Wards uncovers misleading inventory accounting practices at DCX

[range]

Did DCX hire some ex-Enron accountants while they were awaiting sentencing????

 

 

Chrysler Vehicle Stocks Higher Than Reported

By Eric Mayne

WardsAuto.com, Oct 23, 2006 9:26 AM

 

"A pool of unsold vehicles in July and August went unreported in the auto maker’s figures under a little-used practice for counting inventory, Ward’s uncovers, indicating Chrysler’s overall market picture was bleaker than the industry was led to believe. . . .

 

During the two months, the auto maker continued to run production, building a “bank†of up to 100,000 unsold vehicles that were not counted as inventory, a spokesman confirms. . . . .

 

According to a practice adopted by Chrysler about two years ago, these vehicles were being held in abeyance until dealer orders prompted their release. This practice, which reprises a strategy that has repeatedly plagued the auto maker in decades past, is being curtailed, the spokesman tells Ward’s. . . . .

 

At the end of September, Chrysler’s reported inventory approached 529,000"

 

LINK subscription required

[630land]

Where's 'hemi' and 'dck' now? Isn't their beloved 'Hemi Cuda' car company supposedly "on the way to cure cancer"??

Edited October 24, 2006 by 630land

[Mark B. Morrow]

Did DCX hire some ex-Enron accountants while they were awaiting sentencing????

 

LINK subscription required

 

 

Well they had to go somewhere.

[Michael Reynolds]

Where's 'hemi' and 'dck' now? Isn't their beloved 'Hemi Cuda' car company supposedly "on the way to cure cancer"??

 

Bluecon what's your response to this?

Edited October 25, 2006 by Michael Reynolds

[630land]

In Autoextremist.com, under 'The Mill', a resident of Brampton reports that unsold LX cars are parked in a vacant militray lot. Said "i never seen so many cars in one place since a NASCAR race"

 

Hmm, were not the LX cars supposed to be the 'savior of Chrysler', 'the cars Ford should have built'? or, 'what all of America wants to buy'?????????

 

Looks like there will be a blow out of 300s, Magnums, and Chargers. Or, look for them in rental lots soon, as 'weekend get away specials'.

 

So, to all who think that RWD and V8 is 'the answer', look for another one. Oh, and btw, 300s are not all hemis as some seem to think.

Edited October 25, 2006 by 630land

[Bluecon]

You can't see the woods for the trees.

 

I have told you this before, but here we go again.

Who is going to be most hurt by Chryslers oversupply of product?

The Big 2 and Ford in particular.

Chrysler is better set to weather the storm, and Ford and GMs pileup of unsold product is not

that much less than Chryslers. Chrysler is now dumping this product in the marketplace.

Ford will need to drop their price to match Chrysler. Bye, bye profits hello big loss.

 

I sometimes wonder if Chrysler has not purposefully done this to weaken the competition and wrest

health care concessions from the UAW.

 

The joke in the industry is Bill Ford is like a turtle on a fence pole. Ford is considered easy pickins.

 

Have you never heard the saying "Let sleeping dogs lie"? Just can't resist getting you're butts kicked again?

Edited October 25, 2006 by Bluecon

[silvrsvt]

Chrysler is better set to weather the storm, and Ford and GMs pileup of unsold product is not

that much less than Chryslers.

 

HAhahahahahahaha

 

Got any proof that Ford or GM has an extra HALF MILLION 2006MY cars UNSOLD?

 

Get a clue!

[Michael Reynolds]

You can't see the woods for the trees.

 

I have told you this before, but here we go again.

Who is going to be most hurt by Chryslers oversupply of product?

The Big 2 and Ford in particular.

Chrysler is better set to weather the storm, and Ford and GMs pileup of unsold product is not

that much less than Chryslers. Chrysler is now dumping this product in the marketplace.

Ford will need to drop their price to match Chrysler. Bye, bye profits hello big loss.

 

I sometimes wonder if Chrysler has not purposefully done this to weaken the competition and wrest

health care concessions from the UAW.

 

The joke in the industry is Bill Ford is like a turtle on a fence pole. Ford is considered easy pickins.

 

Have you never heard the saying "Let sleeping dogs lie"? Just can't resist getting you're butts kicked again?

 

Just like those Fusions that were allegedly sitting around, when it has been reported that Ford sits on an average of 30 days worth of inventory.

 

Thanks for the spin. I will give you this you are consistent......

Edited October 25, 2006 by Michael Reynolds

[Bluecon]

HAhahahahahahaha

 

Got any proof that Ford or GM has an extra HALF MILLION 2006MY cars UNSOLD?

 

Get a clue!

Look it up maroon. Ford and GM probably have more vehicles than Chrysler.

[silvrsvt]

Look it up maroon. Ford and GM probably have more vehicles than Chrysler.

 

 

So I get attacked when you don't have any facts to back up your statements? Alrightly

[Bluecon]

Just like those Fusions that were allegedly sitting around, when it has been reported that Ford sits on an average of 30 days worth of inventory.

 

Thanks for the spin. I will give you this you are consistent......

A 5.8 billion loss in the 3rd quarter and another big loss coming in the 4th quarter? That is spin?

When the Ostriches get something right I will respect your views.

 

Look up and see the "days worth of inventory" for Ford and GM. They are not that much better than Chrysler.

[silvrsvt]

A 5.8 billion loss in the 3rd quarter and another big loss coming in the 4th quarter? That is spin?

When the Ostriches get something right I will respect your views.

 

Look up and see the "days worth of inventory" for Ford and GM. They are not that much better than Chrysler.

 

So a 1.2 Billion loss at Chrysler is something write home about?

 

Quit trying to deflect when your wrong...

 

I guess you also missed that Chrysler was LYING or playing fast and loose with its numbers with cars on hand...Neither Ford or GM has cars sitting in parking lots waiting to get shipped to dealerships for non-existent sales.

[Michael Reynolds]

A 5.8 billion loss in the 3rd quarter and another big loss coming in the 4th quarter? That is spin?

When the Ostriches get something right I will respect your views.

 

Look up and see the "days worth of inventory" for Ford and GM. They are not that much better than Chrysler.

 

Just post it or link it. Educate us. I have no idea what DCXs inventory is vs. Ford, GM, or even Honda. It's not like I drive around the Detroit area and see lots full of Fords, Lincolns, and Mercurys.

 

When you post something of relevance I will then respect yours. Instead your continuous use of blanket statements, such as those regarding all that production this year of the LH cars that you equated to profits, get you NO WHERE.

[Bluecon]

Just post it or link it. Educate us. I have no idea what DCXs inventory is vs. Ford, GM, or even Honda. It's not like I drive around the Detroit area and see lots full of Fords, Lincolns, and Mercurys.

 

When you post something of relevance I will then respect yours. Instead your continuous use of blanket statements, such as those regarding all that production this year of the LH cars that you equated to profits, get you NO WHERE.

LH cars? Will you ever get just one thing right?

 

So a 1.2 Billion loss at Chrysler is something write home about?

 

Quit trying to deflect when your wrong...

 

I guess you also missed that Chrysler was LYING or playing fast and loose with its numbers with cars on hand...Neither Ford or GM has cars sitting in parking lots waiting to get shipped to dealerships for non-existent sales.

It is exactly what I predicted months ago. Chrysler has problems but not near the magnitude of Fords. Look up the old posts.

 

I don't have time to look up stuff for simpletons today. Let us just wait and see the 4th quarter numbers and see who is right.

Edited October 25, 2006 by Bluecon

[Michael Reynolds]

LH cars? Will you ever get just one thing right?

It is exactly what I predicted months ago. Chrysler has problems but not near the magnitude of Fords. Look up the old posts.

 

I don't have time to look up stuff for simpletons today. Let us just wait and see the 4th quarter numbers and see who is right.

 

LX cars, sheesh. Why should you have to look things up, when all you tend to do is skew numbers in a fashion that suits only what you want to see, not reality? I'm thinking you should be able to publish or furnish that information from the get.

 

Anyhow, I guess it's ok for Chrysler to post losses because they are at least better than Ford's. There is no 'at least we lost less' when you are bleeding red ink, Ford, GM, nor Chrysler are not anywhere remotely where they should be. As much as Chrysler execs wanted to rant and rave about how well they were doing, and how different they were from the other big American automakers they were right in so many ways. No one parks vehicles to sit around like Chrysler does, and no one (in recent history at least) has performed such a half-assed recovery stemmed on 3 full-sized vehicles.

 

Where is Chrysler's premium crossover? Hybrid? Wide application of a 6-spd auto? Wait they were too busy working plants at capacity to portray that their much balyhooed turn round was in fact here to stay, when in fact they were building crap to park it.

 

Sugar coat it all you want, call me whatever, but face it Chrysler is no better off.

[grbeck]

Look it up maroon. Ford and GM probably have more vehicles than Chrysler.

 

But they sell more, too, so I would expect them to have more inventory on hand. The key question is how fast can GM, Ford and Chrysler be expected to get rid of their respective inventories, at current sales rates.

 

Given that Chrysler has suddenly reported an extra 50,000 vehicles in its inventory, I do not think the answer is favorable for Chrysler.

Edited October 25, 2006 by grbeck

[mustang84isu]

You can't see the woods for the trees.

 

I have told you this before, but here we go again.

Who is going to be most hurt by Chryslers oversupply of product?

The Big 2 and Ford in particular.

Chrysler is better set to weather the storm, and Ford and GMs pileup of unsold product is not

that much less than Chryslers. Chrysler is now dumping this product in the marketplace.

Ford will need to drop their price to match Chrysler. Bye, bye profits hello big loss.

I'm sure Chrysler made quite the profit during its highly successful Employee Pricing Event this summer. Dr. Z is a genius!

[RichardJensen]

I sometimes wonder if Chrysler has not purposefully done this to weaken the competition and wrest

health care concessions from the UAW.

The same UAW that won't even come to the table to discuss health care concessions with DCX?

 

Your suggestion is akin to the man, who finding his wife in bed with his best friend, rushed to the dresser drawer, pulled out a pistol, pointed it at his head, and at his friend's protests, said, "Shut up. The next bullet's got your name on it".

[range]

The difference between DCX and Ford and GM inventories is DCX had 100,000 "unassigned" vehicles not counted in their inventory levels. GM and Ford have ZERO.

 

100,000 vs 0. Pretty simple comparison to understand.

 

 

DCX got caught, now they promise never to do it again (or at least not get caught doing it).

[630land]

The defenses of this fire sale are laughable, "I don't have time to look up stuff for simpletons today. Let us just wait and see.."

 

What a joke, sounds like an excuse and denial. Wait and see, what? Suddenly buyers will come and buy the excess left overs 2006's for full sticker?? Thats a good one, cant wait to see the real "fire sale", when Damiler dumps Mopar:

 

 

More from Auto News:

 

"The company predicts Chrysler will lose $1.2 billion in 2006. DaimlerChrysler posted quarterly net income of $680 million and projects a companywide operating-profit target of $6.29 billion for the full year."

 

Also, "During a presentation to analysts and journalists today, DaimlerChrysler CFO Bodo Uebber refused to rule out the sale or spinoff of its unprofitable Chrysler group."

 

LOL, looks like the real movers and shakers of DCX, the Germans, who never wanted Ma Mopar would love to unload it!!!! And change the name back to Daimler Benz.

But what happened to the "only domesitc company that knows what is doing?" And "The LX cars will save them, RWD cars are what all of America wants". And, "Chrysler is better set to weather the storm"

 

When that "storm" hits, Daimler will unload some excess workers and maybe carve out Jeep and sell them to Asians.

 

Bet, if things get worse, say bye bye to the '09 [or '10 or '11] Challenger!!!

 

"Wait and seee" for what?

 

Is the new Sebring and Avenger going to rake in the $$?? Looks like Budget will have some good cheap cars to replace Tauruses.

Edited October 26, 2006 by 630land

[Bluecon]

:blah: :blah: :blah:

 

So what are you guys saying?

Ford is going to report a better 4th quarter than Chrysler?

 

I doubt it. 5.8 billion loss in the 3rd quarter and more of the same in the 4th.

 

Remember last year when the turtle on the fence post and the rest of upper Ford management was openly ridiculing GM? How did that turn out?

 

You guys have never been right yet, but there is always a chance for a first. (but don't count on it)

 

Not really fair--me against six of the ostriches.

Edited October 26, 2006 by Bluecon

[Michael Reynolds]

:blah: :blah: :blah:

 

So what are you guys saying?

Ford is going to report a better 4th quarter than Chrysler?

 

I doubt it. 5.8 billion loss in the 3rd quarter and more of the same in the 4th.

 

Remember last year when the turtle on the fence post and the rest of upper Ford management was openly ridiculing GM? How did that turn out?

 

You guys have never been right yet, but there is always a chance for a first. (but don't count on it)

 

Not really fair--me against six of the ostriches.

 

Yes because you are so spot on with everything you ramble on about.

[2005Explorer]

All I can say is that everyone but DCX (including GM, Ford and the imports) are advertising 2007 models now. DCX has tv ads playing over and over about their 2006 model clearance sale. It seems like a blow-out sale that will never end. One would think it has to effect the dealers orders of 2007 models if DCX is still trying to cram 2006 models down dealers throats.

[Mark B. Morrow]

You can't see the woods for the trees.

 

I have told you this before, but here we go again.

Who is going to be most hurt by Chryslers oversupply of product?

The Big 2 and Ford in particular.

Chrysler is better set to weather the storm, and Ford and GMs pileup of unsold product is not

that much less than Chryslers. Chrysler is now dumping this product in the marketplace.

Ford will need to drop their price to match Chrysler. Bye, bye profits hello big loss.

 

I sometimes wonder if Chrysler has not purposefully done this to weaken the competition and wrest

health care concessions from the UAW.

 

The joke in the industry is Bill Ford is like a turtle on a fence pole. Ford is considered easy pickins.

 

Have you never heard the saying "Let sleeping dogs lie"? Just can't resist getting you're butts kicked again?

 

"Not only was it authentic frontier gibberish, but it expressed a courage that is little seen in this day and age."

 

— Olson Johnson

[Bluecon]

Like I said about the 3rd qtr results(where of course I was right and you were all wrong) let us wait and see the sales figures and 4th quarter results.

You people are living proof of the old saying-"Talk is cheap".

 

Check this out. Not even the largest dealer in this city of 200k.

27 Fusions in stock. 17 are 2006. The number 1 hottest selling car at Ford?

I thought Ford had no 2006 inventory? And they are actually on the lot.

 

http://foc.dealerconnection.com/pages/pres...50&proj=FOC

 

And 11 Zephyrs or I mean MKZ or something like that. They must just be flying off the lots. 11 at one dealer? Who would pay 48k for one of those rebadged Fusions?

 

http://foc.dealerconnection.com/pages/pres...e=&count=50

Edited October 26, 2006 by Bluecon