"Chrysler Financial is Losing $5,000 on Every Truck It Takes Back"
Thanks to The Economist, we now have a name for ChryCo's pain. (OK, a number, but literary needs must.) In an article entitled "Detroit's race against time," the UK pub recaps the domestic automakers' litany of woes: truck-heavy line-ups, falling sales, killer depreciation and quasi-criminal stupidity [paraphrasing]. The Economist feels the cash burn. But they also understand the importance of Detroit's general cluelessness. "But if the speed with which the Detroit firms are burning cash is the biggest immediate cause for concern, the deeper question is whether they are using what remains to make their businesses viable in the long term." Ford's plans get a tentative thumbs-up, Chrysler gets a question mark and GM gets a shot to the solar plexus. "GM’s global design chief, Ed Welburn, acknowledges that its next generation of small cars will be designed in places like South Korea and Europe where they 'really know how to do small cars'. But unlike Mr Mulally, Mr Wagoner has not said what will be arriving and when. Indeed, at times he seems weighed down by the sheer complexity of managing such a bloated product portfolio." Poor bastard. [thanks to Point Given for the link]