[Coldjensens]

Originally Posted by ottomobeale

Chrysler doesnt bring much to the table. They have:
Ram Trucks
Dodge exotics - Charger, Challenger, Viper
One of the few surviving minivans
Jeep

Anything else??

Money. GM needs cash or they are done. GM expects to get paid for taking Chrysler. Chrysler is a liability. However if they can postpone that liability and use the cash to get their heads above water, they can deal withtheh Chrysler liability later. Maybe they can even turn it around. They can shed half of the execs. and upper management. They can even combine some of the factories.


Right now Chrylser makes some beautiful cars. However they have a terrible reputation for quality. GM has improved their quality to rival the Japanese. Take Chryslers pretty cars improve the interior quality and stick GM drivetrains in them and you should have an improvement. However, they cannot hang on unless both companies start making fuel efficient cars. Even with gas prices coming down, people are not being fooled this time. They want fuel efficient cars. Everyone knows that it is only a matter of time before gas prices surge again. In our lifetimes, most of us will see $10 a gallon.

[Dexterguy]

Chrysler cutting 1,825 jobs with moves at two plants | The Detroit News | detnews.com (http://detnews.com/apps/pbcs.dll/article?AID=/20081023/AUTO01/810230421 - broken link)
CHRYSLER CUTS: Chrylser will cut 1,825 jobs at their Toledo, Ohio plant that makes the Jeep Liberty and Dodge Nitro and will also totally shut down their Newark, Delaware plant that has been downsizing for many years. The Newark, Delaware Plant makes the Chrysler Aspen and the Dodge Durango.

[suydam]

Originally Posted by Coldjensens

That is a nice media concept and I agree that their pay and retirement packages are absurd. However slashing those salaries while it wodl make everyone feel better (except the execs), would have virtually no impact on the company. They are losing billions. A few million in savings is not going to help them.

Exactly.
It's fun to bash CEO salary and bonus... but GM is losing one BILLION dollars every single MONTH. Cutting even the 500 million annual compensation of their top executives all together would buy the corporation two weeks of life. What good would that do them?

You cannot cut your way to profitability. They need a big infusion of cash to re-tool and start selling more cars. That is the only way they will survive.

[Dexterguy]

Chrysler to cut salaried workforce by 25% | Freep.com | Detroit Free Press (http://www.freep.com/article/20081024/BUSINESS01/81024025 - broken link)
The bad news just keeps on coming, Chrylser says they will cut 25% of their white collar workforce. Which is about 5,000 people. I believe that most of them are at the Chrylser World Headquarters in Auburn Hills.

[Lincolnian]

Chrysler does have some strong products as another poster has stated. The minivan line, Jeep, and the new Charger (police use) are strong sellers.

As far as GM goes I recently watched the GM special put on by CNBC and one of the focuses was GM's Buick Brand in China. It seems that it has made some strong in-roads there as a premium product.

Ford has a very respectable European market share.

Maybe the companies only chance of survival is a combination of resources, dividing up the domestic and world markets using the strongest components from each company. However, all of them have some strong competing products as well especially in the truck line with Dodge, Ford and GM all making light trucks and commercial vehicles that have strong followings (in a good economy).

Even if they don't merge they should consider a joint venture to develop the next generation transportation platform with the intent to be the world standard. That is ultimately the key to their relevance and survival (as well as an American industry).

[malamute]

They will most likely have all their foreign plants where the labor is cheap, the job cuts will be in the USA for the most part.

[aka.mama]

Originally Posted by ottomobeale

Chrysler doesnt bring much to the table. They have:
Ram Trucks
Dodge exotics - Charger, Challenger, Viper
One of the few surviving minivans
Jeep

Anything else??

Oh Yes..., lets not forget the worst rated by consumer reports; Chrysler Sebring, comining in at 283% below average. Nearly 2/3 of their product line came in at below average.

I am no auto industry expert- merely a relocation out of SE MI due to a hunch something like this would happen. But quite frankly, from a business perspective, what strategic partnership/benefit does Chrysler now bring to GM? Is there something spectacular in their pipeline that we have yet to hear about?

'Consumer Reports' ranks Asian automobiles as being most reliable | clarionledger.com | The Clarion-Ledger

[aka.mama]

Originally Posted by Coldjensens

The job losses will be bigger if GM and Chrysler go under and shut down. GM must have a cash infusion to survive. Chrysler is just a liability that no one wants. If GM can get paid to take Chrysler, they can get the cash that they need and possibly combine the two companies into a more efficient total operation in time to turn things around. It is a logn shot, but it may be the only shot. If they do nothing, neither comany will survive five years. Then you will see a loss of 100,000s of thousands of jobs.

My $0.02
A long shot indeed. 'Efficient' is the last word that comes to mind when I hear 'Chrysler' and/or 'GM'. Infact, they have continued to produce cars that do not meet consumer needs/demands/expectations for years now while other manufactures have swallowed their home market. Were they expecting a rise in market share with the same produciton? That is simply put insanity- doing the same thing over and expecting a different result.

Opportunity can arise out of crisis. Some may say this is not yet a crisis (although, I beg to differ). Perhaps, a greater look needs to be done at what would the result be short and long term (more importantly). If they (GM, Chrysler and/or Ford, suppliers, etc) going bankrupt. Short term, terrible indeed. Continuing to do the same or near same will not produce a drastically different result as needed. Thus, will these gov't bailouts just prolong the inevitable? But on a flip note, the infrastructure in Metro Detroit is prime for investment. Auto industry could start anew, perhaps w/o union or at least a very different agreement, new leadership- focusing on a new line- not a retool. Other industries too: green technologies, medical manufacturing, etc. Just a thought...

[aka.mama]

Originally Posted by Dexterguy

Chrysler cutting 1,825 jobs with moves at two plants | The Detroit News | detnews.com (http://detnews.com/apps/pbcs.dll/article?AID=/20081023/AUTO01/810230421 - broken link)
CHRYSLER CUTS: Chrylser will cut 1,825 jobs at their Toledo, Ohio plant that makes the Jeep Liberty and Dodge Nitro and will also totally shut down their Newark, Delaware plant that has been downsizing for many years. The Newark, Delaware Plant makes the Chrysler Aspen and the Dodge Durango.

Originally Posted by Coldjensens

Money. GM needs cash or they are done. GM expects to get paid for taking Chrysler. Chrysler is a liability. However if they can postpone that liability and use the cash to get their heads above water, they can deal withtheh Chrysler liability later. Maybe they can even turn it around. They can shed half of the execs. and upper management. They can even combine some of the factories.


Right now Chrylser makes some beautiful cars. However they have a terrible reputation for quality. GM has improved their quality to rival the Japanese. Take Chryslers pretty cars improve the interior quality and stick GM drivetrains in them and you should have an improvement. However, they cannot hang on unless both companies start making fuel efficient cars. Even with gas prices coming down, people are not being fooled this time. They want fuel efficient cars. Everyone knows that it is only a matter of time before gas prices surge again. In our lifetimes, most of us will see $10 a gallon.

Fuel efficent cars are not a want, they are a need and a consumer demand. Not only to price increases, but social responsibility. Should we not move towards efficientcy and alternative energy, our childrens' lifetime chapter will be near the end of the book.