Opinion: Small Town Chrysler… Memories Served…
From the article: “The car business is a great business. Despite the economic downturn and widespread recession- basically ruining domestic car sales- the car business is a simple business of people and cars. It’s a fun business. It’s exciting as jobs go. You’re selling what people want, what they’re happy spending money on- no matter the love, (or not) for the automobile, let’s face it- American’s love the smell of a new car. If given the choice of buying a new car and say, toilet paper, toothpaste, or maybe life insurance- they’d pick cars. Trust me.
My tenure at Chrysler was typical and short. I sold a lot of cars, did pretty well, had to lie on every profitable sale, work my ass-off on every pain-in-the-ass deal, only to make $50 bucks before taxes, per copy. Sixty hours weeks on your feet, most often six days a week, in all sorts of weather donning a suit. Rain, sleet, snow, didn’t matter. Push metal, hold gross, make it happen. Hope for the next “five-pounder” to make your week. I’m not saying it’s right; it is what it is (was…). By the way, a five-pounder is a deal with $5,000 gross profit in the front-end (above invoice)- a very good score for a salesmen who makes his money on a percentage of gross profit…
I worked alongside ex-cons, drug addicts, misfits; not all of them, just some of the more memorable ones. The smart ones (and there were many) weren’t honest and the honest ones, well, made no money! They were blown-out, fired, sometimes in a matter of days.”
Small Town Chrysler… Memories Served… - zerohedge.blogspot.com
May 17th, 2009 at 11:58 am
http://autos.yahoo.com/articles/autos_content_landing_pages/983/the-biggest-car-flops-of-the-past-25-years/;_ylc=X3oDMTE5ZW5lMWdrBF9TAzI3MTYxNDkEc2VjA2ZwLXRvZGF5BHNsawNhdXRvLWZsb3BzLTI1
That sales guy is poignant. His views on the painful demise of so many local, family-owned businesses for the greater good of Chrysler and the industry is what conservative economists and the Wall Street Journal editorial page call “creative destruction.” It is an an essential component of free-market capitalism. Nobody said it was fair or pretty.
On another subject, here’s Car and Driver’s list of The Biggest
Car Flops of the Past 25 Years. Opinions will differ, of course. Note that only three are Chrysler products, Crossfire, TC by Maserati, and the Durango Hybrid. If the is going to be a list of the biggest successes of the past 25 years, at least two would have to be the Chrysler products that led to the creation of two market segments, the minivan and the Jeep Cherokee that gave birth to the SUV segment. Some folks would add the K Cars.
May 17th, 2009 at 7:48 pm
http://www.usatoday.com/money/autos/2009-05-17-gm-chrysler-auto-dealers_N.htm
Dumped GM, Chrysler dealers enduring grieving process
USA Today
May 17
May 17th, 2009 at 9:38 pm
SO FAR SO GOOD
Editorial in The New York Times
May 18, 2009
Less than three weeks after Chrysler filed for bankruptcy protection, it looks as if the Obama administration will pull off its goal of completing the carmaker’s restructuring by June, allowing it to emerge as a smaller, more viable contender in the global auto market.
Unfortunately, Detroit’s problems — and the White House’s — don’t end there. Still looming is the fate of General Motors, a much larger and more complex company than Chrysler. G.M.’s bankruptcy is becoming increasingly likely as its bondholders refuse to accept the government’s terms for a restructuring out of court.
Even if G.M. — with a lot of help — manages to survive bankruptcy, it has yet to show that it has a solution for one of its most fundamental problems: its inability to make cars that consumers want to drive. This is the government’s problem too. Under a plan being negotiated by General Motors and the Treasury, the government would swap some of its loans for a stake of at least 50 percent.
So far, it looks as if Chrysler will emerge from its restructuring a more sensible company, linked up to Italy’s Fiat, which knows how to manufacture and sell fuel-efficient cars. The deal, which could give Fiat up to 51 percent of Chrysler, was designed under the eye of the government to increase Chrysler’s sales overseas and get Fiat to develop fuel-efficient vehicles in the United States by 2013.
Chrysler’s bankruptcy has been so smooth and fast because the government held its hand all the way — including providing financing to keep it running through bankruptcy and cover its warranties so consumers would keep buying.
The process started with a precooked government plan to divvy up the company between Fiat, a trust fund run by the United Automobile Workers union and the American and Canadian governments. Even then it took a sympathetic bankruptcy judge to convince a group of recalcitrant lenders that it was in their best interest to drop their opposition. The company is still meeting fierce resistance from some of the 789 dealers it plans to shutter, as it shrinks to fit its smaller role in the global market.
G.M.’s restructuring is unlikely to go so smoothly. Many of G.M.’s creditors vehemently oppose the government’s plan to give them a 10 percent share of the company in exchange for debt worth some $27 billion while giving 39 percent to a fund run by the U.A.W. to cover obligations worth $10 billion.
The company must still slash labor costs further, and probably fire 20,000 additional workers. It wants to close hundreds of its dealerships. A bankruptcy process would be further complicated by G.M.’s sprawling global nature — and by the prospect that its subsidiaries might have to simultaneously file for bankruptcy in other countries.
Even assuming G.M.’s likely bankruptcy ends felicitously, the automaker will have to pull off the trick of becoming an entirely different company — one that can make fuel-efficient cars to serve a future of expensive energy and environmental strain and then persuade American consumers to buy them. It has little experience with either.
Culling the Hummer and launching the Chevy Volt won’t be enough. G.M. must swiftly pare its gas-guzzling truck and S.U.V. lines, which last year accounted for 11 of its 20 top-selling brands. It must accelerate development of gas-electric hybrids and other higher-technology cars. Pulling this off successfully could well require further help from Washington to coax drivers to pay the premium for fuel-efficient cars.
Fortunately, the government, the U.A.W. and G.M.’s new leadership all seem to get it. They share a broad vision of where the company needs to go. Pulling it off won’t be easy.
http://www.nytimes.com/2009/05/18/opinion/18mon1.html?pagewanted=print
May 17th, 2009 at 9:44 pm
SO FAR SO GOOD
The New York Times
Editorial
May 18
Less than three weeks after Chrysler filed for bankruptcy protection, it looks as if the Obama administration will pull off its goal of completing the carmaker’s restructuring by June, allowing it to emerge as a smaller, more viable contender in the global auto market.
Unfortunately, Detroit’s problems — and the White House’s — don’t end there. Still looming is the fate of General Motors, a much larger and more complex company than Chrysler. G.M.’s bankruptcy is becoming increasingly likely as its bondholders refuse to accept the government’s terms for a restructuring out of court.
Even if G.M. — with a lot of help — manages to survive bankruptcy, it has yet to show that it has a solution for one of its most fundamental problems: its inability to make cars that consumers want to drive. This is the government’s problem too. Under a plan being negotiated by General Motors and the Treasury, the government would swap some of its loans for a stake of at least 50 percent.
So far, it looks as if Chrysler will emerge from its restructuring a more sensible company, linked up to Italy’s Fiat, which knows how to manufacture and sell fuel-efficient cars. The deal, which could give Fiat up to 51 percent of Chrysler, was designed under the eye of the government to increase Chrysler’s sales overseas and get Fiat to develop fuel-efficient vehicles in the United States by 2013.
Chrysler’s bankruptcy has been so smooth and fast because the government held its hand all the way — including providing financing to keep it running through bankruptcy and cover its warranties so consumers would keep buying.
The process started with a precooked government plan to divvy up the company between Fiat, a trust fund run by the United Automobile Workers union and the American and Canadian governments. Even then it took a sympathetic bankruptcy judge to convince a group of recalcitrant lenders that it was in their best interest to drop their opposition. The company is still meeting fierce resistance from some of the 789 dealers it plans to shutter, as it shrinks to fit its smaller role in the global market.
G.M.’s restructuring is unlikely to go so smoothly. Many of G.M.’s creditors vehemently oppose the government’s plan to give them a 10 percent share of the company in exchange for debt worth some $27 billion while giving 39 percent to a fund run by the U.A.W. to cover obligations worth $10 billion.
The company must still slash labor costs further, and probably fire 20,000 additional workers. It wants to close hundreds of its dealerships. A bankruptcy process would be further complicated by G.M.’s sprawling global nature — and by the prospect that its subsidiaries might have to simultaneously file for bankruptcy in other countries.
Even assuming G.M.’s likely bankruptcy ends felicitously, the automaker will have to pull off the trick of becoming an entirely different company — one that can make fuel-efficient cars to serve a future of expensive energy and environmental strain and then persuade American consumers to buy them. It has little experience with either.
Culling the Hummer and launching the Chevy Volt won’t be enough. G.M. must swiftly pare its gas-guzzling truck and S.U.V. lines, which last year accounted for 11 of its 20 top-selling brands. It must accelerate development of gas-electric hybrids and other higher-technology cars. Pulling this off successfully could well require further help from Washington to coax drivers to pay the premium for fuel-efficient cars.
Fortunately, the government, the U.A.W. and G.M.’s new leadership all seem to get it. They share a broad vision of where the company needs to go. Pulling it off won’t be easy.
Copyright 2009 The New York Times Company
May 18th, 2009 at 9:48 am
http://www.autoobserver.com/2009/05/commentary-marchionnes-plan-is-gutsy-but-iffy.html
Marchionne’s Plan Is Gutsy But Iffy
Edmunds’ Auto Observer
May 18
This appears to be the European edition, is datelined London, and is worth reading. At the bottom it list all other mergers and consolidations in the automotive industry.
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My apologies to Site Admin and everyone on this blog for inadvertently posting that New York Times editorial twice. I goofed. Please forgive me.
May 18th, 2009 at 12:09 pm
Wanted: New Chrysler dealers for open points. Huh?
Bradford Wernle
Automotive News
May 18, 2009 - 12:01 am ET
DETROIT — Hard to believe, but the new Chrysler is about to have some open points.
Chrysler did more last week than thin the dealer ranks in clogged metro markets. Chrysler also took out some underperforming dealers, leaving some good smaller markets without any Chrysler stores.
Chrysler President Jim Press said the company will be back in those markets.
Chrysler has been managing its dealer count downward in overdealered metro markets, a program called Project Genesis.
Since bankruptcy allows Chrysler to abrogate contracts, Press said, the company has been “able to solve some Genesis opportunities, able to solve some chronic deficiencies.
“That creates a number of open point opportunities.”
WHAT? Maybe if Chrysler had taken better care of it’s rural dealers they wouldn’t have under performed!
I guess Mr. Press was true to his word when he said he had a great memory and that there would be a hit list for Chrysler dealers that didn’t load up with product this past winter and spring.
I wish you could have heard the threats Press made towards the dealer body on Chrysler conference calls. Let us not forget the out cry by the dealer body forcing Mr. Press to issue an apology for remarks made, a shallow one at best.
Press and Landry have already started to threaten dealers with costly facility upgrades and training investments, these guys actually believe that they are in a position of strength.
You’d have to be nuts to get involved with a company that just wiped out some of the most loyal hard working Chrysler dealers on the planet.
May 18th, 2009 at 3:27 pm
Here is some great news for chrysler,,,NOT
Obama to unveil big increase in required mpg
New rule will set 42 mpg for cars starting in 2016, sources say
http://www.msnbc.msn.com/id/30810514
May 18th, 2009 at 3:34 pm
42 mpg? Now i think chrysler is really finished!
May 19th, 2009 at 12:40 am
Chrysler is NOT finished, it is now the Fiat deal is a great thing with Fiat’s fuel saving and small engines!
May 19th, 2009 at 2:42 pm
http://www.detnews.com/article/20090519/AUTO01/905190420/1361/Zetsche—Strong-hope–for-Chrysler-Fiat-success
Zetche: “Strong hope for Chrysler-Fiat success”
Detroit News
May 19
May 19th, 2009 at 10:43 pm
Tim - Fleet average by 2016 is actually 35.5mpg in the Obama plan. It was California that was looking for 42mpg. Which is not a huge suprise, CA is coastal and thus has more to lose from rising sea levels.
Personally I think its a good thing, it’ll force these manufacturers to bring more diesels to the US, I’d kill for a diesel Patriot(42mpg in the EU model).
May 20th, 2009 at 6:39 am
Car and Driver missed it the flop of Durango and Aspen hybrids was the economy, and the Crossfire was an Opel/Daimler deal to save its joint obligations. Chrysler’s only the patsy to market them.
Why weren’t the Saturn/Pontiac small convertibles mentioned?
May 20th, 2009 at 6:43 am
What happened to the Liberty CRD, 4 cylinder diesel economy the power of a V6 and it was quiet as far as diesels go.
May 20th, 2009 at 10:19 am
Emissions regs changed in 07 and Chrysler decided not to update the engine, instead going with a CRD Grand Cherokee BluTec that could meet the new regs. Too bad too, I drive a 06 Liberty CRD myself and love it. Got 32.7MPG last summer on a 7200 mile road trip.
May 20th, 2009 at 1:07 pm
Tightening emissions regulations are what happened to the Liberty diesel.
May 20th, 2009 at 2:05 pm
Kidder to be new chairman:
http://www.leftlanenews.com/breaking-chrysler-names-c-robert-kidder-as-new-chairman.html
Interesting.
May 20th, 2009 at 2:15 pm
Looks like gas prices keep getting higher and higher. This is not good for chrysler!
May 20th, 2009 at 7:30 pm
Tim, surely Chrysler will be able to meet Obama’s required fleet averages of 42 MPG by rebadging those Fiat 500’s as Dodge Neon’s and Chrysler Cordoba’s. Why be so negative during the coming Renaissance period for this great American icon in all her glory? Don’t worry, be happy that Chrysler will survive and thrive under Kidder’s new leadership! I predict that when Chrysler remerges from bankruptcy, it will enter another “golden era” just as it did under Lynn Townsend, when the Crown Imperial reigned supreme, Chrysler was a rich man’s car, Dodge had them all beat on performance, and Plymouth was the #1 best selling car in America. Go Kidder Go!
May 21st, 2009 at 5:36 am
Thanks for the info,
The environmment has killed a great car, Daimler should have made the changes.
You can’t find one used in a 600 mile radius. (Liberty CRD)
May 21st, 2009 at 11:43 am
The environment didn’t kill it, similiar diesel engines are being sold in the US by Mercedes, VW and BMW. Chrysler did not decide to do it, I don’t know why. Very frustrating. I have no intention of upgrading to a new vehicle until I can find something else with a diesel engine. Probably for the best, only a year from paying off the Libby which is wiser than buying something new(despite how much I want a GC).
May 23rd, 2009 at 9:09 pm
Obama is running Chrysler in the ditch. The guy knows nothing about the auto industry.
May 30th, 2009 at 6:47 pm
Chrysler was in the ditch long before you ever heard of Obama.
May 30th, 2009 at 8:05 pm
Obama is riding high now, my friend. Yes, he is the man. Only time will tell if he will be either one of the most successful U. S. leaders ever, or if he will be one of our worst. Anyone remember the misery index of the Carter years? Obama has successfully isolated the Clintons for now. And, yes, they are in retreat. But keep you eyes on them - for just as soon as this run-away train wrecks, and it will, our friends, Bill and Hill, will be back. Yes, friends, they will be back. But for now they are waiting, as buzzards on a dead tree limb. They are waiting for their moment to strike when the iron is hot. No more Kool-aid!
May 31st, 2009 at 1:45 pm
Pathetic.