http://www.autoblog.com/2009/0...elli-steps-down-press/
That was one hell of a fast bankruptcy, hopefully GM's is just as fast...
Chrysler no longer in Bankruptcy
- Thread starter MikeMike
- Start date
http://www.autoblog.com/2009/0...elli-steps-down-press/
That was one hell of a fast bankruptcy, hopefully GM's is just as fast...
StageLeft
No Lifer
- Sep 29, 2000
- 70,150
- 5
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Pretty quick from what I understand (which is very little).
Now we just need a poll on how long until Chrysler gets itself fvcked up again and requires another bail-out and or bankruptcy. Bonus prediction if they can take Fiat down with them. Hot potato alert!
Now we just need a poll on how long until Chrysler gets itself fvcked up again and requires another bail-out and or bankruptcy. Bonus prediction if they can take Fiat down with them. Hot potato alert!
MovingTarget
Diamond Member
- Jun 22, 2003
- 9,002
- 115
- 106
Chrysler may not be bankrupt anymore, but I suspect that many former dealers will be soon. They really got the shaft in the deal. At least the GM dealers have some time to sell down their current inventory.
While that would nice, Chrysler is much smaller than GM. Chrysler is almost exclusively in the US.
I've said it before, but GM is so much bigger than people realize. You could get rid of all of GM's US sales and they'd still be one of the largest manufacturers. Of course, that will change with the sale of Opel and Vauxhaull.
50 percent of Chrysler dealers account for about 90 percent of the company's U.S. sales.
Good riddance to 'em.
ProfJohn
Lifer
- Jul 28, 2006
- 18,161
- 7
- 0
That is an over simplification of the issue though.
I worked at a Honda dealer in Orlando for a bit. We sold about 300 cars a month and the other 3 Orlando dealers sold similar.
Meanwhile the only dealer in Ocala sold less than 100 a month.
If we used simple math we would close the Ocala dealer long before the Orlando dealers, but that would be a mistake because you would end up losing all those customers who would instead buy Toyotas etc etc. So instead you close 2 of the Orlando dealers knowing that people who want to buy Hondas in Orlando will go to the two remaining dealers.
I am sure if you study the Chrysler and GM dealer closings you will see a similar pattern, certainly saw it on those threads claiming Republican dealers were being closed. (I am not debating that issue or giving the claim credence.) But there were lots of examples of two or three dealers in some markets being closed while in other markets no dealers were closed.
I am sure if you found a map of dealers before and after you would still see a similar amount of national coverage. What you will see a lot less of is dealers overlapping and competing for each others business.
Patranus
Diamond Member
- Apr 15, 2007
- 9,280
- 0
- 0
Exactly.
The biggest problem is they are making cars that no one wants to buy.
The small car market (compact/subcompact) is only 15% total US car sales
SOURCE: http://www.msnbc.msn.com/id/31060544
So not only will they continue to make a poor product but will increase production of models people DO NOT want to buy.
I am fairly sure that GM will follow a similar strategy under its new government appointed CEO (who recently said he knows nothing about cars) and make small "energy efficient cars" that no one will buy.
That is also troubling. The bond markets could easily dry up because of it and that would be death to many companies that need to raise capital.
feralkid
Lifer
- Jan 28, 2002
- 16,831
- 4,934
- 136
Post the whole quote, dammit!
"The small car segment, including compact and subcompact vehicles, represents about 15 percent of all U.S. vehicle sales, and is extremely important to Chrysler?s future, said Michelle Krebs, editor of Edmunds.com?s AutoObserver.com Web site."
You try to make it sound like peanuts. :roll:
15% of the U.S. vehicle market is HUGE.
Patranus
Diamond Member
- Apr 15, 2007
- 9,280
- 0
- 0
How did I misrepresent it?
I said EXACTLY what the article states the small car market is only 15% of total US car sales.
So, why would you leverage your companies future on 15% of the market when you are ignoring the other 85% of the market? NO ONE WANT TO BUY A SMALL CAR but now we have GM and Chrysler focusing their production on small cars. They are just building more car models people do not want to buy.
Oh, they burned through tens of billions of dollars of "bailout money" AND STILL WENT BANKRUPT so I guess buying them is good investment......
feralkid
Lifer
- Jan 28, 2002
- 16,831
- 4,934
- 136
You misquoted. I posted the direct quote from the article; you paraphrased and spun it to your liking.
You seem to have a very poor understanding of recent history.
It was always assumed GM and Chrysler would go through bankruptcy...the bailout money was to prepare their asset liquidation and assure a softer landing.
So far it has gone about as well as was expected, in many ways better; but all you can do is predict more doom and gloom and try to fudge the numbers, hoping they fail.
The article stated that Chrysler depended on sales of SUVs, trucks and van too much and not enough on small cars. Chrysler doesn't make many small cars, the Dodge Caliber hatchback is kind of small. Chrysler has nothing like the Honda Civic or Toyota Corolla, which are money makers. Chrysler mid-size sedans are the Sebring and the Dodge Avenger, which are average at best, there are better cars out there. Chrysler large cars like the 300C were well received, but need an upgrade to be competitive against the Hyundai Genesis. As the price of gas creeps toward $3/gal, I don't see too many people buy cars with big V-8.
SunSamurai
Diamond Member
- Jan 16, 2005
- 3,914
- 0
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Arkaign
Lifer
- Oct 27, 2006
- 20,736
- 1,379
- 126
No!!! :'(
The 1st-gen Avengers actually looked nice style-wise, aside from being flaming piles of crap. Now they're both flaming piles of crap *AND* hideous to boot.
Oh well, they can turn it around, just need a good plan built around making affordable, reliable, stylish products.
ProfJohn
Lifer
- Jul 28, 2006
- 18,161
- 7
- 0
^ easier said than done.
What the domestics really need to do is get rid of design by committee. That is what has killed a TON of their design work.
Have read some interesting first hand stories about how they start with some amazing concept car that all the press loves and then 3 years later produce a car model that no one wants to buy.
Perfect example: http://www.autogazeta.com/g/337/Aztec2002_b.jpg
Who the hell decided that the Pontiac Aztec was a car that people would really want to buy?
Certainly had some neat features, but it was ugly as hell!!!
What the domestics really need to do is get rid of design by committee. That is what has killed a TON of their design work.
Have read some interesting first hand stories about how they start with some amazing concept car that all the press loves and then 3 years later produce a car model that no one wants to buy.
Perfect example: http://www.autogazeta.com/g/337/Aztec2002_b.jpg
Who the hell decided that the Pontiac Aztec was a car that people would really want to buy?
Certainly had some neat features, but it was ugly as hell!!!
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