Lets hope your info is totally reliable & correct.
All of us are base on speculation. Even though we cannot see what u see, certain things can be predicted with educated guess. Some are unfound rumours that can never be true.

We do all sincerely hope Chryslerbus can slowly turn around.
First the product has to be dependable, reliable.

No difference than why people will always go back to a not all impressive decored restaurant and skip a real freshly renovated rest?
Is the food quality, they rather sit not as comfortable but good food than an expensive meal with not top quality food.

Hope Chryslerbus can sell the real jucy steak but not the sizzle.

I still can’t believe that a company that was flush with cash and had a product portfolio of just about every car being class leading, is now only two months away from obliviation.

Now, lets recall my prediction of Chrysler’s fate: They will go out RCA style. Ford will buy the bankrupt, C11ed dyeing Chrysler from Cerberus, spin off Jeep, take in the useful parts and break up and sell the rest, with Chrysler and Dodge being sold to Chinese automakers as empty brands under which to sell their vehicles in the US.

I doubt that is going on as we are currently installing a new 600 Ton Press to dop some more of our own parts in house. Of course these type of projects are long term, and the issues we are talking about is short term, so who knows?

Are any of your products at risk for being included in the India sourcing? Building up a supply of inventory prior to potentially rebidding a contract isn’t unusual….

Can somebody please explain the logic of C11 for Cerberus? I can’t see how this would begin to make sense…the equity would be toast.

Apart from the short term savings, everything about this move smacks of ‘doom’. Poisoning relations with suppliers, if not bankrupting them, sullying whatever reputation they have left. Maybe customers won’t hear about this, but the idea of buying a vehicle from a company that simply turns it’s back on contract provisions is a non-starter unless it’s mayb 20cents on the MSRP dollar.

They should sell Mopar Performance (which truthfully isn’t worth that much I think) and call it a day.

As has been previously mentioned, the Big 2.8 have done this before. An associate on contract at Ford was called into a room with a batch of other contractors and told they could accept a 7% reduction in fees or walk.

“Boot ‘em” Bob has only been in the job for less than a year. That isn’t enough time to do a proper strip down and downsize.

So, what if, Cerberus PURPOSELY go into Chapter 11 (like Ingvar said earlier, using the suppliers as a scapegoat) to buy more time whilst “Boot ‘em” Bob does what he needs to?

Things look a bit TOO calculated for my liking…..

Everything that Cerberus/Chrysler does right now looks outright suspicious. This is clearly a set-up, but a set-up of what? what is the ultimate goal here? For those who have been following Chryslers actions for the last couple of months, something is clearly happening at the end of this summer. But what?

This does not sound like rumour Alex. Besides, it’s all been seen before from all of the D3. It is highly likely that this 5% will kill whatever meagre profit some suppliers were making and might cause series liquidity problems for others. There is going to be blood on the floor!

Until then, this is rumor and opinion.

1. Cerberus plans for Chrysler to go Chapter 11 within 60 days. Why spend more cash, or any cash at all, when the house of cards will fall? Why don’t stop the cash flow completely, and gain some supplies they don’t even have to pay for in the meantime?

I won’t be surprised to see Cerberus giving the keys to someone else after they filled Chapter 11 like a Indian or Chinese conglomerate or another automaker (Fiat, Peugeot-Citroen, VW or even Renault-Nissan, well that’s what Peter DeLorenzo of AutoExtremist think)

Premier firms don’t like to have public black eyes, and it would be hard to imagine a more public black eye than filing a company the likes of Chrysler so shortly after buying it. The repercussions for Cerberus would be immense.

More likely, IMO, if there truly is a looming fume date, the dog-wonders will sprinkle in a bit more cash to protect the company and (hopefully) ride out the storm. If you look at the ResCap situation, you’ll see that Cerberus is really adept at sidestepping even the most looming of disasters with financial dexterity.

Wonder if they could sue anything out of Dumbler?
After all buying such a bg co. what are the implied warranty that things are going well.
Dumbler’s defence ” Is all youe American making of sub-prime, and the Arabs gave u the Hershey hghway. ”

Holding payments longer is never a good sign, a 5% discount looks even worse. When they file CH 11 Chrylerbus has less to pay thats all.
To the suppliers, should all yours eggs in one Chryslerbus basket, u wont be long to turn into a basket case.
Is really sad situation, high oil price screw it all.

If Chrysler somehow manages to survive this, they’re pricing themselves into suppliers that can’t support them the way they’ve been used to. The expertise for doing the E D & T work on sub components largely lies with the suppliers not the OEM.

So looks like Nissan might have to do with the Titan for awhile yet. And if the Cummins business dries up with the Ram, might Ford be interested given the ongoing fighting with International?

It’s dirty pool and will leave a very long bitter memory. The end is nigh, and it is going to be very ugly. Jim Press is going to have a long retirement in which to ponder why he committed career suicide. If he is lucky, he will not be spending it in Club Fed. People will certainly be looking for a few executives to lock up in anger. In fact, there might be some criminal charges which could be built on this supplier squeeze maneuver. Racketeering? Fraud? After all, how different is this situation from the thug asking for 5% of your income for “protection”? Elliot Spitzer could have had a field day with this situation if he wasn’t trying to keep himself out of prison.

1. Cerberus plans for Chrysler to go Chapter 11 within 60 days. Why spend more cash, or any cash at all, when the house of cards will fall? Why don’t stop the cash flow completely, and gain some supplies they don’t even have to pay for in the meantime?

2. Cerberus wants a scapegoat they can point fingers to. As I stated above in a previous post. “Look, it’s not our fault…”

Also, this isn’t the first time Chrysler has done this. The last time was February 2002. Same thing, 5% pay cut, retroactive if possible.

And not getting paid.

Suppliers that accept those terms is in the risk of going belly-up themselves. And what Cerberus is looking for is to avoid paying at all. If the suppliers don’t accept, that will be the end of Chrysler. Then they can point fingers and say, “Look, it’s not our fault, it’s the suppliers who didn’t deliver”.