• Jul 11th 2008 at 10:35AM
  • 65
Despite recent rumblings to the contrary, both General Motors and Chrysler claim that they will not be going bankrupt any time soon. Still, as much as the two American automakers would love to quell fears of unsustainable liquidity, questions remain, especially as the pickup market in the United States continues to dwindle. In a note sent out to dealers, Chrysler's Jim Press and Steven Landry say that the automaker will focus its efforts on small cars for the rest of this year, though the current pickings from the automaker's stable seem a bit slim. Chrysler is surely banking on its alliances to bolster its line of small car offerings, which could help to dampen the blow of lost truck profits -- somewhat. General Motors, for its part, has invested heavily into its upcoming Delta platform vehicles, which will include a compact Chevrolet-branded car known as the Cruze as well as the Chevy Volt electric vehicle.

[Source: Automotive News (Chrysler and GM) - Sub. Req.]

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    • 1 Second Ago
      • 7 Years Ago
        • 7 Years Ago
        Who's the "idiot"... you are responding away from where the original discussion was taking place.

        Add up your numbers... I'll bet they don't hit 90% let alone your "about 95%".

        Remember to eliminate the plants Chrysler is closing (might be one in Canada so it will help your numbers...)

        GM is closing 6-7 plants by end of the year as well.
          • 7 Years Ago
          Shut up idiot. If I have 10 plants in north america and I close 5 of them, what percent of my plants are still in North America? Get my drift. I know percentages can be difficult.
          • 7 Years Ago
          Bob, you are AB's champion of American Industry...

          I used Chrysler to disprove your propaganda & as your Chrysler guess were way off (based on sales winners from Canada alone)

          ... so excuse me if I chose to ignore your numbers on GM.
          • 7 Years Ago
          I just added up the numbers from the GM site and for GM only 3.26% of their vehicles sold in the month of June were imported from outside the US. Sorry I was so way off people. I'm glad that a bunch of Americans want to argue with me for defending American industry. I'm sure we are all better off because of it.
      • 7 Years Ago
      Yep, Toyota does have plants in NA, and most people think that they are better for the economy than the domestic makers. Well, news flash Connie Chung, only 55% of Toyota's sold in the US are built in N.A. Compare that to about 95% for the big three. They don't have an equal impact. Oh, and Ford matched Toyota in quality this year.
        • 7 Years Ago
        "Frank, Canada & Mexico production still does not add up to 5% of Chryslers sales (its much more...) You had data... Bob did not."

        Fine Azzo, you win. Just make a number up. The point is that THE DOMESTICS MAKE MUCH MORE VEHiCLES IN THE US THAN IN CANADA, MEXICO OR ELSEHWERE. That’s the point. And the Canadian and even Mexican built vehicles have US derived parts in them.
        • 7 Years Ago
        Thanks for the long list of Chrysler plants... does it make Chrysler 95% USA built as Bob stated?

        NO!!! I know they have many plants in the USA... many making cars & trucks Chrysler is now giving away.
        • 7 Years Ago
        Frank, Canada & Mexico production still does not add up to 5% of Chryslers sales (its much more...) You had data... Bob did not.

        The LX line was a big seller & didn't require Chrysler (or Daimler at the time) to hand out rebates & other incentive deals. one of the van lines was in Canada... these vehicles were where Chrysler's black ink was coming from.

        Toyota makes the Camary in the USA... it sells 400,000 + units. Avenger/ Sebring & Patriot / Compass are four, US built Chrysler LLC models that don't even come close to selling that number.

        When Cerberus cuts out models that have been sales turds for years... many of these US plants will close (sad to say) & in the mean time non Detroit 3 keep adding plants in the USA (in part due to the weak dollar).

        • 7 Years Ago
        B.S. Bob... 95%? That doesn't fit for Chrysler.

        The whole LX line (300, Charger, & the "new" Challenger) are made in CANADA. One of the minivan plants is in there too. The remaining PT Cruiser is made in MEXICO.

        Canada & Mexico have engine plants & numerous other key mechanicals come from suppliers that make the stuff in numerous spots OUTSIDE the USA.

        GM has Opels, Daiwoos & Holdens with domestic badges... they sure as hell aren't US based & do not make up 5% of GM's product line up

        Please, in the future don't just pull numbers out of the sky & quote them as fact.
        • 7 Years Ago
        Current Chrysler owned and operated assembly and component plants. (f) denotes a flex manufacturing facility. Of the 28 facilities below only 3 are located in Canada and only 5 are in Mexico denoted by a (c) or (m).

        (f)Belvidere Assembly - Dodge Caliber, Jeep Compass and Patriot
        (f)Brampton Assembly(c) - Chrysler 300, Dodge Magnum, Dodge Charger
        Brampton Stamping(c) - Stampings for Chrysler 300, Dodge Challenger, Dodge Charger
        Conner Avenue Assembly - Dodge Viper, V10 engines
        Indiana Transmission I - 45RFE, 545REF, and in 2007, 68RFE
        Indiana Transmission II - W5A580
        (f)Jefferson North Assembly - Jeep Grand Cherokee and Commander
        Kenosha Engine - 3.5 V6, 2.7 V6 (note: Exports to China and Austria)
        Kokomo Casting - Aluminum parts; transmission and transaxle cases (note: World’s largest die cast facility)
        Kokomo Transmission (I and II) - 62TE, 42RLE, 42RE, 40TE, 41TE, 40TES, 41TES, and soon to be replaced 48RE
        Mack Avenue Engine (I and II) - 4.7 V8 - Mack Ave I, 3.7 V6 - Mack Ave II
        Newark Assembly - Dodge Durango, Chrysler Aspen
        (f converting) Saltillo Engine(m) - 2.4-liter turbo, 5.7 liter and 6.1 liter Hemi
        Saltillo Truck Assembly and Stamping Plant(m) - Dodge Ram Quad Cab, Regular Cab, Mega Cab,Chassis Cab (note: many of these vehicles are exported to countries other than the US)
        St. Louis North Assembly - Dodge Ram Standard, Quad Cab (1500 and 2500)
        St. Louis South Assembly - Caravan, SWB Town & Country, Grand Caravan
        (f)Sterling Heights Assembly - Dodge Avenger/Chrysler Sebring
        Sterling Heights Stamping - Stampings and assemblies - Avenger, Sebring, Ram, Minivan, Grand Cherokee, Liberty, Pacifica (presume Commander)
        (f)Toledo North Assembly - Jeep Liberty and Dodge Nitro
        Toledo Supplier Park (Toledo South) - Body, paint, chassis of JK Wrangler
        Toledo Machining - Steering columns, torque converters
        (f)Toluca Assembly(m) - PT Cruiser, Dodge Jouney
        Toluca Stamping(m) - Body panels for PT Cruiser, Dodge Journey
        Trenton Engine - 3.3, 3.8, and 4.0 liter V6 engines
        Twinsburg Stamping - Stampings, assemblies, and sub-assemblies for minivans, Pacifica, SUVs, trucks
        Warren Truck Assembly - Dodge Ram 1500 Standard Cab and Quad Cab, Dodge Dakota and Mitsubishi Raider
        Warren Stamping - Minivan, truck, Grand Cherokee stampings and assemblies
        (f)Windsor Assembly(c) - Town & Country, Grand Caravan
        GEMA engines - 1.8, 2.0, 2.4 I4 engines

        There are two more new plants being built now: one for rwd axels and another for dual clutch trannies. Both are being built in the U.S.
        • 7 Years Ago
        We don't need to MAKE UP a number Frank! Some math wiz can add up the numbers from those plants you provided or even if we add up just the plants themselves...

        .... ya don't get 5% All I'm sayin'. At least you posted actual DATA... You didn't pull numbers out of your butt. I'm giving you props for ACTUAL numbers!

      • 7 Years Ago
      AZMike: Your points are valid, but I never said Americans didn't like big cars, I said they like ones made by Toyota and other transplants and are showing that in ever-increasing numbers. Why? Because Toyota's still got a reputation for reliability. Yes, these little cars will be thrown out in the end but GM's probably not going to see the fruits of their laborious SUV construction because unless they fix their cashflow problems there's not going to be a GM around.

      You know, because like Mr. Machado says below me, "If I was going bankrupt I would not admit it publicly either."

      "Are you railing against a bailout that you yourself made up? GM has received no bailout money and as they mention, they don't appear they are going to soon."

      No, I'm railing against something else entirely. Cities like Detroit compete for factories by giving large tax breaks to the companies and then (more often than not) close the plants in the United States and open plants in other places, such as Mexico.



      Am I against a bailout? Yes, because the taxpayers already pay for things like this. If a company is strong enough, it should be able to handle a recession like this without requiring a bailout. The local tax breaks and money should be enough.

      "You mean the Bob Lutz that watched over the new Chevy Malibu? The new Cadillac CTS?? The Pontiac G8???The Z06 & ZR1????

      The Bob Lutz that killed the armco- barrier cladded Grand Am & gave you the much improved G6? The Pontiac Solstice & Saturn Sky??"

      Yes, the Bob Lutz that just can't seem to get his company to make a profit already.

      It's not just product, it's management's ability to control his company. If Bob Lutz were a good manager, he would not be facing bankruptcy right now. The problems at GM can't just be fixed by good product. The tangled bureaucracy at GM is too complex at this point for that.

      Getting rid of that bureaucracy will require shutting down hundreds of dealerships and unloading a dead weight. Can he do that? We'll see.
      • 7 Years Ago
      And why on earth would Cerberus admit to problems?? They took Chrysler private so no one can see its books and now they are going around the world trying to sell it....the LAST thing they would do is say that its operations are on the verge of bankruptcy....

      Oh...and here we are again with the Volt being mentioned as one of the saviors of GM...yet AGAIN, today, in an earlier posting on Autoblog the Volt was stated by GM not to be available till 2011 (NOT 2010 as had previously been stated) and even THEN it would not sell more than 10,000 units its first year....what a joke and you people keep gobbling up the hype over and over....Now I'm thinking that the FOURTH generation Prius will be out at the time the 1st Volt rolls off the line...
        • 7 Years Ago
        So basicly what you are saying is that you can't dispute anything I said so you are just ranting...great...thanks for the update...

        Chrysler may very well be on the verge of bankruptcy--so says major investment banks that are doing cash flow analysis on them...please see numerous articles over the past few days....

        and the Volt?? NOWHERE has ANYONE said it is coming in '09...at the EARLIEST its coming in '10 and again...only 10K units its first year of production?? Meaningless...
        • 7 Years Ago

        1. Cerberus is private and can do whatever they want. If they want to make all Chrysler cars available in only neon pink with green polka dots, they can. Surely, if they want to deny bankruptcy, they can do that, too. Still doesn't mean they're going bankrupt.

        2. Did you even READ the Volt article? Obviously not, so let me sum it up for you: "Government, please don't use the Volt as an excuse to jack up the corporate mileage standards. Thank you."

        Yeah, the article did say 2011, but that wasn't GM talking. Every indication from them has the car going on sale in late '09 as an '10 model. So chill until we hear something officially official.

      • 7 Years Ago
      At $9.40 per share of GM, it is an absolute steal. You can call me from your yacht in 3 years...

        • 7 Years Ago
        Yeah, Ford was mid $6 three years ago...

        ...now its mid $4's. Didn't know they made rubber yachts that required an air pump!

        :) :) :)
        • 7 Years Ago
        GM isn't Ford, and yes, below $10 GM is a steal.
        This is one people will look back upon and smack their forehead for missing.
      • 7 Years Ago
      Time for Chrysler to dust off Lee Iacocca and the K-cars...
      • 7 Years Ago
      ""Meanwhile, Toyota's building new plants in Kentucky and California, and they're building reliable products that people want.""

      Reliable? 60% of the vehicles Toyota sold last were were on the Consumer Reports not recommended list (Camry 6 cyl. & Tundra)

      Toyota bought back thousands of Tacoma pickups because the frames rust out and collapse.

      The list of shoddy Toyota vehicles and criminal business practices is extensive.

      Opening plants? Toyota has DECREASED the percentage of cars they sell in the US that are produced here over the past few years. In fact it increased the number it imports from Japan by about 40% in the past 2 years.

      GM has more that twice as many plants in just Ohio than Toyota has in the US in total.
      • 7 Years Ago
      Don't know if any of you recall the pic of Lee handing the fed Chrysler's check for payment in full some time after the bailout. The bailout kept a lot of americans working on some good new cars (most were mediocre tho) until Bob Eaton decided to "give " the company to the germans. The rest is a historical fall for a once great american company who was handled by the inept Eaton's (and company) desire to make himself even more wealthy than he'd become. (what ever happened to that guy ? I don't think I've ever seen or heard him interviewed after his sellout fiasco.) Small wonder...
      • 7 Years Ago
      In Korea and Japan, the government participates and provides support to their auto industry:

      - Health care
      - Hybrid development cost (Toyota)
      - Taxes

      The two countries also have very restrictive importation policies (especially Korea), which cause huge trade deficits.

      In USA, the social burden is taken care of by the large corporations, which of course have driven up the cost disadvantage vs Asia.

      The other part of the equation is that USA is the home of frivolous lawsuits, which cost a bundle to those same US corporations.

      Back in the 50's, Ford started this whole thing about paid layoffs, not GM. So GM is often accused of giving away too much to the UAW. Not exactly how it started.

      On this subject, in USA, you have a law which was voted in 1935 that gives the right to the employees to be part of a Union.

      Problem is that in 1937, Frank Murphy, governor at the time and mediator in the Flint strike between GM and UAW, gave the UAW the exclusivity to represent the entire auto industry. This had an incalculable effect upon the fortunes of organized labor and institutionally recognized its legitimacy. In the next year the UAW saw its membership grow from 30,000 to 500,000 members

      We can blame the UAW all we want, but US government is responsible for the creation of this gigantic and powerful union. The UAW became the best paid workers in America.

      So in fact, whatever Obama or McCain are saying, they carry the heritage of the USA labor history. They can try to ignore those trivial questions and let their own industries die. It will not be so easy when they will have to drive a Toyota or Honda limo. They do have an historic responsibility, whether they like it or not.

      • 7 Years Ago
      Some grumpy and uninformed comments; but also some good points made.

      Here are some of my thoughts;

      1) The Chrysler "bail out" was not a bail out at all, but the gov't in effect co-signing loans in order to get good terms (interest etc); it had risk, but because the loans did lead to a big comeback for Chrysler, it ended up actually being a good deal for the tax payer.

      2) Gov't does often give out billions of dollars to save an industry -- just today I read another bank had it's losses covered by the gov't.

      3) People forget that Japan has a version of a Totalitarian economy. The gov't dictates who produces what and at what level etc. Honda is famous for going against the gov't when they decided to make cars -- even today, Honda sells very few cars in Japan because of this. When Mitsubishi needed cash to survive recently -- who was right in the negotiates to help provide financing -- Toyota (granted they backed out at the last moment due to all he investigations of curruption going on, and did not want to be affiliated to that mess).

      4) I believe, yes things are tough; but we are missing the "international picture" and are therefore seeing things as going worse then they really are. I know GM, Ford, etc do at least as well as say Toyota outside of the US (such as in China and India).

      5) Toyota is well known to have gotten billions of dollars from the Japanese gov't -- kind of tricky to track because they are so inter-meshed with the gov't there. It is pretty well accepted that the Toyota Prius development was almost entirely paid for with government funding.
      • 7 Years Ago
      When a ship is begining to sink, the capitan doesn't tell anyone who doesn't need to immediately know.
        • 7 Years Ago
        True, but I see Chrysler definitely going the way of Levitz.
      • 7 Years Ago
      Ever wonder why VW, Toyota, BMW vehicles are the leaders in residual values while GM and Ford are at the bottom where you'll be lucky to lose on 60% (more like 75% if you were dumb enough to buy a Truck or SUV) in only 3 years?

      Do some research. The Germans and Japanese build better and more desirable cars.
        • 7 Years Ago
        If I buy a If $30,000 Caravan for 10K less then advertised ($20,000) and I sell it later for $10,000 it depreciated 50%, not 70%. Going by MSRP at trade in time when you didn't pay MSRP doesn't make any sense.

        What's the difference if you pay 20,000 for one car in 2008 then sell it for 8,000 in 2012 OR if you pay 25,000 for a car in 2008 then sell it for 13,000 in 2012 ... none !!!!!!! Except for the fact that the person who pays 20k will pay less interest money to a lender AND will have more money in his pocket which could be invested to create income. So actually the 20k car buyer in your example would be much better off financially over the life of the car. This tidbit is something the "resale value rules" crowd doesn't seem to grasp very well.
        • 7 Years Ago
        I wouldn't say better cars... ask some VW GTi or Jetta owners on quality issues for one example.

        I agree that VW, BMW & Toyota do not pay people to take their cars & trucks. Chrysler is the K Mart of the auto companies... 08 Rams have 12-15 K rebates & incentives on them in the S/E Mi area. I've seen 06 Pacificas still on dealer lots these are "new" cars that now have to be sold as used.

        All this "give-A-way" stuff from the Det3 do drive down resale value on these vehicles. The general public knows the new cars had heavy discounts, If a $30,000 Caravan left the lot for 8 to 10K less then advertised.... its no wonder why its drops like a stone as a used vehicle.
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