Problems of old Chrysler linger at 'new' Chrysler

[Ron W.]

http://www.msnbc.msn.com/id/31212428/

 

DETROIT - Chrysler may have been granted a fresh start, but it still faces old problems: how to sell enough cars and realign its fleet away from the trucks and SUVs consumers seem to no longer want or be able to afford.

 

A 42-day stay in bankruptcy court cleansed the company of much of its debt and labor costs, but many analysts say Chrysler's immediate future is bleak. It lost $8 billion in 2008, and sales are down by almost half for the first five months of this year.

 

Meanwhile, small cars designed by new Italian parent Fiat Group SpA won't make it to U.S. shores until late next year and there are no guarantees they will entice great numbers of American drivers.

 

During Fiat's last run at the U.S. market, in the 1970s and '80s, reliability problems led people to suggest the name stood for "fix it again, Tony."

 

In an e-mail to Chrysler's 54,000 workers, Marchionne acknowledged the company's problems and said he was determined to repair them. Five years ago, he wrote, he stepped into a similar situation at Fiat, perceived at the time as a failing bureaucracy that made poor cars.

Through hard work and tough choices, we have remade Fiat into a profitable company

[Anthony]

The year or two will be tough for them. I am interested to see the next gen of Chrysler/Dodge products once this new ownership bears fruit.

[silvrsvt]

The year or two will be tough for them. I am interested to see the next gen of Chrysler/Dodge products once this new ownership bears fruit.

 

I even wonder if they can make it that far