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Chrysler's future as independent firm questioned


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Chrysler's future as independent firm questioned

 

He said Chrysler's owner, private equity fund Cerberus Capital Management LP, did not seem to have a powerful commitment to Chrysler and noted that the carmaker already has been the subject of alliance and merger talks.

 

Corker said he thought the smallest of Detroit's Big Three automakers was "getting ready to go bankrupt and then GM got into trouble," providing Chrysler a lifeline to attach its own request for $7 billion in aid. He also took issue with Chrysler asking for government money, saying it is in a different situation than General Motors Corp. and Ford Motor Co. because of its parentage. He described Chrysler as a "portfolio company in a private equity company with a lot of money and they are unwilling to invest in your company."

 

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I dont disagree that Chrysler should be allowed to fail.

 

The only good thing that has come out of Chrysler is the Viper and the Challenger, ill give them the 300/Chrager even though i didnt like them, either way I dont know whats worth saving in Chrysler maybe someone can enlighten me.

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The only good thing that has come out of Chrysler is the Viper and the Challenger, ill give them the 300/Chrager even though i didnt like them, either way I dont know whats worth saving in Chrysler maybe someone can enlighten me.

 

 

they still sell a shitload of Rams and Caravans

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Not compared to what they used to, especially on the Caravan side. The Odyssey and Sienna have taken a huge slice of their pie.

 

In all seriousness, how big is the Minivan market retail? When ever I travel for work, we get minivans and we either have an Odyssey or Sienna...and I perfer the Odyssey

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In all seriousness, how big is the Minivan market retail? When ever I travel for work, we get minivans and we either have an Odyssey or Sienna...and I perfer the Odyssey

 

They are becoming more common with fleets because they get better fuel economy than most SUVs with similar passenger carrying ability. There's still a substantial (although shrinking) retail side though.

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The only good thing that has come out of Chrysler is the Viper and the Challenger, ill give them the 300/Chrager even though i didnt like them, either way I dont know whats worth saving in Chrysler maybe someone can enlighten me.

 

Jeep, specifically the Wrangler. Otherwise the remaining Jeep models look to be easily replaced.

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300, Charger, Challenger, Caravan, Wrangler, Ram. Viper is being discontinued anyway, I believe?

 

That in itself is a better lineup than Mercury has. But it couldn't survive without a large parent corporation supporting it.

Edited by 96 Pony
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I dont disagree that Chrysler should be allowed to fail.

The one that's going to fail is GM. They have the worst of liquidity problems, they will be out of cash in 2 weeks. Chrysler has more significant offereings. The Jeep brand, the minivans and 300/Charger vehicles are not bad. Jeep has a very loyal customer base. And of needed, Cerberus can put out some cash as well, even though they might not like it.

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Well, in all fairness, Chrysler said they need $7B by year's end.

 

But that's assuming those carpetbaggers that bought them don't kick in a dime.

This auto meltdown is truly a disaster. I don't see a rebound anytime soon. Over 1/2 million jobs lost month, so I am thinking the car market will be less that 10 million in annualized rate in December.

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I too, believe Chrysler should go. Save Jeep (as in THE Jeep - not the other Jeep vehicles) and the RAM. RIP Viper, I always wanted one of the original Blue with white striped GTS....loved that design. I had a 300 as a rental car once, and man that thing was horrible. I remember thinking "THIS is the car people are so excited about?".

Edited by the_spaniard
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Well, and I may be getting on thin ice, as far as my grasp of the banking industry goes, it seems part of the problem is the subversion of the TARP funds.

 

The funding was originally intended to buy impaired assets, thus freeing up capital to be lent.

 

Instead, the funds are being used to buy equity stakes in these banks, and--basically--shore up bank balance sheets.

 

Shoring up bank balance sheets may be a good thing, but it's not what TARP is there for, and it's doing nothing to ease the credit freeze.

 

IMO, a freely functioning credit market enables weaker banks to be absorbed by stronger banks, where using the funds to prop up weak banks by massive cash infusions simply delays the inevitable.

Edited by RichardJensen
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I had a 300 as a rental car once, and man that thing was horrible. I remember thinking "THIS is the car people are so excited about?".

I feel the same way about my father-in-laws business vehicle, which is a Magnum. Even with that 5.7 HEMI, there's nothing exciting about it. And the blind spots in that car are horrible!!!

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Well, and I may be getting on thin ice, as far as my grasp of the banking industry goes, it seems part of the problem is the subversion of the TARP funds.

 

The funding was originally intended to buy impaired assets, thus freeing up capital to be lent.

 

Instead, the funds are being used to buy equity stakes in these banks, and--basically--shore up bank balance sheets.

 

Shoring up bank balance sheets may be a good thing, but it's not what TARP is there for, and it's doing nothing to ease the credit freeze.

 

IMO, a freely functioning credit market enables weaker banks to be absorbed by stronger banks, where using the funds to prop up weak banks by massive cash infusions simply delays the inevitable.

 

 

The worst case scenario that Congress wants to gamble on:

 

The Domestics fail without loans and take down the supplier base with them and most of the transplants also. Foreclosures skyrocket and take down just about every bank with the TARP money for naught and America in a depression worse than Great Depression. Thaddeus McCotter, R from MI tried to explain that today in hearings, but it seemed to fall on deaf ears. As it is 10% of all mortgage loans are in dangers and that will easily double if Domestics fail and are liquidated.

 

For those still able to buy new, only choice will be imports arriving from all over world just like the rest of what we buy. It will take at least 10 years to recover from that scenario if ever. No auto manufacturer can make money producing and selling 10 million vehicles annually in America and will have to outsource everything. Maybe R&D will remain, but that will be it.

 

If Obama sits on his ass much longer without becoming more assertive about bridge loans, he will have nothing to save by the time he takes oath. The silence is deafening from him. As I remember, the states that voted for him will suffer the most if the Domestics get no help.

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If Obama sits on his ass much longer without becoming more assertive about bridge loans, he will have nothing to save by the time he takes oath. The silence is deafening from him. As I remember, the states that voted for him will suffer the most if the Domestics get no help.

 

Not much he can do for the next 55 days or so

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