Chrysler - The End is Near - PeachParts Mercedes-Benz Forum

JenTay · #1 06-26-2008, 10:55 AM

Chrysler says no basis to bankruptcy rumorJune 26, 2008 10:32 AM ET advertisement

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All Reuters newsDETROIT (Reuters) - A spokesman for Chrysler LLC on Thursday said market rumors of a bankruptcy filing by the privately held automaker were "without merit," saying the company had ample liquidity.

"The rumor is without merit," Chrysler spokesman Dave Elshoff said. "There is no basis for the rumor."

The concern about Chrysler's liquidity position and the rumor of a Chapter 11 filing drove down prices for the automaker's loans on Thursday, according to Loan Pricing Corp.

Chrysler Financial's first-lien term loan fell about 4 points to 81.375-82.375, according to Loan Pricing Corp.

Fitch Ratings on Wednesday cut ratings for both Chrysler, now controlled by Cerberus Capital Management , and its larger rival General Motors Corp , citing the industry-wide downturn in sales.

AdvisorGuy · #2 06-26-2008, 11:05 AM

I stated in another thread some time back that they're on their way out. I did a paper for a marketing class last spring. It all started when "Doctor Z" took over and with his arrogant attitude, refusingto listen about closing a plant or two to cut back. They were just building cars and throwing them at the dealers. Cars sit for 3-6 months on dealer lots and the dealer association went at Chrysler for subsidies and programs to move the cars.. Then Nardelli, of Home Depot $220,000,000 golden parachute fame steps in. The only direction for Chrysler at that point was the same as he did for Home Depot... My prediction in that paper in the spring of 2007 was 18 months before some sort of bankruptcy......

Dee8go · #3 06-26-2008, 11:16 AM

When they start denying it is usually when they're drawing up the paperwork for it, isn't it?

AdvisorGuy · #4 06-26-2008, 11:23 AM

yup. They were building cars and throwing them at the dealers - :"Sales are up !!". Yeah, because the dealers have them financed and sitting on their lots. What a 300C black on black with nav & bluetooth ? Sorry, we have black on tan with nav and no bluetooth. Once it leaves the factory, it's a "sold" unit as far as they're concerned. As for the dealerships that are paying for them to sit on their lots, it's another story. "Lifetime warranties" and "$2.99 gas" are just marketing ploys to get you in the door, rather than saying "COME AND BUY OUR CARS !!! PLEEEEEZZZEEEE !!!"

JenTay · #5 06-26-2008, 11:53 AM

my husband who is an accountant says there are two telltale signs that a company is in trouble:

-channel stuffing (shipping product to the dealers even if they didn't order/want it)

-drawing on their credit (they just tapped theirs to the tune of 2 billion)

Check and Check!

The lifetime warranty is real! It means the warranty is good only as long as Chrysler sticks around. Anyone who buys a Chrysler car is a sucker.

AdvisorGuy · #6 06-26-2008, 11:59 AM

I don't think the government is in a position to bail them out as in the 1980's. People need to realize that continuing to built 15mpg vehicles is gonna hurt them.

Dee8go · #7 06-26-2008, 02:16 PM

Yeah, the government will soon be looking for somebody to bail IT out the way things are going . . . . Oh, wait, that would be China, wouldn't it?

Dee8go · #8 06-26-2008, 02:16 PM

Maybe Chrysler can get the Chinese government to bail it out this time.

JenTay · #9 06-26-2008, 02:49 PM

Quote:

Originally Posted by Dee8go

Maybe Chrysler can get the Chinese government to bail it out this time.

you might have hit the nail on the head on that one.

Dee8go · #10 06-26-2008, 02:51 PM

I guess they practically own our government by now. What is it they are holding? Something like 2 trillion dollars worth of US debt?

aklim · #11 06-26-2008, 02:53 PM

Quote:

Originally Posted by AdvisorGuy

I don't think the government is in a position to bail them out as in the 1980's. People need to realize that continuing to built 15mpg vehicles is gonna hurt them.

I think that is an exaggeration. Sure their trucks are going to be that low but do you think every vehicle that they build is that low?

IMO, the problem is that they have been perceived to be lousy products. Ask any guy on the street as to whether he wants a Jap car or Chrysler for quality and many will say Jap. Also, their labor contracts are hurting them. It costs more for them to build a car than the Jap factory across the road.

Dee8go · #12 06-26-2008, 03:10 PM

That's pretty much the case with all of the US car makers. Between pensions and healthcare costs, they have a hard time making enough of a profit to keep up with the reat of the world.

aklim · #13 06-26-2008, 03:15 PM

Quote:

Originally Posted by Dee8go

That's pretty much the case with all of the US car makers. Between pensions and healthcare costs, they have a hard time making enough of a profit to keep up with the reat of the world.

Then they need to die off and make way for others that don't have those issues.

Dee8go · #14 06-26-2008, 03:23 PM

It appears they are slowly but surely doing just that.

raymr · #15 06-26-2008, 03:24 PM

Daimler didn't do it any favors either - with the hand-me-down technology and purposeful downmarket finishes so as not to compete with big brother Mercedes. Maybe Jeep can be rescued. But the best selling Jeep, the Patriot, is built at the same Belvedere plant as some Chrysler cars.