Fiat CEO: Chrysler worse than we thought

Fiat CEO: Chrysler worse than we thought
http://money.cnn.com/2009/09/16/auto...ex.htm?cnn=yes

Executives will present a revised business plan in November detailing
steps to recovery.
by Peter Valdes-Dapena, CNNMoney.com senior writer
Last Updated: September 16, 2009: 2:13 PM ET

NEW YORK (CNNMoney.com) -- The situation at recently rescued Chrysler
Group is even more dire than first thought, the CEO of Italy's Fiat --
which came to the aid of the U.S. automaker -- said Wednesday.

"We were surprised by how little had been done in the past 24 months,"
Sergio Marchionne told reporters in Frankfurt, Germany.

Chrysler will present a revised business plan in November, Marchionne
told reporters.

"We have to be absolutely clear about what we want to do with Chrysler
and, as a management team, where the organization is going to be in five
years," Marchionne said, according to the industry newspaper Automotive
News.

Unlike General Motors, which has continued to roll out new and
redesigned products even as it entered and exited bankruptcy, Chrysler
has had little to tout. Its most recent new market entries are the Dodge
Challenger muscle car -- essentially a re-bodied Dodge Charger sedan --
and the Ram pick-up.

The only new product Chrysler has entering the market this year is an
industrial-duty version of the Ram truck. After that, a new version of
the Jeep Grand Cherokee mid-sized SUV isn't expected until the middle of
next year.

Even if the Grand Cherokee is a terrific product, its timing is
unfortunate, said Michelle Krebs, senior analyst with Edmunds.com.

"The 2011 Grand Cherokee is an SUV being launched into a market that
doesn't favor SUVs," she said.

In terms of smaller cars and more fuel-efficient crossover SUVs, nothing
is expected from Chrysler in the near future.

Industry analyst Todd Turner of Car Concepts Automotive Research,
speaking from the floor of the Frankfurt Motor Show, found it difficult
to believe Marchionne's assertion that he didn't know how little work
had been going on at Chrysler.

"I'm a little surprised that he was surprised," he said.

More likely, Turner said, Marchionne is laying the groundwork for
drastic actions that will be announced in November but may have been
planned all along.

"That is that Chrysler is over, basically," he said of Chrysler's
flagship car brand. "Within five years, you're going to see nothing."

Chrysler also makes Dodge and Jeep vehicles.

Even if the Chrysler name survives, Turner predicted, the vehicles
marketed under that name will be Fiat products.

On the other hand, Marchionne may simply be enjoying his freedom to be
more honest now that the Chrysler deal is completed and laying the
groundwork to make himself and Fiat seem all the more like saviors.
suggested James Bell, market analyst for the auto Web site KBB.com.

"If they didn't come in as the proverbial white knight, Chrysler would
be going through liquidation right now," he said.

Chrysler had no comment about Marchionne's statement to the press.

In its deal to rescue Chrysler, Fiat took a 20% stake in the struggling
automaker in exchange for partnering with Chrysler on new products,
especially small and mid-sized cars . Fiat did not invest any cash into
Chrysler and, Marchionne told reporters, does not plan to do so now.

He said he hopes no outside investment will be needed as part of the new
restructuring, according to Automotive News.

Marchionne said he expects U.S. auto sales, industrywide, to total about
11 million vehicles next year. If demand doesn't go up to that level,
from the current level of roughly 10 million units, Chrysler may have to
close more factories, he said, according to the newspaper.


--
Civis Romanus Sum

Jim Higgins wrote:

> Fiat CEO: Chrysler worse than we thought

> "We were surprised by how little had been done in the past
> 24 months," Sergio Marchionne told reporters in Frankfurt,
> Germany.

What a bone-head. All he had to do was to read the posts in this
newsgroup to know what was really going on at Chrysler.

Chrysler's problems started with the replacement of the LH platform with
the LX. You can't build a small, LIGHT, fuel-efficient car around the
LX. Again, you can blame the Germans at Daimler for that. As long as
they could stuff as much Mercedes content into Chrysler vehicles, and
made them look like Fisher Price Tonka Toys so they wouldn't compete
against Mercedes cars.

> Unlike General Motors, which has continued to roll out new and
> redesigned products even as it entered and exited bankruptcy,
> Chrysler has had little to tout. Its most recent new market
> entries are the Dodge Challenger muscle car -- essentially
> a re-bodied Dodge Charger sedan -- and the Ram pick-up.

Why not at least mention the Caliber?

And yes, not offering a FWD option (at least a V6 FWD option) for the
Challenger was a completely moronic decision.

> In terms of smaller cars and more fuel-efficient crossover SUVs,
> nothing is expected from Chrysler in the near future.

BRING BACK THE LH PLATFORM YOU ITALIAN WHACK JOBS !!!!

PUT THE 300N CONCEPT CAR INTO PRODUCTION !!!!

THE US MARKET WILL NOT BUY YOUR FIAT CARS BECAUSE THEY ARE COFFINS ON
WHEELS!!!

> "If they didn't come in as the proverbial white knight,
> Chrysler would be going through liquidation right now,"
> he said.

Fiat provided absolutely no money in this deal. So explain how they
were a "white knight". Makes no sense.

> Chrysler had no comment about Marchionne's statement to the
> press.

???

I thought Chrysler = Marchionne = Fiat.

> In its deal to rescue Chrysler, Fiat took a 20% stake in
> the struggling automaker in exchange for partnering with
> Chrysler on new products, especially small and mid-sized
> cars . Fiat did not invest any cash into Chrysler and,
> Marchionne told reporters, does not plan to do so now.

So how is Fiat any sort of white knight? Did Fiat assume any of
Chrysler's debt?

On Sep 16, 5:07*pm, MoPar Man > wrote:
> Jim Higgins wrote:
> > Fiat CEO: Chrysler worse than we thought
> > "We were surprised by how little had been done in the past
> > 24 months," Sergio Marchionne told reporters in Frankfurt,
> > Germany.
>
> What a bone-head. *All he had to do was to read the posts in this
> newsgroup to know what was really going on at Chrysler.
>
> Chrysler's problems started with the replacement of the LH platform with
> the LX. *You can't build a small, LIGHT, fuel-efficient car around the
> LX. *Again, you can blame the Germans at Daimler for that. *As long as
> they could stuff as much Mercedes content into Chrysler vehicles, and
> made them look like Fisher Price Tonka Toys so they wouldn't compete
> against Mercedes cars.

Yeah, like people cross-shop Dodge and Mercedes. Next you'll be
saying people cross-shop Mustang and Ferrari.

>
> > Unlike General Motors, which has continued to roll out new and
> > redesigned products even as it entered and exited bankruptcy,
> > Chrysler has had little to tout. Its most recent new market
> > entries are the Dodge Challenger muscle car -- essentially
> > a re-bodied Dodge Charger sedan -- and the Ram pick-up.
>
> Why not at least mention the Caliber?

Uh, it's not a new entry?

>
> And yes, not offering a FWD option (at least a V6 FWD option) for the
> Challenger was a completely moronic decision.

Because nothing says "pony car" like FWD.

>
> > In terms of smaller cars and more fuel-efficient crossover SUVs,
> > nothing is expected from Chrysler in the near future.
>
> BRING BACK THE LH PLATFORM YOU ITALIAN WHACK JOBS !!!!
>

That'll compete with Civic and Corolla!

> PUT THE 300N CONCEPT CAR INTO PRODUCTION !!!!
>
> THE US MARKET WILL NOT BUY YOUR FIAT CARS BECAUSE THEY ARE COFFINS ON
> WHEELS!!!

Yeah, who cares about all those people buying Civics and Corollas?
What if GM is introducing the Cruze and Ford the Fiesta? What do they
know?

>
> > "If they didn't come in as the proverbial white knight,
> > Chrysler would be going through liquidation right now,"
> > he said.
>
> Fiat provided absolutely no money in this deal. *So explain how they
> were a "white knight". *Makes no sense.

Because Chrysler had no products people want and no hopes of coming up
with any in the near future.

>
> > Chrysler had no comment about Marchionne's statement to the
> > press.
>
> ???
>
> I thought Chrysler = Marchionne = Fiat.
>
> > In its deal to rescue Chrysler, Fiat took a 20% stake in
> > the struggling automaker in exchange for partnering with
> > Chrysler on new products, especially small and mid-sized
> > cars . Fiat did not invest any cash into Chrysler and,
> > Marchionne told reporters, does not plan to do so now.
>
> So how is Fiat any sort of white knight? *Did Fiat assume any of
> Chrysler's debt?

Didn't Chrysler emerge from bankruptcy with almost no debt? Wasn't
that the whole purpose of bankruptcy?

MoPar Man wrote:

>
> Why not at least mention the Caliber?

Because its kinda an embarrassment. What brain-dead manager decided to
replace the company's ONE compact economy car (the Neon) with an
underpowered (except for the SRT version) thing that looks more like a
crossover SUV?
>
> BRING BACK THE LH PLATFORM YOU ITALIAN WHACK JOBS !!!!

Will you give that a rest? The LH was a fine vehicle and one of the
best I ever owned... but that was nearly 20 years ago. And the quality
of the LX has proven much better, whether or not you personally like it.

Steve wrote:
> MoPar Man wrote:
>
>>
>> Why not at least mention the Caliber?
>
> Because its kinda an embarrassment. What brain-dead manager decided to
> replace the company's ONE compact economy car (the Neon) with an
> underpowered (except for the SRT version) thing that looks more like a
> crossover SUV?
Steve,
We have had this discussion before. I agree with you that Chrysler
should have kept the two and four door Neon, but the Caliber is a good
car, kind of like the Lancer/LeBaron of the late '80's. I call it a
five door hatchback sedan, which to me, it is. Very comfortable, with
the CRT/2.0 very good mileage.

In article >, MoPar Man >
wrote:

> http://www.newcharger.org/specs/00300NSpecs.html
>
> That's what Chrysler would have been selling in 2003 or 2004 had they
> not been acquired and gutted by Daimler. Cars based on the LH
> platform. Cars with V8, RWD, Convertible as options. The replacement
> for the 300m.

I love my 300M, but I would NEVER be interested in that 300N.

In article >,
Bob Grimes > wrote:

> Steve,
> We have had this discussion before. I agree with you that Chrysler
> should have kept the two and four door Neon, but the Caliber is a good
> car, kind of like the Lancer/LeBaron of the late '80's. I call it a
> five door hatchback sedan, which to me, it is. Very comfortable, with
> the CRT/2.0 very good mileage.

I like the mechanicals of the Caliber, but I'm not interested in driving
it in that thing of a body.

In article
utertechnology>,
Jim Higgins > wrote:

> More likely, Turner said, Marchionne is laying the groundwork for
> drastic actions that will be announced in November but may have been
> planned all along.
>
> "That is that Chrysler is over, basically," he said of Chrysler's
> flagship car brand. "Within five years, you're going to see nothing."

How unfortunate, but I expected it with Cerbus's stripping of Chrysler.

Josh S wrote:

> > http://www.newcharger.org/specs/00300NSpecs.html
>
> I love my 300M, but I would NEVER be interested in that 300N.

Imagine the hard-top version, with 2 and 4 doors.

I like my 300m too, but that 300n is an extremely good looking car. You
should see the front pictures (I'm having a hard time trying to find
working links to more pictures of that car, and for some reason
allpar.com doesn't mention it in their chrysler concept car section).

Ok, here, check this out:

http://www.netcarshow.com/chrysler/2...tible_concept/

http://www.conceptcarz.com/vehicle/z...00-Hemi-C.aspx

==================
http://www.autointell.com/nao_compan.../daimler57.htm

CHRYSLER 300 HEMI? C Concept Car

Return of the All-American V-8, Rear-Wheel Drive Luxury Performance
Convertible

DaimlerChrysler will unveil the Chrysler 300 Hemi? C concept car, a
four-passenger V-8 rear-wheel drive convertible, Sunday, January 9, 12
noon, at the Chrysler stand at the North American International Auto
Show in Detroit. The quintessential Chrysler, this concept combines
contemporary design, elegance, luxury and legendary Hemi-power. "This
vehicle explores a direction we might take if we were to return to an
all-American V-8, rear-wheel drive luxury performance car such as the
famed '57 Chrysler 300 C convertible," said Tom Gale, Executive Vice
President Product Development and Design.
=====================

http://www.caranddriver.com/news/car...ept-auto_shows

The four-seat 300 Hemi C is Chrysler's modern-day version of the classic
rear-wheel drive American luxury performance convertible, the 1957 300
C. This 300 Hemi C concept car has a 5.7-liter V-8 engine with an
estimated 353 horsepower and a four-speed automatic transmission.
Chrysler estimated its 0-60 time at 5.9 seconds. In the flesh, the 300
Hemi C looks like a two-door 300M with its top chopped off, but in a
nice sort of way.

Steve wrote:

> > Why not at least mention the Caliber?
>
> Because its kinda an embarrassment. What brain-dead manager
> decided to replace the company's ONE compact economy car (the
> Neon) with an underpowered (except for the SRT version) thing
> that looks more like a crossover SUV?

The Caliber sells well and that's what counts.

> And the quality of the LX has proven much better, whether
> or not you personally like it.

The interior quality, design and materials of the LX-300 is for ****
compared to the 300m.

Build quality might be the same - I don't know. I'm very happy with the
build quality of my 300m - even for a 10 year old car. The mechanical
quality is certainly outstanding.

And the 300n would have taken that to the next level.