 merrie says: Taxpayers are likely to lose most of the $81 billion that Congress and the administration sunk into the two companies, according to the Congressional Oversight Panel. Chrysler is expected to lose all $14.3 billion of the taxpayers' money. The daily management of Chrysler is controlled by Fiat which owns 20% of the U.S. company with options which could take that amount to 35%. Fiat has not put any money into Chrysler, so if the American firm becomes a significant operational or management burden there are very few reason for the Italian company, which has sales troubles of its own in Europe, to stay long term. Fiat lost $254 million in the second quarter, so its board may eventually believe that Chrysler is a distraction and one without a future. What Chrysler needs most from Fiat is money. If Fiat's own bleed continues, there will remain only one choice for management. In the mean time, the traditional competitors like Toyota, Honda and Nissan aren't Chrysler's . . . . . only concerns in the U.S. Hyundai posted a sales gain of 27% in September. Its increase in sales alone was half of Chrysler’s total units sold. Furthermore, Chrysler’s lineup is dominated by SUVs, minivans, big sedans and pickups — all the wrong vehicles in an economy geared towards efficient, economical compacts. In this environment, Chrysler’s market share has hemorrhaged badly: from 11.1% a year ago to around 7.5% today. Chrysler sales are now running at the rate of 750,000 a year. It probably does not have the capital to wait through another year of low US car sales with a market share that is almost certainly to stay below 8%. It does not have models tailored to the current ma... Be nice to see someone buy up Dodge and Jeep. Dodge has some nice cars, trucks, and vans, and Jeep is Jeep. Can't really think of any Chrysler vehicles I would miss greatly though. |
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