Chrysler in Bankruptcy, now what?

ViperTony

Enthusiast
Joined
Apr 3, 2006
Posts
7,554
Reaction score
0
According to my newspaper today, the following was stated (not sure if it's accurate):

- Fiat will take a 20 percent ownership on Chrysler, LLC IF it emerges from bankruptcy. The stake can rise to 35 percent.

- The U.S. government does NOT own Chrysler. The U.S. will take an 8 percent ownership stake in the company and Canada will take 2%.

- The autoworker unions will hold approximately 55% of Chrysler. Due to half of the special trust to fund their health and retirement benefits. (VEBA) will be converted to an ownership stake in the new company.

- Chrysler officials said there will clearly be a reduction of the roughly 3,200 dealers for Dodge, Chrysler and Jeep vehicles. No timetables or numbers were offered.

- Warranties are still valid while Chrysler is in bankruptcy.

This info came from McClutchy Newspapers. FYI.
 

Yellow32

Enthusiast
Joined
Sep 21, 2004
Posts
678
Reaction score
0
Location
texas
Only problem is, in the 80's Chrysler had an ace up it's sleeve - it was this little sleek thing called the "Viper." Today they've got zilch.

Actually, in the 80's Chrysler invented the minivan, that's what saved their bacon.

In fact, they bought Lamborghini PRIOR to creating the Viper...The Viper was not part of what got Chrysler going again (not to mention the Viper first shipped in 1992 - about 13 years after the Carter bailout(something like a 1.5Billion loan!)).

It was MB ("DC") that sucked the juice out of Chryser, robbed their piggy banks and spit them back out (to Cerberus).

As it stands, Chrysler is a gutted company, it will take a lot of doing to put them right again, not sure if Fiat is going to have the sales volume (stateside) to make a difference. I would think that Fiat only 'wants' them for the dealer network and maybe some manufacturing capacity. Which I am partly sure that is why the dealer network is being halved, Fiat doesn't want all of them and who really needs 3 or 4 dealerships in smaller metro areas, it's overkill.

-J
 

IL96RT10

Viper Owner
Joined
Apr 25, 2005
Posts
147
Reaction score
0
Location
Chicago IL
Guys, we have to face it. The numbers behind the Viper spell out its demise. The BK of Chrysler will only make it happen sooner. The sales volume of the Viper does not make it a profitable car for the company. Sure they can test new features on it, but even as a platform the Viper shares very few parts w/ any other cars in the product line, and to be profitable they have to be able to share not only parts but platforms. The same line has to be able to build 2-4 different cars w/ very little switchover needed. To have 1 specialty vehicle in its line up will probably mean the end of the Viper. This end will come faster if the government is trying to get their loan paid back.

Here is an article I found concerning this discussion.

"The next generation Viper roadster, referred to internally as ZC-D27 — and ZC-D29 in the case of the coupe — are no longer part of Chrysler LLC's future plans. They've been shuttled to the side — we're assuming as part of "Project Genesis," the new game plan "intended to align the needs and wants of the customer with its [Chrysler's] product portfolio and the dealer network." Or perhaps it was part of "Project Alpha" the game plan prior to "Genesis" and before Cerberus really got a good look at the books. All we know is the decision was made during the period Cerberus has been running the show in Auburn Hills.


Originally, the new version of Dodge's halo car was set to start rolling down the assembly line in January of 2009 alongside two Chrysler badged platform mates. These two new Chrysler branded performance vehicles were to be modeled after the Firepower concept car. The first one, a roadster, was given the internal name ZC-C27, and a coupe version was given the internal name ZC-C29. However we know the decision to kill the Chrysler-brand versions was made sometime in the middle of last year.
This certainly would've hurt the business case for the entire "ZC" program. The Viper is hand built at the Connor Avenue Assembly Plant. A plant that, without the Firepower, would do nothing but build Vipers and the big V10 engines that go in them. Its a plant that we're fairly certain Chrysler's new Six Sigma-loving management would probably like to close.
The general unrest and financial struggles of Chrysler played a huge role as well. When this embattled company chooses how to spend their R&D money, they have to choose very carefully. Sadly there are many other vehicles in the Chrysler lineup that need attention before they can start to think about a low volume, ******** sports car again — halo status be damned.
What now?
Chrysler recently launched the freshened, more powerful, fourth generation Viper for the 2008 model year. Original plans had this car being built for only two model years. It was meant to be a stop-gap model until the next generation "ZC" car could be brought online. Now that an all new Viper won't happen, sources tell us that the fourth generation Viper will instead be built until around the 2011 model year. We'd also venture a guess that so long as the fourth gen is being built, a few of the track prepped ACR models will continue to trickle out of the factory.
What happens after 2011? That's a question we don't yet have an answer for.
It's hard to imagine Chrysler leaving the halo car market for good — but we're thinking the future will call for a more affordable halo. Not just more affordable for the buyer but more affordable for Chrysler build. We know they'll want something that can still put up a fight with the Corvette — at least the base model — but at the same time, be much closer to the Corvette's base MSRP.
In the next one or two years, we can only a hope a concept car pops up on the auto show circuit that can give some hope for an all new, SRT hot rod. For now though, we mourn the loss of a legend.
 

InjectTheVenom

Enthusiast
Joined
Mar 10, 2004
Posts
6,859
Reaction score
0
stocking up on potatoes already! :2tu:

Same here with flower bulbs, mould cheese (hey, both of those are Dutch traditions! well except for the mould on the cheese but this is a special occasion) and rotten tomatoes :headbang:!
 

DLTARNU

Suspended
Joined
Feb 24, 2004
Posts
727
Reaction score
0
Location
Miami, FL
"The autoworker unions will hold approximately 55% of Chrysler. Due to half of the special trust to fund their health and retirement benefits. (VEBA) will be converted to an ownership stake in the new company."

An organization with the specific goal of taking as much as they can from a company, while holding the majority stake in that same company should make for rather interesting results.

If a remora attaches to itself, it doesn't go anywhere.
 

RevHeat

Viper Owner
Joined
Jan 8, 2006
Posts
804
Reaction score
1
Location
San Antonio, Texas
My only comment is that we can that Bob Eaton for all this mess. He leadership with the "merger of equals" screwed us. Thanks Bob!

Rev
 

REDBLACK

Enthusiast
Joined
Aug 16, 2008
Posts
220
Reaction score
0
Fiat Viper. No thanks. Keeping my GTS forever. My Viper Tech can service my car directly regardless of the dealer situation. Besides, I've replaced all the weak parts with aftermarket already. Pretty much bulletproof now.:D
 

slaughterj

Enthusiast
Joined
Mar 6, 2001
Posts
5,266
Reaction score
0
It's not just a warranty issue- it's also a Viper Tech issue. As dealerships are closed en-mass, there will be fewer and fewer available to offer repair service. Finding a tech nearby could become problematic.

Finding a GOOD tech nearby is already problematic for most, and I doubt it will get much worse, as those techs likely are some of the better mechanics and to be retained by dealers or hired by remaining dealers.
 

Lawrenzo

Enthusiast
Joined
Feb 9, 2001
Posts
1,752
Reaction score
4
Location
Colorado Springs
Finding a GOOD tech nearby is already problematic for most, and I doubt it will get much worse, as those techs likely are some of the better mechanics and to be retained by dealers or hired by remaining dealers.


Only if they are mobile- if they bought a house recently there's a good chance that they're stuck in place with negative equity. :(
 

Mopar488

Enthusiast
Joined
Nov 26, 2002
Posts
807
Reaction score
0
My only comment is that we can that Bob Eaton for all this mess. He leadership with the "merger of equals" screwed us. Thanks Bob!

Rev

I recently read Where Have All the Leaders Gone? by Lee Iacocca and he talks about taking the blame for hiring Bob Eaton who sold out Chrysler. Interesting read.
 
Top