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Columnist on Chrysler: we’ve seen this scary movie before

07/28/2006, 11:22 AM

By admin

Around this time, six years ago, Chrysler posted an operating loss of more than $500 million. The bombshell prompted the elimination of 40,000 jobs and massive restructuring. Yesterday, the automaker warned it will likely post an operating loss of at least $600 million in the third quarter — effectively a repeat of the automaker’s previous implosion. Detroit News columnist Daniel Howes says this is proof market changes — like rising gas prices and a shift away from SUVs — can hurt a carmaker deemed “fixed.” His conclusion? “The process of reinvention doesn’t end, meaning no matter how many Chrysler 300s you build — no matter what you call them — you’re never ‘back.’ That’s so yesterday.”

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07/28, 11:44 AM

posted by:

Mike

One of the greatest benifits touted fromthe ‘merger’ is the ability to operate for several quarters at a time at a loss. the Chrysler group used their profits to help support MB in their down times, now MB is helping support Chrysler during the same.

Chrysler group ran into problems surrounding excess inventory on pushed dealer lots, especially of slower selling vehicles. These numbers are improving slowly, but improving nonetheless.

As more plants are adapted to flex manufacturing, inventory issues are further reduced. DCX’s product pipeline might not as robust as, say, GM; however, between the caliber, compass, patriot, Nitro, Durango reskin, Aspen, Sebring, Avenger, Liberty, Grand Chero deisel, minivans, 300 interior, pacifica updates, Wrangler, Wrangler Unlimited, upcoming dual-mode hybrid systems, Challenger, and Ram HD, DCX’s short term (next 2 years) is looking good.

Longer term looks even better if you include Hornet, light duty deisels and deisel/hybrid combos, ram re-do, Viper re-do, Firepower, LY, ME4-12 (rumored), and Phoenix Project, long term also looks appealing.

The problem with ’six years ago’ is that they 4 year product pipeline was nowhere near as robust.

07/28, 11:44 AM

posted by:

Barry

Regardless of gas prices, Americans tend to still buy BIG Cars. I live in Florida and pay $3.20 for premium. I still notice A LOT of F-150’s with paper tags on the bag. Hell, my neighbor just bought a Yukon XL and one of her 3 kids just went to college. I do understand that in a country that works, there will always be a NEED for trucks.

07/28, 11:46 AM

posted by:

Barry

I meant BACK not ‘bag’..lol

07/28, 11:48 AM

posted by:

Mike

“I do understand that in a country that works, there will always be a NEED for trucks.”

Barry, don’t try to use logic and reason with those circle-jerking over no-blood-for-oil and GM-must-die.

07/28, 12:01 PM

posted by:

Trevor

Damn $3.20
I’ve seen Regular for more then that in some places.

07/28, 12:07 PM

posted by:

1c3d0g

Chrysler needs to implement the new Diesels (like the new 3.0L V-6 from the 2007 Grand Cherokee) in their vehicles quickly if they want to survive the current oil crisis. Things are only going to get worse from here and if you’re not aggressive enough, the future will be bleak for your company.

07/28, 12:16 PM

posted by:

MGBYG

Not a ‘blood-4-oil’ circle-jerker here, but the arrogance and hubris of notions that “we’re a ‘country that works’ and thus we need huge gas-guzzlin’ trucks” is over the top.

Buddy, have you ever been to Japan, South Korea, Switzerland, Germany, Italy, France, Hong Kong, Singapore, Sweden, Britian, Spain….??

WTF? Billions of people bust there ass every day at a job they hate so they can feed their family AND do it with-out plopping their fat ass into a Tahoe for the drive home…..
Too many Americans purchase a vehicle for the image the vehicle is supposed to relay about THEM and not on the actual daily use. The freeways here in the SouthWest are filled with office workers commuting in full-sized pickups without a scratch in the truck’s bed. The side-affect of being overwhelmed with choice, perhaps.

07/28, 12:31 PM

posted by:

Barry

Listen, obviously I wasnt to clear Mike. I’m saying I that Businesses, Companies, Corporations, need trucks. I wasnt sticking up for people that have no need for them but drive them anyway and then have the NERVE to complain. and #6 needs to acknowlege that things are more spread out here than in many of those countries. I dont think a mini-sized van is gonna be able to transport lumber, and supplies over very long distances.

07/28, 12:45 PM

posted by:

Anonymous

“The freeways here in the SouthWest are filled with office workers commuting in full-sized pickups without a scratch in the truck’s bed.”

Soeaking of arrogance and hubris…

07/28, 12:46 PM

posted by:

Anonymous

“The freeways here in the SouthWest are filled with office workers commuting in full-sized pickups without a scratch in the truck’s bed. The side-affect of being overwhelmed with choice, perhaps.”

Speaking of arrogance and hubris…

07/28, 1:49 PM

posted by:

stuart

The lost is not because they have crap cars that don’t sell like GM or Ford. Its because all their cars are either new or updated toward the end of this year meaning everyone is holding back on buying last years version for the new product.

07/28, 4:54 PM

posted by:

2006300C

I just paid $2.20 per gal for midgrade for my HEMI. Thank you advantage card. 4200lbs car, 18 MPG in city/surburban traffic, a fill up every 2 1/2 weeks. and 27 mpg at 75mph. God bless the lazy pushrod V8 and MDS.

07/28, 10:35 PM

posted by:

Mike's Fleet Enema

chryslers are **** what do you expect?

07/29, 10:29 AM

posted by:

Lee Iacocca - Malibu, CA

BUY A CAR, GET A CHECK !

07/29, 12:59 PM

posted by:

BMW850

I still like Chrysler very much. In fact, my daddy is going to buy one for me.

 
 
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