As further evidence that Cerberus bit off far more than it expected with its purchase of Chrysler last fall, an internal memo revealed to the Free Press shows that the last few months have been even worse than Chrysler expected. In fact, June numbers are showing an industry-wide disaster looming, with total U.S. vehicle sales down 7 percent in April, 8 percent in May, and on pace to drop 20 percent in June to an annualized rate of only 12.5 million. The memo didn't specifically mention any additional cuts at Chrysler, but CEOs don't generally send e-mails warning of a looming industry crisis just before announcing across-the-board raises.
Attempting to close on a high note, Nardelli said "We have great vehicles to sell. And keep talking up our products to your family, friends and neighbors." Unfortunately, most of Chrysler employees' family, friends and neighbors are grappling with their own layoffs and foreclosures, so putting a new Sebring in the garage isn't a top priority.
[Freep, Photo Credit: Daylife.com]