By on December 10, 2009

Winter can be tough (courtesy:caliberforumz.com)

Well, we’ve been here before… about this time last year, to be exact. The Freep reports that Chrysler, which had to quit leasing for much of last year due to falling resale values and the credit crunch, is reinstating subsidized leasing for its 26,000 qualifying retirees. Under the terms of the plan, retirees could lease up to two 2010 Chrysler, Dodge or Jeep products with no down payment and free scheduled maintenance. The 36-month leases run from December 9 through June 30, 2010. According to the Freep, retirees will pay $100 per month less on average than Chrysler employees who have access to two-year leases. GMAC, which is financing the leases, is set to receive another government bailout of “less than” $5.6b on top of the $13.5b it has already received from the TARP program.

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19 Comments on “Chrysler’s Latest Metal-Moving Trick: Retiree Leases Are Back...”


  • avatar
    mtymsi

    Wonder if they send these vehicles through auction at lease termination. Obviously $600 doesn’t come close to the actual multi thousand dollar depreciation. The term is so short even at $100/mo it doesn’t sound like an attractive offer to me.

  • avatar

    That snowbound Caliber has a Florida license plate.

    I am from Florida. I learned to drive in snow in a Dodge Aries while attending seminary in Kentucky. I always wondered if other drivers gave me a little extra room when they saw my Florida license plate?

  • avatar
    lw

    Notice that it takes free government money to make these deals work.  If the government ever cuts off the flow to GMAC and others, interest rates shoot up and folks will dream about the days when 11M cars were sold in North America.

  • avatar
    tparkit

    The only force that can stop these enormous subsidies is absolute failure that compels GM and Chrysler to shut their doors. That’s why we need to boycott both these arms of Government Motors.

  • avatar
    gslippy

    I suppose if we simply padded the retirees’ checks with the $100, they might go out and buy a Hyundai – or groceries.  Can’t have that.

  • avatar
    dan

    “The only force that can stop these enormous subsidies is absolute failure that compels GM and Chrysler to shut their doors. That’s why we need to boycott both these arms of Government Motors.”

    Come join the MILLIONS of people who have and will BOYCOTT CHRYSLER.  The nation wide boycott of chrysler has resulted in HUGE sales drops for Chrysler. Pass the word around, tell your friends and family to BOYCOTT CHRYSLER. Together we can bankrupt chrsler once again. What happened to the free markets? Oh private profits and social losses? No more. BOYCOTT CHRYSLER and pass the word on the net and to everyone you know. I say join the nation wide boycott of chrysler.

    • 0 avatar
      mikey

      dan   Here’s a plan. If you feel that strongly,print up some” boycott Chrysler”pamphlets. Gather up all your supporters,and hand the flyers out at the plant gates around shift change. Pick out the real hard hit area’s around Michigan,Ohio and Southern Ont. Step into to the working mans bars,and sell you boycott Chrysler plan.

       The net might be a good place to sell something. But sure can’t beat,face to face contact.

    • 0 avatar
      Wheeljack

      If you want your tax money back you should be encouraging people to buy Chrysler and GM products – Buy a Car, Cut the Deficit!

    • 0 avatar
      Roundel

      Wheeljack…. how dare you interject common sense and rational thought into this.
      Dan wants to act on principle and the “idea” of free markets. BS
      All that Dan knows what to do is spew ignorant comments that  have no base in the real world.
      Rational Americans know that the “principle” stage is over and that we want these companies to succed, so we can get our money back. But I guess that thought it way too nuanced for the likes of Dan to realize.
      Boycott something that every single American owns… sounds smart to me…. NOT.
      I am petitioning the site to please do something about this rambling troll, he clearly is not any part of the best or the brightest. His comments show he can not fall in either one of those categories.

    • 0 avatar
      Joshua Johnson

      While in theory every American owns a piece of the GM and Chrysler, in actuality only those who pay taxes are contributing to the life support of those companies . This may become a minority of Congress has their way, with 50% of Americans paying 97.01% of the tax burden as of 2006.

  • avatar
    baldheadeddork

    Is the 6 month lease a typo?

    • 0 avatar

      Sigh, yes. 36 months.
      Apologies.

    • 0 avatar
      FreedMike

      Unless they’re buying a 300C, I bet these retirees will wish the 36 month lease was just a typo. Aside from a 300C, a Wrangler, or maybe (after having my eyes pinned open and forced to watch Toby Keith videos) a Ram pickup, there ain’t a single car in that lineup I’d take for anything more than a Enterprise rental.
       
      When do the Fiats arrive? Not a moment too soon. These guys are going to have to hang on by the skin of their teeth until then.

  • avatar
    FreedMike

    My brother leased an ’06 300, and turned it in last month. The dealer said the actual value of the car was about four or five grand below the guaranteed residual.
     
    Ouch.
     
    And that’s Chrysler’s best car. Can you imagine the beating they’re taking off something like a Caliber?

  • avatar
    threeer

    Dan…Dan…Dan…really?  I, we…the whole friggin’ nation just invested a ton of OUR money into both GM and Chrysler.  The time to wish for their demise (I notice that you purposefully ignore lumping GM into your call to arms) has long passed.  While I’m not a huge fan of much that either company puts out (but dang, do I still long for a Wrangler), I do hope and pray with everything that I have that both companies not only survive, but thrive.  Call it my misguided sense of pride in our country, but it would be nice to see both GM and Chrysler rebound (yes, even though Chrysler is now FIAT). 

    As for allowing retirees to lease vehicles…does anybody think that reducing the lease by $100 is going to move enough metal to make a huge difference to the bottom line?  Call it a bonus for having had the temerity to stick with Chrysler your entire working career…

    • 0 avatar
      Mark MacInnis

      No.  Dan is right.  The longer these parasites are allowed to live, the longer we will keep finding new ways to write “Good money after bad!”

      Kill Fiat-sler now!   Before they leech any more money out of our China-financed, broke-a$$, over-drawn taxpayer pockets….

      Anyone here besides me think it is high time to end this charade?  Especially in light of the fact that our Democratic friends in Congress are about to vote to increase our debt limit AGAIN?  Why do Chrysler retirees need to drive new cars that I am, in part, paying for, when I drive a 13 year old car (not complaining…I love my old reliable friend….but why should I HAVE TO FRIGGIN” PAY for subsidized leases?)

      Sorry.  Shyte like this hammers my “ANNOY” button.  Rant over.

  • avatar
    midelectric

    If that Caliber in the picture above is equipped with the CVT then it surely must be stuck.  I had a Caliber rental once and the wheels won’t even move if you’re stuck in the mud (don’t ask).  No chance of spinning the wheels to try and rock it out of a rut, the engine just revs up with apparently no connection to the front wheels and you can just sit there immobilized until the transmission temperature light starts flashing.  I can only imagine that the Caliber would similarly be utterly useless in snow.

  • avatar
    threeer

    @Mark,

    I do agree with one of your points.  That China owns us should be a matter of complete and utter national disgrace.  I’d forgo alot of “nice and shiney” new stuff to eliminate this security risk. 

    But I still think that the point has passed for us to wish the demise of Chrysler (and GM…everybody keeps conveniently dropping GM from this discussion).  I’d rather see a rally of support in hopes of seeing any of our money back vs. them folding completely and us losing everything. 

  • avatar
    porschespeed

    Rational Americans know that the “principle” stage is over and that we want these companies to succed, so we can get our money back. But I guess that thought it way too nuanced for the likes of Dan to realize.

    @Roundel,
     
    While I agree with you in theory, the hardcore reality is that GM would need 10-15 yearsor back to back record profit to pay us back. Without interest. On continually falling market share.
     
    Like it or not, GM and Fiatsler are doomed. They have a few products that could be sold at reduced volumes, but as mass market, big time players? The sun has set on their empire.
     
    The idea was to prevent the whole economy imploding at once. Now that we have (some) mechanisms in place to unwind the last 10 years in a somewhat orderly fashion, just kill them.  Perhaps the Jeep/Challenger/ViperCo can be founded and survive. Just like the Cadillac/pickup/govrentalcarCo might make it.

    The Indians will buy ‘Vette. Tractors and Leapers and Targas, oh my!


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