Chrysler’s Nardelli says June sales off 20 percent; automotive “Armageddon” possible
06/18/2008, 11:53 AM
By Drew Johnson
Although Chrysler has kept a fairly optimistic outlook amid the current market slump, an internal email written by company CEO Bob Nardelli to Chrysler’s employees reveals that things aren’t so rosy at the country’s third largest automaker. Although no further cuts were announced in the email, industry analysts say the letter foreshadows further reductions.
Nardelli revealed in the email that June sales are about 20 percent below what Chrysler had originally predicted – greatly contradicting his statement from late last month that Chrysler’s sales forecasts “have been spot-on.”
With a sales decline that sharp, it seems almost inevitable that Chrysler will make further cuts to bring its production in line with consumer demand.
Nardelli blamed the significant sales drop on the weak economy, slumping housing market and rising fuel costs. So far this year, Chrysler sales are off by 19.3 percent, far out pacing the overall industry’s drop of 8.4 percent.
We’ve already seen production cuts from General Motors and Ford, but more could be on the way with a market that continues to sag. According to J.D. Powers, if June’s sales were annualized, total 2008 sales would total 12.5 million – well off the predicted 16 million units. If the trend continues, Erich Merkle of IRN Inc. told the Detroit Free Press that it would be “Armageddon” for the automakers.



06/18, 12:01 PM
posted by:
Bryce
This article is disappointing. Some guy with some company told someone at the Detroit Free Press that Armageddon is coming. Slow news day, LLN? Hey, I’ve been having an affair with Angelina Jolie…! Bet that’ll get some hits.
06/18, 12:06 PM
posted by:
NoNameDenton1
If someone other then Bob Nardelli said this, I might believe it.
06/18, 12:07 PM
posted by:
Fletch
She looked better before she started popping out pups, still good though.
06/18, 12:13 PM
posted by:
johnnycanuck
Lucky kids. Imagine being at the end of one of those for breakfast every morning.
06/18, 12:14 PM
posted by:
NoNameDenton1
Watch Nardelli pop is golden parachute when Armageddon hits same as he did at Home Depot.
06/18, 12:17 PM
posted by:
howsmydriving
We need fewer cars, more dope.
06/18, 12:29 PM
posted by:
golf4me
Armageddon for Chrysler, hopefully. Time to put them out of their misery. They are like a friggin cancer patient who’s trying way too many experimental treatments which give them hope one day, then a few bad days, then some more hope, but you know the end is inevitable…
Cerberus…just sell the damn company already while you can still get a few cents on your dollar. I’d bet there are some Chinese and Indian companies that would love the dealer network…
06/18, 12:32 PM
posted by:
NoNameDenton1
golf4me, I am sure all the workers who would probably lose their jobs appreciate the thought.
06/18, 12:43 PM
posted by:
jumpoffit
“i don’t want to fall asleep, i don’t want to close my eyes cause i miss you babe and i don’t want to miss a thing”,…. oh wait thats a different Armageddon- damn you Michael Bay
06/18, 12:51 PM
posted by:
johnnycanuck
Thanks jumpoffit. I often have an Aerosmith tune in my head, now I’m gonna be stuck with that one for the rest of the day!
06/18, 12:57 PM
posted by:
Xile
golf4me – you are exactly right. although i always imagined chrysler to be a spider in a toilet bowl that is about to be flushed. it is doing its best to climb up the sides but nothing can change its fate. i read in businessweek that they have 9 billion dollars in reserve. i wonder how much time that will buy the spider before someone pulls the lever.
06/18, 1:34 PM
posted by:
HemiRoadRunner
God I hate Aerosmith. Except for the song sweet emotion they suck. Now I have to get a Black Sabbath song stuck in my head to get that sucky aerosmith song out. Chrysler is a great company, there’s just too many retards that are hung up on the stereotype that fords and chevy’s are better and nowaday’s it’s nissan and toyota. Go ahead and splooge all over your camry or accord, I’m ordering my Challenger R/T this fall regardless because, unlike toyota and honda buyers, I don’t need it, I want it.
06/18, 1:38 PM
posted by:
Impulsive
This only the beginning … I’ll keep reminding you all that things get uglier as time progresses. You ain’t seen nuthin’ yet.
‘NoNameDufus’, tell me again how the U.S. economy is doing just fine? ****ing fool. I hope nobody in this world relies on you in any way … you’d destroy their future.
Buy gold.
06/18, 1:44 PM
posted by:
NoNameDenton1
Chysler’s sales are off because they need better products. GM and Ford are cutting back on their trucks, but the story does not talk about the increase in production of the fuel efficient models. The scare mongering like this will cause people to lose faith in the economy and then the economy really will be in trouble.
06/18, 1:45 PM
posted by:
wbent
I believe the break up of Chrysler is looming, Dodge truck to Nissan & Jeep to Mahindra round file the rest.
06/18, 1:59 PM
posted by:
brassmonkey
Noname, you have no idea about the topic of which you speak. You have no authority to your own opinion of the economy and how it works. Go back to your PS2 and finish level 3 on Lego Star Wars. Scare mongering? Where did you find that mainstream media buzzword? Did you accidentally click on a New York Times or Washington Post link? Impulsive is 101% right; you are nothing more than an uneducated fool. And quit searching other blogs and wikipedia to copy and paste other opinions and call them your own. Your inappropriate and childish behavior are known by all here. In the immortal words of Jim Rome, “Have a take. Don’t suck.” OUT!
06/18, 2:04 PM
posted by:
johnnycanuck
Amen on the Jim Rome, brassmonkey.
06/18, 2:06 PM
posted by:
NoNameDenton1
wbent, you don’t think Renault-Nissan will try and take more of Chrsyler?
06/18, 2:26 PM
posted by:
debtno
Wow brassmonkey. You make some good points. All you insults really show conviction but no substance.
06/18, 2:41 PM
posted by:
xyunya
Armageddon have happened at Chrysler roughly 10 years ago when Iaccoca left the ship in care whathisname ass hole from GM and he capitulated company to Nazis. Now is the time of reckoning and for sake of the people who still depend on this company we should all hope they will pull through.
06/18, 3:36 PM
posted by:
koosh12684
An armageddon to the auto industry would be a bankrupted GM, Ford and Chrysler. But if thoes companies are to go under, the government needs to pass a terriff or not allow foreign cars into the market before hand so that we are not paying so that other countries can take our money.
06/18, 4:29 PM
posted by:
Impulsive
‘brassmonkey’ has posted FACT … you monkeys are too stupid to see it. Yes, ‘NoNameDufus’ is worthless.
It’s not just Chrysler that’s in trouble. The problem, the big picture, is that all of you are so deep into your pitiful PEON lives that you don’t see the clouds rolling in BIG TIME. I could sit here and post dozens of signs of seriously bad economic times coming SOON, let alone the next few years.
You think gas prices will fall significantly for any extended period of time … NOPE. You think interest rates can stay at record lows? NOPE. You think 80% of all new jobs since 2001 weren’t in the housing sector? NOPE. You think the housing plunge is near done? NOPE. You think the banking debacle (BearStearns going under, one of the biggest six investment banks in the world) is over? NOPE. You think rising unemployment is over? NOPE.
These are FACTS, chimps. This economy is going negative at an accelerating rate. What kind of situation will exist when the layman DOES acknowledge they’re in hell … how many vehicles of any kind will be sold compared to the last two years?
I have nothing to hide … do a search on my handle and LLN and look back to last year when I posted similar foresight … I was right then and I’ll be right now. Don’t say you weren’t warned … you can thank me soon.
Buy gold.
06/18, 8:13 PM
posted by:
asusenior
Oil prices are at a bubble and I believe will start to collapse in the near future. However, Chrysler is screwed either way. While I believe the entire industry is set for a large decline, Chrysler is least likely to weather the storm. They are still caught in their short-sighted 70s mindset that nearly bankrupted them. Three-quarters of their vehicle sales are light trucks. This fall, they’ll roll out the newly designed Ram. Nice timing. I understand vehicles are planned several years in advance, but they could have at least diversified like Toyota. They acted as if they economy was going to boom forever and people would continue their wasteful spending habits. Should have spent more effort on designing cheaper small cars and hybrids as well as their big trucks. I also heard that their hyped-up Challenger is about to be released, a low volume niche vehicle.
06/18, 8:22 PM
posted by:
asusenior
Koosh12684, most “foreign” cars are already manufactured in the US. No way will we cost our own jobs. In fact that’s one of the reasons foreigners have been building more plants here. I remembered Clinton a dozen years ago threatened to impose a 100% tariff on Japanese luxury cars, if they didn’t buy more American vehicles. Of course luxury brands like Lexus and Infiniti are actually made in Japan. So at the worst, it may come to that.
06/19, 1:57 AM
posted by:
The Stig
Bob will say anything to shift focus away from Chrysler’s inability to deliver a relevant and quality product. As NoNameDenton1 said, he’s probably already test fitting his strap-on golden parachute.
06/19, 11:22 AM
posted by:
wbent
I do believe the Chrysler rear wheel drive platform is of value and the products built on it are good competitors but I do not see Goshen having any use for them given the economy. However the Dodge truck line will provide a way in for Renault and will support the Titan agreement. Jeep will provide more market penetration for Mahindra into the US. asusenior is right either way the economy goes Chrysler will be broke up, that is what private equity does.
06/19, 11:40 PM
posted by:
NoNameDenton1
debtno, don’t mind brassmonkey, he is a lapdog to his husband Impulsive.
06/19, 11:42 PM
posted by:
NoNameDenton1
For one thing he thought the 9-4x was based on the Lambda platform when the article he posted on clearly said it was on Theta.
06/20, 2:45 PM
posted by:
Impulsive
Yup, he’s my husband and you’re my bitch, ‘Dufus’.