Wednesday, January 7, 2009

Chrysler may be doomed in spite of bailout

Chrysler may be doomed in spite of 4 billion in bailout money. It is starting to look like President Bush has flushed our tax dollars down the UAW toilet. The Senate was correct to refuse the bailout with out a defined plan to curtail UAW costs and get concessions from lenders. Chrysler LLC has suspended production for a month and does not appear to be actively developing new models. This is what happens when a nonautomotive company like Cerberus Capital Management tries to ruin run one of the Big Three.
Is Chrysler a lost cause?
Wednesday January 7, 7:01 pm ET
By Tom Krisher and Ken Thomas, Associated Press Writers
Even after bailout loan and perhaps more help on the way, Chrysler could be facing death knell

DETROIT (AP) -- Even by the standards of battered automakers, Chrysler is in dire shape. Its sales in December were down a stunning 53 percent, far worse than Ford or General Motors, and analysts say it probably won't survive the year as an independent company -- despite $4 billion in government loans and the possibility of more.

"Basically they're done," said Aaron Bragman, an auto analyst with the consulting company IHS Global Insight in Troy, Mich. "There is no real possibility of turning this thing around as an independent company in my opinion."

Chrysler will not comment on speculation about its future, spokeswoman Shawn Morgan said Wednesday.

"We are completely focused on our plans to ensure the future viability of our company," she said.

U.S. sales of Chrysler, Dodge and Jeep brand vehicles fell 30 percent last year, the worst decline of any major automaker. It lost more market share than any of its peers, down to 11 percent. Analysts say most of Chrysler's products, especially its cars, don't look, feel or drive as well as the competition's. Read more here.

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