Does Chrysler Make a Profit or Not?
The obvious answer is not. But MAN did the beleaguered American automaker get bent out of shape when analysts did the math on Daimler's financial report and reckoned Chrysler dropped $2.7b in Q4. Chrysler told TTAC (and the world) that they had "positive operational earnings," and confirmed (to us) that they meant honest-to-God profits. As we pointed out, that kinda conflicted with Chrysler CEO Bob Nardelli's previous statement. The ChryCo jeffe admitted that Chrysler was " operationally bankrupt" (which also triggered a PR offensive in all senses of the word). And now we read in The Detroit News that Bob Nardelli addressed cash flow in his usual "we're privately held so we can move fast and not have to pander to stockholders with 'the collective attention span of kindergarteners.'" "Yes, We don't have to worry about over-reaction in the market," Nardelli told Daniel Howes. "We are still on track to deliver a positive cash flow. We are not there yet." So what exactly does "positive operational earnings" mean, then? You know, other than something a lot less than the truth.
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ryanelliot, You got a deal. But if they don't go under (as you hope), what's in it for me. Care to make it interesting? By the way if anyone is taking bets, I say Ford is the first to go. Disclaimer: unlike some, I do not take joy in the prospects of any company going out of business. It's bad for the employees and the local/national economy. Sometimes it can't be helped, but it's not something I look forward too. Even if I think they deserve it. Even Ford.
Hey, I just thought of something. If the demise of Chrysler is "imminent" as ryanelliot says, why don't we have a contest to predict when they file for BR? Like an Office pool. We can have predictions for chapter 7 and prediction for chpt 11. Winner can take home some free TTAC stuff.
Well Mr. Elliot the 2008 Viper actually goes from 0-60 in 3.7 seconds and the 911 Targa 4 does it in 5.1 seconds, same as a $25,000 2005 Mustang GT.
Mr. Windswords I accept the offer and enjoy the “Office Pool” idea. My prediction is Chrysler hits Chapter 11 first, around the October/November timeframe. TTAC Staff what do you think? For the record, I too would feel sorry for most Chrysler employees. As far as upper management and the Cer-bust goes… Well… I will just say you should be ashamed of yourself. Furthermore they should be blackballed from anything to do with the automotive world in the future. Mr. Mercury, I fear you and I will not see eye to eye on this issue. Point well taken. Ryan E