Let’s be honest. Chrysler is RIP. Today’s announcement that Chrysler has 30 days to make a deal with Fiat does nothing but forestall the inevitable. To get the Fiat deal done, creditors must allow Chrysler to default on loans. Why would they do that, if they simply force Chrysler into bankruptcy? After all, 10 cents on the dollar is better than nothing. So let’s assume that Chrysler is heading for that big Chapter 11 (or 7) in the sky. Now what?
I think it’s pretty safe to say that we won’t see anybody buy Chrysler/Dodge/Jeep lock, stock and pistons. Nope, the parts will be worth (marginally) more than the sum of the companies. Chrysler itself is worthless – the only two vehicles they have that are in anything close to what resembles demand are the Town & Country minivan and the 300 sedan. Neither is currently considered best-0f-breed. Chrysler can sink into the sunset with few tears from the great unwashed. Continue reading Who gets Jeep?→
Let’s get one thing straight. I love American cars. My wife and I both drive Jeeps. While Mrs. Digital has, on occasion, driven a rice-burner, I have never owned anything but an American automobile. On the other hand, I think that American automobile manufacturers management is clueless, the Unions are parasitical, their boards of directors are derelict in their duties, and the whole thing needs to have one giant hycolonic, so it can be reformed into something that is once-again a shining example of American know-how and productivity.
Wanna see something REALLY scarry? If you think things are dicey regarding the economy this week, imagine working in the auto industry. Unless your company’s product burns rice for fuel, before the economic meltdown, you were likely in bad shape, financially. Since the meltdown, your company is basically Dead Corporation Walking. Double that, if you’re one of the Big Three automakers.
Lo, how the mighty have fallen.
At one time (say, circa 1960), GM, Ford, and Chrysler were the crown jewels of American manufacturing. Those three companies were the envy of the world. Americans made things. We built cars that were not just transportation – nay, they were objects of desire, status symbols, and tangible proof that the U.S. of A. was the Greatest Nation on Earth. But the times, they are a-changin.’ Continue reading Karmageddon.→