More Chrysler Layoffs

[redtanrt10]

[quote

MY PREDICTION is that since all the media hype is about Ford and GM finacial problems Chrysler will be the biggest of the "Big 3" in 5 years.

Ted[/quote]

Ted I can see your passion in all your posts today. I'm passionate about viper, a two viper owner dating back to '96, and have loyality for Chrysler as an ex-employee.

With that all said, most of the people in the auto industry have grave doubts if Chrysler will be around in 5 years, as we know it today. July sales reflected another decline of 25%. The auto bussiness and the whole country are in a recession, their year over year sales will decline twice as fast as the industry until the ecomony gets better. Unlike GM and Ford, who are also in trouble, Chrysler's business is North America only where sales are already down nearly 11% and are predicted to get worse. Chrysler has no popular cars, the market is cars now with the gas prices. GM and ford are planning to bring some of their overseas vehicles to North America, Chrysler doesn't even have this option. The US woke up on this last gas run up, trucks are dead now, even for mighty Toyota.

Dealers are dropping and going out of business all over. I know many dealers who are concerned for their livelyhood and don't see this as a temporary situation. They dropped leasing because the funding market has no confidence in them and they have too many truck leases on the books. (GM has stopped Canada leasing and just told the US dealers they'll cut back on leasing, ford didn't stop leasing in the US but bascially made their products "lease proof" by raising the prices substancially, all this is due to the funding market that has applied a huge risk premium for funding).

As someone else mentioned they (Cereberus) is getting hammered in other areas, GMAC just took another quarterly loss of over $2 Billion.

I'll end my comments on predictions that I hear from dealer's, industry senior managment, etc. Nissan may buy some of the company, the new Titan will be a Dodge and Nissan can't build a truck to save their ass. They also have interest is some of the other pieces of chrysler. the other possible suitor could be Tata, the indian company that bought Jaguar, they are very interested in Jeep, the only piece that has a worldwide brand name, and, a ready built dealer infrastucture in the US.

I share your passion! I love Viper! But, the Chrysler that we've known is over. Now get out tomorrow, fill the tank and go whip the competition in your viper!! Mike

 

[RTTTTed]

You guys need to think "out of the box". How much is having the fastest reasonably priced supercar worth? Having R8 and GTRs all hying about 'beating the Viper' and failing. How much is that worth? The Viper is expensive, I'm sure, but compared to Forced Induction? n/a is cheaper to build and costs millions less in warranty claims. Chrysler has the fastest and ALL others are going Forced Induction trying to catch up. Hate to have their losses. Undoubtedly their losses are horrendous. Why do they do it? Because Chrysler does it better - and so far they're still the winners.

Aluminium frame = good? So the fatigue factor of aluminium doesn't count? Aluminium isn't just expensive, it doesn't last very long and once it fatigues it's a replacement not a repair. I can't imagine what an insurance claim would be, but it would write the car off quickly and repairs would be tough to certify for reuse. That's another reason I wouldn't want a vette. Repair and replacement cost/warranty.

When I take my Viper to a Car Show, I don't worry about having the 2nd fastest car there. It's a modified Viper. And even though it's a DD, it's always one of the most popular cars in every show, and it's a Dodge.

Ted

 

[RTTTTed]

I certainly hope you guys are wrong. If not, problems will be much larger than our favorite cars.

Ted

 

[2000_Black_RT10]

You guys need to think "out of the box". How much is having the fastest reasonably priced supercar worth? Having R8 and GTRs all hying about 'beating the Viper' and failing. How much is that worth? The Viper is expensive, I'm sure, but compared to Forced Induction? n/a is cheaper to build and costs millions less in warranty claims. Chrysler has the fastest and ALL others are going Forced Induction trying to catch up. Hate to have their losses. Undoubtedly their losses are horrendous. Why do they do it? Because Chrysler does it better - and so far they're still the winners.

Aluminium frame = good? So the fatigue factor of aluminium doesn't count? Aluminium isn't just expensive, it doesn't last very long and once it fatigues it's a replacement not a repair. I can't imagine what an insurance claim would be, but it would write the car off quickly and repairs would be tough to certify for reuse. That's another reason I wouldn't want a vette. Repair and replacement cost/warranty.

When I take my Viper to a Car Show, I don't worry about having the 2nd fastest car there. It's a modified Viper. And even though it's a DD, it's always one of the most popular cars in every show, and it's a Dodge.

Ted

Aluminum is surely a disadvantage in a crash regarding repair costs. Most aluminum structures are bonded and riveted, like the Ford GT. Yet it's getting into a buyers economic level beyond ourselves, well.. mine at least.. There are steel chassis supercars out there.

 

[RoadiJeff]

I share your passion! I love Viper! But, the Chrysler that we've known is over.

Exactly. Chrysler July sales were down 29%, GM down 26.7% and Ford 14%. Chrysler sales are dropping faster than any car manufacturer and they have less financial resources to cope with with a long economic downturn than other companies.

It is difficult to see how anyone can truthfully say that they will be the biggest of the Big Three in 5 years with all of this going on. If we go by July sales Chrysler is no longer even in the top 4. Their SRT Challenger is currently selling for a little over MSRP but I certainly hope that Cerberus isn't trying to count on that to keep overall sales moving.

I've worked for Chrysler for nearly 25 years. From what I see on a daily basis the situation has gotten so bad that I've started sending out my resume. I'm willing to give up 25 years of seniority with one company, retirement benefits, etc., to go elsewhere with a company that has a more promising future for another 15 years.