I heard that China had a new approch to the 2 wheel drive auto's they said it will run just fine but they got to work out the bugs on the stopping features I think they was going to add a 3rd wheel in the front center.
Anyone else heard of this yet or is it hot off the press!!!
Wall Street is saying market value of Chrysler Division is in the ballpark of 5 Billion.
Doesn't sound like much...hell, Lear just got bought by a Real Estate company for 5.3, and all they do is shoot plastic parts & make seats.
But...you gotta figure there is at least 3~4 Billion of restructuring left to be done on Chrysler, now that they don't have the Fatherland's deep pockets to fall back on. So it's kinda like buying a house that needs some work, for 60 grand so you can flip it for 100.
Look for someone in Private Equity (Kerkorian?) to buy, fix up, and try to sell for 10 Bil or so.
(...assuming the Chi-coms don't pull an investor consortium together, get the Central Government to underwrite a bank loan, and buy it themselves).
GM? GM needs Chrys. Div. like a hole in the head...it would go against everything they're trying to accomplish with their turnaround plan, which involves making their company smaller and more competitive - not bigger and more bloated by adding another company that has the same problems as them & adds nothing of value that they don't already have. But it might be worth at least looking at, if the intent is to keep it out of Chinese hands. The last thing GM wants to see is this big a chunk of the North American market to fall into Chinese hands.
Sure am glad I'm not a Chrysler employee right now...they're going to get sold for a pack of cigarettes, and whoever buys them is going to stand them on their head and do them like a farm animal, rip the guts out & turn around for a quick sell.
I have been in the auto parts industry for 25 years. America does not make an inferior product. I sell every foriegn car motor and transmission that comes in. At one time in the early 80's we may have had that problem. The problem for big business in this country today is benefits. Health care,sick time,vacation time,retiree benefits all eat up the bottom line. Also a company can't pay you for 30 years while working and then 30 years or more while your not working. Any big company in this country that has been here for 50 years or more could wind up having to pay for more people that are not working than people that are.JMHO, Bill
I believe that cars companies are in trouble for several reasons. Among these are that there are simply too many makes and models. The industry itself admits to this.Another is that car makers all market their products through "independent dealers". Car dealers are the successors to the earlier horse traders. They are totally unethical and function in a world ij which they are the only source and where all of their competitors are similarly unethical.
Here's what I mean. Have you ever gone into a showroom or the used car part of a dealership and asked the price of a particular car? Get a salesman, point to a car and ask, "how much is that?" You WILL NOT get a straight answer! You will be told that they have to have some personal information from you first. You will be asked if you have a trade-in. You will be told that the salesman has to speak to the manager. You will get such bs and such a cock and bull stories that it will make your head spin. The only reason they can get away with this is that THEY ALL DO IT. You can't escape from one dealer and go to another because he will pull the same crap - maybe more, maybe less.
Now where else do you shop where there is not a hard price on the item(s) you want to buy? The supermarket? The clothing store? The shoe store? NO! Only the car dealer. It makes buying a car excrutiating. I run them till they die because I don't want to put myself through this ordeal more often than I absolutely have to. If the car manufacturers would wise up and make buying a car a more pleasureable experience, they might not be in as much trouble as they are.
Our government needs to take note of the problems the automakers in this country are having and learn from it. The major problem the auto companies have is paying tens of thousands of people who no longer work there pensions and health benefits. Like Bill Grill above noted you cannot pay a person to work for 30 years then pay them another 30 years for not working.
Our government is going to be facing the same situation in the near future. They have millions of former government employees who will be drawing benefits.
A friend of mine retired from federal law enforcement when he was 50. Both of his parents are still alive, and his grandma just died at a 101 and his grandpa lived to something like 98. This guy will probably live to a 100. That means the government will be paying him for the next 50 years.
At our local gun club there are dozens of members who retired from the local fire department, police department, and post office and most of these guys are in their 40's!!!!!!
How in the hell are we going to afford to pay these people for the next 40 to 50 years? People not even born yet will be paying tax money to people who have been retired 25 to 30 years when they get their first job.
Whether you like it or not people need to be responsible for their own welfare.
Joe, I agree...Chery "should" want Chrysler. Problem is - China's goal is not to employ American workers...it's to employ Chinese workers, to ensure Chinese social stability. And Americans know that. So, as soon as the Chinese would put together a deal to buy Chrysler, what do you think would happen? Remember CNOOC? All the hubub about Chinese acquiring "strategic" American assets? Well, the auto industry is of great symbolic importance. There would be a storm of opposition.
Then - when the opposition has mounted and the deal falls through - in rides Kirk Kerkorian on a white horse, saving the day - to the grateful accolades of his countrymen. "Sure, I'll buy it...to keep it in American hands."
(And then the firing begins...because equity guys all think alike).
the rebates and incentives has driven used car prices down. take advantage of that. recent buys 2004 chrysler crossfire 15,000 miles sticker $32,000.00 my price $18000.00. 2006 gmc envoy 20,000 miles sticker $32000.00 my price $16000. both have balance of factory warranty. you got to be nuts to buy a new car today. two repoed travel trailers. 24 foot and 27 foot. $10,000 for one $12000.00 for other. balanced owed $18000.00. Its very hard for big dealerships to compete with wholesalers like me.
Hap, Has nothing to do with the car. Either the quality of rotors or another part in braking system is bad, Calipers or proportioning valve has to be the problem. Besides that rotors are only about 25 bucks apiece brand new now. If thats all you put in the car your doing good. I have run new gmc's, ford's, and dodge's for my business and run dodge diesel's exclusively now and unless they change them I will keep running them. The last one ton dually I sold had 370,000 miles on it, put one clutch and one transmission in it, brakes a couple of times and it hauled a 28' trailer with 10 crushed cars on it most of the time. Crossed the scales with it once with 44,000 lbs gross. NOW I AM A DODGE FAN but show me a Ford or GM one ton that will do that. JMHO Bill
Bill, you may be right. The dealership I bought the car from reneged on replacing the rotors the first time and turned them. Those I've talked with that have these Chrysler product cars have had the same problems as I with soft rotors. My nephew has the diesel Dodge truck and no problems with his either and he tows his travel trailer too. Car wise, they've had their shot at me. Hap
Hap, Intrepids are shit...just got rid of ours...that purchase was our most expensive mistake yet...(except for only buying 40,000 shares of Delphi instead of 80,000 when they declared bankruptcy & stock hit 50 cents)...the electrical systems are notorious for shorting out if you drive in salt spray...and the ball-joints don't have grease fittings, so they can't be serviced & what lube they get at the factory is it for life - they are notorious for breaking those ball-joints & doing 3 grand in damage.
Moral: if you want to know what kind of car to buy (or not buy) - ask the tow truck driver. (We got to know him real well in 5 years of owning an Intrepid...like you, never again...there's a Honda sitting in its place now).
I am really tired of hearing how the unions screwed up the US auto industry. Thirty years of auto executives who could give a crap less about the company and only wanted the millions they could suck out for them selves didn't do much good for GM or Ford either. The workers retirement fund is making a profit for the companies while the executive retirement fund is loosing millions more each year. I wonder why we haven't heard much about that. GM refused to build hybreds while Toyota went foreword because it was good for people and for the environment. How did that work out? The Japanese and Korean car makers worked diligently to improve quality and to offer a better product. Also believe it or not it costs more to produce a car in Japan than the US. GM and Ford on the other hand worked to build a cheaper product. Which they did and it shows. So while GM is sucking up huge losses their top exects are sucking in millions and trying to pass the blame off on the workers. Sorry but I don't buy it. And most people are not buying their cheaply built cars either.
Hap, ours was an '01, and we rolled it into the dealership with about the same miles as yours...book was 4 grand, and we got that and felt lucky to do so...it was half an hour before closing on Saturday (dealers can't be open on Sundays by state law), and they were eager to make the last deal before the week was over.
You better get that thing unloaded before it busts a ball joint, though...that would reduce the value to zero instantly.
Irfner, your only half right! Its both GM management and labor that killed the company and it is the same with Ford. All of you who worked in the industry killed the "Golden Goose" because of "greed." Senior Management made stupid decisions that retarded the companies abilities to change and grow. Unions sat by and demanded contractual raises in salary & benefits, yet had no problem putting out shoddy products and letting fellow labor brethern steal from the company in false workers compensation claims and huge financial payouts! The idea of working 30 years and then getting paid for not working for the next 50 years is ludicrious but as a member of the Union it is what you supported and what you voted for. So live with your decision!
Management and labor screwed the "American Consumer" by asking the government to give artificial increases in import taxes and at the same time they continued to raise the price of domestic autos. Why?? To make sure managment got their bonuses and labor got their guaranteed raises and lifetime medical. A high end autos now days cost more than my new home back in the 70's and 80's. Like I said "everyone" in the industry killed the Golden Goose." Even when Toyota was gobbling up your market you still continued to focus on yourselves! Well like good Keynesian economics the industry will simply go away and your competitors who can build it better and cheaper will survive!