I keep hearing bad stuff about Chrysler
Latest is that they are no longer offering leases. Is this because no bank is willing to take a punt on what their resale values will be in 36 months?
What do people here think will happen to them?
I speak as the very satisfied owner of a Pacifica and a C300.
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The new Chryslers I saw in the States were particularly stylish (especially the Dodge Magnum - the most desirable American car I've ever seen) and plentiful, it must be part of the huge economic problem that's crippling the US at the moment - personally I don't think we've seen anything yet !
Edit:
Just read on Wiki-p that production of the Charger was "cancelled" in March 2008 - not good.
Edited by Pugugly on 29/07/2008 at 22:27
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the closing section from a recent Economist article about the deep trouble that Ford, GM and Chrysler are facing in the US
"GM and Ford can at least take some comfort from their well-run foreign operations, which are benefiting from growing demand in China, Russia and Brazil. But Chrysler has no such cushion. Worse, it is planning to replace only half its fleet in the four years after the 2009 model year (compared with Honda?s 72% replacement and Nissan?s 80%). John Murphy of Merrill Lynch believes this is ?an active decision by the new owners to rationalise the product portfolio in advance of a break-up or sale?. It may not be long before the Big Three become the Not-So-Big Two. "
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In 2007 Daimler sold 80% of the company to Cerberus, a private equity company.
The deal was heavily debt funded and debt has suddenly got a whole lot more expensive
All current Chrysler models are gas guzzlers in a market that is turning away from such models.
The company has plans for electric cars through its partnership with Tata but it may be all too late.
Rumour is that they are holding on for November and praying for an Obama win as the thinking is that the Democrats would not let Chrysler go bust (Carter saved them in 1980) where as the Repulicans might, but the water is muddied by the fact that Cerberus has hired several high profile Republicans such as Dan Quayle.
Several big shot New York bankers are not sleeping at nights over this issue.
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Mind you if a Dodge is good enough for Gibbs its good enough for me.
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Chrysler US had about 5 months worth of cras in stock - mainly big SUVs.
I reckon they'll go under... or be MUCH reduced in size.
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Daimler were desperate to get shot. Think they saw the writing on the wall some time ago.
Gather Ford Europe turns in a healthy profit, but as others have said - no such outlet for Chrysler
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In 2007 Daimler sold 80% of the company to Cerberus, a private equity company.
The deal was heavily debt funded and debt has suddenly got a whole lot more expensive
Cerberus will likely reduce the workforce as drastically as they can and cut production down to the models most likely to sell in the current climate. They will move production out of the US as much as possible. Cerberus is a firm that specialises in turning around under-performing companies; then they sell the company on. Chrysler will probably become the the budget sidekick of some larger, more successful company. Again. That is what it was supposed to be for Daimler, who wanted it in order to stride into the mass automotive market. Chrysler is doomed to survive, but in a state of permanent irrelevance.
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