Jalopnik Snap Judgment: A little more math, based on the fact that Chrysler really has nothing besides the Ram truck coming out this year, tells us Chrysler is on track for a $2-billion-plus loss for the year, breaking their previous record of $1.6 billion. As Rebecca Lindland, auto analyst at Global Insight, said, "From a product perspective, you can't point to a light at the end of the tunnel." Ouch. So Chrysler's survival will depend upon how deep owner Halliburton Cerberus Capital Management's pockets are. Or how quick they can sell it off. [Detroit News]

The bankruptcy rumors seem to have sprung from reports this week that Chrysler drew down on a line of credit from Daimler. However, under Cerberus' purchase terms, Chrysler had to exercise the credit line before Aug. 3, so there's a "use it or lose it" component to the whole financial story too. Chrysler spokespeople state that the borrowing of $1.5 billion from Daimler and $500 million from Cerberus is not an indication that the company is having cash flow problems, and that Chrysler has $9 billion in cash. Sure sounds good, but all the "categorical denials" and "without merits" pouring out of Auburn Hills don't do much to soothe the nerves.
[BusinessWeek]

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]

Not surprisingly, Nardelli said that Chrysler might have to "go back and resize" production plans. He also reiterated his expectation that Chrysler would remain a private company, explaining that there were clear advantages to running Chrysler under private equity ownership rather than as a public company. For example, not having to tell reporters a damn thing except, "we are guarded but optimistic. We are very encouraged in what we have accomplished." Which would be what, exactly?
[Automotive News (Sub. Req.), Photo Credit: Bill Pugliano/Getty Images]

"Globality"—we think it has something to do with selling cars overseas, even though Chrysler only managed to move just over 200,000 internationally last year, or maybe giving Chrysler products an "international" look—is the key to "returning Chrysler to profitability" as an independent company, Nardelli insisted. Thus will they achieve an enviable state of globality-ness. He figures Chrysler under his direction can do this because it's really a "$60 billion startup company." (Was that a subliminal valuation to potential buyers being tossed out there?) This from a grizzled veteran of American business—and a real car guy, too, remember—who's been in the game for almost 40 years and whose pre-Chryslerberus experience came at GE and Home Depot. Power plants and lumber. Startup? Makes ya wonder.

Oops, did we allude to Cerberus Capital Management, the private equity concern that's Chrysler's current owner? Nardelli sure didn't. He spent more time talking about Walter Chrysler and Lee Iacocca—not to mention the Chrysler Building in New York itself, an Art Deco landmark and shrine to all that the American automobile once stood for that Chrysler vacated in the fifties. (Company HQ is now a fairly weird-looking building in Auburn Hills—we know this because Nardelli brought a slide.)

Apart from dispensing Six Sigma by osmosis, Nardelli's primary goal in delivering the keynote seemed to be to sell the press on Chryslers efforts to "rightsize our business," i.e. shed personnel and close facilities in order to meet Cerberus' firesale turnaround goals. With a less cynical crowd, her might have succeeded; he's a gruff yet suave fella, the kind of man who emanates "decisionmaker." To his credit, he acknowledged that Chrysler's customer satisfaction isn't where it should be. He also broke out of trance-rave PowerPoint mode long enough to run a Challenger video clip, to illustrate the "visceral and emotional appeal of our automobiles." There was a thumpy car-guy soundtrack. Then back to the PP slides.

In the end, kind of a downer, to kick off the New York Auto Show. It was raining outside, under a gray sky in Manhattan. But the clouds were a lot darker inside the Javits Center, at least where Chrysler's corporate leadership is concerned. Onward to globality, however. Vroom!

Statement from Robert Nardelli, Chairman and CEO, Chrysler LLC, Regarding New, Nationwide U.S. Fuel Economy Standards:

"We commend the Congress for passing an energy bill today and we fully support it being signed into law. Chrysler is committed to meeting the fuel economy standards of the bill and doing our part to reduce greenhouse gas emissions and our country's reliance on foreign oil. We continue to devote significant resources to develop quality, fuel efficient products that our customers expect. This year alone, we offer six vehicles that get 28 miles per gallon or better, and more are on the way." [Source: Chrysler]

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