Chrysler: We've seen this scary movie before

[Xeper]

From leftlanenews.com

Columnist on Chrysler: we've seen this scary movie before



Around this time, six years ago, Chrysler posted an operating loss of more than $500 million. The bombshell prompted the elimination of 40,000 jobs and massive restructuring. Yesterday, the automaker warned it will likely post an operating loss of at least $600 million in the third quarter — effectively a repeat of the automaker's previous implosion. Detroit News columnist Daniel Howes says this is proof market changes — like rising gas prices and a shift away from SUVs — can hurt a carmaker deemed "fixed." His conclusion? "The process of reinvention doesn't end, meaning no matter how many Chrysler 300s you build — no matter what you call them — you're never 'back.' That's so yesterday."

Source: http://www.leftlanenews.com/2006/07/...-movie-before/



And a comment from this article that made good sense...

One of the greatest benifits touted fromthe 'merger' is the ability to operate for several quarters at a time at a loss. the Chrysler group used their profits to help support MB in their down times, now MB is helping support Chrysler during the same.
Chrysler group ran into problems surrounding excess inventory on pushed dealer lots, especially of slower selling vehicles. These numbers are improving slowly, but improving nonetheless.
As more plants are adapted to flex manufacturing, inventory issues are further reduced. DCX's product pipeline might not as robust as, say, GM; however, between the caliber, compass, patriot, Nitro, Durango reskin, Aspen, Sebring, Avenger, Liberty, Grand Chero deisel, minivans, 300 interior, pacifica updates, Wrangler, Wrangler Unlimited, upcoming dual-mode hybrid systems, Challenger, and Ram HD, DCX's short term (next 2 years) is looking good.
Longer term looks even better if you include Hornet, light duty deisels and deisel/hybrid combos, ram re-do, Viper re-do, Firepower, LY, ME4-12 (rumored), and Phoenix Project, long term also looks appealing.
The problem with 'six years ago' is that they 4 year product pipeline was nowhere near as robust.

Althought I could of swore that the ME4-12 was a cancelled project.

[Bornfromparents]

the problem is they rehash more products then any other,talk ablout
overlap. That overlap is out of GM's old play blook of the ninties.

[b4z]

I don't care if we complain about Chrysler rehashing products.
They will never be as bad as they were with the KCar.
Iaccoca was a fool to let that platfrom go on as long as it did and he wasn't even there when they were developing it.
He spent too much time buying Gulfstream and Lamborghini and heading up the Statue of Liberty restoration.
Any problems they have now plae in comparison to what has happened since the late '70's.
As far as I am concerned they should have gone out of businees years ago and would have if MB hadn't come along.

[the prix]

typical Chrysler, a couple of years up, a bunch of years down and repeat.

[Cassie]

I could point to pretty much any car company right now and think to myself there would be at least one model I might be interested in owning under 35k.... except Chrysler/Dodge. And the new models coming out look like the same old same old. Im a 33 year old female Chrysler who makes a good living..... I hope your listening..... Cause here are the cars I would pick over yours anyday....
Saturn Sky
Chevy HHR
Mini Cooper S
Ford Mustang
Mazda 3
Subaru WRX
maybe a Pontiac G6 coupe or a used BMW 3 series
.... or a Delorean DMC-12 :-)

[johnny smallblock]

What's the Phoenix Project? Did I miss something?

EDIT: Oh right, the new engines. Sorry. Nevermnd.

[Nocturn_Bird]

The Firepower was also never confirmed..

[56 Starchief]

its the new v6 family, johnnysmallblock

[mrmonte]

I still see more new 300's every day I just passed a new red one, sharp car . I dont get tired of looking at them.

[DuSpinnst]

So they are down again, this is typical of Detroit Automakers, Boom then Bust, then repeat.

[jbartley]

Robust?

I hardly think the Commander, Compass, new Sebring, Pacifica (refreshed or not), Durango, and As$pen, qualifies as "robust". Chrylser will probably still be in the red for the 4th quarter. And I see read in their future next year as well.

[New_Mexico_Sunset_on_Rt66]

Interesting comment about being "back". I know that's how I think about GM. "What will it take to get them 'back'"? Perhaps I should change my thinking. Its an ongoing process. You are never "done".

[PocoToro]

Originally Posted by mrmonte

I still see more new 300's every day I just passed a new red one, sharp car . I dont get tired of looking at them.

Chrysler 300 + Bling = cheap Bentley wannabe

[GM_Guy81]

anyone else notice how almost 90% of their in the pipline robust product are SUVs? Refreshed ones at that. 3 of them are the same thing.

[cfch3399]

Funny, they were the darlings of the media not long ago. They've got a fresh product portfolio of mostly attractive and competitive cars. Not sure about the quality though. Why on earth the still haven't come up with a big profit Ram-based giant SUV is perplexing.
Not sure what else they can do, Toyodugh is just killing everyone.