Points which so many miss

So was GM, and so too would Ford have been had it not borrowed significantly in 2006 and 2007 giving it a huge cash cushion that will only last it for another year. Ford is in intense negotiations with UAW / CAW trying to get wage concessions that match what GM and Chrysler got.

Many other car companies in other countries got huge loans and also old-car rebate programs (cash for clunkers) in other countries (ie Germany).

Also note that in Japan, they have a significant subsidy program in place for their domestic car companies: Existing cars must pass yearly emmissions standards based on the *current* standards, not the standards that were in place in the year the car was made. This leads to many good cars being crushed and Japanese consumers must by new cars more frequently.

The credit crisis crippled many companies that otherwise would have continued to operate normally. But I agree that Cerberus was destroying Chrysler from the inside. But Bob Eaton signed Chrysler's death warrant in 1998. It would have been a much stronger company with much better products when the credit crisis hit in 2008 if it had remained an independent, public company.

But the larger fact is that much of Chrysler's executive and design talent left the company shortly after the Daimler take-over because of the incredibly assinine management style and belligerence of the german managers and executives at Daimler. That left no Americans in a position to effectively lead and manage the company when Daimler tossed it to Cerberus like a piece of garbage. The Germans pricks at Daimler were too stuck up to admit that their arrogance and management style killed Chrysler.

I recommend that you read the following:

Taken for a Ride : How Daimler-Benz Drove off with Chrysler

Riding the roller coaster: A history of the Chrysler Corporation

You are giving Fiat credit when it deserves absolutely NONE!

Fiat is investing NO MONEY into Chrysler. The US and Canadian govt's have given Chrysler $15 billion dollars, and Fiat will be siphoning away that money over the next 2 years.

He is not the right man. The right man could be Tom Stallkamp or Tom Gale (depending on their age at this point I guess). Lutz is (unfortunately) too old.

Just wait until he is defined as the man who killed Chrysler. Then he will join Eaton in hell.

You know nothing of Americans and the American way of life. Americans will not buy and put their familes in small cars. When Iraq's oil supply is fully on-line, oil prices will fall and remain tolerable for the next 10 years at least. American's are not taxed on gasoline (petrol) like you are in Europe. Americans have big roads and big houses with big garages to park their big cars in.

The dollar can't fall very far because the Euro is also weak, and Japan has TWICE the debt per capita as the US. In Europe, you are facing a huge influx of muslims who will strain your social services and you will have to tax and print more money to support them.

The same ones who buy the Ram at $1 and $2 per gallon. Gasoline will never again rise to $4 or more the next 10 years. The oil speculators have learned a lesson with the crash from $147 down to below $60. Currency and gold speculating will replace it. Obama will have the balls to release oil from the US strategic reserve to keep oil prices low if he has to. Bush was a stooge for the oil industry which is why he never did it.

Many other car companies in other countries got huge loans and also old-car rebate programs (cash for clunkers) in other countries (ie Germany).

here ya go

September 28, 2009 14:31 CET UPDATED: Sept. 28 16:16 CET

BRIGHTON, England (Reuters) -- The UK's Business Secretary Peter Mandelson announced a 100 million pound ($159 million) extension to Britain's car scrappage scheme to support the recession-hit auto industry. Mandelson said on Monday the scheme was being extended to include an additional 100,000 vehicles.

The 300 million pounds originally allotted for the scheme was set to run out before the scheduled end of the program next February, according to the Society of Motor Manufacturers and Traders (SMMT).

Industry groups have lobbied for an extension of the scheme, which encourages motorists to trade in old cars for new, less-polluting models, saying it has boosted sales.

Introduced earlier this year, the scheme gives drivers 2,000 pounds to trade in cars more than 10 years old for a new model.

The government funds half of the subsidy and the auto industry pays for the other 50 percent.

How do you know Marchionne is not the right man. I thought the OP's comment is quite appropriate. Who are the two you mentioned?

As regards Americans' love of big cars, I think the average car on the road there now is noticeably smaller than 30 years ago. What you say about big roads and big garages is true, but so what? You can always put a smaller car in them, and smaller cars have much better suspensions than they used to have, so better for long distances then before. Anyway, small is relative. I don't think Fiat would be so foolish as to expect to sell tens of thousands of Fiat 500s in the US.

We don't know if the dollar will fall further. One thing is sure. It is not as high relative to other major currencies as it was 30 yeas ago. A good indicator is the so-called sky-high gold price which is still perhaps half of what it was at the previous peak in inflation-adjusted terms.

We don't know what will happen to the oil price.

DAS

To send an e-mail directly replace "spam" with "schmetterling"

on that note........

October 13, 2009 - 3:39 pm ET DETROIT -- Chrysler Group CEO Sergio Marchionne is "the next generation of Lee Iacocca," Transportation Secretary Ray LaHood said after visiting all three Detroit automakers yesterday and today. I think what I saw at Chrysler is what people felt when Iacocca was there," LaHood said after a speech to the Detroit Economic Club. "It's a new level of energy and enthusiasm because there's new leadership of people that know what they're doing, of people that have been successful in the automobile manufacturing business."

LaHood visited Chrysler, General Motors Co. and Ford Motor Co. and told his audience that "Detroit is back."

He said he had a 40-minute meeting with Marchionne yesterday. The Chrysler CEO got his job in June when Chrysler emerged from bankruptcy as a new company controlled by Italian automaker Fiat S.p.A.

New leadership

Marchionne, who is also CEO of Fiat, represents "the next generation of leaders for the American automobile industry," LaHood said.

Marchionne radiated excitement, LaHood said. "But before I even got to him, I sensed it in every employee that I met. And it wasn't phony."

Iacocca, one of Marchionne's predecessors as CEO, led the automaker for 13 years, retiring in 1992. During his tenure, Chrysler avoided a 1980s bankruptcy through federal loan guarantees that Chrysler repaid early. Iacocca became famous nationwide for the "If you can find a better car, buy it" advertising pitch he made in Chrysler ads.

Management overhaul

During his four-month tenure at Chrysler, Marchionne has overhauled Chrysler's management, and has 25 top executives reporting directly to him. He has appointed CEOs over each of Chrysler's four brands -- Chrysler, Jeep, Dodge and, new last week, Ram.

LaHood said he visited Chrysler Group's design studio, saw the excitement at Ford surrounding the revival of the Ford Taurus and drove the Chevrolet Volt.

Luca Ciferri and Bradford Wernle contributed to this report

In no way Ford is in the same position of Gm and chrysler. Gm, on the other side, is working industry, with project underway and still selling well in many markets. Btw I have seen a battle to buy Opel from Gm, have you seen anyone interested in Chrysler, except Fiat?

If us and canadian governament would have a better choice rather than fiat do you think they would have missed it.

That's your point. The world is changing at very fast pace. Third world is asking for his slice of petrol. China and India have 2,3 billion of potential consumer. China is alredy the biggest auto market and still growing. Ten years ago China auto industry was inexistent, now set every month new records: oil demand, without price incrase, would go to the roof. Europe, Japan and usa will be forced to adjust their style of life to the new price of oil and small car and fuel efficient engine is the only answer.

Japan debt is high but almost all owned by japanese, so is european debt. The differece for the Us debt is 70% of it is owned by china, japan and others country and at the moment all of them are switching their investments from usa debt, in addiction consider also the terrific trade deficit, and you have another answer for dollar weakness.

Speculators were, are and will be forever at work, but real demand for oil is changing with Chinese, indians and others asking every day more oil, which until now was aviable only for european, japanese and americans. Chinese cars don't run with thè.

Regards

So were several auto companies almost dead. Their Gov saved them. Chrysler's problem was bean counting Cerberus following thief Daimler. Between them they stripped Chrysler bare and left no one in control.

Marchionne is OK as far as I can see. The Fiat problem is lack of cars that would sell well here. Now if Opel cars could be obtained, there would be hope.

If Fiat has licked the quality problems -- not a sure thing -- they have the larger Fiats and Alfa-Romeos (very stylish cars).

DAS

To send an e-mail directly replace "spam" with "schmetterling"

Chrysler can use Fiat's technology for improved fuel mileage, but I agree Fiat's small cars will not fly here in NA.

Right on, Chrysler has blown the mid sized FWD market they had a significant chunk of. That's what I was looking for over the previous two years, Chrysler didn't have a product I desired. The first time Chrysler's products didn't meet my needs since they came out with FWD many years ago. The downturn was in 2005 when they came out with the 300 which sells to a different market and has done well.

The price of those would make them competitive in the NA mid sized market? I wouldn't even bother going to the dealer to see.

Josh S ha scritto:

Marchionne has stopped all sedan for fiat, Lancia and Alfa because he wants to make profits for every model and to do this looks for numbers, like they have done with small cars. Fiat 500, Fiat Panda, Ford Ka are all done in the same plant, with an impressive output (600.000 are expected for 2009, with huges Economy of scale), all sharing the same platform, engine, trasmission etc, he will do the same with the next sedan for chrysler, Fiat and Alfa, one plant in the usa or Mexico, same platform and engine and different badges. Make profit is the only way to survuve

As for small cars, I agree they are not suitable in states, but low mpg engines will be even more unsuitable .