Chrysler in Bankruptcy, now what?

fe4snake · Apr 30, 2009

Chrysler has just filled for bankruptcy protection today.

What does this mean for us? Will the value of our cars drop or go up? Should you sell or keep it? Is your warranty in limbo? These are some of the questions that will test our devotion.

IMO I do not plan of selling any time soon. I think the Viper will still remain a very desireable piece of automobilia. Just look back at the Shelby AC cobras and what some of those are being sold for. Time will only tell.

What are some of your thoughts? :dunno:

Lawrenzo · Apr 30, 2009

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.

Martin · Apr 30, 2009

Honestly, I don't think any more dealerships will close than if the company kept along the path it was going. Keep in mind that dealerships are independently owned businesses, and they aren't directly controlled by Chrysler (other than what is in their dealership contract with Chrysler). This does NOT mean a bunch of dealerships will close - if that happened, it is NOT because of the BK filing. And, this is Chapter 11 - NOT Chapter 7. A Chapter 11 filing allows business to continue while the company is protected from creditors. A Chapter 7 is a 'going out of business' liquidation.

fe4snake · Apr 30, 2009

Well there may be an opportunity for an entepreneur to start his own tech shop.

InjectTheVenom · Apr 30, 2009

Lawrenzo said:
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.

Agreed, and not just with Vipers.
The local dealership where I had my first sniff at wrenching on cars and always take my Calibra to for inspection and parts has recently closed due to a domino-effect following the bankruptcy of a main branch organisation... yup, not a single other Opel dealership in a wide range so with my upcoming inspection next month I find myself looking for a reputable replacement where they will handle an AWD car like mine with the respect and care it needs

fe4snake · Apr 30, 2009

Martin said:
Honestly, I don't think any more dealerships will close than if the company kept along the path it was going. Keep in mind that dealerships are independently owned businesses, and they aren't directly controlled by Chrysler (other than what is in their dealership contract with Chrysler). This does NOT mean a bunch of dealerships will close - if that happened, it is NOT because of the BK filing. And, this is Chapter 11 - NOT Chapter 7. A Chapter 11 filing allows business to continue while the company is protected from creditors. A Chapter 7 is a 'going out of business' liquidation.

Remember that about 50% of all Chp. 11 go into Chp. 7 eventually. Also, eventhough the dealers are an indepentdent entity, they will not able to get additional training for Viper techs from Chrysler directly. Also, all of this is not going to happen over night but, it could happen in the near future.

Martin · Apr 30, 2009

fe4snake said:
Remember that about 50% of all Chp. 11 go into Chp. 7 eventually. Also, eventhough the dealers are an indepentdent entity, they will not able to get additional training for Viper techs from Chrysler directly. Also, all of this is not going to happen over night but, it could happen in the near future.

Sure, a percentage of Ch. 11 cases go to Ch. 7 - but the same could be said of any business at any stage of its life. You could just as easily say that half of all businesses started each year ends up going out of business, which is factual, but not exactly relevant to the context of this particular situation. It's hard to extrapolate data in a case like this - especially when there is so much support to make sure a liquidation does not happen.

Also, we're really not in a different situation regarding Viper than we were before. The assumption was that Viper was either going to be bought, or it would be shut down. Either way, the Viper ecosystem is going to change. It wouldn't surprise me if we see fewer Viper techs at dealerships one way or another, but for the forseeable future, and especially during the warranty period, I wouldn't expect to see massive changes.

DaytonaViper · Apr 30, 2009

If Chrysler goes down in flames.....should I consider finally completing my recall work before it's to late?????

fe4snake · Apr 30, 2009

Martin said:
Sure, a percentage of Ch. 11 cases go to Ch. 7 - but the same could be said of any business at any stage of its life. You could just as easily say that half of all businesses started each year ends up going out of business, which is factual, but not exactly relevant to the context of this particular situation. It's hard to extrapolate data in a case like this - especially when there is so much support to make sure a liquidation does not happen.

Also, we're really not in a different situation regarding Viper than we were before. The assumption was that Viper was either going to be bought, or it would be shut down. Either way, the Viper ecosystem is going to change. It wouldn't surprise me if we see fewer Viper techs at dealerships one way or another, but for the forseeable future, and especially during the warranty period, I wouldn't expect to see massive changes.

I will agree with you on that. I am not anxious about the whole thing. Time will only tell what the future holds for the Viper.

pauls · Apr 30, 2009

How soon you forget the eary 80s. Chrylser came back stronger than ever. I'd rather see them in bankruptcy for a few months than controlled by the Obama idiots like GM.

Gus Strakes · Apr 30, 2009

pauls said:
How soon you forget the eary 80s. Chrylser came back stronger than ever. I'd rather see them in bankruptcy for a few months than controlled by the Obama idiots like GM.

............. +1

Lawrenzo · Apr 30, 2009

Martin said:
Honestly, I don't think any more dealerships will close than if the company kept along the path it was going. Keep in mind that dealerships are independently owned businesses, and they aren't directly controlled by Chrysler (other than what is in their dealership contract with Chrysler). This does NOT mean a bunch of dealerships will close - if that happened, it is NOT because of the BK filing. And, this is Chapter 11 - NOT Chapter 7. A Chapter 11 filing allows business to continue while the company is protected from creditors. A Chapter 7 is a 'going out of business' liquidation.

From listening to the President's speech and the commentary afterwards, they led me to believe that the BK court can and will terminate franchise agreements. With no agreement from the factory, the dealers will be closing by the hundreds.

vipeuup · Apr 30, 2009

Dont forget about FIAT. They are in the game now and will help revive Chrysler. Making them better than ever.

Vman455 · Apr 30, 2009

To answer the OP: I plan on being buried in my car. I didn't buy it as an investment.

Lawrenzo · Apr 30, 2009

vipeuup said:
Dont forget about FIAT. They are in the game now and will help revive Chrysler. Making them better than ever.

OOOOHHH- put me down for ZERO of these beauties :lmao:

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Lawrenzo · Apr 30, 2009

Here's their take on the SUV- Don't think I'll be trading in my Grand Cherokee SRT8 for one of these babies :lmao:

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GTS Dean · Apr 30, 2009

pauls said:
How soon you forget the eary 80s. Chrylser came back stronger than ever. I'd rather see them in bankruptcy for a few months than controlled by the Obama idiots like GM.

Reagan was President of the USA back then. Lee Iacocca was CEO, Bob Lutz was president of Chrysler and Tom Gale was head of styling. :usa:

I'm not optimistic about a major domestic car manufacturer whose majority owners are the US goverment, the UAW and an Italian auto manufacturer. :crazy2:

Asp Man · Apr 30, 2009

Lawrenzo said:
Here's their take on the SUV- Don't think I'll be trading in my Grand Cherokee SRT8 for one of these babies

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This is what Barrack had pictured in his mind when he mentioned today about Chryco "re-aligning" their product lines to what the consumer wants.
:crazy2:

QUICKSRT10/SRT8 · Apr 30, 2009

i just hope it all works out for chrysler in the end. i will never sell i didnt buy the car as an investment

GR8_ASP · Apr 30, 2009

GTS Dean said:
Reagan was President of the USA back then. Lee Iacocca was CEO, Bob Lutz was president of Chrysler and Tom Gale was head of styling.

I'm not optimistic about a major domestic car manufacturer whose majority owners are the US goverment, the UAW and an Italian auto manufacturer.

Sorry Dean but that is not very accurate. Actually Iacocca was President, Lutz was somewhere else (he came over 10 years later) and Tom Gale was just a young pup designer. Soon after Iacocca became CEO. Guys like Hal Sperlich, Withrow and others were Iacocca's cast. And some guy named Carter was President.

Rizzo · May 1, 2009

My buddy is a dealer principal and just got back from a dealer meeting. According to him they ARE closing a ton of dealerships and its not just a few. The # would blow you away. It's in the hundreds just up here in Canada. In the US it will be a ton of them. He is excited about Fiat coming on board. He also said there will be major product cuts. He said there are too many lines. I guess it will be good in the end but a lot of heartache in the near future for a lot of dealers.

GTS Dean · May 1, 2009

GR8_ASP said:
Sorry Dean but that is not very accurate. Actually Iacocca was President, Lutz was somewhere else (he came over 10 years later) and Tom Gale was just a young pup designer. Soon after Iacocca became CEO. Guys like Hal Sperlich, Withrow and others were Iacocca's cast. And some guy named Carter was President.

Ron,

It depends on exactly what timeframe you're referring to. I will concede to your superior and more intimate knowledge of the particulars, though. The stage was set for ********** by those I mentioned in the late 80's. The 90's were the years that Chrysler's platform teams stood the industry on it's head, kicked ass and took names.

slaughterj · May 1, 2009

Martin said:
Honestly, I don't think any more dealerships will close than if the company kept along the path it was going. Keep in mind that dealerships are independently owned businesses, and they aren't directly controlled by Chrysler (other than what is in their dealership contract with Chrysler). This does NOT mean a bunch of dealerships will close - if that happened, it is NOT because of the BK filing. And, this is Chapter 11 - NOT Chapter 7. A Chapter 11 filing allows business to continue while the company is protected from creditors. A Chapter 7 is a 'going out of business' liquidation.

Lawrenzo said:

From listening to the President's speech and the commentary afterwards, they led me to believe that the BK court can and will terminate franchise agreements. With no agreement from the factory, the dealers will be closing by the hundreds.

Click to expand...

Exactly. While they are not controlled by Chrysler, they are entirely dependent on the franchise agreement, and with many of those slated for termination, plenty of dealerships will close that Chrysler could not have closed otherwise due to restrictive state laws regarding franchises. There will be blood! But hopefully Chrysler will get through it like before.

Bill Pemberton Woodhouse · May 1, 2009

Don't see much of an issue with Viper Techs or service as this has been a problem for years ,not just now. You, the consumer, have elected to go to many Dealers , not just for their sales, but for their service acumen. Since Chrysler was not even requiring Dealerships to have trained techs to get a Viper in the past 4+ years, the loss of some Dealerships and the change may bring back the mandatory training for Viper Technicians. If a Viper buyout goes through, there is no doubt , that strict , mandatory training will be implemented swiftly and should institute a more favorable experience for Snake owners Nationwide.

Just my .02 cents.

Respectfully,
Bill Pemberton :2tu:

98RT98 · May 1, 2009

their coming to take your Viper away---their coming to take your Viper away !!!!!!! :omg:

VIPER GTSR 91 · May 1, 2009

What are the Vette owners saying to this mess?

Vypr Phil · May 1, 2009

98RT98 said:
their coming to take your Viper away---their coming to take your Viper away !!!!!!!

Yep!

And their justification for doing so will be:

"You cannot have so much power in the hands of so few, it is just too dangerous and furthermore it's unfair!"

Can horsepower be redistributed too?

Phil

fe4snake · May 1, 2009

Lawrenzo said:
OOOOHHH- put me down for ZERO of these beauties

You must be registered for see images

No way I'm driving any of these things, I'd rather walk. :crazy2:

JeffTheViperMan · May 1, 2009

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. A decent looking electrical Lotus-based car - turn to Car & Driver to learn how (un)successful the similar "Tesla" has become. That I know of, they still haven't produced a single hybrid vehicle, while the Prius is in, what it's 4th generation? I mean, what are they waiting for? They're crying because they don't have any money and no one wants to invest in them. Try building something people want to buy. I love my Viper as much as all of you do, but you won't catch me dead inside a Caliber, an Avenger, or a PT Cruiser... They're desperately hoping that a reskinned version of the 300 will boost sales, but it's still the exact same car.

I mean, I don't want to see them go away either, but unless they're coming out with some NEW cars - and TOMORROW - then I don't think they have much of a chance.

Martin · May 1, 2009

Vypr Phil said:
Yep!

And their justification for doing so will be:

"You cannot have so much power in the hands of so few, it is just too dangerous and furthermore it's unfair!"

Can horsepower be redistributed too?

Phil

You crack me up!!

Regarding the dealerships, I was definitely wrong about that one. I was listening to a talk by Fiat execs who said they were looking forward to having immediate access to the vast network of Chrysler dealerships in the US and I assumed that the dealership network would be kept in place as part of the deal. Now, I'm hearing that they're doing an analysis of dealerships in 'overlapping' territories. Apparently, if two dealerships are within a certain distance of each other within an urban center, the one that is underperforming will be having some problems. Also, some 'underperforming' franchises in semi-rural areas that are close enough to an urban center so that customers can reasonably access sales/service will also be having problems with this. Not really good news...

Chrysler in Bankruptcy, now what?

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