Analysts: Chrysler won’t survive with or without bailout funds

Chrysler LLC, which is requesting $7 billion in loans before the end of 2008, is probably in the worst shape out of Detroit’s Big 3. According to CSM Worldwide forecasters, Chrysler does not have the power to survive as standalone automaker with or without government funding.

“It would be best for everyone involved if Chrysler were allowed to gracefully wind down and go away in a controlled, staged process, leaving a Detroit Two” Michael Robinet, CSM vice president of global vehicle forecasts, said at an Automotive Press Association event.

However, CSM’s CEO Craig Cather was quick to point out that the problem is not all Chrysler’s fault. He said the Daimler, which...
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DexDiamondsDexDiamonds - 12/11/2008 9:50:41 AM
+5 Boost
I was thinking this all along.

It's just can't compete especially with the auto market the way it is. What do they have beside the Town and Country and the Ram Pick-up that's actually is profitably enough to continue running Chrysler at the size it is now?

Even the most patriotic person who shops strictly american has much better choice at Ford and GM.


veyron1001veyron1001 - 12/11/2008 10:39:51 AM
+3 Boost
And why is it bad that Chrysler goes out of business?


Agent63Agent63 - 12/13/2008 6:50:09 AM
+1 Boost
I don't know why Chrysler is playing the blaming game and pointing fingers at Daimler. If it wasn't for Daimler the 300/300C model ranges wouldn't have happened. It was the first car in years that grabbed attention for the Chrysler brand they should have been thankful. It's not Daimlers fault their management couldn't run a business properly, hence giving their higher ups bonuses at times of economy crisis. WHO TO BLAME? CHRYSLER THEMSELVES!


NItePhireNItePhire - 12/11/2008 10:46:43 AM
+1 Boost
IMO I think that Nissan should buy them for about 750 million (if they are still worth that much?) Keep Jeep,Ram trucks and the mini vans. This would give Nissan access to their two mode hybrid partnership as well as EV's.


weaponXweaponX - 12/11/2008 11:55:45 PM
+2 Boost
UAW member at a Chrysler plant?


mercuryguymercuryguy - 12/11/2008 11:15:19 AM
-3 Boost
Chrysler should sell its Viper Division. The Challenger and Viper would be better under its own label.

GM should sell Corvette.


mercuryguymercuryguy - 12/11/2008 11:15:56 AM
-1 Boost
3 Great American cars that would fair better on thier own



mercuryguymercuryguy - 12/11/2008 11:18:59 AM
+1 Boost
The Lebaron of the 70s was a nice car. It was cheapened in the 80s.

The 70s Chrysler Cordoba, Dodge Mirada, Imperial and New Yorker were great cars for the price.

The 79 oil crisis ruined the cars when they were cheapened to reduce weight.


mercuryguymercuryguy - 12/11/2008 11:27:06 AM
+1 Boost
The late 70s Oil Crisis was the first blow to Chrysler.

Although Lee Iacoca turned the company around in the 80s with the return of the Convertible and the mini-van, the product line was really cheapened to make the company competitive and profiable. The cars switched to light duty front drive platforms, low grade materials like plastic and cardboard to reduce weight. this was the company's answer to dealing with the energy crisis at the time which was a big hurdle for them during that time. This 2nd oil crisis seems to be the 2nd nail in the coffin.

Chrysler built wonderful cars in the 60s and 70s. The Chrsler New Yorker wuth the Stainless Steel roof brings big dollars at car bids today. These cars were a work of art and used the best of materials. US autos were world-class in those days and well respected.

Somehow greed and Wall Street took these companies over, offering cheaper alternatives to the consumer and bigger profits for executives.


mercuryguymercuryguy - 12/11/2008 11:35:22 AM
0 Boost
Chrysler 300 was a great Marketing Campain for a not so great car.

Detroit Car Show 2003 - Chrysler puts a dozen 300s on display. People belive these to be cocept cars, and the crowd is blown away that they can actully purchase the same car. the cars are open for the public to sit in and enjoy.

I bought a Chrysler 300. It is ceratinly not a Flagship sedan. the 79 Lebaron and Cordoba were far better Quality cars. The 300 is small, uncomfotable, bad visibility, underpowered, confused transmission, and a rear drive that feels artificial, although I give big credit for the rear-drive transition as a better alternative to Front Drive platforms.


100tnega100tnega - 12/11/2008 4:43:14 PM
+2 Boost
Axe Chrysler. Keep Dodge. Go performance niche and rebuild with competitive top line products and a strategic, revolving door leasing program.

Here's the deal. Chrysler stinks. Always has, always will. Don't kid yourself with the Lebaron and 300, they were bandaid solutions for a dying company. The decision makers should pour all their energy/moneys into the Dodge brand. Go premium performance only. No entry-levels. And here's the cache, develop a crazy lease/financing program that keeps customers loyal/locked for 10 years+.


usa1prideusa1pride - 12/11/2008 7:53:49 PM
+1 Boost
the big 3 is nothing like it use to be. notice how all 3 have electrical problems after just 3 years. on the dodge truck they have a fuse box located on the wheel well. road salt got up in thre on my boss truck and shorted the electrical system. now what brain thaught of something so stupid?


wooodwoood - 12/11/2008 9:52:26 PM
+1 Boost
I agree. IMO, if I were Chrysler, I'd stick around a bit and see where the bailout leads to and fix up what needs to be done and sell to the highest bidder. I think the Chinese manufacturers would not pass up this opportunity to get into the US market and set up shop and be ready by the next upswing in the economy. If this happens, I would not be surprised if a Chinese owned Chrysler, be at the heals of FOrd or GM in terms of sales in the next 5 to 10 years if the remaining 2 do not shape up.


S4cabriofoxoneS4cabriofoxone - 12/12/2008 12:27:12 AM
+1 Boost
They should sell Jeep to another big automaker and then die. With the way their products are now--and how they continue to introduce crappy cars--I say, good riddance. They show almost zero signs of actually fighting back while Ford and GM are working hard to appeal to American buyers.


mini22mini22 - 12/12/2008 1:27:20 AM
0 Boost
Chrysler has been so damaged by Daimler that it can only be broken up.The problem is what company has the money to buy them now in this terrible market? Perhaps it would be better to declare chapter 11 and restructure so it might be attractive enough for companies to buy it's assets later.Better buy a Dadge Challenger now. I would assume they will become collector items in a few yrs.


morpheus1976morpheus1976 - 12/19/2008 4:06:28 AM
+1 Boost
@mini, if it weren't for Daimler, Chrysler would have gone belly up years ago! The company simply sucks big time. Once Daimler realized that Chrysler is a black hole for investments and no return in sight the pulled out. Luckily they still made a buck on it. Now Chrysler shares would be worthless.....


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