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Chrysler bankruptcy could delay 2010 and 2011 model year vehicles

05/04/2009, 6:46 PM

By Drew Johnson

Chrysler claimed that it would be business as usual while the automaker was under protection of Chapter 11 bankruptcy, but it looks as though the company’s operations could be disrupted for the next two model years.

Chrysler idled its production plant as a part of its Chapter 11 filing, but it looks as though that decision could affect the company’s future models. Frank Ewasyshyn, Chrysler’s manufacturing chief, revealed today in bankruptcy court that Chrysler’s shutdown will likely impact the rollout of the company’s 2010 and 2011 model year vehicles.

Ewasyshyn explained that once Chrysler’s factories resume production, they won’t be able to simply switch over to the automaker’s new models. Instead, plant workers will have to finish vehicles and parts currently in queue, delaying 2010 model year vehicles.

Chrysler’s 2011 model year vehicles could be in jeopardy too, according to Automotive News. In order to start production on time for the 2011 model year Chrysler must order its tooling from suppliers now, but many suppliers are hesitant to ship to the bankrupt automaker for fear of not receiving payment. Chrysler currently owes its suppliers more than $1.7 billion.

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05/04, 6:51 PM

posted by:

shane train

“Chrysler claimed that it would be business as usual”

Did ANYONE belive that in the first place??

05/04, 7:12 PM

posted by:

JakeK66

As if I was buying a Chrysler before this story, this REALLY makes me scared to buy a Chrysler now.

05/04, 7:22 PM

posted by:

save saab

maybe business as usual meaning delaying cars.

05/04, 7:27 PM

posted by:

johnnycanuck

Big Deal. I’m sure they have every other detail and possible repercussion of these proceedings thoroughly accounted for. Really, what else could possibly go wrong?

05/04, 7:42 PM

posted by:

DrFill

Well, the new Grand Cherokee was a nice idea anyway…………
DrFill

05/04, 7:44 PM

posted by:

NRG

Did anyone really think this was going to go smoothly? They still may not emerge from this intact. It almost looks like they won’t.

05/04, 8:05 PM

posted by:

2morrowdesign

Screw the current models under production, it not like there gonna be sellin’ them anyways.
Start with fresh models, fresh design and make them.
I dont wanna wait til 2013 for a 2011 model.

This will add to the product delay, and in the end we will have the same dated chrysler products.

05/04, 8:08 PM

posted by:

orangecones

This is the beginning of the end. Next week wait for them to announce they will be skipping model year 2010 and return to market just in time for 2011. Well, at least until an announcement in Spring 2010 that the revival won’t happen until 2012 and might as well just not happen at all. Come claim your free PT Cruisers while supplies last.

05/04, 8:26 PM

posted by:

sj79

one more reason to keep GM out of chap 11

05/04, 8:46 PM

posted by:

Blakkarr

Hopefully it will not kill the GC and the 200. I would actually buy a 200, even if it isn’t a hybrid.

05/04, 9:31 PM

posted by:

gnftr21

They are doomed. Are you telling me they are going to keep building a POS Sebring or Avenger because it’s in the que? Are they contractually obligated to make these? If they were, they aren’t now thanks to Chapter 11. If I were Fiat, I would be looking for a new manufacturing chief. Why the heck would you keep building something no body wants? I would rather see them suck it up and change over to new product. Please! Either start changing the way you do business, think outside the box, or quit. If the whole company has this kind of group think (like GM) then DC needs to pull the plug, force these guys into Chapter 7 and move on.

05/04, 9:45 PM

posted by:

Borat

There is a good chance that 2009 or 2010 will not come out at all. it has to be one bank out there who owns debt and does not receive TARP money. There will be no leverage for administration to screw this one. And that the onw who will get $1 for each $1. Everyone else will be getting reimbursed via TARP fund, except lawyers – they will be payed strait of out of Treasury.

05/04, 9:49 PM

posted by:

jimbocardude2

So suprising, a bankrupt company’s new cars will be delayed, durrr…

05/04, 9:51 PM

posted by:

gta89mike

Sounds just like arena football here in the states. There is no 2009 season because of the economy, so maybe there will be no 2010 cars for Chrysler. And for those of you who don’t know about arena football, it is just about as popular as a Chrysler Aspen.

05/04, 10:08 PM

posted by:

johnnycanuck

It’s hitting everywhere. Cessna announced today they were indefinitely delaying their Columbus program which for those not up to speed on their bizjet news is the largest aircraft in their history. Get used to it kids, things are not going to move as fast as they used to at least in the short term. Yes the numbers are alarming and the pundits will no doubt spread more gloom and doom but if you look back over the last few decades things have moved forward at what some might even describe as an alarming rate. Maybe it’s time the world took a pause to catch its collective breath.

05/04, 10:18 PM

posted by:

orangecones

gnftr21, in a word, yes they will build. Why? Because the bean counters wouldn’t allow anything to happen otherwise. Simply put the tooling and raw materials inventory is a sunk cost for them at this point, and assuming the revenue gained by selling an Avenger (even at deep discount) covers labor costs to build it in the first place, then they will build it. Look on the bright side, if you have a need for a really cheap car (say 1st car for your kid or something), now you know where to go (also don’t forget to see your Saturn dealer for the same reason).

05/05, 1:14 AM

posted by:

fordman

Chrysler is a whore pimpimg itself to the cheapest buyer!

05/05, 9:53 AM

posted by:

carstuff

Everything blown out of proportion again.

It is May already. Changeover for 2010 should be starting in 1 month. If the plants are shut down there is no work going on and like they said it could not be done in SOME plants because of changeover to new models. However most vehicles are carryover so there is little revisions going on so it will be easy to start up the plants. IF they do start the plants back up July 1 they can build those vehicles as 2010’s. So we are talking about any NEW models that would start up in July normally.

As far as 2011, hate to tell you but there are going to be a whole bunch of new model delays because most all marques have delayed development/tooling due to lack of cash.

05/05, 10:26 AM

posted by:

idrinorbarsaku

In my mind, the only way chrysler can get out of this as a winner, is if they bring out a new car in 2-3 years that topples and destroys everything else…….something which is apparently impossible for them.

05/05, 11:10 AM

posted by:

American_Cars_Crap

Now that Chrysler is bankrupt, all its suppliers have been shafted with major unpaid bills. Why should all these suppliers that have been shafted continue to do business with Chrysler?? I just don’t see how Chrysler can survive. Fiat is the only ray of hope for this miserable automaker, but even with Fiat, I doubt Chrysler as a brand will survive. Whats going to happen eventually, Fiat will pick clean Chrysler like vultures to a dead animal (which is what Chrysler is) once all the meaty bits have been devoured, only the shell will remain (empty factories) which can proove to be usefull as a homeless shelters for all the unemployed Chrysler workers. Anyone buying a Chrysler now is a complete idiot and you are wasting your money.

05/05, 12:16 PM

posted by:

SeniorChief

@American_Cars_Crap… Buying a Chrysler now has the full backing of the US Government, if I can get a new Wrangler at a significantly reduced price with a fully backed warranty, I would be an idiot not too jump at it. There are some parts (very limited mind you) of Chrysler that are simply the best at in their field. The Dodge Charger should become the next Crown Vic in service with every Police agency in America.

05/05, 1:18 PM

posted by:

strongbad

Today, all incentives on all models have disappeared. They had Employee Pricing, plus like $2000 off AND a free DVD system on a Town and Country. That was about $8000 total off. Now it is $0.

I was expecting even more this month, like adding 0% financing. Who is going to buy a full price vehicle from a company with a shaky future?

05/05, 1:33 PM

posted by:

Payton Byrd

Get your SRT models now while you can (Except the Calibur, that thing is awefull). I sure hope that Fiat can supply North America-ready cars immediately so that the Chrysler dealerships don’t stack up behind Chrysler in the bankruptcy queue.

This really begs a question as to why there cannot be a set of tiered global automotive standards.

Tier 1: Most expensive to meet, required in US, Canada, EU, Australia, Japan, etc.
Tier 2: More relaxed and less expensive: China, Brazil, Russia, Mexico, etc.
Tier 3: Basic cars, least expensive: India, Africa, S.E. Asia, Central and South America

This would solve so many problems for the auto manufacturers. We complain about models not be available in different countries and it all boils down to regulations. Building a car that would meet US, European, Japanese and Australian standards at the same time would be prohibitively expensive in comparison to cars targeting a single market, plus you lose economy of scale. With tiered standards you’d know that if a car caught on in Japan from America, it could easily be exported with a minimum of fuss (swapping the driver’s seat). If that hot new European model gains a cult following in America then send her on over unmodified. The Canucks fall in love with a Holden Commodore? Put them on a boat tomorrow.

05/05, 1:59 PM

posted by:

casualobserver

No Problem. They have plenty of 2008 and 2009 models to last until at least 2011, maybe’12.

 
 
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