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Old Dec 4, 2008 | 12:52 PM
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RLSH700
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Default RE: Read Chrysler's proposed bailout plan

I've read this plan before. I'm not convenience this is going to solve the problem. If this is going to work, they need to cut the labor costs as well. They also need to be able to get out of some of their contracts with Daimler who is selling them inferior parts and technology (transmissions, interior parts, etc). They need to find a solution other than badge engineering. That has been tired so many times and majority of the time it fails. They need to learn to be their own supplier and make that part of their business model. If they are going to take a loan, it needs to be something other than temporarily keeping the company afloat. The other problem is even if these models from VW and Nissan are a success, the underlying issue is they are not in a profitable enough segment, and even if they were, most of that money is going elsewhere to VW and Nissan. It will probably not work. It was not the Mitsubishi models that took Chrysler out of failure back in the 80s, it was the home designed and built K-cars and minivans. I'm not sold on this plan.
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