Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Chrysler suppliers demanding COD]]>http://www.autoblog.com/2008/12/12/chrysler-suppliers-demanding-cod/http://www.autoblog.com/2008/12/12/chrysler-suppliers-demanding-cod/http://www.autoblog.com/2008/12/12/chrysler-suppliers-demanding-cod/#commentsWith Chrysler's cash dropping to $2.5 billion as we race to the end of the month, suppliers to the automaker have begun asking for immediate payment for delivered parts. When suppliers demand COD from struggling companies such as Chrysler LLC instead of extending payment terms, it wreaks havoc with the company's financial structure. Chief Financial Officer Ron Kolka and Vice Chairman Tom LaSorda told the Associated Press that the company is "fending them off." In order to work out a viable agreement, the company has scheduled meetings with the suppliers today.

Although $2.5 billion sounds like a nice chunk of change, it's the bare minimum the automaker needs to make payroll and pay suppliers (as of now, Chrysler pays $7 billion to suppliers every 45 days). With the failure of the bailout last night in the Senate, Chrysler is in dire straits - without an immediate cash infusion the company could run out of funds by the end of the month.

[Source: Automotive News, subs. req'd]

Chrysler suppliers demanding COD originally appeared on Autoblog on Fri, 12 Dec 2008 13:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>cash flowcash reservesCashFlowCashReserveschryslerchrysler llcChryslerLlcKolkaLaSordasuppliersFri, 12 Dec 2008 13:58:00 EST<![CDATA[Cerberus gives reasons why Chrysler could flop]]>http://www.autoblog.com/2008/02/19/cerberus-gives-reasons-why-chrysler-could-flop/http://www.autoblog.com/2008/02/19/cerberus-gives-reasons-why-chrysler-could-flop/http://www.autoblog.com/2008/02/19/cerberus-gives-reasons-why-chrysler-could-flop/#commentsFiled under: ,

Cerberus Capital Management shot off a nine-page letter to investors outlining ways that Chrysler could sink, while also pointing out that they believe Chrysler's on the track for success. Some of the possible failure scenarios include a nasty recession, an extreme slowdown in the car market, or a further credit downturn. Credit is already looking green around the gills, and the potential for a widespread domino effect that starts with an implosion of the teetering mortgage business would be catastrophic for Chrysler Financial and GMAC, of which Cerberus owns 51 percent. As easy mortgages and equity go, so goes willy-nilly new car purchasing, and we're probably already seeing the results of that adjustment. Cerberus believes that it can weather a mild credit downturn, and even a mild recession, just fine.

One way to attain success is to declare it, and changing the definition doesn't hurt, either. Cerberus optimistically declares that there's no need to be heroes to earn a good return on their investment. It sounds a little bit like they're saying it's okay to tread water. Stating that it's not necessary to build Chrysler up, even though that's the underlying hope, Cerberus thinks that just hanging in there should be good enough to earn a return. All of Chrysler's employees must feel great knowing that Bob Nardelli, Jim Press, and Tom LaSorda can essentially just keep the company coasting along until Cerberus sells Chrysler off so it can collect that mythical return. Chrysler's performance is so far outpacing expectations, and the company does have cash on hand. Those are actual, concrete good signs that Chrysler could yet emerge from its chrysalis.

[Source: Detroit News]

Cerberus gives reasons why Chrysler could flop originally appeared on Autoblog on Tue, 19 Feb 2008 09:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuschryslercreditfailurelasordalettermemonardellipressTue, 19 Feb 2008 09:31:00 EST<![CDATA[VIDEO: The Nardelli era begins with more questions than answers]]>http://www.autoblog.com/2007/08/07/video-the-nardelli-era-begins-with-more-questions-than-answers/http://www.autoblog.com/2007/08/07/video-the-nardelli-era-begins-with-more-questions-than-answers/http://www.autoblog.com/2007/08/07/video-the-nardelli-era-begins-with-more-questions-than-answers/#commentsFiled under: , ,



Chrysler has been through more changes in the past six months than any automaker in recent memory, and the announcement of former Home Depot CEO Bob Nardelli as Chrysler's head honcho is just another sign that the auto business in Detroit is rapidly changing. Nardelli was booted unceremoniously at America's home improvement store due to poor stock performance and an outlandish executive salary. He has no automotive experience, but he's the guy Cerberus wanted to lead Chrysler now and in the future. Former CEO Tom LaSorda is staying onboard the Pentastar as vice-chairman and President, and he'll continue to lead the crucial UAW contract talks.

Follow the jump for more analysis and video of Nardelli's press conference.

Continue reading VIDEO: The Nardelli era begins with more questions than answers

VIDEO: The Nardelli era begins with more questions than answers originally appeared on Autoblog on Tue, 07 Aug 2007 11:37:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CerberusChryslerLaSordaNardelliTue, 07 Aug 2007 11:37:00 EST<![CDATA[Bush meets with Big Three, has open ear but no commitments]]>http://www.autoblog.com/2006/11/14/bush-meets-with-big-three-has-open-ear-but-no-commitments/http://www.autoblog.com/2006/11/14/bush-meets-with-big-three-has-open-ear-but-no-commitments/http://www.autoblog.com/2006/11/14/bush-meets-with-big-three-has-open-ear-but-no-commitments/#commentsFiled under: , , , ,



We've just finished watching the coverage of a press conference held outside the White House following the president's meeting with General Motors CEO Rick Wagoner, Ford CEO Alan Mulally and Chrysler Group CEO Tom LaSorda. We attempted to watch the press conference live on Fox News, CNN and CNN Headline News, but each channel only allowed Rick Wagoner, the first of the three CEOs who grabbed the mic, about 30 seconds of uninterrupted air time. After that we got an earful of pointless and shallow commentary from no-name TV face jockeys who merely ran down the meetings itinerary rather than letting the men talk. Ugh. News channels suck.

Anyway, the gist of the meeting was that the president listened to the Big Three's concerns with an open ear, but offered no commitments that the government would jump to action on any of their points. The meeting's main talking points included energy security, the competitiveness of U.S. manufacturing, health care costs, the weak value of the yen and the rising cost of raw materials like steel. For all of the hoopla over this meeting finally taking place after two postponements, we're surprised that more didn't come of it. Although, considering how big this president is on the free market economy, the three gentlemen from Detroit should have known right from the start that our Commander in Chief would just order them to build better cars that people want to buy. If only it were that simple.

Click on through for a joint statement by General Motors, Ford and The Chrysler Group that was released immediately following the press conference. Feel free to discuss the finer points of government and civic duty in the comments, but keep it civil yourselves.

Continue reading Bush meets with Big Three, has open ear but no commitments

Bush meets with Big Three, has open ear but no commitments originally appeared on Autoblog on Tue, 14 Nov 2006 14:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>big threeBigThreeceolasordameetingmulalleypresident bushPresidentBushwagonerwashingtonTue, 14 Nov 2006 14:45:00 EST<![CDATA[Dodge Challenger production decision by fall]]>http://www.autoblog.com/2006/06/19/dodge-challenger-production-decision-by-fall/http://www.autoblog.com/2006/06/19/dodge-challenger-production-decision-by-fall/http://www.autoblog.com/2006/06/19/dodge-challenger-production-decision-by-fall/#commentsFiled under: , , ,



Chrysler CEO Tom LaSorda says the company may have a go/no-go production decision on the Dodge Challenger, a concept car hit of the Detroit auto show (above), as early as September.

It's been widely assumed that the Challenger was destined for production, to take advantage of the resurgent interest in muscle cars triggered by Ford's hugely popular new Mustang. Not only does the Chrysler group have a history of bringing low-volume, niche-market vehicles to production, but the Challenger also can be based on the existing platform and powertrain underpinning the Chrysler 300, Dodge Magnum and Dodge Challenger, which should help make the Challenger a profitable venture.

[Source: Autoweek]

Dodge Challenger production decision by fall originally appeared on Autoblog on Mon, 19 Jun 2006 16:24:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>challengerchrysler grouplasordamuscle carpony cartom lasordaMon, 19 Jun 2006 16:24:00 EST<![CDATA[Chrysler execs bear brunt of health care cost increase]]>http://www.autoblog.com/2006/03/16/chrysler-execs-bear-the-brunt-of-health-care-cost-increase/http://www.autoblog.com/2006/03/16/chrysler-execs-bear-the-brunt-of-health-care-cost-increase/http://www.autoblog.com/2006/03/16/chrysler-execs-bear-the-brunt-of-health-care-cost-increase/#commentsFiled under:

As Chrysler spends nearly $2.3bil on health care costs per year, about $8K per worker, it was evident at the top level that changes to the system would have to be made. Those changes were announced yesterday and involve a sliding scale of out-of-pocket premium increases that's based on each salaried employees pay level.

"The more you make, the more you will be asked to contribute," says CEO Tom LaSorda. This means that premiums paid by a "professional-administrative employee" (read: garden variety white collar worker) will on average not go up, while the top brass, presumably LaSorda himself, will now be responsible for up to 100 percent of their health care premiums. Mid-managers will see a premium increase of around $450 and the average exec's out-of-pocket will inch up by $1,500.

The overall effect of these changes will be a rise in the average amount of health care costs paid by employees per year from 27 to 31 percent. Kudos to Chrysler for not having the least compensated among its ranks bear the brunt of this increase.

Follow the jump for Chrysler's official press release.

[Source: Chrysler]

Continue reading Chrysler execs bear brunt of health care cost increase

Chrysler execs bear brunt of health care cost increase originally appeared on Autoblog on Thu, 16 Mar 2006 08:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ceochryslerdaimlerchryslerdcxexecshealth careHealthCarelasordaThu, 16 Mar 2006 08:30:00 EST