It doesn't Look good for Chrysler

An article today on the MSNBC site just made me laugh.

HOUSTON - The stalwart. The bargain-hunter. The skeptic.
As Chrysler dealers across America try to sell vehicles with the auto manufacturer in bankruptcy, they're meeting different types of customers: loyalists who aren't fazed by the troubles, those simply seeking the best deal in a bad economy, and some who are
willing to look, but aren't sold on the company's prospects...
Chrysler, the nation's third-largest automaker behind General Motors and Ford, filed for Chapter 11 bankruptcy protection Thursday after months of surviving on government loans. The company hopes to emerge in as little as 30 days, allied with Italian automaker Fiat to build leaner, cleaner cars....
For some, a good deal on a new car trumped the possibility that Chrysler may not survive. Rebecca Jeffries wasn't even looking to buy when she went for an oil change Friday at Day's Baum Boulevard Dodge-Chrysler-Jeep in Pittsburgh The 66-year-old computer-company clerk has always loved the looks of Chrysler's Crossfire convertible, but the $40,000-plus tab was out of her price range. Not these days. When a sales representative made her a deal for $27,900...
Not everyone is so optimistic, and that's not surprising given the state of the automotive industry. Overall U.S. auto sales fell 34
percent in April from a year earlier, and Chrysler had the worst showing among Detroit's Big Three, down 48 percent...
Chrysler's roughly 3,200 dealers are trying to remain upbeat and talk the company line, but uncertainty lingers. For one thing, not everyone is going to keep their franchises and details on how the reorganized company will look have yet to emerge. (MSNBC)

Its about damn time they forced these crappy run companies into bankruptcy. Only problem is nobody wants a Damn Chrysler. I find it funny that the article mentions Chrysler Loyalist. Maybe I live in the wrong part of the country to understand that, but I have never met a person that will only buy a Chrysler. if that was the case there choice would be. The 300, Sebring, Sebring Convertible, and the Town & Country. Not many nice choices. I have met people that will only purchase Fords, Chevrolet's, or Dodges but not Chrysler. No i am not considering Dodge a Chrysler. Different plant, different logo, a subsidiary but otherwise independent. In fact the only reason Chrysler hasn't gone down the drain years ago is due to the Jeep and Dodge loyalist who I imagine if you asked them would not buy a Chrysler.
The Rebbeca Jefferies story is hilarious that the vehicle she wanted and bought is no longer made by Chrysler, and has a Mercedes Benz engine in it instead of the shitty Chrysler motor. One of the successes out of the failed Daimler-Chrysler partnership that ended a couple years ago after Daimler realized that Chrysler added nothing to the partnership. Why is there a need for 3,200 Dealerships, what is the purpose. No wonder why cars cost so much, it is to cover the cost of having to many dealerships. That's approx. 65 dealerships per state, not including Alaska because I assume there might be 2 dealerships up there. Outside of other large states California and Texas, where can 65 dealerships fit? Hopefully that is part of the bankruptcy, the world could always use less car salesman. To any Salesman I offended......GOOD. Your success is contingent on lying to people.

Chrysler, Unions, And the Obamas get money

The unions are being blamed for the failing of the Chrysler/Fiat deal(MSNBC)

Fiat CEO Sergio Marchionne, in an interview published Wednesday, said the Italian automaker will walk away from a nonbinding agreement to take a 20 percent stake in Chrysler and share its small car technology unless the U.S. automaker’s unions agree to major cost cuts...
Chrysler, which is living on $4 billion in loans from the U.S. government, has to take on a partner and gain concessions from unions and debtholders by April 30, or the Obama administration will stop lending it money. No other suitors have emerged, and it’s likely that no bankruptcy financing will be available, so Chrysler would have little choice but to be auctioned off in pieces...
The uncertainty adds to worries for Chrysler’s 54,000 employees as well as thousands more who work for parts suppliers and dealers across North America.
“There’s definitely some worry and concern about what’s going on,” said Brett Ward, 35, a 15-year Chrysler worker who drives a forklift at an assembly plant in the Detroit suburb of Sterling Heights. “We haven’t been asked to vote on the contract changes yet.”(MSNBC)

Looks like the Union has lost their ability to common sense, with no Chrysler they wont have any jobs. It what if hypothetically the auctioned parts of chrysler which will probably be The dodge truck division and Jeep we bought by investers who move to a right to work state like Texas where Unions have trouble getting established as anything more than a political action committee. If the investers decide that it is futile to keep the factories in locations that have unions with unresonable expectations and a lack of an economy (Michigan, Ohio)to a different state. then the UAW just lost a good portion of their membership and looks retarded after the jobs will never return due to the remaining companies relocating. Once the apperance that the UAW cant do anything for their membership than they lose all negotiation leverage and probably a few thousand members that will rather save their dues then pay an organization that can no longer be depended on.
LOL at the funny union workers that thinks they are going to get to vote on any contract modification. What are they going to do if they dont like contract which gives them less, go on strike?

The Obamas banked last year, 2.6 Million (Washington Post)

Barack Obama's successful quest for the White House powered the sales of his nonfiction books, making him millions even as he assumed the presidency, his tax returns show...As a candidate in 2008, Obama earned about $2.6 million from the sale of his books, "The Audacity of Hope" and "Dreams From My Father," according to returns the White House released yesterday... The tax returns confirm the success Obama has had as an author during the past two years, as his largely autobiographical books have remained high on bestseller lists. His earnings in 2008, in addition to the nearly $4.1 million he earned the year before, put him in the top tier of nonfiction writers in terms of income from book sales.(Washington Post)

Maybe in the spirit of the economy sucking Obama gives more than 50 percent of his income to the IRS in taxes to show some financial sacrifice in a tough economic climate. He is living in government housing where he is only required to pay for his food and has everything else person needs subsidized by citizens. There is probably some poor sap on the payroll that is paid to specifically pick up dog poo. Or I wonder is it a intern type position or is it some former wallstreet analyst from bear stearns working to pay off his debt.

Cspan Senate Banking Hearings: Automakers

The Big 3 and UAW are back on capitol hill today, Begging.

- Senate Banking Hearings: Automakers CSPAN.ORG

- UAW made an obvious but strong point about the lack of oversight or guarantees of T.A.R.P.

"If the government could provide a blank check to Wall Street, then the government should be able to provide a bridge loan to the automakers."
Ron Gettelfinger

- Once again Chrysler has nothing to offer. Robert Nardelli their C.E.O made a point to say that all Chrysler vehicles will increase in fuel efficiency from the 2008 to 2009 model year.

As opposed to coming out with the same model every year, just charging the consumers more. That is essentially admitting to fraud by the automakers, if all they were doing is changing badges on the cars and paperwork. Chrysler needs to go, they are a company that has historically lacked vision and creativity. How hard is it to ask the automakers to fire ineffective people.

- Ford really sounds like they try harder than any other automakers in their business plan, and in their proactive reorganization plan that was implemented before this most recent economic downturn.

Wish Farewell to Chrysler

"It's like...an open book test...writing an essay where each automaker's allowed to bring whatever books they wanted with them into the test. Chrysler brought crayons and a coloring book."

The Big 3 auto makers are mighty optomestic about their sales the next couple of years. [Jalopnik]

Fords Plan

GM's Plan

Chrysler

Ford wants you to buy more of their crappy cars.

The Ford motor company today released its new buisness plan for congress to review and hopefully incorporated within their decision when they grant this bailout.
FORD MOTOR COMPANY BUSINESS PLAN [CSPAN] PDF

overview & Key Points page 1-7 out of 33

What ford wants you to know:
-the Auto industry supports five million jobs in all 50 states and spends $12 billion
annually on research and development in the U.S. pg. 2

-"While we have much more work ahead of us, Ford did not wait until the current crisis to begin our restructuring efforts, but has already begun a fundamental restructuring in the way we do business. Our early efforts showed promise before the credit and economic crises hit earlier this year." pg. 2

-"The auto sector is one of the first to suffer from bad economic conditions –
indeed, spending on new vehicles historically represents about 4% of GDP and
therefore is closely tied to economic conditions." pg. 4

Translation, we were the first to suffer in this recession, because consumers stop consuming unnecessary crap. Like a new car every 2 years, why is it necessary to have the exact same car come out with relatively few improvements every year? The 07 Ford f-150 looks just like the the 06 f-150. How about alternating production lines every year to avoid over saturation

-The recession and financial crisis has resulted in automotive industry sales volumes at the lowest annualized level in 25 years. pg. 5

- We ask congress for additional incentives incentives for consumers to trade in

older vehicles and move to more fuel-efficient vehicles.
We need the consumer to buy more crap, and we will make it look like we are doing something environmentally friendly. If a person has a old Monte carlo that still gets 20 miles per gallon but have no note to pay or full coverage insurance. It is not in the persons best interest to buy a 21,000 dollar car at 350 per month(That is 5 years of payments with no interest calculated.) in financing fees and insurance for a new car will at least run 150 a month for full coverage insurance and drives 3000 miles a quarter. Then that cost a boat load more to drive and be environmentally friendly. 3000 divided by 20 equals 150 gallons of gas per quarter for the monte carlo equaling 420 dollars spent every quarter on gas which is 1680 per year. Mean while the "Fuel efficient" car gets the recommended mileage which is 35 miles per gallon. Using the same formula as for the Monte carlo would equal out to 240 a month in gas. That is 960 dollars spent on gas per year, now add in the 350 dollar a month car note and that is 4200. add in the additional 1800 dollars in insurance per year and that is a grand total of 6350 a year to go green. Hating the environment would save you $4670 dollars. Now this number doesn't include maintenance for oil tires and all other things that are necessary for maintenance of a car. But no way does the maintenance of the Monte Carlo wost 15,000 every 5 years. I vote no on this part, you want a loan from the people so that you can try to trick them in taking out a loan from you for the next 5 year?

- Ford plans to consolidate their 4 divisions(North America, South America, Asian Pacific, European) Deemed no longer neccessary do to the advances in communication. pg. 7
LAYOFFS

-blah blah blah blah blah lies blah blah lies blah 7-33
Im tired of reading it. Hope that is a good overview..

Sounds like a good start, I am sure they are way ahead of GM or Chrysler. Due to the fact Ford identified the market shift earlier than the others.

2008 Ford Recalls

May 14, 2008 Ford recalls over 650,000 pickups for brake hose
April 28 2008 Ford Recalls F-250, F-350 Trucks for Fire Hazard
Feb 27, 2008 Ford Recalls 470,000 Mustangs to Update Air Bags
Apparently Ford thought it would be fiscally conservative and install the wrong airbags
Feb 11, 2008 Ford Recalls 57,000 More Trucks, SUVS for Fire Hazard
Feb 11, 2008 Ford recalling vehicles over door handles and fuel hoses
Jan 21, 2008 Parts shortages delay repairs of fire-prone Fords
Dec 6, 2007 Ford recalls 1.2 million trucks for engine flaw
Aug 3, 2007 Ford recalls 3.6 million vehicles
in less than two years ford has recalled over 5.9 million vehicles in 2 years. If they made a good product they can sure save money from repairs and lawsuits. Or take their time building a car they can find these problems before you let these deathtraps on the road.
If every repair takes 200 dollars not including lawsuits that is 1.19 BILLION in loses over your own product.

Take the number of vehicles in the field, A.
Multiply it by the probable rate of failure, B.
Multiply the result by
the average out-of-court settlement, C.
A x B x C
equals X.
If X is less than the cost of a recall, we don't do one.

Edward Norton "Fight Club'
Its clear that that is the formula, hurray unregulated capitalism.

UAW is good at making demands

Now the UAW speaks up, they were not concerned with this during the last contract talks.
UAW to Congress: The autoworkers union calls on the government to give aid to GM Get a deal done Ford and Chrysler before Congress adjourns. (CNN.com)
Since they are fighting for this bailout, I know its a bad idea. If any congressional leader elects to give the money to the auto companies based on this plea, then they are spineless just like I thought.

"Congress must not adjourn with the Bush administration in place without an
agreement,"
UAW President Ron Gettelfinger.

That sounds like a demand instead of a request, from a person who didn't see this coming. Now they suddenly know how to fix the car industry! 2 years ago they didn't see this crash coming. Yes it is a crash, it is time to stop calling it an economic downturn. Its time for economist and people in the financial sector to stop acting like they know whats going on. Every week it is some new anomaly in the system they are trying to explain for the reason why the bailout isn't working. Can't they admit this is a completely new situation that can't be fixed by using the economic models that got us into this mess. The people old enough to remember the depression, are not the same people that pulled us out of the depression. Just because they have a government title, does not mean they know anything when it comes to the financial sector. In fact it probably means the opposite.


Business in the areas of the big 3 factories agree with a bailout (CNN.com)

Damn the big 3

Ford, GM, & Chrysler are losers.
The are good at Loosing jobs
They are good at Losing their damn minds.



Why would anyone buy this vehicle if you aren't a Government organization like the FBI? Edmund's.com describes the Ford Excursion as

The Ford Excursion followed in this tradition. This full-size SUV was manufactured between 2000 and 2005, and holds the distinction of being the longest and heaviest sport-utility vehicle ever produced. With seating for up to nine passengers.

9 Passengers? How many families are that size anymore. In the 50's 60's and part of the 70's it was not completely out of the ordinary to see a family of 5 or 6 but 9 is just ridiculous. What is the purpose of 9 passengers, why not just rent a Winnebago if you want to go a trip. But the thought that it was necessary to build such a big vehicle in mass production is just crazy. It highlights are arrogance as a population and the arrogance of the big 3. If We will build it they will buy it. It is not just the big 3 who are involved in feeding on this consumer driven culture, pun intended. All of the automakers have a ridiculous vehicle:

Toyota Sequoia: Seats 8


What is the sense of these big ass vehicles, of course they are fun to drive and makes little people feel protected on the road. You can accomplish the same thing by buying a Tank, and you would get about the same gas mileage as driving these behemoths.

The current state of the U.S. auto market is horrible due to unrealistic expectations and bad leadership. When the Unions forced a renegotiation of their contracts last summer the leadership didn't think about the future of the American Auto Economy. It wasn't a secret that sales & Demand where down. Yet the Unions asked for guarantees to keep the factories of the big energy wasting vehicles open in Detroit. The understanding is there that the Union leaders were looking to secure jobs in a state that is already wasting away. This was their one chance to demonstrate the Vision and get the upper hand on negotiations yet they failed. Just like the industry. This was the Union chance to truly do what is best for workers. Within negotiations they could have asked for many more things that makes sense except the dumb things they agreed to:

assisted their contracts last year
1. 2 new factories equip ed to create "Green Friendly cars"
a. One of those new factories be in Detroit Michigan
b. Another factory to be built in an economically viable area(Not Michigan or the rust belt)
2. Discontinue the creation of large SUV's that are not economically viable
a. If there is no demand why are they creating these super vehicles
b. Has anyone seen a truck lot lately, they have plenty

This is what they agreed to, keep in mind how long can they keep these agreements with a 120 year old business model.

1. Company commitments to invest in new products for its existing U.S. facilities, as well as a moratorium on plant closings.

2.The UAW also was able to secure a commitment to hire 3,000 temporary workers into full-time, traditional employment.

How are they going to keep these commitments to the unions. 3000 temporary JOBS haha, what is UAW going to do if GM doesn't provide these jobs, LOL Nothing out of nothing is Nothing squared.

Yes we need to give another bailout since this is such an important part of our country. They should only give it on these conditions.
1. Fire all the Leadership at those organizations.
A. UAW
B. GM, Ford, Chrysler
I. Just because the the Ford family shares a name with the company they own
they should not be the defacto owners
2. Force the The big 3(GM, Ford, Chrysler) to release all of those patents they have collected to prevent alternate technology to be used. Those should become owned by the general public and should be able to be used by any engineer or company.

A. GM this month said it lost $4.2 billion in the third quarter and almost $73
billion since the end of 2004.(blogger)
3. The big 3 should get rid of all lobbyist that should save 7 million
4. Agreements with developing car companies to mass produce their vehicles
a. Tesla Motors
b. Studebaker Electric bring it back

$30 billion losses + GM = A company ahead of the curve

"Our natural resources are limited, so we have to stay ahead of the technological curve." Chevy Designer Bob Boniface

Now that is a bold statement coming from a company who just lost $15.5 Billion in the last year. Earnest Meyer of MSN Money reports

"The news from Detroit just gets grimmer. With gas prices soaring, sales of fuel-guzzling SUVs and trucks are plummeting. The Big Three that once ruled the industry -- General Motors, Ford and Chrysler -- are cutting costs, shuttering plants and laying off workers. GM's share price is hovering near its lowest point in half a century; the company announced a whopping $15.5 billion loss in the second quarter of 2008."

I just don't have an idea how, this is Chevy staying ahead of the technological curve. Gas is already past $3.50. Staying ahead of the curve shoulda/woulda been around the $2.50 mark. That would of required Detroit to try to do something productive for their market, than the big oil companies and the middle east.
2010? How long have hybrid cars been around? The Toyota Prius was on sell in 2000, Honda Insight 1999, Honda Civic Hybrid 2002, Ford Escape/Honda Accord 2005. Ok. These are not electric vehicles, so Chevy is still ahead of the curve, right? Wrong!
Electric Cars have been around for years, or at least the concept and technology. Even Thomas Edison had an electric vehicle according to the Smithsonian Institute records. A site American History has a picture of him next to his vehicle.

In 2003 the Tesla Motor Company was Incorporated in the heart of Silicon Valley, California. The goal of the company was to create an efficient, good looking electric vehicle. They don't have nearly the market share of any of the big 3, and alto less funding. yet with $105 million dollars, they have created a great car with huge demand. Which was one of the answers often given by the big 3 in the 90's, is that there just is not a demand for electric vehicles. They were wrong, there is just not a demand for shitty looking electric vehicles. If the Big three invested less than 4% of their 2nd quarter losses they could have easily built this vehicle, and kept thousands of jobs.
Video of the Tesla Sportster: