More Chrysler Layoffs

CitySnake

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Chrysler plans to cut 1,000 salaried jobs
Wednesday July 23, 1:44 pm ET
By Dee-Ann Durbin, AP Auto Writer Chrysler says it will cut 1,000 salaried jobs by Sept. 30 because of industry slump

DETROIT (AP) -- Chrysler LLC says it will cut 1,000 salaried jobs worldwide by Sept. 30.
The automaker announced the cuts Wednesday in a letter to employees.
Chrysler says the layoffs are needed because of the prolonged slump in the U.S. auto industry.
Chrysler spokesman David Elshoff says the company hopes most of the cuts will be accomplished through early retirements, attrition and voluntary separation programs. But he says involuntary layoffs will be considered if the company fails to meet its targets.
 

RoadiJeff

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The salaried workers might as well feel some of the pain, too. A few weeks ago Chrysler announced that they are closing the division where I work and moving it all to a facility in a foreign country, operating 3 shifts.

After nearly 25 years working at Chrysler I've decided that I'm about done with them and have started sending out my resume to see if I get any offers. So far I've gotten one nibble that would be really nice if I could hook it and reel it in.

It kind of stinks that I've invested so many years of my life with one company and will leave with nothing except perhaps a buyout package and they haven't even presented that offer yet.
 

lonestar

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The salaried workers might as well feel some of the pain, too. A few weeks ago Chrysler announced that they are closing the division where I work and moving it all to a facility in a foreign country, operating 3 shifts.

After nearly 25 years working at Chrysler I've decided that I'm about done with them and have started sending out my resume to see if I get any offers. So far I've gotten one nibble that would be really nice if I could hook it and reel it in.

It kind of stinks that I've invested so many years of my life with one company and will leave with nothing except perhaps a buyout package and they haven't even presented that offer yet.

Unfortunately, so many companies treat there employees the same way these days. Don’t you have a pension and 401K to take with you?
 

Art 138

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Unlike Ford and GM which can bring in small models to fill the vacumn from Europe and Brazil ,Chrysler has little to offer in that regard as they have relied on the U.S market for their niche. Believe their largest plant outside the U.S is in Mexico and they produce redundant models like those manufactured/sold in the U.S. The Plant in Toluca,Mex which made the Neon and subsequently the PT Cruiser is scheduled to close.
 

RoadiJeff

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Unfortunately, so many companies treat there employees the same way these days. Don’t you have a pension and 401K to take with you?

I have a 401(k) that I've had the discipline to contribute the max amount per year to for a long time. That would come in handy if I had to lean on it. I'd planned on not touching that until I officially retired.

No pension, since I'm not old enough to qualify for early retirement. Chrysler requires 85 points to retire, which is a combination of age plus years of service. One point for each year.

IF they would offer an early retirement with reduced benefits for 25 years of service I'd probably stick around until January for that but I don't think they will make the offer.

More and more of what I'm seeing from Chrysler upper management makes me not want to stick it out with these guys. It's like being on the Titanic and being one of the last passengers left clinging to the guardrail when the ship finally sinks. If any of you saw the movie you noticed that those people got pulled under when the ship went down. I want to be on the lifeboat, watching from a distance.
 

GTSnake

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The Auto's are fighting for their lives right now. It's dumping everything off the ship that isn't necessary. It's either throw it overboard or sink. I think Ford and GM will start floating a little quicker before Chrysler since they started changing things a little bit earlier. Chrysler was under the Daimler hold too long and got started correcting itself a little late.
 

2006red/whitecoupe

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The Auto's are fighting for their lives right now. It's dumping everything off the ship that isn't necessary. It's either throw it overboard or sink. I think Ford and GM will start floating a little quicker before Chrysler since they started changing things a little bit earlier. Chrysler was under the Daimler hold too long and got started correcting itself a little late.

I agree, now it is and should be survival mode. I feel for anyone who invested 25 years like the individual who posted here. Unfortunatly the world changed, $4.00 gas and a housing collapse has put tremendous pressure on the Big 3. Chrysler's parent has other problems, a 50 per cent investment in GMAC and and large stake in Mervyn's which is close to stutting down. 20 per cent of sales was leasing and Chrysler Financial will no longer offer leases due to low residual values. Tough out there right now.
 

ViperJay

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stopping leasing altogether just might implode the entire business. what a surprising turn of events.
 

maxdaddy

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I have had two freinds this past year lose there companys, one had 3 restants and about 100 apartment units and the other had a trucking company that did about 6 million a year. Both are very smart guys,but when you lose your company, you lose everything.. cars ,house, all of it..
 

ViperJay

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Looks like Ford and GM will announce tomorrow that they will not offer lease options by their finance arms on any truck or SUV.

GMAC i have been waiting for as Cerb ownes more than half that co. Ford is news to me but if all 3 american car makers do that then toyota will be unstoppable.
 

Brad04Mamba

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They are shooting themselves in the foot with no leasing. Unfortunately, that's the only way most people can afford a new vehicle. If you think sales are slow now, wait till this hits
 

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Wife and I got ripped off by Lake City Ford for $4200 in an insurance claim. Guess the wife won't be buying a Ford any longer. She was looking at a new Edge before this. Car has new scratches in the fender after their service.

I tried to purchase a 3/4 Dodge Ram last year (when the price was $44,000) and because I asked for the VCA discount they ignored me and sold it to someone else. Can't buy any new Dodge in the US because they cancel the warranty and US Dealers get fines for selling to Canadians. Canadian prices are as high as 33% above US prices.

Hondas and Toyotas were recommended to me. No way I'll buy Japanese.

Chrysler will only sell to me if I pay a 33% Canadian surcharge? If I don't pay the surcharge the Dealer will have to pay heavy fines for selling to me? No warranty for a new car, because a Canadian bought it in the US? They don't want to sell me a car?

Guess I'll buy an old Dodge pu in the US cause they're really cheap right now, or maybe I'll buy nothing.

Talk about shoot yourself in the foot?

Ted
 

RoadiJeff

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They are shooting themselves in the foot with no leasing. Unfortunately, that's the only way most people can afford a new vehicle. If you think sales are slow now, wait till this hits

People will still be able to lease a Chrysler, they will just have to do it via a third party. Chrysler is losing their shirts on the end of lease residual values of their trucks and SUVs and they want to cut the loses.

I personally don't see much future for this company beyond another year or two. I do a lot of car enthusiast forum surfing and most people who do not own a Chrysler product don't even refer to the "Big Three" anymore, it's just Ford and GM.
 

RTTTTed

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People will still be able to lease a Chrysler, they will just have to do it via a third party. Chrysler is losing their shirts on the end of lease residual values of their trucks and SUVs and they want to cut the loses.

I personally don't see much future for this company beyond another year or two. I do a lot of car enthusiast forum surfing and most people who do not own a Chrysler product don't even refer to the "Big Three" anymore, it's just Ford and GM.


So, even though GM is nearing bankrupcy and the "big 2" (your reference) are closing many, many plants - you predict that Chrysler is going under??? That makes NO sense.

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. If GM builds more than 300 ZR1s (article prediction) and they actually do beat a "ordinary" Viper Chrysler will make a few changes within a year or two and kick MORE GM ass, as they've always done. It's only Ford that actually builds a Dodge ****** once in a great while, and only for short periods of time.

Where are all the GM Camaros? The Challenger is out and kicking ass already. The SRT8s have been kicking ass for years and all GM has for competition is a Z06 vette and tons of hype?

Ted
 

speedpup

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If we don't stop buying foreign crap it will be like looking for an USA produced TV soon. GM losing 15+ billion in three months how long to bankrupcty? They are burning near 1 billion per month on average in their auto sector. How long does the Viper have left in production?







Saturday, August 2, 2008
Chrysler touts improved health

Exec says carmaker's pretax earnings show the company is in strong financial position.

Eric Morath / The Detroit News

Chrysler LLC reported financial data Friday showing the automaker is in a good liquidity position and burning through less cash than its struggling crosstown rivals.
The Auburn Hills automaker reported a $1.1 billion profit for the first half of the year before deductions of interest, tax and amortization expenses. The number doesn't mean Chrysler is profitable overall, but does suggest the company is in better financial shape than many thought.
Jim Press, Chrysler vice chairman and president, said the Auburn Hills automaker had $11.7 billion in cash on June 30, down slightly from $12 billion at the end of last year. The profit figure "reflects the strength of our organization," he said.
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"We are really beginning to gain traction," Press said.
Press offered the financial details on Friday to quell speculation that Chrysler is facing a possible liquidity crisis and that it is suffering as much financially as its American rivals. Across town, General Motors Corp. on Friday reported a second-quarter loss of $15.5 billion; Ford Motor Co. reported a second-quarter loss of $8.7 billion.
Chrysler's strong financial position, better than some had speculated, shows the automaker has cut costs deeply, possibly to make itself more attractive to a partner or for a sale, analysts said.
The privately owned automaker, which does not publicly release financial statements, divulged the rare details during a monthly conference call to announce sales results. Chrysler's July sales were down 28.8 percent compared with the same month last year.
The profit figure Chrysler gave, called EBITA in accounting lingo, is not the same as net profit or loss figure a publicly traded company such as GM or Ford reports in quarterly and annual filings.
But it is a sign that the company is making money from ongoing operations and is in a stable liquidity position.
"It's no indication that they are a profitable company, but a positive EBITA is not bad news," said Gerald Meyers, a University of Michigan business professor and former chairman of American Motors Corp.
Chrysler's full losses are not reported in the figure released Friday.
Chief Financial Officer Ronald Kolka said the figure does not include restructuring charges related to closing a minivan plant in suburban St. Louis.
Chrysler's aggressive restructuring actions, which include cutting 29,000 employees in the past 18 months, have cut costs enough to offset a greater-than-expected revenue decline due to falling vehicle sales, Kolka said.
Falling sales of SUVs and trucks were "offset in the first half with a positive mix which includes the effects from substantially reduced fleet sales, the effects of new products... and the elimination of unprofitable models," Kolka said.
The automaker also will, for the most part, avoid write-downs of residual or trade-in values associated with leased vehicles -- charges that also are hammering competitors, he said. Former parent Daimler AG is responsible for residual values associated with vehicles leased before August 2007, when the sale of Chrysler to Cerberus Capital Management LP closed.
Chrysler's financial arm last week said it will no longer finance leases.
It's difficult to determine the significance of Chrysler's statements without more detailed financial reporting, said Aaron Bragman, automotive research analyst at Global Insight Inc.
"Operational profits just seem so unlikely," he said. "What other company can say its sales declined 30 percent and it made more than a billion dollars?"
Operating in the black would mean Chrysler has significantly cut costs -- something that would make it look attractive to potential investors -- but could mean Chrysler is not investing in developing future products.
"It's entirely possible that they want to look as healthy as possible," he said. "They're doing what they need to do to get prepared for a partnership or sale."
 

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Thanks for the 'reality' support. Do all the doom and gloom rumours come from GM in an attempt to steal Dodge customers?

It's like the GTR/R8/ZR1 hype. All BS. What suprises me is that any Dodge guy could believe any of it.

Now that GM actually has to build a car that doesn't blow up they're not in very good finacial shape. They're too used to charging for quality without building it.

Did anyone else notice that the HHR was $60,000 for a small V8 an didn't sell very well? The next year GM added better susp., wheels, and complete vette driveline for $20,000 less??? Doesn't that point out to everyone that they were a rip-off until bad sales forced them to build a better vehicle and charge 33% less? That's just one of the many things that tell me NEVER buy a GM.

Ted
 

RoadiJeff

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So, even though GM is nearing bankrupcy and the "big 2" (your reference) are closing many, many plants - you predict that Chrysler is going under??? That makes NO sense.

GM and Ford at least are doing things to follow the dramatic shift of buyers from trucks and SUVs to higher fuel economy vehicles. Chrysler sat on their butts way too long, enjoying their high profits from their truck sales, and are now paying for it.

Without some type of high fuel efficient vehicle in the planning stages that will hit the showrooms in the next year or so I don't see how Chrysler will continue to exist on what they have now.

Like another post mentioned, it looks to me like they are trying to make it look like their financial ship is heading in the right direction. Anyone can tell that it is not. They are probably trying to "fatten up the hog" to make it look more attractive for a potential sale of the company in pieces. Cerberus would make a decent profit by doing that over the $7 billion or so they paid Daimler for the company last year.
 

RTTTTed

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So Chrysler sells the tofor, the Caliber, the Jeep Liberty, etc. etc. etc. and they don't count? Only the Focus and the Cobalt count? ...

Or do you mean that the idiots buying the 30mpg Hybrids for double price is a good idea? Spending $5-10,000 on batteries and an extra $10-20,000 for an electric system when you buy a new car that is only practical for the city is a good thing? That Chrysler should be 'playing that game'?

Hybrids are junk on the highway and don't climb hills as well as being unsafe in passing attempts. I also don't see that burning Coal to produce electricity for a car is any kind of solution either.

If Chrysler spent a few billion on developing Hybrid technology it would be better, faster and more practical than Honda's. But Hybrids aren't an improvement and don't get better mileage so why bother wasting money.

Ted
 

RTTTTed

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That being said, 510 cubic inches making 28mpg/us is mind boggling fuel saving technology that I'm sure Ford and GM are jealous of. Hype says the ZR1 won't get as good mileage as the Z06.

Ted
 

chimazo

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I don't know where you get the 28mpg #?? The Viper is rated 16mpg combined city/hwy, the same as the ZR1, and the Challenger rated at a ridiculous 15mpg.

The ZR1 is slated for 2000 units/yr. worldwide.

Why do you have loyalty to an inanimate object (company) unless you work for them? Do you really think their cars are better? Do you think they have some engineering ability that the other car companies lack?
 

RTTTTed

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Yah, I do. I could never understand buying a hiperformance vehicle from a company that built exploding balancers (400sbchev), worst rear ends in the business, junk trans (M21), Z28s in the eighties that came with Vega 4 speeds, 10 bolt rears, axles that leave the car when they break, 305 engines, 5 link rear susp., ALL GM leaf spring susp had the rear axle hung in the middle so that they could wheel hop (at least Ford Mustangs used a B body type leaf spring). Chevettes, exploding pickup fuel tanks, ZERO drag cars that would be capable of competeing in SS/A or SS/B classes. GM has NEVER had any car banned from NASCAR because it was too fast for racing, never been restricted because they won too many races in GT, never had any classes added for just their brand of car for drag racing.

If I wanted a bad car I'd buy a Chev. If I wanted a FAST car I'd buy from Dodge (#1) or Ford because they've always built cars that excelled at fast and made history with cars they developed. Ever heard of a Shelby Chev? The Shelby Chargers and K cars (GLH) beat Chev's best with a lowly 4 ******/2.2.

Ted
 

RTTTTed

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Wife owns a Ford Escape. Hit a Deer with it and when the front fender crumpled on the main wiring harness the transmission started slipping. Being 120mi. from the nearest city I carefully drove it home. Ford took 2 1/2 months to fix the car instead of 1 week. Said that hitting the Deer didn't cause transmission failure (TSB said that first 3 years of Excape trannies had a tendency to 'pop' clutch retention rings) and that was probably aggrevated by hiting Deer. Ford wouldn't pay for trans. Wife's cost of owning 'faulty' Ford - $4,200! Inside of trans looked like new, except for burnt out forward clutch pak. Would you buy another one?

I've owned 4 GMs. '65 Pontiac SW that often wouldn't start for no reason (lost my job for being late). '67 GMC 3/4T that lost threads on a headbolt (for no reason) and water mixed with oil. Chev Tow truck that I had to rebuild heads at 3,000mi. and engine blew up when 3 valve heads fell into the new motor. Would you buy another one?

I've owned hundreds of Dodges and kicked all Chevs (and fords) that came out to race, except for 3 race cars that were trailer out.

Ted
 

2000_Black_RT10

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Want a long reply Ted? It's raining outside.. so here's my 2 cents..

I've worked inside Chrysler engineering and some time in the Viper group, and inside Ford Motor Company, all in Michigan, and only been to GM as a supplier inc. the Corvette tech center, all within my career, so my perspective may be different from some of you guys.. if it's worth anything, that's great, if not.. no big deal...

As I look back and review what I have been exposed to.. GM has engineering resources far beyond Chrysler and Ford. There are many factors. Such as.. putting out a car such as the Viper with such as small engineering team and budget compared to the Corvette team is something to be proud of. The folks designing the Corvette probably has 3 times as many designers and engineers and quite a bit more for a budget. The budget defines your allowance on building prototype parts, testing, mule cars, new parts vs. carryover, analysis (FEA & CFD), etc.. Ford is between these two. Viper rules for ROI (return on investment). I've worked in the Mustang engineering group also, you guys may think I'm full of bs eh'. Ford intended on using an IRS rear on the S197 Mustang but didn't have the budget, so they went to a straight axle. Sure, for you die hard straight line drivers wanting to go fast off the line, that's great, but it's not for going around corners. Wheel hop is a challenge with a multi link IRS drivetrain, no doubt about it. Getting the half shafts horizontal at launch, bushing deflection / compliance (in engineering), etc.. I heard it all..

GM builds rock solid V8s, you can't argue that Ted. Corvettes are pretty good cars, and we're talking about this century, even the late previous century, the LS1 motors are quite stout. Decent mileage for a V8, better than Chrysler and Ford. Mind you GM likes to open up the piston fit, add coatings, etc.. while Chrysler focuses only on workarounds such as MDS, yet GM now has their own variant of this also...

So who likes to outsource work? This is another factor.. Many companies do not design their parts, it's sent out. GM designs more of the stuff in-house. Chrysler sends out much more relying on suppliers to design their parts, and Ford again is in between.

Another factor is experience, that's a big one. For example, Chrysler will let a long term engineering fellow retire while not capturing their knowledge. At Chrysler, there is a dept / resource called EBOK (Engineering Book of Knowledge). This is a method to capture best engineering methods, and it hasn't been in place for very long. In other words, new engineers can make the same mistake as their predecessor. The extreme opposite is Toyota and Honda. I have friends who work at Honda in Ohio and Toyota in Michigan. They claim their job is boring because every task is by the book, such as one fellow I know was assigned to design new control arms, they gave him a big book, this is his guidline (i.e. be a robot). The book included all of the contacts for all of the folks related to the design, chassis, body, etc. and how to design the part. Chrysler is working on this, as well as GM and Ford, but again GM is leading this.

Facts:

IT = cost, Honda barely has a IT department, not using a very complicated design data exchange system, they use the telephone to contact eachother. It's hard to explain if you're not an engineering person. Basically if you designed a part, and this part affects another part, how do you communicate that your part has changed and you need to contact that person to tell them? Chrysler, GM and Ford use a computer based system to broadcast updated designs to the other person, in other words, no worries to tell anyone (via telephone or email) that you made a design change, the computer system will inform the others who need to know once you save your new / changed design on the server. GM, Ford and Chrysler rely on software to communicate internally. Sure it sounds great, but it's a bandage on a lack of ability to communicate and defined processes. This costs an enormous amount of money as well as more IT folks. Honda and Toyota doesn't need the software or the IT people, it's already defined how to communicate (in the book). This software and IT support budget consumes the engineering budget. GM has the best setup (compared to Chrysler and Ford), they use a system called Teamcenter, Ford recently implemented this (but a hybrid setup, not as refined as GM), and Chrysler is struggling to sort their system out. Regardless, they are all relying on software to resolve design communication whereas the Asian competitors overseas do not require this. So we have Chrysler spending lots of money in IT to solve problems, GM is sorted out, and Ford is up and running. IT is a bottom feeder, they consume the budget to design a car. Toyota and Honda doesn't utilize this level of IT support.

Validation = engineering cost, for example Honda may build a mule car for testing, the chassis dept. will get this specific car and use it, then once they are done with it they'll pass it on to the electrical team, and so on... whereas Chrysler will build a mule car for each team, this can amount to many cars, consuming the engineering budget. GM, Ford and Chrysler spends way too much on prototypes and mule builds compared to Honda and Toyota.

Horsepower = reduced reliability, add more and it causes more stress on components.

Carryover = less cost. Viper again is very impressive with less carryover than the Corvette, Chrysler doesn't use that powertrain in any other platforms. Ford and GM can share this with trucks and other cars regarding Mustangs and the past GT.

Fuel consumption = analysis, for structural analysis (requiring an optimized design with the least amount of material) to attain the lightest chassis possible. Example I can share, one design decided to have more glass, this resulted in more exposure to sun in the cabin, which resulted in a larger capacity a/c system, which resulted in more power needed, which resulted in a larger fuel tank to meet the 1 tank to the amount of distance travelled. In the end, it affects packaging, they had to make more room for a larger fuel tank just because there were bigger windows.

Toyota and Honda beats everyone in this engineering challenge today and GM is getting up there with them. Chrysler needs more of an engineering budget as well as Ford. The cutbacks only reduce this effort to catch up. The less you buy, the less the final poduct will mature, this is a fact. It's not possible for a smaller group to compete with a larger engineering team. The rest being Europe, they are kind of in between the Asians and North America in the sense of generalizing.. yet I can be specific about each company if needed, I worked with most in my career.. Germans tend to over complicate the design, more parts = cost. England tends to spend less on serviceability, etc.. as well as the Italians along with more handforming, there's all sorts of opinions that I can spew, yet there's an ideal car that can be designed with a piece of every company, they all have something that is better than the other. China pumps out a very cheap and thinned out copy of whatever they can get their hands on, good luck surviving a crash in one of their cars..

Innovation is supreme in North America, I worked with some of the best I'll ever meet in my career. Give them a budget and they'll smoke the competition.

Final fact:

Problem = corporate management.
 
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RTTTTed

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Thanks for taking the time to write that. It's good to get an intelligent answer to my "GM busting". I'm used to "Chev's better." as the total reply to my info.

I repect your info, and would probably spend all night argueing with you about which is better, lol. I spent a lot of time building Chevs and Fords(for others) and Dodges for myself. I'd say what I liked the best was that Dodge only built the top level mechanical parts (Hi nickel blocks, MS rods, forged cranks, best rear ends in the business, etc.). Dodge is also responsible for Minivans, K-cars, pioneering turbo tech, Hemis, Domestic V10, Viper tires (which will be available on ZR1s also), PT cruisers/retro-modern, etc. The vette was junk when Viper came out and that caused GM to get onto the vette, thank god. All I remember that GM started was the vette and the HEI. I agree that they don't build garbage like they used to and the new Z06 is a piece of good work. I don't like the G6, but if it's fast as they say - Kudos. I love Ford's Mustangs and regret the passing of the GT.

Management, Chrysler cancelled my Viper warranty because I bought the car in the US and didn't send me a cheque for the remaining time. I want a new Dakota, but this No warranty probably means I'll buy an old one. So sad. Yes, there are management issues.

Ted
 

2006red/whitecoupe

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OK, i'll bite on that 2000 Black RT10, would you not agree that Chevrolet loses money and has lost money on every ZO6 that they have built? They took weight off that car, hand built engine, and the brake upgrade. Revenue for the Viper is about 150 [ok 144m] million in a good year.. ..1800 cars times $80,000 net net after holdback...that is less than 1/2 of 1 per cent of revenue for Chrysler....a rounding error is what revenue the Viper brings in...is it profitable after paying Saleen, paying all the Conner plant employees, paying overheads on the conner plant, retirement costs on the union employees,pay for warranty expenses, and then amortize the engineering expenses on the development costs? Chrysler loses money on every Viper built and unfortunatly so does GM on every ZO6 built. GM will also lose money on every ZR-1 built as well; you can do that when times are good but times are bad. If Dodge were to charge you the true cost of the Viper you would be paying $150,000 or more and it just wouldn't sell up at that price. Same for the ZO6 and ZR-1. My friends, turn out the lights, the party's over.
 

RTTTTed

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"If Dodge were to charge you the true cost of the Viper you would be paying $150,000 or more and it just wouldn't sell up at that price. Same for the ZO6 and ZR-1. My friends, turn out the lights, the party's over."



I disagree.

Are you saying that people would continue to buy the much slower Porsches, Ferraris, Mercedes, etc. but no one would pay a comparable price for a much faster car???

I wouldn't buy a Ferrari just because of the $18,000 tune up required for every 15,000miles. Then there's the "exotic insurance costs", waiting 6 months to a year for parts, paying and extra 100-400% purchase cost, etc.

Or are you trying to say that all Viper and vette owners would buy a Lotus, R8 or GTR? Course those prices would go wayyyy up if those cars were actually fast because there was no Viper or vette to show what fast really is.

The party's never been so fast or had so many trying to get in.

Ted
 

Bosco

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2000 Black RT10, I think you hit the real issue.

Innovation is supreme in North America, I worked with some of the best I'll ever meet in my career. Give them a budget and they'll smoke the competition.

Final fact:

Problem = corporate management.

I'm a young engineer, and far too often I see companies that spend too much money on the business aspect of the company. Give the engineering teams the resources they need, and the products will sell themselves. We have better engineers in America than in Asia.
 

2000_Black_RT10

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OK, i'll bite on that 2000 Black RT10, would you not agree that Chevrolet loses money and has lost money on every ZO6 that they have built? They took weight off that car, hand built engine, and the brake upgrade. Revenue for the Viper is about 150 [ok 144m] million in a good year.. ..1800 cars times $80,000 net net after holdback...that is less than 1/2 of 1 per cent of revenue for Chrysler....a rounding error is what revenue the Viper brings in...is it profitable after paying Saleen, paying all the Conner plant employees, paying overheads on the conner plant, retirement costs on the union employees,pay for warranty expenses, and then amortize the engineering expenses on the development costs? Chrysler loses money on every Viper built and unfortunatly so does GM on every ZO6 built. GM will also lose money on every ZR-1 built as well; you can do that when times are good but times are bad. If Dodge were to charge you the true cost of the Viper you would be paying $150,000 or more and it just wouldn't sell up at that price. Same for the ZO6 and ZR-1. My friends, turn out the lights, the party's over.

All my rambling was about engineering.. yes I would agree with your reply. Taking the weight off the Z06 / ZR1, changes in the aluminum structure, carbon, etc.. all costs money just as the Ford GT being a prime example of a very expensive show poodle not making any money. To be a beancounter.. I'd kill the Viper asap, yet.. I shouldn't really make this comment of this aspect since not being a finance / marketing person. Regarding the engineering feasability accomplishment.. that was excellent. Yes beancounters are the ones who calculate profit. So I can't argue your point. :2tu:
 
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