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Chrysler says bankruptcy rumors are “without merit”

07/10/2008, 3:39 PM

By Drew Johnson

Although Chrysler’s U.S. sales continue to sag below the overall industry, the Michigan-based automaker is still adamantly denying any bankruptcy rumors. Chrysler’s sales were down over 30 percent in June, largely due to a lineup heavy in trucks and SUVs.

In a letter to dealers obtained by Automotive News, Chrysler reassured its dealers that liquidity was not a problem. “Speculation has surfaced recently in media coverage of analyst reports suggesting Chrysler might have liquidity issues down the road if the U.S. market does not pick up,” the letter, which was signed by Chrysler co-president Jim Press, said. “Chrysler has communicated to the media that the suggestion of a possible bankruptcy situation is without merit.”

Some industry analysts have predicted that the nation’s third largest automaker could file for bankruptcy as soon as September.

Adding to liquidity concerns is the fact that Chrysler just drew down a $2 billion line of credit from Cerberus and Daimler. However, Chrysler claims that line of credit stems from the original deal inked between the companies last year and has nothing to do with current market conditions.

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07/10, 3:46 PM

posted by:

ihustle

Yeah right. We know the truth. I guess gas guzzlers arent on Americans agenda. 0% does not compensate for a horrible product line. They dont have one vehicle worth wild, and there trucks are horrible.
.
.
.RIP.CHRYSLER.

07/10, 3:55 PM

posted by:

howsmydriving

I’d be sad to see Chrysler go. I’d love to see GM go — it’s such a socially irresponsible company — although I’d miss some of their cars, INCLUDING THE NEW CAMARO (hint, hint, how about a Camaro story today)?

07/10, 3:56 PM

posted by:

xyunya

ihustle, Chrysler has been screwed by M-B ownership. Ford has been screwed by Ford Trust (family) ownership. Fortunately for public, Chrysler is a private company and if defaulted only poor bastards working for it will be affected. When Ford will fold, a lot of people will loose a lot of money, besides poor souls who’ll loose their jobs.
And Ford does not have such a terrific lineup that people are lining up to buy their stuff. Little Honda sells more.

07/10, 4:02 PM

posted by:

rds130

I agree with ihustle. Of the big three Chrysler’s in far worse shape then either GM and Ford, both of whom are buoyed by either strong Chinese sales, European sales or both. Chrysler has nothing but the small Chinese partnerships but as a whole, if there are rumors of a GM bankruptcy, Chrysler and Ford can’t be far behind. I’d put Chrysler ahead of GM in that line though.

07/10, 4:12 PM

posted by:

ihustle

Xyuna ive come to the conclusion you are a total hater. Ford has been in buisness for nearly 90 years and there not going out of buisness anytime soon. Wheres all the rumors that Fords Going bankrupt? There are none because its not happening. They have 50 billion in capital remaining and thats alot better then there american counterpart GM whos looking at 20 billion. Ford is making much needed improvements, and still hold a few class leaders. Wish i could say the same about GM and Chrysler. The new Taurus is looking awesome, and great things are expected out of it. The Fiesta has a ton of hype, and will fill the hatchback void ford is having. The 08 focus is leading small size sedans for domestics right now. The Ford edge has been the #1 Cuv for this year. The F-150 is the best selling “vehicle” in the world. Now when you say Ford doesnt have a such a good lineup, it holds no merit. Fabricated lyes and insults are what your good at, so keep to that. Facts are not your forte and you never back anything you say. You merely look to insult everyone, in some desperate attempt to have blog “acceptance”. Your not funny, merely immature and childish. It makes me laugh every desperate attempt you take to bash others.

07/10, 4:29 PM

posted by:

xyunya

ihustle, you are correct I am a hater. I hate when some “patriots” confuse misfortunes of others with their own achievements. The story about Chrysler and their troubles and it was you who were ready to dance on the grave.
About Ford. Obviously you are not aware of history of your own employer. They are not in business for 90 years, Ford been around for over 100. As far as cash on hand, per 8-K report issued by Ford Motor Company on July 1st (it is a public filing and you welcome to read it) Ford does not have have even half of 50 billion on hand or otherwise. Actually it is a little less then the third of 50 billions. Market cap is 10.27 billions and book to market ratio of 1.54 makes it about 16 billion total.
Cars lineup: awesome looking Taurus was ordered to be re-designed in a hurry bu Maluly 6 months ago. We saw a sketch of it, the car has not seen light of day. Existing one – ugly and sucks. Focus – 12 years old with some new skin. Edge just came out to showrooms and you have no idea how many will be sold. My prediction: not many, but the plan calls for about 100K max. Toyota Corolla and Honda Civic are selling more cars in US ALONE, then Ford sells F-150’s worldwide. Statistics on monthly sales are available even on this side. It was never the best selling vehicle in the world.
To back up what I said look up Ford under symbol F on yahoo.com and click “Key Statistics” link.

07/10, 4:44 PM

posted by:

mayer_ray_nagin

And here I thought it was just the Sebring that is “without merit.”

07/10, 4:45 PM

posted by:

ihustle

Your pure ignorance, and non willing to admit your wrong is quite amusing. Unlike you i have facts, heres my F150 statement i made:http://www.leftlanenews.com/ford-f-150.html
Let me guess its a lye.

FYI edge came out in 2007 buddy, so they havent just got to showrooms(another lye)

Quit while your behind, you arent gaining ground.

07/10, 4:54 PM

posted by:

F451

Who’s Merit? And what executive position did he hold now that Chrysler is without him?

07/10, 5:06 PM

posted by:

mayer_ray_nagin

When Merit Lynch tal ks, people listen>.

07/10, 5:09 PM

posted by:

johnnycanuck

Chrysler no longer has to worry about farting in a crowded elevator, they could let it rip in Joe Louis Arena and clear the joint.

07/10, 7:20 PM

posted by:

TOZO

Chrysler will be fine so long as continues to suck the blood of Cerberus. Maybe it will even take that whole empire down! Normally, I’d cheer for that, but Cerberus employs a lot of Americans who survive on their income from working at Mervyns and Albertsons and whatever else Cerberus owns.

07/11, 10:30 AM

posted by:

AmericanIdiot

I never knew people could be so adamantly blind to facts as to bathe and relish in their own destructive ignorance until I read some people, like ihustle’s, comments.

on another note, why are there a couple of domestic car salesmen on this site peddling their bias?

07/11, 10:50 AM

posted by:

whips001

multiple recalls, horrible design and engineering, hideous concepts and production cars…the worst car company in the states they should just stop they make the U.S. look stupid, ceberus has enough ****ing money to buy them out and rebadge the company!! do it!!

07/11, 11:22 AM

posted by:

Bubs Solo

AmericanIdiot I agree with you. ihustle says to many things that are just fundamentally wrong.

07/11, 11:25 AM

posted by:

Bubs Solo

xyunya the 2007 edge sold 130000 units in 2007. Check out http://en.wikipedia.org/wiki/Ford_Edge.
See ihustle this is how you do it. Just trying to help you out.

07/11, 11:42 AM

posted by:

Bubs Solo

Chrysler is buy far the weakest of the big three. Whips001 touched on their lack of quality and poor design.
North America is the only place that Chrysler can sell cars. GM and Ford are global manufacturers. In fact the only place gm and ford lose money is in the USA. GM and Ford are changing their NA product lines over the next two years. Ford finally will have strong competitors in the B Class with the Verve/Fiesta and in the C class with the Euro Focus. Along with the New Fusion and Taurus. Ford will regain (gain) some market share from this new line up of cars. What is Chrysler doing???

07/11, 2:14 PM

posted by:

ihustle

thanks bubs

07/11, 2:16 PM

posted by:

xyunya

Bubs Solo, send some customers ihustle way to help him out. How many will they sell in 2008? Honda is selling more cars then Ford in the past 2 months in US.

07/11, 2:22 PM

posted by:

xyunya

ihustel, did you verify that your company is not 50 billion baby? Any comment on that? Or you the only Ford employee who believes it is a profitable enterprise? And you were right: a few years ago – it WAS a 50 billion dollar company (or even bigger then that). In conclusion: Ford is shrinking faster then penis submersed in cold water.

07/11, 3:12 PM

posted by:

Bubs Solo

xyunya Honda will continue the with their strong sales. Ford’s current line up of cars do not match up to well against Honda and Ford has no Fiesta to compete against the Fit. I don’t expect Ford’s car sales to improve until Ford’s car improve. 2009 and 2010 will be make it or break it for Ford of America.

The Edge sales are up 16.9 % year to date from 2007 but dipped by 19% in the month of June compared to June 2007.

07/11, 3:21 PM

posted by:

xyunya

Bubs Solo, thanks; and can you tell it to ihustel?

07/11, 4:05 PM

posted by:

Bubs Solo

I can do that.

07/12, 12:06 PM

posted by:

ihustle

The new taurus will take a huge chunk of sales from the full size sedan market. I guarantee, mark my words. It will be a Heavy competitor against the accord. There is so much hype surrounding this vehicle, and the craftsman ship is definately there. The Fiesta will be here soon enough. It will most definately handle fords hatchback woes. The 08 Focus is already dominating, i cant wait till the more european inspired one hit the floor. Ford is definately leading the way for the big 3

 
 
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