Autoblog

Chrysler reports $212M third quarter earnings

Zach Bowman — Thu, 27 Oct 2011 13:29:00 EST

Filed under: Chrysler, Earnings/Financials

Chrysler earned a net income of $212 million during the third quarter of 2011. That figure marks a significant improvement over the same period last year, when the company posted a net loss of $84 million. Chrysler notes that its modified operating profit more than doubled compared to the third quarter of last year. The automaker posted a modified operating profit of $483 million for Q3 2011 compared to $239 million in Q3 2010. Chrysler sites an increased demand for the company's multiple refreshed products as well as increased sales volume, better pricing and more advertising as the reason for the improvements.

In addition, the manufacturer posted net revenue of $13.1 billion, which marks a 19-percent increase over the same period in 2010. Chrysler is optimistic that its new four-year labor contract with the United Auto Workers will allow it to continue to produce strong figures moving forward. Hit the jump for the press release.

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Chrysler reports $212M third quarter earnings originally appeared on Autoblog on Thu, 27 Oct 2011 13:29:00 EST. Please see our terms for use of feeds.

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Chrysler repays the rest of its federal loans... are SUVs to thank?

Jeff Glucker — Tue, 24 May 2011 13:55:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials, Fiat

It's Official: Chrysler has announced that it has repaid its multi-billion dollar obligations owed to both the United States and Canadian governments. Adding up both loans plus interest, Chrysler has just shelled out a tidy $7.6 billion. The U.S. receives $5.9 billion and Canada will get $1.7 billion.

Chrysler was able to secure new means of financing, which allows the automaker to pay off its government obligations a full six years ahead of the original payment schedule. While this new financing still involves debts, it saves Chrysler an estimated $350 million per year in interest. This move also allows Chrysler to remain liquid, with more than $10 billion in assets ready to roll.

Under the direction of the U.S. government, Chrysler partnered up with Fiat, and the goal was to bring smaller, more fuel-efficient vehicles to the states. Yet as an opinion piece in The Detroit News sagely reminds us, it wasn't really the smaller cars that helped Chrysler, but the newly refreshed sport utility vehicles. The all-new Dodge Durango and Jeep Grand Cherokee models helped push sales up 17 percent in 2010.

Regardless of how they got there, this move should serve to instill confidence in the U.S. car-buying public. Chrysler continues to add new or redesigned vehicles to its lineup and has a strong media campaign behind those vehicles. Will high gas prices slow the positive momentum that Chrysler has built up, or is this the chance for the Fiat portion of the relationship to step up and shine? Sound off in Comments, and check out the full press release posted after the jump.

Continue reading Chrysler repays the rest of its federal loans... are SUVs to thank?

Chrysler repays the rest of its federal loans... are SUVs to thank? originally appeared on Autoblog on Tue, 24 May 2011 13:55:00 EST. Please see our terms for use of feeds.

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Report: Chrysler Financial purchased by TD Bank for $6.3B

Zach Bowman — Wed, 22 Dec 2010 13:59:00 EST

Filed under: Car Buying, Etc., Chrysler, Earnings/Financials

Toronto Dominion Bank has officially agreed to acquire Chrysler Financial. Cerberus Capital Management, the current owner of the Pentastar's lending arm, will receive $6.3 billion from TD Bank in the deal. That figure marks a $900 million loss compared to the $7.4 billion that Cerberus paid for Chrysler financial in 2007 as part of the automaker's takeover. Since then, Cerberus has been forced to hand the reins to the federal government as part of the bailout of 2008, and analysts from The Washington Post and Reuters feel that the capital firm is simply looking to be able to return some of the money that it lost on the Chrysler adventure to investors.

Meanwhile, Toronto-Dominion Bank continues to push its way into the American market. The bank already has 1,300 branches on our shores, and the new acquisition of Chrysler Financial will make the company one of America's largest auto lenders overnight. TD Bank says that it anticipates auto lending to grow from a $700 billion business right now to over $900 billion in just three short years. With Chrysler's ever-improving stable of products, if true, that likely means that the bank will see cash start rolling through its doors in a big way. Thanks to everyone for the tips!

[Sources: The Washington Post, Reuters]

Report: Chrysler Financial purchased by TD Bank for $6.3B originally appeared on Autoblog on Wed, 22 Dec 2010 13:59:00 EST. Please see our terms for use of feeds.

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Report: Toronto-Dominion Bank may buy Chrysler Financial from Cerberus by week's end

Zach Bowman — Tue, 07 Dec 2010 11:01:00 EST

Filed under: Chrysler, Earnings/Financials

According to Bloomberg, Chrysler Financial may have a new owner in the near future. Canada's Toronto-Dominion Bank may be set to make a deal with Cerberus Capital Management, which still owns the Pentastar's loan arm despite stepping away from its role as owners of Chrysler's carmaking operations. If the sale goes through, Chrysler Financial is expected to go for between $6 billion and $7 billion, which is what the entity is worth not considering liabilities. If Toronto-Dominion lays down that kind of cash, Cerberus will have effectively recouped its money on the venture, allowing the company to return some dividends to investors in the process.

The news comes courtesy of a handful of unnamed sources who say that the deal could still fall through between the Canadian investment group and Cerberus, though they also note that there are other parties interested in Chrysler Financial. Toronto-Dominion is Canada's second largest bank, and the company has been snapping up properties on U.S. soil for awhile now. In fact, the bank now has more branches in the 'Land of the Free' than it does in its home market, and Toronto-Dominion says that it expects to make around $1.6 billion from the U.S. market alone within three years.

[Source: Bloomberg]

Report: Toronto-Dominion Bank may buy Chrysler Financial from Cerberus by week's end originally appeared on Autoblog on Tue, 07 Dec 2010 11:01:00 EST. Please see our terms for use of feeds.

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Chrysler Financial to begin lending once again for Chrysler vehicles?

Zach Bowman — Wed, 21 Jul 2010 17:20:00 EST

Filed under: Car Buying, Chrysler, Earnings/Financials

Chrysler Financial hasn't been doing a whole lot since the domestic automotive implosion of aught-nine. When the Obama Administration's Automotive Task Force found that the lender didn't have the wherewithal to continue making large loans to dealers, GMAC was forced to take over lending duties for Chrysler. Part of that decision was due to the fact that last year, used car values were at one of their lowest points in decades. Since the majority of Chrysler Financial collateral involves used cars and trucks, that was a bit of an issue at the time.

But that was then and this is now. Used vehicle values have rebounded in a big way, and as such, word has it that Chrysler Financial is once again looking into making large-scale loans to dealerships across the country. Word has it that Tom Gilman, Chrysler Fianancial's chief executive officer, has been contacting numerous dealerships in order to get a feel for whether or not there's enough interest for the institution to return to lending, according to Automotive News. Even so, with most dealers now cozy with GMAC, it may be difficult for Chrysler Financial to reestablish itself as the titan it once was.

[Source: Automotive News - sub. req'd.]

Chrysler Financial to begin lending once again for Chrysler vehicles? originally appeared on Autoblog on Wed, 21 Jul 2010 17:20:00 EST. Please see our terms for use of feeds.

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Chrysler posts financial results, loses $197 million in first quarter

Zach Bowman — Wed, 21 Apr 2010 13:00:00 EST

Filed under: Chrysler, Earnings/Financials

Chrysler just released its first financial report since emerging from bankruptcy last year. The company announced that while it's still operating at a net loss of around $197 million, it somehow managed to create $1.5 billion in cash during the first three months of 2010. That cash, along with an additional $7.4 billion from past cash reserves, went toward putting a dent in the company's remaining debt.

The smallest of the Big Three also managed to increase its market share one percent compared to the last three months of 2009. What's more, it produced a whopping 56 percent more vehicles in North America from January to March than it did during the same period last year, despite seeing sales decline by 5.3 percent. That bump in production is largely thanks to the fact that Chrysler idled many of its plants through 2009.

The company says that despite the loss, it's still on track to meet its goals and return to profitability by the end of this year. That's due to the fact that revenue increased by around $300 million from the fourth quarter of 2009 to the first quarter of 2010 and that the company is continuing to reduce its debt. At the same time, a rash of new models, including the long awaited 2011 Jeep Grand Cherokee will be hitting the market soon. Follow the jump for the official word.

[Source: Chrysler via Freep | Image: Bill Pugliano/Getty]

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Chrysler posts financial results, loses $197 million in first quarter originally appeared on Autoblog on Wed, 21 Apr 2010 13:00:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler could lose up to 145 more dealers because they can't get financed

Jonathon Ramsey — Mon, 23 Nov 2009 10:30:00 EST

Filed under: Chrysler, Earnings/Financials

Chrysler's dealers haven't yet entered the portion of the game wherein they can catch a break. As if the dearth of inventory and lack of new vehicles weren't enough, nearly 150 dealers haven't been able to finalize floorplan financing. Since Chrysler Financial has exited that business, GMAC stepped in, but dealers are having a hard time meeting its terms: 85 have been turned down flat, another 60 or so are still working on it.

In some cases GMAC has asked for more collateral; in at least one other case, GMAC is looking for the dealer to alter the lending structure of his mortgages (not floorplan), held by Chrysler Financial. The former Pentastar piggy bank, again accused of trying to wind down its operations, said it "continues to cooperate" with all involved. If the rumored number of dealers does fall, it would take Chrysler's planned closures up to nearly 1,000, after the 789 announced earlier this year.

[Source: Bloomberg | Image: Mark Ralston/Getty]

REPORT: Chrysler could lose up to 145 more dealers because they can't get financed originally appeared on Autoblog on Mon, 23 Nov 2009 10:30:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler Financial to wind down by 2011, executive pay, well, not so much

Jonathon Ramsey — Sun, 25 Oct 2009 09:27:00 EST

Filed under: Chrysler, Earnings/Financials

Cerberus submitted its plans for Chrysler Financial to the U.S. Treasury, and then in an announcement that came as a surprise to Cerberus itself, the Treasury said that Chrysler Financial would be shutting down by December 31, 2011. The lending arm paid back its $1.5 billion loan from the government's TARP program, but much of its dealer financing and loan operations were replaced by GMAC.

Even though Chrysler Financial is a far weaker business than it once was -- its loan portfolio has been more than halved -- Cerberus said that shutting it down wasn't in the long-term plan. The Treasury replied that it got the idea of closure from its talks with Cerberus and the paperwork submitted by the capital management firm. There will most likely be a lot more "They said/We said" before this is through.

What isn't in question is the fact that if you want big money in the banking biz, you should get a job or keep your job with Chrysler Financial. Severe pay reductions were announced for financial firms that hadn't paid back their loans, which means that ChrysFin is excused from those measures. As well, according to pay czar Kenneth Feinberg -- and which would appear to bolster Treasury's take on the company's future -- "the risk of employee departures must be minimized because Chrysler Financial has stated it intends to wind down its operations and will have difficulty attracting new employees."

That means that, according to government's take on Cerberus' take, the company needs to keep pay high so it can keep good people so it can close in two years. To paraphrase Captain Willard in Apocalypse Now, the BS is piling up so fast we'll need wings to stay above it. Stay tuned...

[Source: Detroit News]

REPORT: Chrysler Financial to wind down by 2011, executive pay, well, not so much originally appeared on Autoblog on Sun, 25 Oct 2009 09:27:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler Financial repays $1.5B in government loans

Damon Lavrinc — Tue, 14 Jul 2009 17:34:00 EST

Filed under: Government/Legal, Chrysler

According to a variety of reports, Chrysler Financial has reimbursed the $1.5 billion it was loaned on January 16 through the Treasury Department's Troubled Asset Relief Program (TARP) - making Chrysler's financial arm the first auto-sector company to pay back its government loans.

Chrysler Financial says it used the funding to provide more thatn 85,000 consumer loans for vehicle purchases and said the quick pay-off was due to provisions contained withn the loan that would increase costs over time.

Although Chrysler Financial is still offering insurance and financial products to consumers at dealerships, GMAC Financial Services replaced Chrysler Financial as the automaker's preferred lender when the Pentastar people filed for Chapter 11 earlier this year.

[Source: Reuters]

REPORT: Chrysler Financial repays $1.5B in government loans originally appeared on Autoblog on Tue, 14 Jul 2009 17:34:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #124

Dan Roth — Wed, 22 Apr 2009 16:15:00 EST

Filed under: Podcasts, Hybrid, China, Government/Legal, Chrysler, Toyota, Opinion/Editorial, Shanghai Motor Show

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Chris, Sam and Dan kick it again for Episode #124 of the Autoblog Podcast. This time, we touch on Toyota's competitive Prius price posturing, the Shanghai Motor Show, where Chinese automakers are finding their design footing, and Chrysler Financial's flap over executive compensation and government money. Some good questions from listeners landed in our inbox, so we hit on those, too, before wrapping it up. Thanks for listening, check out our Twitter feed, and don't forget our Podcast at autoblog dot com address for your feedback.

Follow the jump to subscribe to the Autoblog Podcast in iTunes, add the show to your RSS aggregator... or listen to it right now!

Continue reading Autoblog Podcast #124

Autoblog Podcast #124 originally appeared on Autoblog on Wed, 22 Apr 2009 16:15:00 EST. Please see our terms for use of feeds.

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REPORT: Unsigned waivers to blame for Chrysler Financial rejection of gov't cash

Frank Filipponio — Tue, 21 Apr 2009 11:40:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials

Over the past two days, we've told you what we've heard about the latest short-term federal aid coming to Chrysler and GM. According to the latest reports, it will be $5B to the latter and $500M to the former. We also mentioned it had been reported that Chrysler Financial had inexplicably turned down an additional $750M in government aid during this most recent round of handouts. It had been speculated that it was because of a refusal by CF execs to sign off on executive compensation limits in the terms of the government agreement.

Although CF denied it, the fact that they appeared to be going elsewhere for additional loan money seemed to confirm that they might not have been entirely happy with the terms of the government handout. Well, The Detroit Free Press is now reporting that a recently released report by the special inspector general's office confirms that unsigned waivers were the real reason behind the rejection. The Freep is reporting that at least some of the top 25 executives at CF "refused to sign waivers releasing the Treasury Department and the company from legal responsibility for placing strict limits on executive compensation."

Even without the three-quarter-billion-dollar handout to CF, a total of $13.4B has been given to GM and Chrysler out off the $17.4B in loans President George W. Bush authorized back in December. Meanwhile, President Obama has continued to add restrictions to these handouts, rejecting the initial restructuring plans from both companies, essentially firing Rick Wagoner and telling Chrysler to make a deal with Fiat. While Chrysler has until next Wednesday to finish that deal, CF has apparently turned down the funding over the waiver issue, which had been added early this month.

[Source: Detroit Free Press]

REPORT: Unsigned waivers to blame for Chrysler Financial rejection of gov't cash originally appeared on Autoblog on Tue, 21 Apr 2009 11:40:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler Financial turns down government loan over executive pay limit stipulations

Jonathon Ramsey — Mon, 20 Apr 2009 21:01:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials

Earlier this month Chrysler Financial (CF) turned down a $750 million loan from the government meant to allow it to continue providing loans to dealers. This is where it turns into he-said-she-said: a source told the Washington Post that CF turned the loan down because a condition of the loan was having the "top 25 executives sign waivers regarding their compensation." Supposedly, some of the execs wouldn't do that.

Another source refuted that, saying there was no way executives would turn down a loan if it would help the company survive. Nevertheless, CF's response to the story seems a little disingenuous. The company said "Executives have not been presented with any new demands with regard to executive compensation." That's straightforward enough. But then it adds, "As a TARP recipient we remain in full compliance with current executive compensation requirements."

When Chrysler Financial received its TARP loans there were no stipulations at all about executive compensation -- they hadn't been drafted yet. So yes, it is "in full compliance" with the current requirements as it stood when it borrowed the money. Then CF said it didn't any more TARP funds, however, it is going to borrow money at a higher interest rate from a group of banks. Which means it still wants money, just not the government's money, and it's willing to pay more for it. Sounds curious, no? Hat tip to Roger

[Source: Washington Post]

REPORT: Chrysler Financial turns down government loan over executive pay limit stipulations originally appeared on Autoblog on Mon, 20 Apr 2009 21:01:00 EST. Please see our terms for use of feeds.

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Cerberus may cut 10% of its workforce

Chris Shunk — Thu, 22 Jan 2009 19:29:00 EST

Filed under: Trends, Hirings/Firings/Layoffs, Chrysler, Earnings/Financials

That Chrysler continues to struggle isn't exactly news. As a whole, the auto industry is tanking and cars just aren't moving off dealer lots. Chrysler initially responded by offering buyouts to its entire workforce, and 25% off all its salaried workers took the company up on the offer. Earlier this week, we learned that the ailing Auburn Hills empire will get cozy with Italian automaker Fiat. What we haven't heard as much about, however, is the health of Chrysler's parent company, Cerberus Capital Management.

Like many investment institutions, the three-headed dog is looking to save money, and some of that cash may come at the expense of its workforce. Cerberus has 275 workers around the globe, and up to 10% of those employees will likely face the axe. The private equity firm has struggled with Chrysler, GMAC and Chrysler Financial, but anyone watching the stock market knows the rest of the business world hasn't really fared much better. Blackstone, which also bid on Chrysler back in 2007, is cutting 5% of its workers, and the Carlyle group 10%. The Cerberus job cuts are only a fraction of the bloodletting Chrysler has had to endure over the past two years, but at least it shows that the Pentastar isn't the only one making the sacrifice.

[Source: Automotive News subs req'd]

Cerberus may cut 10% of its workforce originally appeared on Autoblog on Thu, 22 Jan 2009 19:29:00 EST. Please see our terms for use of feeds.

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Fed grants GMAC bank holding status

Jonathon Ramsey — Wed, 24 Dec 2008 19:57:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

GMAC - and ergo General Motors - just got another Christmas present: the Federal Reserve has granted GMAC bank holding status. GMAC has billions of dollars of bonds coming due over the next 12 months, but doesn't have the liquidity to cover the obligations. As of last week, the financing company was in the midst of a bond buyback effort in order to raise enough money to qualify for bank holding status. Now that it's been granted, GMAC can tap the Troubled Asset Relief Fund intended for financial institutions, pay its debts and (probably) avoid bankruptcy.

It isn't clear, however, whether or not GMAC actually raised enough money through the bond buyback. The Fed said "emergency conditions" justified its actions, which makes us think the Fed just said "Here, take it." Looked at from a dealer perspective, it makes sense: if GMAC had gone under, one dealer estimated that it would have taken 30-40% of GM dealers down with it, and that could imperil GM itself. It wouldn't make much sense to let that happen when the government just loaned GM a bunch of money to stay in business.

And while GM is still a long, long way from getting the kind of money that any number of banks have, it's still beginning to add up. As a result of the new status, both GM and Cerberus are required to lower their stakes in GMAC. Cerberus has been told to lower its share to 33%, down from 51%; GM has said it will go below 10%. As for Cerberus' other headache, Chrysler Financial, it has said that if dealers don't stop making a run on its funds, it will cease financing for dealer inventories.

[Source: Yahoo!]

Fed grants GMAC bank holding status originally appeared on Autoblog on Wed, 24 Dec 2008 19:57:00 EST. Please see our terms for use of feeds.

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GM/Cerberus talks over full ownership of GMAC

Jeremy Korzeniewski — Sun, 12 Oct 2008 18:31:00 EST

Filed under: Chrysler, GM, Earnings/Financials

It's been a crazy few days as news broke that Chrysler and General Motors have been in talks to combine operations. It turns out that there's a pretty significant back-story to these proceedings, and it involves Cerberus Capital Management's possible desire to shed its car-building operations and acquire the rest of GMAC, of which it already holds a controlling stake of 51%, with GM holding holding the other 49%. According to reports, Cerberus would like to combine Chrysler Financial with GMAC, which would allow it to merge the offices of the two financial institutions and reduce costs. All right, that might make some sense, but what about merging the two automakers? That's the part that seems so confusing to analysts and us meager bloggers. Somehow, we feel certain that there's more to this story, which we'll be hearing about for some time.

[Source: The Detroit News]

GM/Cerberus talks over full ownership of GMAC originally appeared on Autoblog on Sun, 12 Oct 2008 18:31:00 EST. Please see our terms for use of feeds.

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Chrysler Financial scores $24B line of credit

Jonathon Ramsey — Mon, 04 Aug 2008 10:32:00 EST

Filed under: Chrysler, Earnings/Financials

It's up and down, but nowhere near out for Chrysler, LLC. The Big Three's smallest sibling says that it's ahead of internal estimates and has posted earnings in excess of one billion for the first half of '08. True, the company also posted a $510 million loss in Q1 according to minority shareholder Daimler. And since Chrysler is privately held, it doesn't need to tell anyone whether these earnings put it in the red or black.

But whatever's on the books was good enough to convince lenders to grant Chrysler's financial arm a $24 billion line of credit. Said a Chrysler spokesman, the money will be used to "support our dealers and their retail customers." The pentastar just got out of the leasing business, so the influx of credit will keep the financial arm doing what it needs to do as all those remaining lease vehicles come back with empty tanks and bottomed-out residuals. And believe it or not, those are all good things.

[Source: Detroit News]

Chrysler Financial scores $24B line of credit originally appeared on Autoblog on Mon, 04 Aug 2008 10:32:00 EST. Please see our terms for use of feeds.

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Chrysler offering even more incentives to close out July

Jeremy Korzeniewski — Fri, 25 Jul 2008 16:59:00 EST

Filed under: Car Buying, SUV, Chrysler, Dodge, Jeep, Earnings/Financials

The automotive sales sector is in a major state of flux as consumers continue to run from SUVs and pickup trucks into smaller, more fuel efficient cars. One manufacturer hit especially hard by this transition is Chrysler, a company that recently posted the worst fleet average fuel economy numbers of all major automakers in the U.S. due to its truck-heavy lineup. Still, the automaker has built up a large supply of Chrysler, Dodge and Jeep utility vehicles that they have got to get off dealer lots somehow. To ease consumers into the fuel-thirsy utes, Chrysler has introduced new incentives of zero-percent financing for 72 months on the 2008 Dodge Durango, Chrysler Aspen and Jeep Grand Cherokee and Commander.

While the lack of any financing charges will certainly impact the bottom line, it is nothing compared to the losses the automaker has been hit with over its past lease deals. In fact, truck and SUV residuals are so bad these days that Chrysler Financial has gone so far as to completely cut leasing out of its available portfolio starting August 1. The financing deals announced today are scheduled to continue through Thursday, July 31.

[Source: Automotive News - sub. req'd]

Chrysler offering even more incentives to close out July originally appeared on Autoblog on Fri, 25 Jul 2008 16:59:00 EST. Please see our terms for use of feeds.

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Nardelli says Chrysler in a financial jam

Merritt Johnson — Fri, 21 Dec 2007 10:55:00 EST

Filed under: Chrysler, Earnings/Financials

Chrysler Chief Executive Robert Nardelli tells a grim tale for the automaker's 2007 financial report. He has informed employees that the company is barreling towards a substantial loss this year. Bankruptcy would be imminent without $10 billion recently received from investors during the Cerberus acquisition. The company is in dire need of increased cash holdings. Nardelli hopes to sell off $1 billon in assets, composed partially of old plants and land, to generate more funds. The Chief Executive also calls for improved vehicle interiors, realistic sales forecasts, production reduction and increased use of overseas suppliers.

While the former Home Depot head was criticized at his old job for hard tactics, he has presented a friendlier side with Chrysler employees, particularly the engineers. It does not seem however, that he has warmed up to the upper management in place. Nardelli has brought in other former Home Depot executives to consult in areas of Chrysler such as HR, marketing and purchasing. This move has caused at least one veteran executive to jump ship. Time will tell if his style is just what the company needs to get back on its feet, though.

[Source: Wall Street Journal, Photo by Bill Pugliano/Getty]

Nardelli says Chrysler in a financial jam originally appeared on Autoblog on Fri, 21 Dec 2007 10:55:00 EST. Please see our terms for use of feeds.

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Chrysler blocks the doors to prevent white collar exodus

Frank Filipponio — Wed, 08 Aug 2007 19:28:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, Daimler

Chrysler is apparently a little worried that there might be a mass exodus of executives during the transition from DaimlerChrysler "partnership of equals" to Cerberus stewardship. Because of that, they have taken the bold step of advising current employees against applying for jobs at Daimler AG or Chrysler Financial.

The Detroit News obtained an internal email written to Chrysler's senior white-collar staff by Rita C. Rinner, Chrysler's manager of global staff. In the letter she advises that "Requests to interview for positions at Chrysler Financial and other Daimler units, including Mercedes-Benz USA, 'are currently not advised'."

The e-mail went out to senior Chrysler employees, but applies to all white-collar workers and their staffs. It also went out the same day Bob Nardelli was named as the new CEO of Chrysler. Did they really think the execs would be that afraid of what Nardelli had in store? Perhaps. He does have that kind of ruthlessly efficient reputation.

[Source: The Detroit News]

Chrysler blocks the doors to prevent white collar exodus originally appeared on Autoblog on Wed, 08 Aug 2007 19:28:00 EST. Please see our terms for use of feeds.

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