Email blast: Nardelli tells employees sales will worsen

Chrysler, already hurt by slow sales of its bread-and-butter pickups and SUVs, doesn't think things will improve any time soon. According to an email sent by CEO Bob Nardelli to Chrysler employees, he believes that sales will continue to spiral down the drain. So far, though, the third of the Detroit 3 isn't ready to announce any additional layoffs or plant closures. Chrysler must have had some really foresighted, or extremely pessimistic, people on the team who set early '08 predictions, as Nardelli claims that the company he's leading is still on track to achieve its goals.
Dodge has already shut the doors of its Saltillo plant in northern Mexico in an effort to "adjust" inventory levels of the current Ram pickup. The next vehicle set to debut for Dodge is the completely new Ram, which will appear just as gas prices have seriously trimmed truck sales. For Chrysler, the Hornet can't come soon enough.
[Source: The Detroit News, Photo by Bill Pugliano/Getty]











Reader Comments (Page 1 of 4)
Jrejre 3:46PM (6/18/2008)
Can I be CEO? I don't have any business training or anything but I'd like to give it a go. I'll do it for 50k a year.
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Vintage 4:35PM (6/18/2008)
Me too. I'd do the following:
1. Quit making SUVs and trucks, the market is flooded, nobody wants them, they sit on lots, and used ones are worth nothing.
2. Get the neon back into production, 150hp, 2400lbs
3. Put the RAZOR into production. 240hp. RWD. 2500lbs.
4. Build a competitor to the CRX.
Jrejre 5:20PM (6/18/2008)
Agreed. I don't think they can stop making trucks entirely though. They, like GM and Ford, will just need to find a way to produce less of them without having plants sitting around doing nothing.
+1 on the razor/demon. Don't put this car on a chery platform, use whatever small platform nissan is giving you, even if it's fwd. Make sure it gets 30mpg city and price it LOW. You have to really undercut the miata on this one. They mentioned it costing 15k. Agreed.
The caliber does not compete with the corrolla, civic, mazda3, sentra, focus, or cobalt. If they bring out the hornet that is yet another hatchback that looks too big. Bring out the hornet, make it get over 30mpg, and dump the caliber for a neon comeback.
The Charger and 300 are your big agressive and slightly boxy sedans. Keep them like that. But don't pretend the avenger is your mini charger. Make the avenger sporty like the intrepid/stratus. Just dump this whole square jawed look on vehicles like the caravan. The challenger flows while still being agressive. Base your designs off that car, not the charger.
Disgruntled Goat 6:06PM (6/18/2008)
+1
These Chrysler execs are so off-the-meter bad that it's hard to believe this company is even still around.
It's one thing to get good talent and pay a lot for it, or to get no talent on the cheap, but to get zero talent and pay through the nose for it, that's just insane.
rayhumiston 10:35PM (6/18/2008)
Nardelli blew it at Home Depot, but walked away with $270 million. What will he get here?? Ray
MemphisNET 3:47PM (6/18/2008)
Something to note, Chrysler LLC vehicles in Canada are still growing! Yes, smaller market, but still interesting to say the least.
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Pete 5:12PM (6/18/2008)
Sales abroad were up last year 15%, but that is all overshadowed by the loses in the US.
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Dad 3:50PM (6/18/2008)
he actually use the words " sales will continue to spiral down the drain."?????? He said spiral?
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rouse42 3:58PM (6/18/2008)
how long till chrysler goes under?
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MemphisNET 4:17PM (6/18/2008)
I hope everyone can put their personal feelings aside and realize that ANY automaker going under would seriously cripple an already shakey economy.
Jared 3:54PM (6/18/2008)
"Chrysler must have had some really foresighted, or extremely pessimistic, people on the team who set early '08 predictions, as Nardelli claims that the company he's leading is still on track to achieve its goals."
Or he changed the goals since the first of the year. Or he's lying through his teeth.
None of the US automakers expected sales to fall off a cliff in May.
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Horst 3:57PM (6/18/2008)
Is it just me, or does Nardelli remind you of Peter Boyle in Young Frankenstein also?
Damn, I really wish Chrysler had a team that knew what it was doing. I know the economy is not great, but the decisions coming out of Auburn Hills are not helping. The mood at the tech center and the tower is at rock bottom, and nobody that I talk to has any confidence in the leadership. If there were a right track/wrong track poll, I'd say the executives at Chrysler would be heading towards impeachment.
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inteller 4:17PM (6/18/2008)
no, he reminds me of the Emporer in Revenge of the Sith.
Chris 4:06PM (6/18/2008)
No pity for Chrysler. Too many ugly cars too many years in a row and now it's biting them in the butt. I can't think of a single affordable car they make that is appealing.
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Shirley Hamelman 1:13AM (6/19/2008)
I own 4 Chrysler cars: oldest is the New Yorker 5th Ave., a '99 Sebring convertible, '04 300M and a new Crossfire and I love them all. Have had no problems with any of the four. Each car has it's own attributes and yes i like Chryslers! :-)
ken_aisin 4:07PM (6/18/2008)
I guess the company could just fold up Dodge and Chrysler, and focus on the Jeep brand. Whenever I hear about Dodge and Chrysler, I think of ugly cars that are unreliable.
Compact Jeep SUV with diesel engine and 4WD should sell. It would be great if they improve the quality and reliability.
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Jason 4:55PM (6/18/2008)
Ugly cars? Charger, 300, Magnum, Challenger, Viper... hello?
And for its time, the PT Cruiser was a huge hit, though it quickly grew long in the tooth.
ken_aisin 6:50PM (6/18/2008)
Charger, 300, Magnum, Challenger are absolutely ugly. If they are so good, other countries would import them. But the fact is they are not desirable anywhere other than America and Canada.
The Viper might look better on the outside. However, the interior is blend and the material is cheap.
LCRacerX 1:05PM (6/19/2008)
@ ken: Chrysler sales abroad have been growing, while @ home they're declining. Your statement regarding them only being bought in Canada & America is inaccurate.
Oh, and sorry your sense of style is missing; the Challenger is hot.
jon 4:18PM (6/18/2008)
Give me a economical Jeep to replace my Commander and I will buy it. Not the Patriot. How about a Liberty to compete with the Escape Hybrid or something like that.
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