Comments on: Chrysler secures $2 billion loan, Daimler pays $1.5 billion of it

By: justmatt

justmatt — Thu, 26 Jun 2008 00:59:42 +0000

I agree that Chrysler is having a swift turn around, but Chrysler desparately needs to hit the mark everytime. No more misses. The Sebring and Avenger are a miss in a segment that is improving for GM and Ford. Chrysler needs every product launch to be a big hit, No more Journeys, or Hemi hybrids. GM and Ford do at least have extensive global operations to lean on in tough times. Chrysler needs to build up its North American operations before it can even think about using European or Asian sales for a crutch. The big 3 were all caught off guard, but don't under-estimate Chrysler's part of this Challenge. There is surely more to come.

By: DadzBoyz

DadzBoyz — Wed, 25 Jun 2008 18:59:56 +0000

Or their targets are behind the scenes product development targets that we don't see and not the more common and expected sales targets that everyone automatically looks to. This company is in a ground up rebuild mode. Their targets are likley more along the lines of dealer network targets, product development targets, cost cutting targets, global expansion targets, SG&A reduction targets, etc. It wouldn't suprise me in the slightest if they have been meeting these targets. In this way, I think that Chrysler is in a better position for long term success than GM or Ford because they are doing such a complete corporate overhall. GM and Ford's plans are the same old reduce headcount and change product. Lowering costs is a lesser part of their plan. These companies seem to do this about evey 12-18 years. The problem there is that they are still the same company with the same people and much of the same politics and general corporate structure. Chrysler, on the other hand has a new executive staff, and is totally changing the way the company is structured and works. We don't see it yet, but I'd be willing to bet we will in the next two years. You have to give Jim Press some credit. He must have seen something worthwhile happening there. He is too good at what he does to jump on a sinking ship. If you think about their “goals” they appear to have the right people running the company. Nardelli is a cost cutter, Press is a dealer and car guy, and LaSorda is a manufacturing and union guy. They all have the strengths needed to make this turnaround work. Look at GM. They have Lutz (who is a great man in his job) who is a car guy and you have Wagoner who is a bean counter. Where are the dealer, union, and manufacturing pieces to this puzzle? Oh yeah. They're covered buy the old guard. Ford made a CEO change, which appears to have been a good move, but Mullally is just one man. He still has to dedicate time contending with the Ford family which can be a bear of a task. He does seem to be doing a decent job so far though.

By: justmatt

justmatt — Wed, 25 Jun 2008 17:59:42 +0000

By: DadzBoyz

DadzBoyz — Wed, 25 Jun 2008 11:59:56 +0000