By Robert Farago
July 22, 2008
In an email to the troops [obtained by The Detroit News], Chrysler CEO Bob Nardelli's denying The Wall Street Journal report that ChryCo's re-fi of $30b of short-term, car-loan-backed debt may not go down. If that happens– I mean, doesn't happen– Chrysler dealers will find themselves in that special place where they have no attractive deals to offer on their unattractive vehicles. Nardelli said pay no attention to that banker behind that curtain. "As is customary for many auto finance companies, this renewal process takes place every year. We will continue to offer competitive financing and lease options for our customers and dealers." A dealer worries. "We knew something was going on with Chrysler Financial, but we didn't know what," reveals Alan Helfman, owner of Rivers Oaks Chrysler Jeep in Houston. "It's a big-time concern, because there is a copious amount of deals that I can't get done today that last year I could make a phone call and they'd be willing to work with us." Perspective people! "If the demand for your products is there," says George Magliano, automotive analyst with Global Insight Inc. "You don't have to worry as much about offering a great deal." Which is exactly why Helfman and his fellow store owners are scared to death.
The Detroit News »
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POWERED
July 22nd, 2008 at 9:23 am
Dealers can no longer sell cars to those with terrible credit or swap over $10k in negative equity. The credit market can no longer afford to take on those deadbeat / risky customers just for a dealer to get a sale.
July 22nd, 2008 at 9:31 am
The dealers may be scared to death, but that isn’t stopping them from trying to gouge every penny from new Challenger SRT8s. I saw one this weekend with an add-on sticker that had specified “ADM $25,000″, for a final price of $67K. And I have the photos to prove it…
95% of the Chrysler dealers deserve to go under.
July 22nd, 2008 at 9:58 am
As a Mopar guy, it really does hit me hard to see Chrysler struggle like this, however, I hope for the best and that these struggles do them some good. I would really like to know the REAL inside story of the DaimlerChrysler days. I suspect their was an attempt to use Chrysler as a cash machine and nothing more. As a result, Daimler stripped Chrysler of all its talent, resources and soul. I have owned LOTS of Chrysler’s, both new and used, with only one unexplained major failure. I love my cruiser but must admit the current lineup is just shy of hideous. Any thoughts on the DC days?
July 22nd, 2008 at 11:27 am
My father was a die hard Chrysler fan but with the K cars cheapness and terrible reliability, the New Yorker which spent more time in the shop than you could drive it, and two Caravans that needed new trannys within the first year of ownership – it was the last straw.
July 22nd, 2008 at 12:13 pm
“Any thoughts on the DC days?”
Your best source for info on this is at http://www.Allpar.com especially the editorials section. Someday someone will write a book about this.
July 22nd, 2008 at 12:42 pm
This thread from Allpar is particularly enlightening.
http://www.allpar.com/forums/index.php?showtopic=103289
July 22nd, 2008 at 2:31 pm
rodster205:
I saw one this weekend with an add-on sticker that had specified “ADM $25,000″, for a final price of $67K. And I have the photos to prove it…
95% of the Chrysler dealers deserve to go under.
And this is any different than the current $5-10k ADM bump on Prii?
Until car dealers become non-profits this is just part of the game. Just wait a while for car to cool to normal.
There are plenty of rotten apples with every make. Here in Reno the Toyota dealer is just awful, they once tried to sell me a Repo’ed Matrix for more than the MSRP of a new one.
July 22nd, 2008 at 2:46 pm
gforce2002,
Thanks for a great link. I didn’t know this was in the discussion forums. Just the editorials and main website stories will make you shake your head in disbelief but this link about what happened from someone on the inside is even more enlightening. Hey TTAC’rs, you should all click on it and read it!
July 22nd, 2008 at 5:12 pm
Indeed. Given that information, the question is not why are the Sebring/Avenger as bad as they are, but rather why are they as good as they are.
July 23rd, 2008 at 6:12 am
Chrysler, like a number of other US car manufacturers are doomed! They’re going down bigtime!
July 23rd, 2008 at 9:13 am
capeplates,
Thanks for enlightening the discussion here. We appreciate your input.