More rumors of a Chrysler sale, bankruptcy
Despite the fact that Chrysler shares are no longer sold on the stock market, rumors regarding the company's financial standing continue to haunt the number three domestic auto manufacturer in America. Last week, rumors regarding the negative cash flow were so rampant, a company spokesperson went out of his way to deny that the automaker was headed towards bankruptcy. Now, despite constant assurance from Chrysler that it's hitting all of its internal goals, the lack of announced future product and credit warnings from major firms such as Merrill Lynch and Fitch Ratings are causing some industry insiders to predict major changes from the automaker. Some analysts even believe that Cerberus is looking to offload or break up the company, allegations that Chrysler vehemently denies. Because the automaker is privately held, the world will just need to sit back and wait to see how Cerberus' so-called "buy, fix and hold" strategy will work out. Despite what took place back in the '70s, Chrysler shouldn't get its hopes up for much federal assistance. It goes without saying, though, that Chrysler is going to need some major revamped products if it plans to make it in the tough U.S. market much longer.
[Source: The Detroit Free Press]
Reader Comments (Page 1 of 3)
DC_1 3:29PM (6/30/2008)
Wow..this is sad if true :(
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Vintage 3:30PM (6/30/2008)
Dear Chrysler execs:
Good thing you quit making the neon, which weighed 2500lbs and got 30-40mpg, and started making the caliber, which weighs 3400-3600lbs and struggles to get 30. Good thing you spent all your money on making stupid sh%t like the Dodge Aspen, Durango, and all those wannabe Jeep vehicles. You ruined one of the spunkiest companies in America, and destroyed it's soul. Now it's newest car is something that gets 17mpg?
Way to go. I will always be an OLD chrysler fan, but you guys really screwed everything up good. I hope you invested all that money you made into stocks, and they nosedive and you have to sell your children into slavery. Eat sh%t and die!
Love,
- V
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Soul Shinobi 3:54PM (6/30/2008)
*Applaud!* Vintage, I for one look forward to your comments.
Parkerman 3:58PM (6/30/2008)
That should be Dear Daimler...
Because uhh, the chrysler execs that are there now.. had nothing to do with that.. well, some maybe.. but not the ones at the top.
inteller 4:22PM (6/30/2008)
Actually history has shown that it is Jeep that is a curse to companies. First AMC, now Chrysler.
MajorGeek 4:28PM (6/30/2008)
Normally I disagree with you, but your right, the Hemi was market beautifully, right into the high gas prices.
By the way, hows your 3600 pound 15 MPG vehicle holding up?
Vintage 4:35PM (6/30/2008)
My 22-27mpg SVX and 30-35mpg accord are holding up just fine.
Judy Zik 8:23PM (6/30/2008)
I have to agree with you vintage. 10 years or so ago Chrysler had exciting new products that people wanted like the Intrepid and the Neon and the Viper. Jeep was the coolest SUV brand and if you had a family you couldn't help but look at the Caravan. For their time all of these products were very competitive and fit what consumers were looking for. Now thanks to the Germans Chrysler is left with a lineup of vehicles nobody wants. I loved my 1995 Intrepid. It was an awesome car for it's day. When I sit in today's Chrysler products and compare the quality and feel of the interiors it really feels like they have stepped back to the 70's or early 80's as far as quality and feel. I sincerely hope they can get that feel back into their cars before it's too late.
SimbaDogg 2:51AM (7/01/2008)
tell those idiots to shut up about your SVR...i've always dug that car, and its super super rare, so thumbup to you...
But seriously, chrysler hit its good spell in the late 90s, after married w/ children went off the air. But seriously, before that, HORRIBLE. if al bundy had a dodge, well, u knew that was as low as it got. =x
Justin 9:01AM (7/01/2008)
Vintage,
I've really been enjoying your posts. Keep them coming.
WolfgangNC 3:32PM (6/30/2008)
I no they have a hole to dig out of; but unless other brands within the company are putting it all down. I would think the company would at least be rebounding?
Dodge is solid IMHO even with it's larger cars, the displacement on demand is nice with higher fuel prices. I have driven a few chargers and they get great mileage on the highway and not that bad in the city. Now if you floor it everytime then yes it is terrible on mileage.
Chrysler has decent styling; but no orignial products and they are more than Dodge (somewhat like Mercury and Ford).
Jeep is good; but higher fuel prices maybe a reason for a downturn.
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azzo45 3:41PM (6/30/2008)
Are you freakin' joking about Dodge?
Caliber: Sucks & slow sales (even with rebates & cheap leases)
Avenger: See above
Journey: Dodge's Pacifica (which doesn't sell)
Magnum: Dropped
Charger: Sales way off 300C. Hemi version had been
strong seller befor $4 gas.
Challenger: 5000 units this year... not exactly a "bread & butter" car to put a division into the black.
Dakota: Painfully slow sales despite heavy rebates
Ram: Sales way off even before $4 gas.
Mike V. 4:29PM (6/30/2008)
Azzo... what are you talking about???
They just put a $3k tag on the Dakota this month in Rebates... it was $1500 before. That is nothing compared to the $6k on the Ram to try to get rid of the 2008 model. $3k is not a heavy rebate.
The Caliber is up in sales... way up. Even in the terrible month of May 2008 the Caliber was up in sales 7%.
The Charger outsells the 300 left and right. The 300 has peaked and lost sales, the Charger has stayed somewhat steady with only minimal losses.
They build 6400 Challengers for half the '08 year and have 17000 orders from '09's listed as sold. That's over three times the amount you made up.
Do yourself a favor and look up some info before spouting off on something you don't know anything about.
srivendel 3:36PM (6/30/2008)
Fine. Sell Dodge to Nissan/Renault and Jeep to the Indians. The Chrysler brand is worth jack sh*t these days anyway. It should just quietly go away.
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azzo45 4:42PM (6/30/2008)
Mike... Wake up. Don't quote sales numbers from Automotive News. Caliber has had rebates & sales deals on them from the start. Is that really a true, profitable "sale" for Chrysler? Dakota... its been a sales disaster since the 2005 model year The refresh last year was being worked way ahead of schedule to stop the bleeding.
Sorry I misquoted the Challenger numbers... call me a liar for 1900 units. We will see how many of the 19,000 pick up their Challenger with the rising gas prices.
Bottom line is Honda was the only car last month with increased sales. Last I checked they didn't need to bribe/ buy people into their showrooms to buy Fits & Civics at FULL price. Chrysler is the polar opposite.
letstakeawalk 3:36PM (6/30/2008)
Wouldn't it be great if a well-respected automaker, known for its engineering prowress, could take Chrysler under its wing? They could share platforms and other technologies and make use of economies of scale! Oh, wait...
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Soccer Mom 3:41PM (6/30/2008)
Before, Chrysler lagged in quality, mechanics and fuel efficiency. But it made up in styling and price. The dumb ass Chrysler management decided that there were too much of good styling, shifting its focus purely to the price advantage. Guess what, no one want to buy half-baked, ugly and thirsty cars with horrible interior. Not even if it's 2K less than competition.
Jesus, what Cerberus needed to do is to line up every executive in the company and fire everyone who had anything to do with the most recent lineup. No severance package and no positive references.
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BigWill 4:36PM (6/30/2008)
"what Cerberus needed to do is to line up every executive in the company and fire everyone who had anything to do with the most recent lineup"
That would do absolutely zero, especially when you look at who Cerebus installed after it took over. Remember what a coup it was to get Jim Press from Toyota and Deborah Meyer from Lexus? All of the talk about Press being so insightful, and he had to "know something" to jump ship from Toyota to Chrysler? Here's a thought - maybe Toyota was actually thrilled to get rid of him. Then to ice it off, they hire "Maximium Bob" Nardelli as CEO - the guy who managed to tank Home Depot while pissing off literally everyone from employees to shareholders. Want to know why it's impossible to find help in a Home Depot? That was Nardelli's idea; his theory was that Home Depot shoppers don't need help.
The bankruptcy clock started ticking the second they hired Nardelli.
Gardiner Westbound 3:43PM (6/30/2008)
Chrysler will deny the bankruptcy rumors until it declares bankruptcy, with the most strident denials coming 5-minutes before. It's the way big business does things.
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jsr 3:58PM (6/30/2008)
I am guessing Daimler wasn't completely honest about Chrysler's condition. I wouldn't doubt it that Cerberus files a law suit against Daimler for selling them a lemon.