Chrysler will be gone by year's end. That's my prediction. They are losing market share faster than anyone and still don't get it. Didn't they learn a couple years ago you can't sit on 150+ days of supply? And yet they are doing it again.
Cerberus would like to thank you for the $4 billion in tax dollars you gave them, though.
@pauljones: How will the government get the money back? The money was given to Chrysler LLC, not Cerberus directly; however, it definitely benefits Cerberus since they will not have to dump more capital down the drain. As taxpayers we should be asking why the owners won't even bailout their investment?
Cerberus has already warned that, "Unless Chrysler's labor costs can achieve parity with the foreign transplants, and without the restructuring of Chrysler's debt, Chrysler cannot be restored to long-term health and the government loan will be unlikely to be fully repaid."
True. But the point is that if Chrysler at last buys the farm, Cerberus gets jack out of it. It doesn't matter if there is still three billion dollars in untouched loan money left (which I doubt there is), because as you yourself pointed out, the loan was granted to Chrysler LLC, NOT Cerberus. Therefore, the loss of Chrysler would do nothing to profit Cerberus, and nor do they have unrestricted access to the loan money. That money was meant for Chrysler, and Chrysler only.
@pauljones: What Cerberus gets out of it is they did not have to put $4 billion of their own money into Chrysler to prop it up. If/when Chrysler shuts down, Cerberus will lose on their investment, but they will lose less than if they had thrown more capital down the drain.
Cerberus had a choice - they could use their own money into Chrysler to keep it afloat or they could ask the government for money. Chrysler needed cash to make it past December. So, in affect, Cerberus winds up $4 billion ahead because they didn't have to use their own money to keep Chrysler going.
The fact that Cerberus sees Chrysler as an unworthy investment should tell us something.
Cerberus bought it intending to "flip it", so to speak, by putting a minimum effort into it and trying to sell it for more than they paid for it. They then realized that they didn't have a fucking clue what they were doing or what they were getting themselves into, which is why the lost so much money on the deal. The fact that Cerberus sees Chrysler as an unworthy investment has less to do with the state of Chrysler products and more to do with their own realization that they are abject morons, and have finally recognized that they should never had tried this stunt in the first place.
@pauljones: Nice analogy. They bought the million dollar house on the hill when the bubble was building, and are left with the mortgage they had no intention of paying now that no one can sell anything.
Nothing says "Don't oursource or send jobs overseas" like spending $40,000 on a truk from a japanease manufacturer. Way to put your money where your opinions are!
So subaru sold 2 Baja's last year. I think that's about 1200 less than the Mazda6 Wagon, and then Mazda cut the cord. Does this mean the end of the Baja?
@Gearhead_42: If they just combined Chevy and GMC trucks, Ford wouldn't even be close to the "#1 truck in America". I've often wondered why they haven't done that for that tag line alone.
@zeeboid: Toyota and Lexus only share one or two platforms that I am aware of (Camery/E series and Sequia/Lx whatever). Chevy and GMC have ALL the same platforms. Same options too. Occasionaly GMC will get some sort of gee-whiz feature like the 4-wheel steering trucks or the Envoy XUV, but for the most part same features, same prices. At least that is what I remember when I bought a Trailblazer 4 years ago. You could get a Chevy a little cheaper with fewer options, but both could go just as high on options.
Also, Quadrasteer was available on certain Chevy brand trucks, it wasn't exclusive to GMC. You could also get Quadrasteer on the 3/4-ton Chevy Suburban (but not the Yukon I don't think). Shame GM didn't do more to promote that system, it really was fantastic (my FIL owned a 2003 GMC Sierra Denali with GS).
@JDub: Hell yes! My dad and I drove a QS-equipped 3/4 ton 'Burb at one of GM's "Auto Show in Motion" deals and thought it was badass. But, as you said, in typical GM fashion, they let a great idea wither and die.
@pauljones: oh, not the Billy-boy presidentual hummers?@pauljones: as long as they don't offer only a V6 and a 5k towing capability and call it a truck: [automobiles.honda.com]
This just in: Isuzu sold more trucks here in 2008 than either Mazda or Mitsubishi. Call Joe Isuzu, wake up the writers, and for godsakes find out if we can use that Lotus badge again.
Well, at least Toyota has always made respectable trucks. When the day comes that the Ridgeline outsells any real truck, we'll know that the end of days is upon us.
I am not entirely surprised by that given the current situation that Chrysler is in. A lot of people that might otherwise have bought themselves a new Ram, Challenger, Jeep, etc. have probably gone elsewhere for a lack of faith in Chrysler ability to survive 2009.
Also, the switch to a suspension system that's perceived as being less capable and a lack of any serious improvement in towing/payload capabilities over the previous model may have driven potential buyers into the arms of Ford, GM, or Toyota.
It is kind of sad, though, as the new Ram is a great truck, and even though technically less capable than the Tundra, Sierra, Silverado, and F-150, it is still more capable than most people will ever need.
@pauljones: I'd still buy one (I have an '05). Their big mistake was their obvious miscalculation with the Dakota, and by extension, the Cherokee. What was once an innovation in size and ability, the Dakota became too expensive and ugly for most people to consider. And by getting rid of Cherokee/Comanche, they gave up the ability to build a genuine compact pickup anymore. Their staunch refusal to build a Scrambler just underscore the complete misunderstanding of the market, as well as what their own supporters desire. Stupid moves that just may kill the company.
Odd. Do you think they pay much attention to websites like this? I mean, you get a genuine feel for what some car buffs are saying- both the good and the bad. And the information is free.
I think that we have already seen several incremental bits of evidence in the past that they do. When the story broke that a building collapsed on a Ford factory property due to snow a few weeks back, a Ford PR guy replied (and got promptly banned by Ray). We just had a story of an interview with a higher-level GM planner, too.
@timtoolman: You know, I have to agree with you 100%. They have too much faith in middle management yes men, when a rough read of enthusiast sites can give you the low-down on consumer opinion. Like you say, it IS free.
01/08/09
01/08/09
Hmmm...
01/08/09
Cerberus would like to thank you for the $4 billion in tax dollars you gave them, though.
01/08/09
I doubt very much that Cerberus could simply walk away with that money should they decide to shutter Chrysler.
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01/08/09
Jalopnik.
We can pool our collective excess income and buy it out.
01/08/09
Cerberus has already warned that, "Unless Chrysler's labor costs can achieve parity with the foreign transplants, and without the restructuring of Chrysler's debt, Chrysler cannot be restored to long-term health and the government loan will be unlikely to be fully repaid."
[blogs.wsj.com]
01/08/09
True. But the point is that if Chrysler at last buys the farm, Cerberus gets jack out of it. It doesn't matter if there is still three billion dollars in untouched loan money left (which I doubt there is), because as you yourself pointed out, the loan was granted to Chrysler LLC, NOT Cerberus. Therefore, the loss of Chrysler would do nothing to profit Cerberus, and nor do they have unrestricted access to the loan money. That money was meant for Chrysler, and Chrysler only.
01/08/09
Cerberus had a choice - they could use their own money into Chrysler to keep it afloat or they could ask the government for money. Chrysler needed cash to make it past December. So, in affect, Cerberus winds up $4 billion ahead because they didn't have to use their own money to keep Chrysler going.
The fact that Cerberus sees Chrysler as an unworthy investment should tell us something.
01/08/09
Not really.
Cerberus bought it intending to "flip it", so to speak, by putting a minimum effort into it and trying to sell it for more than they paid for it. They then realized that they didn't have a fucking clue what they were doing or what they were getting themselves into, which is why the lost so much money on the deal. The fact that Cerberus sees Chrysler as an unworthy investment has less to do with the state of Chrysler products and more to do with their own realization that they are abject morons, and have finally recognized that they should never had tried this stunt in the first place.
01/08/09
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/maybe there are more important and more significant news items?
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It also has 80% Domestic content as well. (up from 70% the year before)
The Dodge RAM has a 65% domestic content in it's build for 2008. (down from the year before)
I see a trend.
So who is the one outsourcing again?
01/08/09
01/08/09
Kumbaya, my lord, kummbaya. Rejoyce.
01/08/09
That's sad that the 6 wagon is dead, too. Used ones are super hard to find, too. I wanted one when I was car shopping last year.
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Also, Quadrasteer was available on certain Chevy brand trucks, it wasn't exclusive to GMC. You could also get Quadrasteer on the 3/4-ton Chevy Suburban (but not the Yukon I don't think). Shame GM didn't do more to promote that system, it really was fantastic (my FIL owned a 2003 GMC Sierra Denali with GS).
01/08/09
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[and by hummers i am referring to the car brand...]
01/08/09
Oh. In that case, I have no explanation, other than the fact that the H3T is actually a pretty nice truck.
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01/08/09
check and check!
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[automobiles.honda.com]
01/08/09
I saw that picture on some other forum and I busted out laughing. I couldn't resist stealing it and using it as an avatar.
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We try not to talk about that.
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Also, the switch to a suspension system that's perceived as being less capable and a lack of any serious improvement in towing/payload capabilities over the previous model may have driven potential buyers into the arms of Ford, GM, or Toyota.
It is kind of sad, though, as the new Ram is a great truck, and even though technically less capable than the Tundra, Sierra, Silverado, and F-150, it is still more capable than most people will ever need.
01/08/09
Odd. Do you think they pay much attention to websites like this? I mean, you get a genuine feel for what some car buffs are saying- both the good and the bad. And the information is free.
01/08/09
I think that we have already seen several incremental bits of evidence in the past that they do. When the story broke that a building collapsed on a Ford factory property due to snow a few weeks back, a Ford PR guy replied (and got promptly banned by Ray). We just had a story of an interview with a higher-level GM planner, too.
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01/08/09
What a shame too, as the new Ram looks really nice.
01/08/09
It is a nice truck. If you are going to the Detroit Auto Show, go check it out.
01/08/09