More bad news for Chrysler…

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Is this really the beginning of the end?

They have new decided to stop work on their new line of V6 engines.
Last week they also canceled their new 6 speed automatic transmission.

A 6 speed auto and a modern V6 are two things GM already has. Which feeds even more the rumors of a “merger” between chrysler and GM.

But again, I do not think there is any room at GM for more deadbeat brands like Dodge and Chrysler.
The weird thing to me is the GM part. Why do they want Chrysler?
I would have though a European car maker who wants to re-enter the US market, like Renault, Fiat or Peugeot, would have been more interested.
It’s just weird…

After all these years of trouble, a bailout in 1979, a disastrous acquisition by Daimler-Benz in 1998, good old Chrysler might finally be laid to rest…
All because of horrible management making stupid decisions. Over and over again.


Conversation 33 comments

  1. i wonder what the he!! will happen to the new Challenger, the new RAM pick-up, the Viper and the Sprinter Van? i wouldn’t be happy to see these superstars go away!

  2. Maybe it’s the curse of AMC. They bought up AMC and their fortunes turned.

    Or, like AMC, they just had plain old bad management.

    The sad thing is… since I was a little kid (not that long ago, like the ’90’s), there was not a single company that, to me, put out so many mind-bending concept cars than Chrysler. They were full of bright ideas and great designs, the kind that make you love cars.

    I bet Lee Iacocca is PISSED OFF.

  3. I thought a Chinese company like Geely or Brilliance would step in for instant access to the American market since they were rumored to be the ones who would build the Hornet concept for production sales in America.

  4. They should have redesign their gearbox and enigne long time ago. Not just still on the drawing board, maybe they will buy those 2 things from GM. Either way, they had a long time to reticfy the situation but they just rest on their laurels. If Chylser really want, they could buy the last generation MB engines and gearbox instead

  5. Chrysler may be on it’s way out but I don’t think it will end there. GM has plenty of dying brands (Pontiac, GMC….Buick?) as doees Ford (Mercury). The fact of the matter is there are too many manufacturers in an overcrowded market. The “newcomers” (Hyundai, Kia, Mitsubishi) are doing a better job than the American manufacturers at selling cars here. GM and Chrysler still think it is 1968 by having a dealer on every corner and models that don’t sell in their lineup.

  6. HAHA at Anonymous 11:37!

    I too grew up seeing many of Chysler’s concepts come to fruition, but ever since the beginning of the 2000’s it has slowed to a trickle. As far as I know, I still see Nissan taking advantage of the Ram Chassis till they decide to lay that generation to rest…but it’s not like they will be selling many of those these days anyway. I’m sure even if GM gets ahold of Chrysler…the last of the new models will see the light of day for a few years (Like the dodge version of the Versa), but I would really like to see Nissan/Renault to eat them up instead…since they have a couple of projects together anyway. We’ll see. I’d still like to see the return of the Intrepid…it wouldn’t be that hard to mix it w/ some Impala…and BOOM, next gen Impalid! I can’t see GM completely killing Chrysler and Dodge off, they will find a way to integrate products w/o them turing into another badge engineered company such as Eagle and Plymouth.

    But yeah, I’m sure that Lee Iacocca isn’t too happy about this mess. At least he has his butter spread line….people have to eat!

  7. hopefully, Jeep is here to stay no matter what! It’s an American icon…American wouldn’t really be America anymore if Jeep is gone…

  8. I for one, do not care. Chrysler does not produce a single competitive product in the meat of the marketplace (sedans, SUVs, compacts, etc). They are done for.

    I also think that the best products that they have EVER put out was after they merged with Daimler. Quality went up as well as safety and performance.

    “i wonder what the he!! will happen to the new Challenger, the new RAM pick-up, the Viper and the Sprinter Van? i wouldn’t be happy to see these superstars go away!”

    The Dodge Sprinter is a rebadged Mercedes, just so you know. I hope that Mercedes will start to sell them here because they are much better than a Econoline or other full size van.

  9. It’s amazing how Chrysler’s fortunes always seem to be going up and down like that, for so many years. As you mention, they’ve gone through a number of very serious crises in the past, and every time it seems that it’s worse than the last time and that they can’t survive, but since they always found the way to get out and become competitive again, I had just assumed that they would somehow get out of this one as well. It would truly be a tragedy if a company which such history was to die.

  10. we just made an offer for 20% of Chryco, you will be reading about this any second. I think we should go for Jeep only.

  11. Why does GM want Chrysler?

    What, you think there should be some logical sensible reason for their decision making now? Of course not, add it to the enormous list of dumb moves they’ve made in the last 35 years.

    …and as someone in the industry, I can tell you it IS going to happen, Chrysler is done.

  12. Chrysler has been in and out of trouble for over 50 years. They built some great cars in the ’60s, and dreck in the ’70s–mediocre cars in the ’80s through today.

    The combination of bad management, strong competition from Toyota and Honda, indifference from Mercedes, and suffocating union contracts have already killed Chrysler.

    Chrysler has been dead for several years and it’s time to bury the corpse.

  13. Chrysler dead or alive, who cares? (I know it is a tragedy for many employees and their families, I feel sorry for them of course!)

    But in a time where more and more marvelous brands from China and elsewhere arrive, nobody needs the “builder of yesterday-cars”.

    No foreign company will buy one of the US car-makers due to the communistic UAW. The Soviet Union died – but the UAW at the “big three” is still there. Toyota, Honda,BMW, Mercedes and Nissan build one plant after the other in the USA while the “Americans” have to flee their country to Mexico, Canada and South Korea.

    Got the point whom You have to get rid of to become strong again???

  14. i tella dem, you no build da gooda car, day build junk so now, you see, day gonna go bankarotto, son o la vecchia!

  15. The reason GM wants chrysler is is more that Cerebus wants out of Chrysler and wants all of GMAC. Remember, this is a stock flip where Cerebus would get ALL 100% of GMAC (they currently have 51%) for 80% of Chrysler.

    The news earlier this month about the 700 FICO required by GMAC was Cerebus trying to force the deal. Proof was GM now telling it’s dealers where to take loans outside of GMAC and actually paying them to do so.

    Stop looking at the cars and start looking at Cerebus, their track record and the economy.

  16. I keep my fingers crossed for Chysler. I don´t wanna see them go the same way as Plymouth, Eagle or Oldmobile.

    What´s the use of having a brand like Chrysler, when you also own Buick? Why buy Dogde, when you already have Chevy and Pontiac?

    I have the same difficulties, understanding this move of GM as you have, Vince. The only plausible answer to this question is that GM desperatly needs money to survive the next couple of months.

    Selling Jeep to Renault/Nissan makes sense, although this might not be the best moment to sell this automotive icon for a decent price. Especially, when you are about to sell another brand – Hummer.

    Thinking of this merger, it reminds me a little of what happened to the some TV stations here in Germany in the mid 90s. Major stations like Pro7 bought their smaller competitors, closed them immediately and took their market share.

    Maybe this is just what GM wants to do right now. Buy one smaller competitor, sell the valuable parts of it (Jeep), close the rest (Dodge and badge-engeneered Chyslers) and – maybe! – favour the Chrysler brand instead of Buick, which just seems to be successful on the chinese market.

    This horrible scenario wouldn´t be possible over here, as we have strong regulations concerning employee protection, but i wonder if a bancruptcy of the Chrysler Corporation is an alternative for GM, to get rid of the problem, mentioned before.

    Cerberus can´t run Chrysler forever…

  17. this is a typical example of modern day american business. none of the big companies actually put any real effort and money into R&D, instead, the majority of the budget goes to lawyers and businessman who make sure their next paper-deal goes smoothly. and once in a while, they make a meaningless virtual "business plan" such as merging with another company hoping that they can drive the stock up temporarily so the top executives can cash in. right after they do that they can slack off as much as they want to get themselves fired and collect their million dollar settlement.

  18. The only reason Chrysler is in this situation is because their core products are just awful. Forget the unions, forget Diamler’s botched efforts, forget the economy. Their vehicles are simply shaped badly when they could be shaped better, the interior plastics are horrendous when $5 (cost of goods) extra would go a long way, and any engine that isn’t a Hemi kinda sucks. They also completely diluted the brand equity of Jeep with terrible design and non-trail rated FWD vehicles There are plenty of companies with incompetent and crooked management, Nissan and Hyundai, Sony for example, but they survive because they have products people want.

  19. hmmm. crysler, dodges, and jeeps with gm platforms under them sounds like money saved. most people are oblivious to who owns what anyways.

  20. Sounds like GM and Chrysler are coming together to ensure that the government bails them out when they go bankrupt.

    That’s my guess. Its not like a merger would make sense or that GM is in any position to absorb Chrysler.

  21. YOU SAID: “The weird thing to me is the GM part. Why do they want Chrysler?” Here’s your answer: Chrysler has lots of CA$H on hand; GM has LOTS of debt and no cash. Cerebus is liquidating Chrysler to increase that cash even more. When GM buys it, they get the cash and kill all the Chrysler brands (just as fast as it’s “politically correct” to do so). The people who run cerebus are not nice people–but they know how to make (themselves) money.

  22. Except for the owners, dealers, and employees, who needs Chrysler? Certainly not customers.

    Every car Chrysler makes has counterparts from better manufacturers.

    Makes more sense to buy a Toyota, Honda, Nissan, Mazda, Subaru, or even a GM car (Ford is best ignored, too IMO).

    Why bother with Chrysler’s weak product line?

  23. “Makes more sense to buy a Toyota, Honda, Nissan, Mazda, Subaru, or even a GM car (Ford is best ignored, too IMO).” True, at least you will have a pretty good idea what your car will be worth in a few years.

    I disagree with buying a GM however, with their present state of affairs, their values will drop faster than a prom dress on prom night. Also, the above companies have better long term reliability than Chrysler, even if they cost more, in the long run they may end up costing less overall.

  24. What Chrysler car is as good as a corresponding Toyota or Honda? I’d say none.

    The only excuse for buying any Chrysler car is if it’s cheap and you plan to drive it until the wheels fall off.

    Chrysler resale values will be like the Renault Alliance and Daewoo were–duds that nobody wants except for pocket change.

  25. But everyone rubbishes Toyota, Honda and some of the likes for being boring and bland. They must be doing something right. They are providing what people want i guess.
    They dont seem to have the problems that other car makers seem to have.

  26. I’ve heard the “boring and bland” nonsense for years and I currently own an ’04 Honda Accord EX-L.

    Yes, there are similar “boring” Accords everywhere–it’s a quite common car, but that doesn’t exempt it from being the best car I ever had.

    A friend just bought a top-of-the-line 2009 Accord V6 with NAV. The voice-activated NAV system on that car is FAR superior to the dopey BMW iDrive mess.

    Accords are popular because they’re excellent, and the same goes for the Camry if you want a softer ride.

    Toyota and Honda critics are typically not owners.

  27. Dusenburg is gone. Renault is still here. Still think quality has anything to do with perserverence? You Toyota and Honda lovers put up with bordom and mediocrity; yet remain blissfull because you buy their marketing hype and ignorance is bliss. ANYTHING that costs over TWENTY GRAND should be the automotive equivalent of a Rembrandt — like Jaguar, Masariti, and 300c. And T&C Ltd + Table and Viper and the new Dodge Ram 1500 and Challenger. Camry is for suckers, and as PT Barnum once said: "There;s one born every minute". Volume = mediocrity = tons of sales. Affecionatos of Style on the other hand; are a vanishing breed… and so go their marks. And so goes the American Dream. HELLO SOCIALISTIC MEDIOCRITY!!!!!!!!!!!!!

  28. I agree with 5:44PM. Toyota and Honda critics are typically not owners. Maybe “boring” and “bland” are what most people want in a vehicle. A vehicle that get from A to B with no fuss.

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