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Daimler was obviously unimpressed by Chrysler's electrically motivated press reveal yesterday, as word comes today the German automaker is in talks to sell Cerberus its remaining 19.9% stake in Chrysler. If terms are agreed upon, the sale would mark the end of Daimler's involvement in the Auburn Hills automaker a mere ten years after embarking upon its much ballyhooed "merger of equals." The two companies are mum on the price Daimler hopes to get for its stake in Chrysler, but we'll bet it's worth at least $105 million less than it used to be. [ Automotive News , (Sub. Req.)]
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While we've previously reported on the Chrysler/Nissan small-car/pickup-truck mind meld, the Wall Street Journal now says the two companies are discussing collaboration on a mid-size vehicle platform. The report states that the agreement currently under consideration would have Nissan building mid-size sedans that Chrysler would then market under its own nameplate in the US. There's no specific mention of a platform or nameplate likely to be used, but it's not hard to speculate that the much-maligned Sebring could be replaced by the end result of such a collaboration. Jalopnik Snap Judgment: Anyone complaining about Chrysler's lack of upcoming models isn't paying attention to the news. The company appears to be actively seeking tie-ups, particularly with Nissan, that will provide it with fresh new vehicles without having to actually engineer and build them. It's as if Chrysler is moving toward a future as a vehicle marketing company rather than an actual auto manufacturer...
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The Detroit News reports today on the marriage of Chrysler and Cerberus Capital Management, which took place one year ago this week. Robert Nardelli, former head of Home Depot, beat out Tom LaSorda and Wolfgang Bernhard for the top job at the new Chrysler, joining an already troubled automaker just at the edge of what would become the country's worst auto sales period in 20 years. What the hell was he thinking? More importantly, what's he thinking now? A Chryslerberus freshman report card after the jump. Sales: D Under Nardelli and Cerberus, Chrysler has only topped DaimlerChrysler year-over-year sales numbers in one month: December, 2007. So why not a solid "F?" Because product that the new Chrysler management team had any control over the design of is only now coming to market. What they've done with their inheritance has not been impressive, but what happens in the next 12 months is going to be a more accurate assessment of Chrysler's new sales strength. Product...
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Chrysler July sales dropped below the 100,000 unit mark as consumers began to show signs that they've lost confidence in the company, reports Automotive News . While Chrysler's announcement that it would suspend leasing August 1 caused a last-minute flurry of shoppers, more ominous was a report by Complete.com that Chrysler's June "shopper count," its number of online product inquiries on major automotive Web sites, fell to the company's second-lowest on record. Hmm; loss of customer interest and no leases. Where could this be going? Jalopnik Snap Judgment : Though Chrysler's last-minute leasing bubble looked good on paper, the net effect will be to front-load shoppers, not unlike the GM "employee pricing for everyone deals" from a few years back. Combined with news of the lack of product research being conducted by potential buyers, the bad news for Chrysler is that everyone who may have been interested in driving a Chrysler probably picked one up...
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The Jeep Compass (the Jeep MK platform for the ladies) and Patriot (the Jeep MK platform for the boys) will be getting revised interiors with softer lines for 2009, according to a first look at some Mopar dealer catalogs scanned by the Chrysler forum fan-boys at Allpar . Gone are most of the hard-edged "plastic box" features that made up the first-gen mini-Jeeps, replaced by a more fluid-looking motif still using the same basic layout. Compass pictured above; Patriot interior after the jump. We're going to assume that, since this came out of a Mopar accessory catalog, the photo depicts seat warmers. But with Chrysler's interior track record, we're not ready to declare anything for certain. Jalopnik Snap Judgment: Two things to think about: First, Chryserberus is obviously listening to consumer complaints about its interiors. Second, if Compass and Patriot are getting a refresh, ecxpect Caliber to get one as well (if it survives), possibly vaulting the three (or maybe...
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Chrysler LLC revealed a $515 million first-quarter 2008 loss, despite the fact that the privately held firm isn't required to discuss earnings. So what gives? Ex-lover Daimler spilled the beans Thursday, stating that its 20% stake in Chrysler lost about $105 million in value. The Detroit News did some quick math, multiplying Daimler's loss by five, and a Chrysler spokesperson eventually confirmed that the number was in the half-a-billon dollar neighborhood. Jalopnik Snap Judgment: A little more math, based on the fact that Chrysler really has nothing besides the Ram truck coming out this year, tells us Chrysler is on track for a $2-billion-plus loss for the year, breaking their previous record of $1.6 billion. As Rebecca Lindland, auto analyst at Global Insight, said, "From a product perspective, you can't point to a light at the end of the tunnel." Ouch. So Chrysler's survival will depend upon how deep owner Halliburton Cerberus Capital Management's pockets...
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Come Halloween, Chrysler will idle its St. Louis South minivan plant indefinitely. And, just so the 1,500 employees at St. Louis South are clear about the meaning of "idle indefinitely," co-president Tom LaSorda said, "We see no intent to rerun this plant. We're idling it and it will likely be fully closed." The plant was down to one shift already; after the closure, Chrysler will source the Grand Caravan and Town & Country from its Windsor, Ontario minivan plant. Additionally, on Sept. 2, the St. Louis North truck plant will be pared down to one shift, resulting in about 900 layoffs. Chrysler had spent approximately $800 million in plant improvements to the two facilites over the past two years, so look for Cerberus to increase the price of a Town & Country Limited from $36,755 to $288,995 in an effort to recoup costs. Union leaders speculate that some of Chrysler's decision was based on political circumstances, as both St. Louis facilities voted down...
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The new Dodge Challenger is hitting showrooms. The 2009 Dodge Ram launch is scheduled for fall. But it's the sounds of silence after that when it comes to product. What's going on? One influential industry study, the Merrill Lynch "Car Wars" report (yes, that's it's real name), states Chrysler's lack of new product may be a deliberate effort on the part of owners Cerberus Capital Management to thin the herd in advance of a breakup and subsequent sale. In an excerpt that again proves financial analysts are paid by character count , the report says, "Chrysler's product pipeline severely lags the industry on a number of key metrics, which is an ominous sign for its market share. We believe that this is an active decision by new owners to rationalize the product portfolio in advance of a breakup/sale." Cerberus, of course, is denying any such plans, stating that, "We have a model that is buy, fix and hold." Uh-huh. Didn't Gordon Gecko...
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Former chairman Lee Iacocca gave a closed pep rally to Chrysler employees yesterday in Auburn Hills, once again sharing the stage with a K-car , a minivan ...and rumors of Chrysler's imminent bankruptcy. While current CEO Bob Nardelli was praising Iacocca as "Chrysler's most dynamic leader" and "a great American," Chrysler spokesman David Elshoff was telling reporters that rumblings about a forthcoming bankruptcy filing by the automaker were "without merit." Presumably addressing the present state of the industry, Iacocca said, "We'll live through it. Don't panic. Things are going to be OK." To fix the current management problems, Iacocca suggested outfitting Nardelli with wire wheel covers and a vinyl landau roof, then sending him back into the boardroom and hoping everyone would think he was a totally new CEO. The bankruptcy rumors seem to have sprung from reports this week that Chrysler drew down on a line of credit from Daimler...
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var digg_url = 'http://digg.com/business_finance/Former_Toyota_USA_President_never_owned_a_Toyota'; The Chrysler media blog's got an interview with the new Vice-Chairman of "The New Chrysler," Jim Press . Much of it's a nice little flufferview of the guy who until being snagged by Cerberus , spent thirty years at Toyota , eventually becoming President of Toyota USA and the only non-Japanese ToMoCo board member. Still, at the end of the interview was a little blurb that stood out as shockingly note-worthy: "Press has always loved cars. He built his first go-cart at age seven, got his first car when he was 12. At age 13, he started washing cars at his family's dealership in Kansas. But he said he never bought a Toyota or Lexus. The only vehicle he owns is a Yamaha motorcycle. But he'll soon be driving Chrysler vehicles." Are you kidding us -- the guy worked for Toyota for over 30 years and never once bought one of the vehicles he sold? We're stunned. Seriously, stunned. Full verbiage of the...
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