Is Chrysler done?

[the Teuton]

Labor concessions or no-go

DETROIT (AP) -- With just 15 days left before the U.S. government pulls the plug on Chrysler, the only man who appears able to save the struggling automaker is casting doubt on whether a deal can be worked out. Fiat CEO Sergio Marchionne, in an interview published Wednesday, said the Italian automaker will walk away from a nonbinding agreement to take a 20 percent stake in Chrysler and share its small car technology unless the U.S. automaker's unions agree to major cost cuts.

A Fiat spokesman confirmed Marchionne's statements.

Chrysler, which is living on $4 billion in loans from the U.S. government, has to take on a partner and gain concessions from unions and debtholders by April 30, or the Obama administration will stop lending it money. No other suitors have emerged, and it's likely that no bankruptcy financing will be available, so Chrysler would have little choice but to be auctioned off in pieces.

http://finance.yahoo.com/news/Fiat-CEO-Labor-concessions-or-apf-14939134.html

Eeenteresting...

[the Teuton]

Personally, I can't wait until the Chinese buy the rights to AMC and make a new AMX using Brilliance technology.

[omicron]

Personally, I can't wait until the Chinese buy the rights to AMC and make a new AMX using Brilliance technology.

Wash your mouth out with soap and burn at the stake, wench! This jocularity displeases me.

[Submariner]

I love the UAW!

[Byteme]

Labor concessions or no-go

DETROIT (AP) -- With just 15 days left before the U.S. government pulls the plug on Chrysler, the only man who appears able to save the struggling automaker is casting doubt on whether a deal can be worked out. Fiat CEO Sergio Marchionne, in an interview published Wednesday, said the Italian automaker will walk away from a nonbinding agreement to take a 20 percent stake in Chrysler and share its small car technology unless the U.S. automaker's unions agree to major cost cuts.

A Fiat spokesman confirmed Marchionne's statements.

Chrysler, which is living on $4 billion in loans from the U.S. government, has to take on a partner and gain concessions from unions and debtholders by April 30, or the Obama administration will stop lending it money. No other suitors have emerged, and it's likely that no bankruptcy financing will be available, so Chrysler would have little choice but to be auctioned off in pieces.

http://finance.yahoo.com/news/Fiat-CEO-Labor-concessions-or-apf-14939134.html

Eeenteresting...

Sounds like the UAW needs to wake up and realize they are burning down their own house.

[GoCougs]

Yet another shocking example of Europe to right of the US on matters economic thought unimaginable a year ago...

I think it a foregone conclusion that the solution to the UAW sickness is a sacrificial anode - and unfortunately that looks to be Chrysler.

It is hoped that if Chrysler does go down in flames, Ford and GM will find it within themselves to break the union all together.

[2o6]

I think they'll be sold off in pieces. If Chrysler doesn't partner with FIAT, then FIAT will buy the rest of the liquidated assets when Chrysler dies. Then the Chinese will raid and buy their technologies, and turn out a new Caliber three months later.

[Speed_Racer]

Sounds like the UAW needs to wake up and realize they are burning down their own house.

They're so prideful (and unintelligent), I doubt that they even care.

[Nethead]

It just doesn't seem possible for Chrysler to survive in today's tough, tough automotive marketplace--even Jeep would have a hard time going it alone.

When Chrysler decided to let the PT Cruiser die, they sealed the fate of the one vehicle they build that I would have considered when tradin' time comes for one of my two four-wheeled pavement vehicles.  Vipers are great, of course, but I would never spend Viper money on a vehicle.

The rest of their line-up except for the Charger is pretty much outclassed, except for some of the Jeeps.  People know this, and they're shopping elsewhere...

Too much was invested into "That thang got a Hemi innit?" and too little was invested into good automotive sense.  The Ram was the only Chrysler product whose sales were in the top fifteen for this past March--still significantly below Silverado sales and waayyy below F150 sales despite receiving substantial improvements in 2009. 

There are insufficient funds to fix all of Chrysler's myriad problems, and they will survive only as long as they can get the bail-out bucks.  When those stop, they'll be liquidated soon thereafter...

[NomisR]

The only way for them to survive is to significantly shrink in size, go to single brand, 3-4 car lineup, and start from scratch.  Otherwise, they're a goners.

[r0tor]

i think they will be sold off and the brand will survive but take a backseat to whichever company buys them out... more likely fiat will turn all the dealers into Fiat/Alfa/Chrysler dealers and Chrysler will have 2 or 3 cars total

[NomisR]

i think they will be sold off and the brand will survive but take a backseat to whichever company buys them out... more likely fiat will turn all the dealers into Fiat/Alfa/Chrysler dealers and Chrysler will have 2 or 3 cars total

I can't decide whether driving a mainstream Italian car is a good thing or a bad thing.  Their reliability scares me.

[the Teuton]

Do the Fiats still have GM engines?

I can't see the Chrysler engines being too refined.

[CALL_911]

I can't decide whether driving a mainstream Italian car is a good thing or a bad thing.  Their reliability scares me.

I wouldn't have expected that from the driver of a British car.

[Vinsanity]

The only way for them to survive is to significantly shrink in size, go to single brand, 3-4 car lineup, and start from scratch.  Otherwise, they're a goners.

1. Jeep Grand Cherokee
2. Dodge Ram
3. Dodge Grand Caravan
4. new Chrysler 300?

I can't imagine what single brand all of these would be sold under. Chrysler Ram and Chrysler Grand Cherokee doesn't sound right.

[AutobahnSHO]

I think they should go w/ two brands- economy and more luxury ish.
They really have to keep the Chrysler Town & Country too..
There is a massive amount of idiotz who don't know the difference and will pay the extra.

[NomisR]

I wouldn't have expected that from the driver of a British car.

Remember, Japanese engine.  And the car's simple enough where I can most everything.  On a mainstream car.. well.. it's a lot more complex than that. 

[2o6]

1. Jeep Grand Cherokee
2. Dodge Ram
3. Dodge Grand Caravan
4. new Chrysler 300?

I can't imagine what single brand all of these would be sold under. Chrysler Ram and Chrysler Grand Cherokee doesn't sound right.

Maybe they'll do like Japan and make fake brands, like how Toyota has a billion sub-brands but not really a head market/president for them.

[MX793]

Maybe they'll do like Japan and make fake brands, like how Toyota has a billion sub-brands but not really a head market/president for them.

What does Toyota have besides Daihatsu, Scion and Lexus?

[2o6]

What does Toyota have besides Daihatsu, Scion and Lexus?

Netz, Toyota Corolla, Toyopet.


Technically, these are dealers that only sell certain models, but I think it would be ok for Chrysler to simply do a badge swap calling it a "Dodge" but in reality it's formal name is Chrysler.

[the Teuton]

Netz, Toyota Corolla, Toyopet.


Technically, these are dealers that only sell certain models, but I think it would be ok for Chrysler to simply do a badge swap calling it a "Dodge" but in reality it's formal name is Chrysler.

AMC Eagle


Eagle Premier


This has happened before, but with pretty bad results.

[2o6]

AMC Eagle


Eagle Premier


This has happened before, but with pretty bad results.

No, those two cars were not very good.

[the Teuton]

Neither are the current Chrysler offerings.  What's your point?

[the Teuton]

There has to be some humor in the fact that the only single model to have survived both of AMC's/Chrysler's last foray of problems and the current ones is the Jeep Wrangler.

It really is indestructible.

[GoCougs]

I think you guys are being a bit optimistic as to how easily the company's brands can be parsed. So much is interconnected; from the plants, to the suppliers, to the marketing, to the design. Even if it were possible from a business perspective, said buyers would have to contend with the aftermath of a broken UAW.

Prospective buyers (automakers) I imagine would simply be content to let Chrysler disappear, and rather throw their resources into going after that massive whole in US market share rather than trying to resurrect a legacy of walking death (read: harmful to Diamler, Cerberus).

When they mean "auctioned off in pieces" I think they pretty much mean that assets are liquidated for immediate gain; debts get bought by investors, plants get bought by other manufacturers, inventory gets bought by cheapskates, etc. At best other automakers will buy trademarks and associated IP, but when Chrysler goes under, my bet is that their cars are gone.

[the Teuton]

I would love to see AM General buy the rights back to American Motors and all of the brands that went with it just to get that all in the right place again.

[the Teuton]

Buh-bye, Mr. Nardelli.

Fiat's gonna pull a Carlos Ghosn.

By JEFF BENNETT

DETROIT -- Chrysler LLC will likely get a new chief executive and board of directors appointed by Italy's Fiat SpA and the U. S. government, if Chrysler and Fiat follow through on their plans to form an alliance, Chrysler's current CEO told employees in a letter.

Chrysler Chief Executive Officer Bob Nardelli said a new board of directors will be appointed by the federal government and Fiat once a deal is completed. The majority of the directors will be independent.

http://online.wsj.com/article/SB123994324841228591.html

[Laconian]

There has to be some humor in the fact that the only single model to have survived both of AMC's/Chrysler's last foray of problems and the current ones is the Jeep Wrangler.

It really is indestructible.

More like a curse!

[280Z Turbo]

Great! Now Obama can get to work building the kind of fuel efficient cars that Americans don't want.

[Soup DeVille]

There has to be some humor in the fact that the only single model to have survived both of AMC's/Chrysler's last foray of problems and the current ones is the Jeep Wrangler.

It really is indestructible.

Its survived American Bantam, Kaiser, AMC, AMC/Renault, Chrysler, and DaimlerChrysler.

It will survive Chryslerberus as well.