-vans. Do they even have one sub-compact out there? The Dodge Challenger is being released at the wrong time and won't be a high volume seller adding even a further ground-swelling for them.

The Nissan-Chrysler collaboration is to little-to-late.

Can Chrysler Turn It Around in Bankruptcy?

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