Chrysler in Trouble?

[Thai]

Link:
http://www.edmunds.com/insideline/do/Columns/articleId=116957

How About That Chrysler?
Date posted: 10-02-2006

"How about that Chrysler?" people would ask only months ago in a tone similar to the way they refer to the Detroit Tigers, who went from nearly the worst record in baseball history to now being playoff bound. Indeed, for the last couple of years, Chrysler was the exception to the rule as the only one of the Big Three automakers to be thriving.

Then Chrysler President and CEO Tom LaSorda dropped the bombshell: After 12 consecutive quarters of profits, the automaker would lose $1.5 billion in the third quarter that ended September 30, more than the $600 million predicted earlier. And, possibly foreshadowing further losses, LaSorda added, Chrysler Group "strives to achieve positive results in the fourth quarter."

Analysts, in the meantime, had expected Chrysler to break even and maybe improve profitability next year. But the bigger-than-expected loss prompted credit rating agencies to lower their outlook for all of DaimlerChrysler.

So what happened?

Though overshadowed by news on struggling General Motors and ailing Ford, Chrysler shares many of the same problems. Chrysler, too, suffers from high so-called legacy costs

 

[Louie]

Be careful when you look at accounting details. A good account gets all the numbers to add up. A great account makes them into anything you want. In everything automaker does, the ultimate goal is selling cars and gaining and controlling market share, and you should look there first. Everything else is guess work. Things are changing. The big three are now known as the Detroit three, even though Chrysler is a German company. GM is selling more cars but they are closing plants and cutting people. I don't think that supports market share very well, it's just a crutch to support the balance sheet. Remember, car manufacturers make money for shareholders. The fact that the make cars is just a detail in the business plan. Toyota is opening plants in the US, Canada and elsewhere as fast as they can get the permits, pay the politicians and pour the concrete. That is at least support for better market share and is a brave step. If Chrysler can't gain market share with the new models that they are popping out then everything else is just noise. The name of the game is market share because it directly helps you and directly hurts the competition. In business where everyone pays the same for help, health care, material and overhead (notice I did not say retirement) it's not enough to win. Your competition must loose. In ten years (or less) Toytoa will be number one and Renault-Nissan will be number two. BMW will be the most efficient and Fiat will be the dark horse with VW-Audi growing by buying instead of developing and that includes companies in the supply chain, not just other manufacturers. Mercury will disappear as soon as the lawyers figure out what to do with the dealers, and Ford's high value group will pay the bills. GM will turn the corner and consolidate, including the supply chain (can you say Delphi). Chrysler will survive and Honda will continue to have a strong hold on their own market as does BMW and Porsche. None of these three, Honda, BMW and Porsche will grow in numbers much but will prosper as examples of how to run a business. If you want to find out how to build an empire look at Toyota. If you want to see how to efficiently run a business look at BMW. And if you want to see how an orphan child beats the odds look at Chrysler.

 

[Fro-Runner]

The Toyota corp. is the new big shyt in the automotive world.......like it or not!

 

[Casper]

other than the 300C...chrysler is in deep crap. They have huge inventory that lasts nearly double that of all other american manufacturers which is nearly double that of the asians.