While it’s no secret that domestic automakers have been struggling as of late, a new study gives us an idea of just how bad things really are in Detroit. The report found that Chrysler lost $1,111 on every car sold in North America in 2006. This loss can be attributed to labor costs, inefficiencies in design and engineering as well as a dependence on fuel-thirsty SUV’s that just sat on dealers’ lots. In contrast, Chrysler made $144 per car in 2005.
According to the Detroit Free Press, Chrysler has already started a restructuring plan that includes cutting 13,000 jobs over the next 3 years, investing $3 billion in more fuel-efficient vehicles and better inventory controlling. Since June 2006, Chrysler has cut inventory by 28%.
Much like Chrysler, Ford is also moving in the wrong direction. Ford lost more in 2006 than in 2005, totaling a loss of $12.6 billion. GM is doing slightly better, only losing $146 per car in 2006 compared with a loss of $1,271 per vehicle in 2005. In comparison, Toyota, Honda and Nissan made $1,593 per vehicle in 2006.
Zero obligation price quote from a trusted local dealer.



08/09, 1:52 PM
posted by:
Veda
A snapshot of reality for GM_SALES and the rest of his likes… The truth is the American culture has been about inefficiency. Excess in everything from jewelry, cars, and fat. It’s only natural that it’d affect the way Americans design cars as well. Though I’d say other cultures are more efficient because they can’t afford to live in excess.
08/09, 2:11 PM
posted by:
doctrsnoop
Although I agree with your statement that GM dude’s comments are out of touch with reality, I don’t think you can fully generalize to make Chrysler’s sales and losses a symbol of American excess (though actually agree with the excess in American culture in general). American auto industry troubles are multifactorial, spanning design, health care costs, manufacturing costs, labor costs, not enough protectionism, and the lack of those issues in the imports
08/09, 2:20 PM
posted by:
Commodore
Both of you are right that GM_SALES shouldn’t be taken seriously, so don’t even talk about him. He is as blind of a GM lover as many people here are GM haters. I agree with doctrsnoop on the rest. American culture is excessive (especially on the food) but I don’t think you can say that ‘American cars are bad because we are fat, and like jewelry, and overdo everything’. I’d blame the loss on costs such as pensions, healthcare, and in Chrysler’s case: bad product. Chrysler’s product isn’t overdone, it is NOT done at all. Cost cutting have reduced their cars to all-plastic interiors and engines that emit smoke at 40,000 miles. I don’t know if you hate the American culture Veda, but that shouldn’t be a reason to hate US cars.
08/09, 2:23 PM
posted by:
LightSpeed
VEDA, how is this a snapshot for him, this is about chrysler not GM you f**king tool
08/09, 2:43 PM
posted by:
jackjimturkey
They’ve gotta do something about their UAW contracts and sell cars for more than it costs to make them.
08/09, 3:06 PM
posted by:
rey323
Maybe more specifically, american corporate culture. Realize its americans allowing the japanese companies to earn over $1500 per vehicle.
08/09, 3:25 PM
posted by:
Commodore
No rey323 – Its the Japanese yen that’s allowing them to earn over 1500 per vehicle. It is so cheap compared to the dollar that it is very inexpensive for the Jap brands to import their cars here therefore they have a lot bigger of a profit margin (minus the healthcare and union costs GM has means an even BIGGER profit margin).
08/09, 6:02 PM
posted by:
Driven
Drop the six figure salaries paid to every UAW high school dropout, I mean employee, and some of the $1111 loss would vanish. Chrysler would still be loosing money on every vehicle, but not nearly as much.
08/09, 6:07 PM
posted by:
Driven
jackjim, I agree about the the UAW contracts. I dont think Chryslers problem is in pricing. The market can barely justify the current price for a Chrysler. Selling the cars for more will only drive their customers to the competition. The major problems are in in labor costs (overpaid UAW crybabies, er workers), too many executives all taking high salaries (they are smart enough not to ask for stock options) and poor supplier contracts.
08/09, 6:17 PM
posted by:
jackjimturkey
Driven: I don’t know that the UAW workers are overpaid, but I think, to paraphrase Marcellus Wallace, they’re got so facts of life to get realistic about.
Too many money-suckers up top.
Cut the price it costs to make the cars, and they can afford to sell the cars for what the market bears.
08/09, 6:26 PM
posted by:
Driven
The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D. and 52.6% more than the average worker at Toyota, Honda or Nissan.
Average annual compensation (benefit value + salary) for a college professor in 2006 was $92,973.
Average annual compensation for Toyota, Honda, Nissan (in US): $96,000
Average annual compensation for the Big 3:
Ford: $141,020
GM: $146,520
Chrysler: $151,720
Average wage for a US high school graduate: $28,645
The professor wages are just to put things in perspective. The real point is UAW workers with little more than a high school education have been milking the Big 3 for decades all while complaining about haw they need to be taken care of better.
I’d say the gravy train is almost over for the UAW and its their own fault for bleeding the Big3 dry. They worked for decades making 5 times what they should have made & have pensions to pay them through retirement. I have no sympathy for someone making $145K/year living in a low cost-of-living city where these plants are located.
08/09, 7:25 PM
posted by:
1c3d0g
Lightspeed: see? You nailed him in yet another one of his infamous anti-American vehicles rants. Don’t worry, his plan to get everyone to buy stupid little imports is falling apart fast.
08/09, 8:59 PM
posted by:
Deanster
UAW at fault again.
08/09, 9:10 PM
posted by:
Elvio
Come on…without the big SUVs…how can fat people go to work…oh my god…can they work?
08/10, 12:42 AM
posted by:
LamborghiniZ
This is PATHETIC, all of those ungainly, pre-historic Chrysler and Jeep vehicles sitting for WEEKS in this lots!! Noone wants that junk, the Aspen?? Are you kidding me?? And the SEBRING? Hear that’s decaying in lots as well. Even GM and Ford can keep it from getting this ridiculous, and that’s not saying much
08/10, 12:54 AM
posted by:
Jordan
i would much rather see the american ceos get paid the equivalent of the work they do… maybe they get $250k a year or so instead of the millions they get instead. undoubtedly, that would help profit margins.
08/10, 7:39 AM
posted by:
1487_GM_SALES
Haha, Chrysler sucks. Another victim of GM superiority. Hope they go out of business.
08/10, 9:52 AM
posted by:
BLISS
SORRY TO HEAR…….DO WHAT IS RIGHT AND YOU WILL AUTOMATICALLY GAIN WHAT YOU DESERVE.
08/10, 11:11 AM
posted by:
jackjimturkey
Lambo: I knew the aspen was a loser first time I saw the commercial.
http://en.wikipedia.org/wiki/Dodge_Aspen
Sebring is Boring, and people are moving away from minivans. But jeeps still rule (reel jeeps, not those small crappy ones introduced this year)
Jordan: $250K should be enough. I favor a system under which if the company loses money, the CEO gets minimum wage
08/12, 10:47 PM
posted by:
paging_the_real_BARTMACK
Have they looked everywhere? I’ll be glad to visit the Chrysler dealership and take a look under the carpet and between the seats…
08/13, 9:58 AM
posted by:
Get Real
What about the customer that was stupid to buy Chrysler?
A car with resale value that falls daily.
A car with bad warranty coverage or warranty help.
A car that will break major expensive components.
A car that is difficult to re-sell.
The customer doesn’t get much in exchange for their money.
08/23, 10:41 PM
posted by:
Mclaren19p
Well if you look at the SUV they have pictured, that is enough to lose money. It’s UGLY! And so is the PT Cruiser. Also, cars like the Caliber and it’s offsprings are crappy, with crappy interiors and crappy to drive. Chrysler had it right with the 300C, Dodge Magnum and Dodge Charger, but they can’t seem to do small cars at all now.