OT Automotive (OT) (OFF TOPIC)

So they looted it and now want to unload the remains?

How about Jeep?

Jeff DeWitt

Kev> Thought some might find this interesting:

Just read where Daimler Chrysler is going to drop another 13,000 jobs by the end of next year. 11,000 in the US, and 2,000 in Canada. Sure glad the dealer I work for now has, Ford, Chebby, Toyota, Lincoln-Mercury, Nissan, Pontiac, and GMC. They way these "morons" drive around Indianapolis (Home of the Super Bowl Champion Colts) in the snow and sleet, Just gives me more job security! Funny part is, We moved the L/M store out to the Ford store, and looks like my "old boss" is buying the L/M building next door to our Collision Center! Ha, now I get to see uncle Don everyday!

Jim

Jeep is the crown jewel of what wreckage remains. It has the best long term chances of survival, but as a division of who or what is yet to be determined.

Daimler has also been in long term discussions with Chery, a Chinese automaker. Jeep holds icon status in China. Now could also the time for Kirk Kerkorian and Lee Iaccoca to put their money where their mouth is if they were serious.

The same Industry ANALysts who fawned over this disaster for the last decade put the Chinese in the number one slot as potential suitors. They could use the acquisition as a launching pad into the U.S. market.

Since "Dr. Z" didn't win the hearts of Americans, I doubt a "Dr. Tung" would either.

While most industry ANALysts have been focused on trying to discredit and malign GM and Ford, Chrysler has been quietly wasting away like a drugged cancer patient taking nourishment only through an IV from Stuttgart. Chrysler's illness is a result of the German's stodgy design restraints and horrid German decisions relating to inventory balance. The highest incentives in the industry are buying their market share. It's a well known fact Chrysler kept building vehicles last year because the Germans would not revise their sales forecasts down, despite the pleas of some American Managers.

Stay tuned. Anything could happen. The cast of characters and story line are still developing. But as one unnamed source within DCX is quoted as saying, the status quo is the least likely outcome.

Apparently the Grand Cherokee and Commander are very weak sellers now too. Back when the "merger" was being discussed I kept a posting from the Dodge Truck NG. The man very opposed to the "merger". His predictions of what would happen have proved to be right on. About the same time, one of our chapter members, Dr. Schildwaechter, German-born, who had strong Chrysler connections was telling of the despair at Chrysler Headquarters. Many of the best minds at Chrysler had already left and the others were looking. Paul Johnson

The "Brain Drain" is on record, and can not be denied any longer.

The Stuttgart line bought without question by the automotive press has been the "success" of the LX platform (300C / Magnum / Charger).

Chrysler's passenger car sales have taken the worst hit since the merger. Former LH (Intrepid/Concorde) car buyers have fled in droves to Impala, Fusion, Camry and Accord. The new Sebring actually dropped from about 10K units per month with the old design to barely 6K with the brand new design in January. Caliber is yet to outsell Neon.

A real examination of Chrysler's financials showed the truck and minivan plants have been carrying the company. 70% of Chrysler's sales in January were categorized as trucks. The highest ever.

Daimler's decision classify Jeeps as "Trail Rated" and "Rescue Ready" has not been well received by Jeep loyals. The 4 door "Trail Rated" Wrangler is a smashing success, though.

Grand Cherokee is now built on a car based platform, borrowing many of it's underpinnings from the LX's. It's offroad capabilities have been compromised, and sales have suffered. Commander (a 7 pass. Jeep, never considered by the real Chrysler because they were afraid they'd cannibalize Durango sales!) is a perfect example of a question no one was asking. As is Aspen. And Compass, etc., etc.

The fact is, the PT Cruiser was the last true Chrysler developed design to make it through without major German influence. Now you know why they have to brag about a car that has a good sales month at 10K units (300C) in a segment where 20-30K gets you into the Camry/Accord/Impala game.

Why in the world would GM be interested in Chrysler? I mean would one sinking ship really want to take on another sinking ship? Joe Roberts

Humm, Does the "Studebaker-Packard" merger come to mind?

Jim

It would eliminate a major competitor, it would stop the Chinese from gaining access to an already existing distribution network in the United States, and Jeep is better established than Hummer.

The threat from the Chinese will get bigger sooner if the Chinese win control of Chrysler.

GM IS NOT A SINKING SHIP. It's worldwide operations are profitable, and it has turned the corner in North America. Chevrolet is the #1 selling nameplate in America. (Ford is the #1 selling Truck).

I doubt GM will buy them, but if the price is right, it could prevent some future problems for them. The Acquisition would go more like the Chrysler/AMC deal in 1987, with Chrysler and Dodge passenger cars getting phased out.

There's one more significant reason. GM is the United Auto Workers best hope.

The German Government could care less what Daimler does with Chrysler. WHEN Daimler divests Chrysler, there will be no Federal Trade Commission hearings, no Congressional Hearings, etc. It's just gonna happen.

Chery is State owned. Communist China, although it's the 21st Century blended Communist China, could end up owning Chrysler.

Besides all the negative press today (They really don't want this to happen because it will put more distance between GM and Toyota in the race for #1), a very interesting point was made.

By pooling the "legacy costs" (pensions & health care) of GM and Chrysler, and cutting a deal with the UAW, GM could essentially end up with Chrysler for free.

Before the Daimler acquisition, Chrysler had fully funded it's legacy costs. Today, DCX is $27 Billion in the hole because of GERMAN management decisions to short fund legacy costs. GM's unfunded legacy is about $50 Billion. GM is now about ten times the size of Chrysler.

Daimler essentially paid $34 Billion for Chrysler in 1998. Today, it's thought the company could be had for a net of around $5 Billion.

The UAW will have a huge part in what happens here. GM looks to be in the driver's seat, because if they aren't successful, the UAW stands an almost

100% chance to lose everything it has in Chrysler. The Chinese will buy Chrysler only for its distribution network.

Stay Tuned.

Kevin,

This analysis seems, to me, to best explain the reasoning behind the GM thoughts on acquisition of Chrysler. I have three Chryslers, two old ones and one newer one. You should haer what is going on at Moparstyle.com!!! FlatheadGeo.

Thanks George. As you may recall, I've always been afraid of these days I knew would eventually come. I still have a huge emotional attachment to Chrysler. Selling them was my first full time job. I have a 1969 Road Runner, 1989 Dakota and 2007 Town & Country. I've taken a lot of flak over the years on the Newsgroup for comparing November 17, 1998 to December 1963. I truly do wish I'd been wrong. I guess I was a little wrong, because

1966-1963 and 2007-1998 do not equal the same number. With no new Studebakers after I was three years old, my family was Mopar or Nocar (besides Studebaker) my whole life.

I've grieved for Chrysler, and in many ways moved on. If you think I'm emotional now, some may remember my posts when the Prowler was dropped for the Crossfire. That was the day I applied for my GM Card. How ironic!

One more irony about this whole situation. This whole scenario puts the genius of Bob Lutz back into the limelight if GM buys it, plays it right, and the health of the 70+ year old holds out for a few more years.

Maligned, discounted as a dinosaur, and declared irrelevant by the automotive press when they were buying the Daimler pack of lies just a year ago, Lutz now stands to inherit the product responsibilities for the brands he saved during the 1990's. The untold story of the 2000's is the resurgence of GM. People are buying Lutz's GM cars because they want them, increasing profits for the company just as his product resurgence did at Chrysler fifteen years ago. Rick Wagoner and Lutz are running GM with profit, not volume, as the main concern.

One of the most valuable assets Chrysler has is the E-body legacy ('Cuda/Challenger). Original Hemi convertible examples sell for millions. The minivan business is also worth something.

Maybe Chrysler's brands won't disappear completely. There's no other person I'd rather have involved with Chrysler right now than Bob Lutz.

Kevin,

I have to agree with you once again Re: Bob Lutz. I have a feeling that if GM did, indeed, acquire Chrysler, Lutz may then have the ammo to ditch GM's superflous divisions and keep the Chrysler marque as Dodge. They can also use the Chrysler financing arm as you already mentioned that GMAC was jettisoned. I would rather see Chrysler back in America. I would also not like to see the Chinese gain a dealer network. Back in the 1950's Mercedes-Benz cars were sold through Studebaker Dealers. That didn't last too long. My 57 Champion was the last of the Packard Studes. In 1959 the Lark and Champ trucks picked up the MB Grille as the Hawks had them from the mid-fifties.

I realize that there will be a great deal of conjecture. However, I really wouldn't like to see the Chinese gain a foothold here. The recent auction sale of Rubbermaid manufacturing equipment saw a great deal bought up by the Chinese. Are we willing to turn all of our manufacturing prowess to a Communist System. The only reason the wanted Hong Kong back was to have access to a Stock, Bond and Comodities market. How could we ever compete with a government that tilts toward their own benefit. When Nikita Kruschev had said that the Russians would bury us, no one believed him. Now the Chinesese(gov't) on the otherhand, may not have bought into the market system. Any thoughts, gentlemen? FlatheadGeo.

O hell yess!

Nicky K was full of crap then and we proved it. Where is the Soviet Union? Gone. A dictator Government is the absolute worst for dealing with the "free" market. See Hugo Chaves's problems with food supplies this week.

We just need to create and enforce reciprocal trade practices. If the Chinese erect trade barriers to our goods and services, we should match them Tat for tit, as it were. Same with Japanese and Germans and Venezuelans and Mexicans.

Tom Clancy wrote a great novel on the concept.

Now, can we do it?

Dunno

MDF