Chrysler on Verge of Bankruptcy?

Discussion in 'Chrysler' started by Chuck, Dec 26, 2007.


Will Chrysler Survive Five Years from Now?

  1. Yes

    9 vote(s)
  2. No

    16 vote(s)
  1. Chuck

    Chuck just the messenger

    "The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with."

    [xfloat=right][/xfloat]AP – Dec. 23, 2007

    Also see: Chrysler denies report it’s in financial crisis

    AUBURN HILLS, Michigan - Chrysler LLC denied a published report saying it is in a serious financial crunch.

    The Wall Street Journal reported Friday that Chrysler is in financial trouble just four months after Cerberus Capital Management LP acquired an 80.1-percent stake in the automaker.

    The report was based in part on statements Chief Executive Robert Nardelli made during a meeting with company employees in early December.

    "Someone asked me, 'Are we bankrupt?'" Nardelli told the group, according to what two people who were present at the meeting told the paper. "Technically, no, operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with."… [rm][/rm]
    Last edited: Dec 26, 2007
  2. warthog1984

    warthog1984 Well-Known Member

    Isn't this kinda like the "you can make banks fail" truism?
  3. desdemona

    desdemona Well-Known Member

    Isn't this de ju over again? Aren't they the company the US bailed out of bankruptcy years ago?

  4. roadrunner

    roadrunner Well-Known Member

    Will Chrysler Survive Five Years from Now?
    I say they will, but they likely will be half the size they are now. Half the size or less.
  5. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi RoadRunner:

    ___The only Chrysler model I see that makes even a lick of sense today are the Minivans which I believe do a bang up job as of late. Honda recently overtook them as #1 in the segment however :(

    ___Everything else is so geared to the macho oriented individual and with gas prices continuing to rise, I don’t see enough macho-man like members stepping up to the plate in volume to let the gas-guzzling production continue? Add to it, they have little to no IP to fall back on where increased FE is concerned.

    ___Good Luck

    Last edited: Dec 28, 2007
  6. ILAveo

    ILAveo Well-Known Member

    I could see a "downmarket" overseas maker who wanted to enter the US market buying them mainly to get access to their dealer/distribution network. Daimler didn't seem like a good match because it was too upmarket. For example, Tata out of India or one of the French brands might be a good match that would bring small cars to Chrysler's portfolio.
  7. worthywads

    worthywads Don't Feel Like Satan, I am to AAA

    They can't go bankrupt yet, I'm planning on trading this, even up...


    For the convertible version of this, scheduled for 2009.


    Paint choice might be the deal breaker, it's Plum Crazy or no deal.
  8. warthog1984

    warthog1984 Well-Known Member

    Worthywads: You just dissed the General Lee. Um, no, just no. Gotta love the Challenger (Charger Coupe), even though it probably isn't enough to keep Chrysler competitive.
  9. Right Lane Cruiser

    Right Lane Cruiser Penguin of Notagascar

    When is the hybrid version due? ;)

    Seriously, I'm hoping that as hybridization goes more mainstream that we'll be able to pick very nice looking cars with incredible mileage potential. I see some really amazingly pleasing shapes available in the market now -- and all of them are at a high price point. Maybe electric platforms will make a "snazzy looking" car more affordable?
  10. koreberg

    koreberg Junior Member

    If this car was going to be less than 30k with the 6.1 in it, I would buy 1. Then I would leave this site and go back to my jack rabbit ways.
  11. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Koreberg:
    ___Thank goodness there are a few here that would do everything in their power make up for that waste of a vehicle. Then again, Chrysler probably has it setup so it receives 16 mpg in the real world and 43 mpg per CAFÉ :)

    ___Good Luck

  12. koreberg

    koreberg Junior Member

    It wouldn't be hard to make up for it, I only drive about 5000 miles a year in my car. :D

    At this point I wouldn't put anything past chrysler. They're going to have to go to great lengths just to survive.
  13. JusBringIt

    JusBringIt Be Inspired

    wow, this vote is dead even...looks like im bringing it from the dead lol. anyway, they'll survive I think, but I think it may get real good gas mileage if hypermiled lol. I actually would hypermile that car if i bought it. Hypermiling is fun and IS my driving style. I might not be as lethal as I am with my current car though. as for using the power this car has, every once in a while i might take it to a track to get an adrenaline rush, but that's about it.
  14. Chuck

    Chuck just the messenger

    bringing this thread back.
  15. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Chuck:

    ___Good one to bring back.

    ___I am still seeing little new that can save it from another bankruptcy/bailout. They are close to making money but with the market share losses continuing month after month and year after year... Eventually its real money and they will run out :rolleyes:

    ___Good Luck

  16. msirach

    msirach Well-Known Member

    This is the first I have seen of anything positive. I could be creative accounting, but with the scrutiny they are under, it would be tough to pull off.

    Chrysler Announces 1st Quarter Profit
  17. peacefrog_0521

    peacefrog_0521 Raj Against The Machine

    Quick story: I was on a conference call earlier this afternoon (yes, on a Saturday) with Chrysler Engineering and Quality, regarding an issue (non-safety-related) on a power seat that was flagged in a vehicle audit. (To protect the innocent I won't say what vehicle, nor will I disclose my company.) Without giving too much detail, when the power seatback (which my company supplies) is reclined near the fully rear position, it may (in few cases) shake or shudder momentarily.

    This is what they've had us spending the past week on. Not how to make it stronger, or lighter, or safer, or make it more efficiently. Not a shaking or noise when it goes down the road. No, this is a random shudder which only occurs at a point at which most drivers would not normally use it.

    The Chrysler engineer explained to me, in dead seriousness, that at the assembly plant (again, won't say which one), the operators often take their breaks inside the vehicles, fully reclining the seat to the full rear position so they can sleep.

    I simply could not resist asking, "So you mean my tax dollars are paying your workers to sleep in vehicles that I might buy?"

    To paraphrase The Who: Meet the New Chrysler. Same as the old Chrysler.
  18. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Super Moderator Staff Member

    It's first a question of whether Fiat's willing to back them. Obviously they want to use them to bring Fiats to the USA, but they have to back them enough to develop the next generation of vehicles.

    Jeep's a strong brand and last I knew had good traction in growing markets. It might be enough to keep Fiat interested long enough to give the engineers and designers a chance to turn things round.
  19. Chuck

    Chuck just the messenger

    Chrysler can't afford to have it's marriage with Fiat go the way of was just said, just using Chrysler is not going to be good for Fiat in the long run no more than it was good for Daimler.
  20. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Peacefrog:

    ___Very interesting story! I can only hope their productivity is up with the rest but after that story, I doubt it??? Their market share that is hugely problematic over the long run as well. They did have a nice April sales release (up 25%) but nothing new was added to their lineup and I still do not see much in the near term to get them out of the malaise.

    ___Good Luck


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