Paladin06

This does not make me feel good at all.


http://www.forbes.com/2007/02/23/chr...ml&partner=rss

Jeremiah 29:11

Here is a quick access and is the same article Paladin06 posted:

Captain Kirk, Please Report To The Bridge

Jerry Flint, 02.23.07, 2:45 PM ET


As I read these stories about Chrysler, I cannot help thinking of Mark Twain's famous cable to The Associated Press 110 years ago: "The reports of my death are greatly exaggerated."

Yes, things look bad for Chrysler.

The Germans on the ruling Supervisory Board at DaimlerChrysler seem determined to get rid of the U.S. company, the bankers are eyeing the fees and all the momentum points to a sale. The old saying applies here; once these things get started, they tend to have a life of their own.

If the crew in Europe sells Chrysler, the chances are strong that whoever buys the company will dismember it. The jewels at Chrysler are the Jeep and minivan business and, to a lesser extent, some of the Dodge trucks. That is the part of the business worth owning, or trying to resell at a premium. It is not hard to see new owners closing down all or most of Chrysler's passenger car operations. This could be the end of the business started by Walter P. Chrysler during the Roaring Twenties.

The sad thing is that Chrysler really is not in horrendous shape. OK, a $1.5 billion loss sounds scary, unless you remember the $12 billion loss of Ford last year and the $10 billion loss at GM the year before. The auto industry is a cyclical business. I figure that DaimlerChrysler lost at least $5 billion on its silly little Smart car, and it has yet to bail out of that boondoggle. Remember, too, that as recently as 2005, the Chrysler group reported an operating income of $1.8 billion, excluding the profits of the financing arm, which came largely from American Chrysler.

On a relative basis, Chrysler is not doing that badly. Through Feb. 12, Chrysler group production was 298,714 cars and trucks, which was up 4% from 287,319 the year before. Heck, Honda production here is up only 2%, Toyota production here is up 2% and Nissan is down 9%. What about Chrysler's Detroit rivals? Ford Motor is down 17% and General Motors is down 16%. Chrysler's 4% increase looks darn good by comparison.

Chrysler's sales in the first month of the year (February figures will not come out until early in March) were a nudge ahead of the year before. Excluding Mercedes vehicles, Chrysler posted sales of 156,308 units versus 155,465 the year before. That is better than GM and Ford. Chrysler group's market share was 14.3%, up from 13.6% a year ago.

A few caveats are in order: Chrysler's production is up more sharply than its sales because the company has several new models and it is building dealers' stocks on that new stuff. It is these newer vehicles that are helping to pump up the sales figures. Sales are down on some important oldies like those Chrysler 300 and Dodge Charger sedans and the Jeep Grand Cherokee and Liberty sport utility vehicles. Let us not forget that Chrysler is giving up too much money in sales incentives in order to entice buyers.

Still, up is better than down. In this market, how much would GM and Ford give to see sales this year running one half of one percent ahead of last year? Not only is Chrysler right in the midst of launching some new models, such as the Chrysler Sebring convertible and the Dodge Avenger sedan, but the company has finally worked off its bloated inventories from last fall. This means that the dealers may be more receptive to taking on greater numbers of the new vehicles.

A redone minivan is on its way, too, and with Ford and General Motors giving up on this market segment, Chrysler could make some gains in this segment. A new sport coupe, the Dodge Challenger, is also on the horizon. It will not be a big seller, but it will get on the car magazine covers--if Chrysler lives to build it, of course.

Even Chrysler's recent cutback announcements--13,000 employees over a

talentsmart

I agree that this is scary for anyone who wants to own the Challenger. All of the discussions in other posts about Toyota owned Chrysler, etc don't sound to me like the car would get built, either. I think, if a purchase of Chrysler is made, the only thing we can hope for is that the deal/merger will take long enough that Chrysler will still operate "business as usual" in the Spring of 2008. If not, we could be screwed. They are preparing the Brampton(sp?) plants for the car starting now, but, if they dont' start making cars until next Spring, picture GM closing a deal on Chrysler by the end of this year. You think they are going to make a car to compete with the Camaro? I don't.

RLSH700

This article expresses the thoughts I have had for quite a while. Chrysler isn't in bad shape, they just had a bad quater due to their obsession with using excessive sales discounts. Why is DCX in such a hurry to get rid of Chrysler and not in a hurry to get rid of STUPID (excuse me SMART).

joeyr

I dont know if GM were to buy Chrysler I think it would plum crazy (pun intended ) for them not to make the chally, especially if all of the money is going to the same place. But if it were to happen, I wouldn't mind seeing the technology (especially the Hemi and other Moapr names) as seperate as possible from the two comapnies. It would be interesting to see what would happen with Pontiac, Hummer, and Caddy if Chrysler and its brood were to join the dark side[sm=vader1.gif] , er, I mean GM's lineup

RLSH700

I'm concerned that if Chrysler and GM merged that the engine line-up wouldn't stay very separate since GM seems like they prefer to make all their divisions use roughly the same engines these days. I agree that they would make the Challenger. If they are going to make the GTO and the Camaro, then they will surely understand the purpose of the Challenger, the only thing is they might cost cut it to the underworld and it might not be as good in quality as it would have been otherwise is all. Better cost cutted than never made though.

I would say that Pontiac would be in jeopardy as would Hummer, but Caddy no. Buick might be since it only currently appeals to senior citizens and Chrysler would probably eliminate them if they added Chrysler group to their line-up.

ED1971PA

I agree and also, the Camaro and G.T.O. aren't due out 'till 2009 so they are going to want to make some money and sell some Challengers in 2008.

RLSH700

From what I understand the Challenger is scheduled to be released in earily 08, wouldn't that make it an 09 model instead since they normally sell models slightly less than a year early. It seems to me they would be released about the same time, unless the Camaro is supposed to be a 2010 model.

ED1971PA

I see what u mean but I think there will be a little time in between Camaros and G.T.O.s hitting the streets and Challengers being for sale. Wouldn't it seem that way from what we have read as long as we see that beautiful Challenger there when that countdown clock runs out at the Chicago Auto Show next year? I think they are even still trying to come up with a design for the G.T.O.?

RLSH700

The Challenger will have a lead but I'm not sure by how long. Your probably right about the GTO. The only thing I have seen appears to be photos modified to look like the GTO.