Germans screwed Ma MoPar........

[Dr. Righteous]

I never, never liked it when Daimler "partnered" with Chrysler. I knew it was
the beginning of the end for Ma MoPar.
This news article holds some clues as to the future of Chrysler in the next 10 years. There is a good chance a asian company will own Chrysler if American investors don't step up. My bet is that Daimler will sell Chrysler to the highest bidder.

DAIMLERCHRYSLER AG's Chrysler unit plans to cut 16 per cent of its workforce and close its plant in Newark, Delaware, in 2009 in a $US1.3 billion ($A1.66 billion) effort to return to profit next year.

The third-largest US vehicle maker will shed 13,000 workers over the next three years and slash annual production by 400,000 units. Michigan-based Chrysler yesterday also said it would invest $US3 billion in new and redesigned models and expand its range of commercial trucks.

The restructuring plan is Chrysler's second since 2000. DaimlerChrysler chief executive Dieter Zetsche, as head of money-losing Chrysler in 2005, cut 40,000 jobs and closed five plants, bringing in operating profit of $US2.01 billion.

Mr Zetsche said he was also exploring other options for Chrysler and would not rule out a possible sale.

"Chrysler's plan addresses the company's main problems and tackles both cost and revenue issues," said Emmanuel Bulle, a Paris-based Fitch Ratings analyst.

But he said competitive pressures and shifting consumer demand "will make it challenging for the company to achieve its targets".

The workforce cuts include about 9000 jobs in the US.

Chrysler will drop one shift at the Delaware plant and another at a truck factory in Warren, Michigan, this year, and close a parts-distribution centre in Cleveland in December. Next year, Chrysler will end a shift at its assembly plant in St Louis, Missouri. The Delaware factory, which makes the Dodge Durango and Chrysler Aspen sport utility vehicles, will shut in 2009. The company would not comment on the fate of the SUVs.

"The Chrysler Group needs to solidify its position in the North American marketplace," CEO Tom LaSorda said. "The key to our long-term success will be our ability to transform the organisation into a different company to achieve and sustain long-term profitability."

Chrysler said the additional investment announced yesterday would go towards engines, transmissions and axles to help improve economy in 43 new or redesigned models.

Mr LaSorda said the company should have a 2.5 per cent return on sales by 2009.

He said talks were continuing with the United Auto Workers union over Chrysler's efforts to trim its health-care costs.

"While Chrysler Group's recent losses are not the fault of UAW members, they will suffer because of the reductions," UAW president Ron Gettelfinger and vice-president General Holiefield said in a statement. The union said it would negotiate "an attrition program to lessen the impact of these actions".

About 4000 of the job cuts will be at assembly plants, 1000 in power train operations, 3000 in technology and 1000 from other areas.

The vehicle maker will also axe 2000 salaried workers and cut 2000 jobs in Canada.

[Madman Stephan]

Well, businesses are fueled by profits not by passion. I don't think they are likely to sell anytime soon, but, possibly in 5 years?.... Who would want to buy Chrysler anyways? Way too much capital tied up in pension plans. Damn unions! Maybe Wal-Mart would be interested, and they could move all production to China / India?

[Stoga]

I've been afraid of this for sometime, Daimler already took a ton of cash out of Chrysler, I expect they'll take whatever else then sell the rest...

[Dr. Righteous]

Originally Posted by Stoga

I've been afraid of this for sometime, Daimler already took a ton of cash out of Chrysler, I expect they'll take whatever else then sell the rest...

Exactly. They pillaged Chrysler instead of partnering with them.

I really hope some big money investors step up and save Chrysler.
Paying high union salarys and free health care is killing American auto companies. Toyota, Nissan, Mazda, etc does not do this.

[72Challenger]

I'll tell you who wants to buy Chrysler - General Motors! Ready for the new Chevy Challenger?

http://money.cnn.com/2007/02/16/news...ex.htm?cnn=yes

[Canuck Dart]

I really can't believe that anyone is suprised by all of this....it was inevitable.

[Stoga]

Originally Posted by Canuck Dart

I really can't believe that anyone is suprised by all of this....it was inevitable.

You ever hope against hope? It's kind of like when the hot chick you knew from high school dates the utter loser you've known to be a clown for years.
Despite all the warnings and whatever you can do, she ends up screwed, knocked up, betrayed, beat up and broke....
Even if you stomp a mudhole in him afterward, the damage is done.
As I said in the other thread, I hope that Chrysler is salvageable.
This kind of damage to the North American economy is every bit as bad as a terrorist strike, time to stop foreign nationals like Daimler from coming in like this, doing a snatch and grab, then running off with the goods.

[hellhound]

Originally Posted by Stoga

You ever hope against hope? It's kind of like when the hot chick you knew from high school dates the utter loser you've known to be a clown for years.
Despite all the warnings and whatever you can do, she ends up screwed, knocked up, betrayed, beat up and broke....
Even if you stomp a mudhole in him afterward, the damage is done.
As I said in the other thread, I hope that Chrysler is salvageable.
This kind of damage to the North American economy is every bit as bad as a terrorist strike, time to stop foreign nationals like Daimler from coming in like this, doing a snatch and grab, then running off with the goods.

Preach on Stoga...I think that all the globalist B.S. that we've been hearing for the last several years has done nothing but make the rich investor class people, richer. We are out-sourcing labor on every corner with very little ground being laid to put the displaced workers back into the market. Be sure to remember that the working middle class are the ones who built the economy of this country too. These are the same people who would much rather buy a Mopar product as well.

Alot of folks would argue with you, but Ive always thought that Dalhmer profited many times over from Chrysler. This today is just another example of the pulse of the global economy. Foreign nationals are in the mode of Aquire, Pillage, Downsize...and lastly Sell.

[Madman Stephan]

Originally Posted by hellhound

...Ive always thought that Dalhmer profited many times over...

I think you confused Daimler with Jeffrey Dalhmer who was a cannibal. Daimler is a German car maker that merged with Chrysler, has been feeding on it's fleshy bank account, and is now looking to discard the carcass. Nice Freudian slip though...

[bjoehandley]

Originally Posted by Madman Stephan

I think you confused Daimler with Jeffrey Dalhmer who was a cannibal. Daimler is a German car maker that merged with Chrysler, has been feeding on it's fleshy bank account, and is now looking to discard the carcass. Nice Freudian slip though...

I don't know if that was Freudian, hell I'd have ment it exactly the way it sounds if I'd been the one to write it. Hell hounds right on the money in general on that post too, makes me glad I work retail it's kinda hard to outsource that type of job.

[jeepman52]

Yes It Was A Sad Day When The Germans Took Over Chrysler!Muscle Cars Ended!Poor Lee Iacocca-He Brought Them Back For This!Not Worth It I Am Sure!I Still Love The Muscle Era!MOPAR Does Rule!!!!

[nhdriver]

It was a sad day when Iacocca retired and left the company with a "judas" named Bob Eaton in charge (a guy iacocca brought over from GM) Iacocca didn't think any of the "Chrysler" guys under him had what it takes to continue what he had started. (saving Chrysler fron bankruptcy) Eaton was the guy who "Sold Out" to Mercedes Benz. (A supposed "merger of equals")
This Eaton guy took his "golden Parachute and rode off into the sunset. I guess Iacocca had it wrong.

[jeepman52]

Right-On!I Have Been A Mopar Man All My Life-50+Yrs!No Muscle Like Mopar Muscle!Keep In Touch!