Surprise: Analysts Saying “New Chrysler” in Trouble
The deal was just consumated earlier this week linking Chrysler’s future to Fiat and analysts are already saying “there’s trouble in paradise.”
Chrysler has few new vehicles headed to its drastically reduced network of dealers. Its aging model lineup is still heavy with bigger vehicles, and its offerings in the growing small and midsize markets haven’t caught on.
Meanwhile, small cars designed by new Italian parent Fiat Group SpA won’t make it to U.S. shores until late next year and there are no guarantees they will entice great numbers of American drivers.
Don’t you just love it when the government gets involved? Don’t worry; Obama and the kid he moved up from the mailroom will save the day.
The mid-size sedan represents the volume segment of the car market. The Dodge Avenger and Chrysler Sebring have been duds since the day they were introduced. Theycompete with Accord, Camry, Altima, Malibu and Fusion, all of which are far more popular.
[1]
GM and Chrysler will both end up liquidating. Doubt Ford can be saved either
Aren’t labor unions wonderful?
You get excellent wages right up until the time you get fired. What a deal!!
[2]
Chrysler would have a better chance of importing Russian Lada’s. At least their heaters work!
[3]
MFG -
As I keep telling you, in the auto industry there is plenty of blame to go around. You can blame much of the high labor cost and some of the quality problems on the UAW.
But, the UAW didn’t design cars like the Avenger aqnd Sebring that no one wants to buy, nor did it plan the disasterous Silverado advertising/marketing campaign that cost the Silverado the opportunity to overtake the F-150.
[4]
The UAW guarantees that these companies cannot make a profit due to their ridiculous compensation levels
If these companies were non union they’d be hurting big time but they wouldn’t be at death’s door
When these companies fold it will be 100% the union’s fault because they preferred the death of the goose that laid the golden egg to moderating their wage demands in any way
Absolutely shameful and disgraceful
[5]
Unions and the people in them are insane. The largest union at the Boston Globe just voted down any concessions demanded by their owners (the rapidly deteriorating NYT). Apparently they would rather have a 100% pay cut than a 23% pay cut.
[6]
phineas gage wrote:
“The largest union at the Boston Globe just voted down any concessions demanded by their owners (the rapidly deteriorating NYT). Apparently they would rather have a 100% pay cut than a 23% pay cut.”
But phineas, THAT’S A GOOD THING.
Again, it was the decision of management to take a hard left editorial policy and slant the news to reflect liberal views, thereby alienating conservative and fair-minded liberal readers.
Like with Chrysler and GM, there’s plenty of blame to go around.
[7]
Oh, certainly I think it is wonderful news. I will celebrate the blessed day that the Globe goes tits up (which hopefully will be very soon).
But you have to wonder what these union drones are thinking. They are appear to be completely detached from reality.
[8]
You really wonder, PG
Reminds me of Bayou Steel here in LA a number of years ago: the union goons were told they had two choices, jobs at $25 an hour or “you’re fired” at $35 an hour
Guess which one they picked?
Unions: another psychiatric condition masquerading as an organization
[9]
Someone here once commented that Unions were created to watch over the worker, and do their collective bargaining bit to achieve a fair worker wage.
However, those days are long gone, and union leaders have become political bureaucrats preserving their power and monetary benefits over those of the workers.
A lot of workers see this too, just not the majority of them!
[10]
“Chrysler has few new vehicles headed to its drastically reduced network of dealers…Meanwhile, small cars designed by new Italian parent Fiat Group SpA won’t make it to U.S. shores until late next year”
Expect “New Chrysler” to shortly announce: In the 12 months over 600,000 Chrysler products will be bought from Chrylser or not bought from someone else!
hey…it’s working for our Dear Leader!
[11]
Chrysler is still in trouble. But GM is headed for smooth sailing.
Here is the debut of the prototype for the 2011 Corvette. — link. Imagine all that extra trunk space that Corvette never had before!
[12]
Looks like ‘getting in their face’ is getting a try out. Barney Frank can’t take the heat — link
[13]
Here is the real reason you don’t want to buy a Chrysler car right now, or even a used one –
[source]
[14]
“…the day the music died.”
BTW that song could make a good parody with the events of the last 6 months.