Comments on: “Chrysler Financial is losing $5,000 on every truck it takes back”

By: Usta Bee

Usta Bee — Thu, 14 Aug 2008 01:31:06 +0000

Wagoner doesn’t have to worry, he’s got his ass covered with another job lined up just incase GM dumps him, and it’s a position he’s entirely qualified for…..as captain of the Exxon Valdez.

Hmmmm…..how could GM make more money to pull itself out of the hole it’s in ?…..bakesale ?….yardsale ?…..lemonade stand out in front of Ren Center ?. I’ve got it, a dunking booth with Wagoner as guest of honor !. I’m sure they could make a few million from that just from UAW members alone.

By: jerry weber

jerry weber — Wed, 13 Aug 2008 18:57:12 +0000

There is an even bigger loser than Chrysler finance on chrysler trucks. It is their retail customers, and I can assure you if you take an additional $5.000 hit plus the normally expected depreciation on your three year old truck you will not be back for more. The only winners are the commercial users and individuals who will buy one and keep it until it dies. This seems to be The only way out of a truck right now, but not good for the sales of new ones. Which by the way Dodge is introducing as we speak the newest dodge pickup (ram tough) (Elephant thirsty). Actually a mile or two better than the $5000 loser models it replaces and now in line with Ford and GM trucks. A huge plus for dodge, we are not the world’s worst mpg truck anymore.

By: folkdancer

folkdancer — Wed, 13 Aug 2008 18:01:01 +0000

There is a new book coming out. I have read reviews and watched an interview of the author on Charlie Rose. The title is: “The 10 Commandments of Business Failure” by Keough.

Please make sure you read that title correctly. Keough is describing the commandments that should be followed if you want to destroy your business.

It appears that Chrysler and GM management have followed several of the commandments: isolation, fear of change, infallibility, love your bureacracy, fear the future, and send mixed messages.

The book has examples from many businesses and sounds like a fun read. Hopefully the author will issue this book with just 2.8 stories.

By: Redbarchetta

Redbarchetta — Wed, 13 Aug 2008 17:42:39 +0000

Adub has a real point $70billion makes a lot of ground up new platforms and slicky designed cars, and a bunch of new engines, trannies and even EV’s. What a waste of resources with little to nothing to show for it.

By: Adub

Adub — Wed, 13 Aug 2008 17:15:03 +0000

Now who writes this crap?

“On August 5th, after an annual review of product plans, Mr Wagoner, on whose five-year watch GM has lost some $70 billion, retained the support of his board. But decent and competent though he is…”

Decent and competent? After five years of losses? GM could have shuttered every plant for three years and designed brand new cars from the ground up in that amount of time!

It is a race to the bottom, with people who have no concept of reality.

By: trlstanc

trlstanc — Wed, 13 Aug 2008 17:11:49 +0000

Yeah, despite the talk about ChrysCo’s lease losses that seemed to be mostly about GM. This part was particularly interesting

“Rick Wagoner (pictured), announced the latest in a series of turnaround plans on July 15th. It included $2.5 billion-worth of cuts in marketing and capital expenditure, and a commitment to raise up to $7 billion through financing and asset sales.”

That’s not a turn around plan, that’s a plan for how to afford to keep what we’re already doing a little while longer (9.5 months longer by the sited estimates).

By: hltguy

hltguy — Wed, 13 Aug 2008 17:07:19 +0000

Meanwhile back at the ranch, GM just got downgraded this morning, again, further into junk territory by Moody’s. (How much lower can they go into the junk wasteland?) Their stock took the expected dive.
Mr. Waggoner’s photo should have Alfred E. Newman’s face superimposed, based on the comments Waggoner made about China (as reported here on TTAC yesterda), that “we are not losing sleep” (regarding auto sales in China.) Reminded me of Newman’s caption “What Me, Worry?”

By: windswords

windswords — Wed, 13 Aug 2008 16:32:18 +0000

Damn, Farago – I click on a story about Chrysler and I have a photo of Rick Waggoner staring me in the face!

As for design, I can’t comment on Ed Welburn, though certainly some his designers are doing a nice job. But Chrysler would do well to fire Trevor Creed. Where is Tom Gale when you need him?

By: Guzzi

Guzzi — Wed, 13 Aug 2008 15:33:42 +0000

That’s a pretty waggish photo caption for The Economist. Usually my morning LOL moments come from elsewhere.

By: faster_than_rabbit

faster_than_rabbit — Wed, 13 Aug 2008 15:22:01 +0000

Welburn is an idiot. How hard is it to hire (on the cheap!) a 25 year old car designer in the USA who owns (and loves) a Honda Fit? Come on.

By: motownr

motownr — Wed, 13 Aug 2008 15:19:18 +0000

Has it been confirmed that Daimler is the real holder of the CFC portfolio losses? It’s that way with GMAC, with GM being on the hook for the portfolio losses prior to Cerberus arriving on scene.

By: barberoux

barberoux — Wed, 13 Aug 2008 15:10:45 +0000

May I point out another article in “The Economist” called “Tailpipe power” concerning electricity made from exhaust heat. Though inefficient now it does promise a new technology to take advantage of car’s biggest waste product, heat.

By: highrpm

highrpm — Wed, 13 Aug 2008 14:56:30 +0000

Quick, how many Chrysler vehicles get highway mileage above 30mpg?

I can’t think of even one. Did the world not need 30mpg five years ago?