LA Times: Chrysler in tough struggle
#1
03-17-2008, 04:47 AM
LA Times: Chrysler in tough struggle
http://www.latimes.com/business/prin...,5527285.story
sample quote:
"Chrysler is in a tailspin," said Dennis Virag, president of the Automotive Consulting Group in Ann Arbor, Mich., repeating oft-heard speculation that the carmaker may be forced to sell off valuable assets. "In two or three years, there may not be a stand-alone Chrysler company anymore."
Jeep is the most valuable single asset that can be sold.
Second are the Mexican Ram, 5.7 engine, and PT Cruiser plants
say a prayer for Chrysler's survival
sample quote:
"Chrysler is in a tailspin," said Dennis Virag, president of the Automotive Consulting Group in Ann Arbor, Mich., repeating oft-heard speculation that the carmaker may be forced to sell off valuable assets. "In two or three years, there may not be a stand-alone Chrysler company anymore."
Jeep is the most valuable single asset that can be sold.
Second are the Mexican Ram, 5.7 engine, and PT Cruiser plants
say a prayer for Chrysler's survival
#3
03-18-2008, 06:25 PM
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RE: LA Times: Chrysler in tough struggle
I imagine they are hurting more than the other manus are... after all they killed off the one best small car they hadthat was still selling well: Neon. They continueforward with"hybrids" that are based upon the biggest gas sucker they got, the HEMI. They continue to come out with more SUV's, that get worse gas mileage and boxier shapes. They are not in the forefront anymore so what do they do, they kill off their design studio. That last one was about the worst idea especially since they havent had a really fresh design since the 300C came out.
As for their dealer network being too big... thats just half the problem. The other is that they have poor performing dealers that dont sell enough to begin with. Allowing big companies like the AutoNation franchise(and others)to go in and purchase dealers so they can be allowed to compete more heavily in the used car market with more exposure as a "new" car dealer but still focus primarily on where the real money is... in used cars doesnt help new car sales at all. One of the first dealerships in the Dallas/Ft. Worth area that was bought out by AutoNation was Bledsoe. I believe they had 3 locations at the time, one Nissan and 2 Dodge stores. AutoNation itself had numerous locations all around the metroplex. They were doing very poorly, with sales needed in the 250 used cars a month area. They developed a lousy rep and therefore went around searching for new car franchises to buy out, and they did. They have done similar all around the country. The locations they left named "AutoNation whatever" eventually all but failedand the ones they didnt change, such as the Bledsoe locations still did fairly well due to their existing reps. But the corporate strategies they had eventually trickled into Bledsoe and others around the country and are still in the process of ruining recognized name reputations and turning good customers away either to other dealers or worse other name brands. These are all Chrysler Corp'sfault prior to and during the Daimler years after all they have the final say in any transactions of this sort. I personally dont feel bad for some dealers going out of business while others become consolidated but they better be far more picky and careful in whom they intrust in doing so.
Chrysler needs to impose heavier restrictions upon non-performing dealers either buy substantially lowering their allotments of new cars to begin with or by monetary penalties. At the same time they need to improve incentivesboth to good dealers and the public, the lifetime warranty was definitely a place to start but only if Chrysler survives, after all what good is a lifetime warranty if the company that offers it is gone? They need to be more strict in their "5 Star" program. I have seen too many dealers still with the rating but only because Chrysler hasnt pulled it, not because the dealer deserves it.
As for their dealer network being too big... thats just half the problem. The other is that they have poor performing dealers that dont sell enough to begin with. Allowing big companies like the AutoNation franchise(and others)to go in and purchase dealers so they can be allowed to compete more heavily in the used car market with more exposure as a "new" car dealer but still focus primarily on where the real money is... in used cars doesnt help new car sales at all. One of the first dealerships in the Dallas/Ft. Worth area that was bought out by AutoNation was Bledsoe. I believe they had 3 locations at the time, one Nissan and 2 Dodge stores. AutoNation itself had numerous locations all around the metroplex. They were doing very poorly, with sales needed in the 250 used cars a month area. They developed a lousy rep and therefore went around searching for new car franchises to buy out, and they did. They have done similar all around the country. The locations they left named "AutoNation whatever" eventually all but failedand the ones they didnt change, such as the Bledsoe locations still did fairly well due to their existing reps. But the corporate strategies they had eventually trickled into Bledsoe and others around the country and are still in the process of ruining recognized name reputations and turning good customers away either to other dealers or worse other name brands. These are all Chrysler Corp'sfault prior to and during the Daimler years after all they have the final say in any transactions of this sort. I personally dont feel bad for some dealers going out of business while others become consolidated but they better be far more picky and careful in whom they intrust in doing so.
Chrysler needs to impose heavier restrictions upon non-performing dealers either buy substantially lowering their allotments of new cars to begin with or by monetary penalties. At the same time they need to improve incentivesboth to good dealers and the public, the lifetime warranty was definitely a place to start but only if Chrysler survives, after all what good is a lifetime warranty if the company that offers it is gone? They need to be more strict in their "5 Star" program. I have seen too many dealers still with the rating but only because Chrysler hasnt pulled it, not because the dealer deserves it.
#4
03-18-2008, 08:27 PM
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RE: LA Times: Chrysler in tough struggle
Yup, all the other auto companies think smaller, Chrysler thinks bigger, especially with their P/U's and SUV's........makes no sense even with their "smart" V8 which chooses how many cylinders to run on......a 1 MPG gain for all that money??? Give me a break......
Dusty
Dusty
