Seeing Huge Losses, Chrysler Slashes Production

[JLB]

http://www.nytimes.com/2006/09/19/business/20autocnd.html?ex=1316318400&en=abcd8ff3108cf2c6&ei=5088&partner=rssnyt&emc=rss

DETROIT, Sept. 19 — The Chrysler Group said today that it expects to lose $1.26 billion in 2006, and that it will cut production in the third quarter by 90,000 vehicles, double the figure previously announced.

[Green Lantern]

Maybe they should change their products to be more inline with what people need...

Just a thought.

Or, stick with the 12mph hemi in the new Charger.

[sukie]

People want muscle cars... The charger is the only chrysler that has any style. Need cars are a problem for all US automakers. They cannot and will never be able to compete with the Asian makers. Drive a Cobalt and compare it to a Sonata.

[Green Lantern]

People want muscle cars... The charger is the only chrysler that has any style. Need cars are a problem for all US automakers. They cannot and will never be able to compete with the Asian makers. Drive a Cobalt and compare it to a Sonata.

Considering a vast majority of people drive something other than a muscle car, Chrysler has the choice of becoming a tiny little company or trying to compete by making better cars of the type most people drive...or they could keep losing billions a year 'til the US government is forced to bail out a German automaker to keep some US citizens employed.

That last would go over well on this board, huh?

[TheCrystalBall]

GM and Ford are going to merge soon.

[sukie]

Aqua... I agree about the vast majority... There is a new market for cars with an estimated 19/27 mpg and 250 hp. Why else would GM resurrect the Camaro?

The Hemi is a great engine. GM and FORD should use that design.

[TheCrystalBall]

Aqua... I agree about the vast majority... There is a new market for cars with an estimated 19/27 mpg and 250 hp. Why else would GM resurrect the Camaro?

The Hemi is a great engine. GM and FORD should use that design.

They're going to merge anyway.

[sukie]

There's alot of that talk going around... News sources say talks are happening... others say it's unlikely... What is most clear is that a merger will not help either until they rid themselves of union wages.

[PelicanZero]

All this while Toyota says they're going to double their car production by 2008.

[Green Lantern]

All this while Toyota says they're going to double their car production by 2008.

Someone's got to pick up the slack.

I will be able to tell grandchildren, " I remember when cars were made in the USA," and they will look at me in astonishment and marvel at how OLD grandpa is.

[TheCrystalBall]

It's a pretty simple solution for GM,Ford and Chrysler.

Make better cars than their competitors.

[35Pete]

If Chrysler were smart they would slash their labor force. But be a good corporate citizen and give their employees the same package as Ford to retrain or get an education.

[JLB]

It's a pretty simple solution for GM,Ford and Chrysler.

Make better cars than their competitors.

It would seem logical can they do it?

[Green Lantern]

If Chrysler were smart they would slash their labor force. But be a good corporate citizen and give their employees the same package as Ford to retrain or get an education.

Cutting workers will not help them sell cars, selling different cars will.

The 1.6 billion loss is due to paying too many workers vs. how few cars they sold.

I suggest they sell more cars, not cut workers.

[35Pete]

Cutting workers will not help them sell cars, selling different cars will.

The 1.6 billion loss is due to paying too many workers vs. how few cars they sold.

I suggest they sell more cars, not cut workers.

Better idea. Sell more cars and reduce labor costs.

[JLB]

If Chrysler were smart they would slash their labor force. But be a good corporate citizen and give their employees the same package as Ford to retrain or get an education.

They might just do that.
Will that solve the problem at the company?
I believe the employees could benifit as you suggest.
I went through this crap 8 years ago its a challenge.
It's just real tough situation that exists in todays world.
Unfortunately there are no more cradle to grave guarantees.

[sukie]

Better idea. Sell more cars and reduce labor costs.

Lets expand this Pete, Sell more cars by reducing labor costs and not sacrificing quality

[shiva2999]

But Dr Z is so cute and has that cool Germanic accent!

Who was that idiot who used him as an avatar?

[PelicanZero]

Lets expand this Pete, Sell more cars by reducing labor costs and not sacrificing quality

I'd be interested in finding out if there's a correlation between labor cost and sales volume. On the surface, they seem mutually exclusive.

[sukie]

Labor costs and quality. Mull that one around a bit.

[Green Lantern]

Not even those fat, bloated Germans, who give their employees 6 weeks vacations in their first year of employment and who have social programs out the ying-yang, and who make a pretty good cars by the way, could save a lame American company.

Maybe it is the company's incompetence at making a good product and not the labor costs. If you want to argue labor costs with the Kia, OK, but with Germany? Come on...

[sukie]

Mercedes doesn't make sub 20,000 dollar crap buckets... that is why.

[Green Lantern]

Mercedes doesn't make sub 20,000 dollar crap buckets... that is why.

Thank you for agreeing with me.

As I said, Chrysler could pick the "musclecar" niche and become so small a company that their stock would dry up, or go for the mass appeal and try and make a decent, cheap car. Or go high-end like Daimler...though I think that niche is already taken and Daimler would not want competition from its own subsidiary.

[sukie]

I'm not saying they are right with the muscle pushed hemi idea... I'm saying there is a market.

[Green Lantern]

I'm not saying they are right with the muscle pushed hemi idea... I'm saying there is a market.

At $3.00 a gallon, the market is getting smaller and smaller.

I think it wiser to diversify.

[sukie]

They (all the US makers) dropped the ball on the lucrative fad of hybrid. That was just one flawed approach to marketing. The other is they cannot make an affordable small car that doesn't suck.

[JLB]

They (all the US makers) dropped the ball on the lucrative fad of hybrid. That was just one flawed approach to marketing. The other is they cannot make an affordable small car that doesn't suck.

Why can't they make a more affordable small car?

[sukie]

Costs are too high... so you cut corners on design (plastics etc) and you have a car priced to compete with the Asian products with the margin required to remain in business.

[JLB]

Costs are too high... so you cut corners on design (plastics etc) and you have a car priced to compete with the Asian products with the margin required to remain in business.

Sounds like a plan.

[sukie]

No it's failing plan.. They build cars from the price/cost up... Not building a fine vehicle then assigning a price to it.