• Sep 25, 2008
Chrysler has been struggling with sales declines more than most automakers during this challenging economic environment, and the some of that pain will transfer to its salaried workforce. The Pentastar is laying off 300 workers today and Friday due to the automaker's inability to reach its goal of 1,000 salary job reductions through retirements. All employees have been ordered to show up for work tomorrow regardless of any vacations or if they are scheduled to work or not.
Chrysler CEO Bob Nardelli told dealers yesterday that the Pentastar has lost $400 million so far in 2008, which is likely very bad news for Cerberus investors. There are very few feelings that are worse than losing a bunch of money, but we think going into work tomorrow with a real chance of being handed a box and being told to pack your things would be worse.

[Source: Automotive News subs req'd]


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  • 23 Comments
      • 6 Years Ago
      All of this talk about "gas guzzlers this, gas guzzlers that, blah, blah, blah" being the reason for Chrylser being in trouble, er Chrylser does make small cars in case nobody noticed, but the problem is people do not want them. Small cars are a dead end for the Detroit 3. They should downsize, and concentrate on making the most fuel efficent big vehicles they know how.

      I hope Chrysler survives. They make excellent big vehicles.
        • 6 Years Ago
        Really? GM has a whole set of small, really great cars. Look at the Astra, or the mid sized Aura, the midsized Malibu. People are even buying them, but not much.

        Turns out, the name has to do with it too. They could make perfect cars, and the public still would take a few years to bother looking.
        • 6 Years Ago
        If they made excellent vehicles of any type they'd be hiring people and not letting them go. They'd also have their hands in their pockets instead of out grabbing at the billions of dollars the US government pulls out it's ass.

        The toilet is full and it stinks. It's time to flush the American car industry toilet.
        • 6 Years Ago
        Cerbyler doesn't make any small cars and yes we have all noticed. The smallest thing they make is a Caliber. Something the EPA calls a "midsize car"

        http://www.fueleconomy.gov/feg/noframes/24818.shtml

        Really it's a small Crossover complete with AWD option and hatchback. They do NOT make anything that competes size wise with a Cobalt or Focus let alone a Fit or Accent or heaven forbid a Smart all of which if you have been paying attention the past 6 months have been flying off dealer lots. When GM is having trouble keeping up with demand for the mediocre at best Cobalt then it is pretty obvious the public is more than willing to buy small cars from the Detroit 3.

        GM has a new Aveo and Cruze on the horizon and Ford's got the new Focus and Fiesta on their way. They are ready to compete in the emerging small car market in a big way. Cerbyler has a licensing deal to get Nissan to make a small car for them because they can't get their act together and the Chinese aren't up to it. Given how small margins are on small cars just how much do you think they will make after Nissan their cut for doing all the work.

        On top of all this they have a lineup that is totally aimed towards big Hemi engines and muscle cars. The last thing they need is more large vehicles in their lineup.

      • 6 Years Ago
      Gives new meaning to the term Chrysler 300.

      *rimshot*
      • 6 Years Ago
      Good thing they got part of that $25 billion bailout. Sounds like $8.3 billion for the board of directors for each company. What a joke. All three should go under.
        • 6 Years Ago
        Yeah.If I were the gov't I'd watch those CEO's real carefully.
      • 6 Years Ago
      Bruce, the Ram, Charger, Dakota, & Challanger are excellent vehicles. Big vehicles.

      oZ, I said small cars. The Aura & Malibu are mid sized cars. I think the Detroit 3 do a good job on those. Anything smaller they do not have a clue about, and the public opinion on their small cars agrees with me.
      • 6 Years Ago
      Obviously nobody reads past articles. It was either yesterday or the day before there was an article saying out the the 3, chrycler was in THE BEST position, not the worst.

      300 workers really isn't much, especially when the others are laying off thousands at a time.
      • 6 Years Ago
      But, but, all those hybrids! It was my understanding that vaporware saves companies!
      • 6 Years Ago
      The thing is, are those small cars even profitable? The big 3 have had to focus on larger cars because they provide higher profit margins to cover their cost structures (aka they pay(ed?) their employees more). GM and ford can crank out all the cobalts and focuses (foci?) they want and may even be worse off for it.

      Now with the new UAW deal some of that appears to be changing, and thats why they can bring over smaller cars from other markets.

      Also,what ever happened to all the people who bought SUV's because they were safer? So what your family's safety isn't worth a couple hundred bucks more a month? Especially considering the incentives to get them off the lot.

      • 6 Years Ago
      I'm curious how much of the $400 million loss is cash out the door verses accounting tricks?
      • 6 Years Ago
      Quote of the day from Gary:

      Are hard plastics THAT bad? Do people drive with one hand on the wheel, while another caresses the dashboard and center console?

      I don't get why the media and autoblog hates chrysler interiors? I have seen plenty of crappy interiors from toyota,honda and nissan..What gives?
      • 6 Years Ago
      Chrysler will certainly be the heavily favored member of the Big 3 to go under. Whatever turnaround their management has in store isn't happening fast enough and in a really bad economic spot. Chrysler cars mostly suck compared to the competition.
        • 6 Years Ago
        I'm sure that if potential buyers weren't bombarded with "expert" reviews saying that a certain car sucks, people wouldn't be as hesistant to buy a "sucky" car. People would be able to make their own decision on what's important in a car.

        Are hard plastics THAT bad? Do people drive with one hand on the wheel, while another caresses the dashboard and center console?
      • 6 Years Ago
      Don't worry the government will bail them out.
      Well maybe not the first to go but the second and third.

      so it looks like Chrysler will die first,
      GM will be bailed out
      Ford will tread water a little longer until bailed out.




      • 6 Years Ago
      When banking institutions go under, you can bet that automakers this small aren't safe. THEY NEED A BAILOUT.

      But Chrysler is so stupid. They knew sales were declining on their car line because of gas prices lame and interior quality.

      rather than concentrate on updating interiors, what did they do...they let the gas guzzling Challenger hit the markets and they did a 5 minute touchup to the 300. Now they've got NOTHING on the drawing boards and their so deep in the red its ridiculous.
        • 6 Years Ago
        Interior quality has little to do with it. Have you ever owned a Chrysler? The entire thing sucks, the interior is just the bad part you're forced to look at. Nothing like having your instruments go dark on the highway at night. Especially when the dealership tells you (paraphrasing here) "It appears your car is..well..we...we don't know really. Oops?"

        The bad part is my car is a 98, you'd think by now they would've gotten the clue.
        • 6 Years Ago
        Ah, Logan, I love the smell of anecdata in the evening.
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