Nardelli: Chrysler May Extend Production Shutdown
Plenty of industry watchers predicted that Chrysler wouldn’t restart production after the company extended its Christmas shutdown by two weeks, to January 19. As that date approaches, ChryCo’s CEO has let it be known that the ailing American automaker may not make autos again until… later. Bob Nardelli told reporters at the North American International Auto Show today that the company has a responsibility “to make sure we’re not jamming dealers” to buy cars. That’s not how Bill Rosado, owner of a Chrysler-Dodge-Jeep dealership in Milford, Pa., sees it. Bill told The Wall Street Journal that he’s actively resisting the company’s requests to add more stock to his already-crowded lot. “We’re not ordering any cars in spite of the pressure they give us. We are going to sit tight with what we have,” Mr. Rosado said. “We don’t see any peak coming up where all of a sudden Chryslers are going to be desired.” True dat.
Chrysler’s sales are in free fall, down 53 percent for December and over 30 percent for the year, it’s hard to take Nardelli’s comment as anything other than a tacit admission that Chrysler is out of business. If Chrysler doesn’t even try to make and sell vehicles again, even if it’s just to park them on an airfield somewhere, GM’s pursuit of additional bailout bucks just got a lot harder. The public outcry over a $4b loan that defaulted in less than a month, and the accusations that Chyrsler owner Cerberus played Uncle Sugar for a fool, will be deafening. Won’t they?
>>The best thing for them to do is declare C11. Part the company out and be done with it. That would be Chapter 7, of course, and I agree.>> Actually, it would not be a Chapter 7 it would be a liquidating 11 where you continue to run the business and sell off the various parts as a going concern. Generally, this provides a much larger return to the creditors than a 7. Regards,
@ CommanderFish & TheRealAutoGuy : I will agree and yet again add: "damned if they do, damned if they don't" Someone with some skillz needs to make a Firefox script for TTAC, that changes every instance of the work "Chrysler" to "Chrysler: ditd,ditd" It's sad really, everyone is dog piling on Chrysler for being trying to be responsible with inventory. @ Lokki: "They have a 117 day supply of cars, and they’re not selling any. So, they had 117 day supply of cars last week, and they’re likely to have 117 day supply of cars next week." Give "Chrysler: ditd,ditd" some credit... if they had 117 day inventory last week, they would have a 116 day inventory this week... /sarcasm
Not if they sold 7/117th of their cars