ANALYST: Chrysler can't survive even with gov't aid
The automotive analysts at CSM Worldwide are predicting what many of us have known all along: Chrysler can't survive in its current form, despite the Feds' bailout bucks, and that the Detroit Trio will be performing as a duet in the very near future.
The firm cites its report that estimates a reduction in Motown's market share in 2009 as consumers continue to purchase fewer vehicles overall. With the three domestic automakers battling it out for the hearts, minds and high-interest loans of consumers, something's got to give, and Chrysler isn't in a position to weather the economic storm.
CSM's vice president of global vehicle forecasts, Michael Robinet, maintains that Chrysler should be gradually phased out in order to "go away in a controlled, staged process," going on to say that Chrysler, "doesn't really have the scale, in most vehicle lines, required to survive in this market."
The idea would be to avoid bankruptcy at all costs by selling off Chrysler's most viable assets (Jeep and ummm...) to a number of different buyers, essentially parting-out the automaker, something that Chrysler's private equity owner, Cerberus, has vowed never to do.
CSM's vehicle forecast for 2014 already factors in the elimination of Chrysler's production capacity and products, although the rebirth of the "Detroit 2" is likely to happen much sooner.
[Source: The Detroit News, Photo by Brendan Hoffman/Getty]
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Reader Comments (Page 1 of 4)
ahmed 4:10PM (12/11/2008)
I love the comics. Chrysler doesn't deserve a penny. They make junk on want to be saved?
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Sea Urchin 4:14PM (12/11/2008)
These comics are fun......but they are getting a little long in the tooth.
Jake B 4:17PM (12/11/2008)
I analyze that the Analysts can't analyze worth A DAMN! Chrysler does need to get stripped down a bit more. They have to have some decent product in the pipeline, they just have to.
Flashpoint 4:17PM (12/11/2008)
Chrysler has been making good cars lately with lots of enthusiastic buyers wanting them... Charger, 300, Challenger, PT Cruiser, JEEPS, Pacifica... but they are too slow to make new products and their marketing sucks.
They made some of the most "gangsta riffic" cars ever just recently and now they are on the decline. They need to make a car as good and as inexpensive as the Accord and the Civic with a soul that people want to purchase.
happy_penguin 5:12PM (12/11/2008)
Many of Chrysler's more dated, discontinued designs still look good on the road, if in good condition.
catgirlshyla 5:20PM (12/11/2008)
I blame this whole situation on Ralph Nader. Without him, perhaps the Big 3 wouldn't be in the mess they are in right now and they could've imported some cars from other foreign countries as a temporary stop-gap measure.
We could be driving the Ford Ka right now.
Reader 5:54PM (12/11/2008)
The PT Cruiser is awful, but I agree with the other cars.
thomas 10:15PM (12/11/2008)
nevermind the fact that chrysler was mismanaged by another company that had a controlling stake in it for how long?
chrysler's current lineup is sorta junk right now. agreed. but so far its all what Daimler left them with. sure they got the charger/magnum/300/challenger out of the deal, but everything else went to crap. and then daimler bailed out when the poor management caught up with them.
cerberus can trim down work forces and stall factories but it takes alot of time for new products to emerge. and so far, nothing from the cerberus era has even had a chance to surface. id guess that the dodge EV project is the first thing we've seen from cerberus owned chrysler... product wise. and the only reason that was so quick to the headlines was because its based on an existing car.
Randy 11:51AM (12/12/2008)
Three men enter.... To men leave!
iCameiSawiConquered 4:10PM (12/11/2008)
This is very correct. I've said it before and I'll say it again, if someone has to fall, it should be and will be Chrysler--they are simply way past the FUBAR point. They are probably 15 years away from "recovering" if you gave them $100 billion. They are the one automaker not worth saving.
Sell off Jeep and phase out the other operations. I believe that Chrysler is the only domestic to not even come close to improving their reliability, and in fact out of the Big 3 they have the worst reputation among the public. The brand name and logo are also beyond rehabilitation.
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tenfifteen 4:15PM (12/11/2008)
Agreed. I posted almost the exact same thing a few weeks ago in response to the "Chrysler could be broke by New Year's" story:
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"Nov 19th 2008 10:25AM Of the big 3, Chrysler seems least-equipped to weather the current situation. If we're going to bail anyone out--and I'm not convinced we should--then it seems the companies who should get help are the ones most capable of making a car people want. Apart from the Challenger and the truck, I don't think Chrysler is that company.
Side note: I hear an Illinois dealer is selling a PT Cruiser for $1 when you buy an '08 Pacifica. If they really want to screw you, they'll probably throw in a Caliber too."
oZ 4:34PM (12/11/2008)
Oh, good, unsubstantiated commentary. Kinda like "You're an idiot." This is a case of bad timing for Chrysler. They were just freed from the reins of Daimler, only to end up in Hurricane Financial Collapse. They have some good stuff in the pipeline, but they have to sell something til it arrives. To have them die would be a waste.
torpeau 4:36PM (12/11/2008)
Yep, Mercedes really helped them out, didn't they?
Jeeps and maybe a truck and the minivan is about it.
Beastage 4:13PM (12/11/2008)
Sadly this is true, Chrysler has no future, unlike GM and Ford who have good current and future cars, Chrysler really has nothing, except the Dodge Challenger... they should split 50% into GM and 50% into Ford.
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Sea Urchin 4:17PM (12/11/2008)
GM doesn't show any ability to sell vehicles, example G8, Sky are money losers, no one will buy Volt for 40K, and SUVs are played out. They are out of Minivan game, no small cars, and they are burning thru cash like there's no tomorrow.
JC 5:03PM (12/11/2008)
Who needs the capacity?Vehicle sales are supposed to decline further in 2009.
Nick 4:14PM (12/11/2008)
It's always been a dream of mine to get a Jeep and hit up those massive sand dunes you see in commercials and movies.. I hope jeep sticks around, I would love to try it one day..
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Torrent 4:15PM (12/11/2008)
I swear, I was thinking about the exact thing this morning.
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John Johnson 4:18PM (12/11/2008)
Bye.
Nissan will be interested in picking off the truck stuff from Dodge. GM can kill Hummer and sell Jeeps instead.
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Jake B 4:54PM (12/11/2008)
Merge Jeep and Hummer. Use similar architecture and parts, but have the Hummer be the luxury counterpart to Jeep's utility. Genius!