By on February 5, 2009

So it’s the dealers’ fault if Chrysler goes down in flames. Nothing to do with Daimler, who gutted the company like a fish. Or Cerberus, who wanted to gut the company like a fish, but found itself without a fish to gut. Or the company’s current management, who have lied, stonewalled, mislead, cut backroom deals with our elected representatives and generally manipulated honest, taxpaying Americans into supporting their stupid selfish schemes. As Chrysler’s backers, as their only means of survival, let’s think about this. ChryCo dealers are sitting on a 151-day supply of new vehicles (provided new car sales have stabilized). Even if Chrysler dealers didn’t order another car, truck or minivan, they’d have five months’ supply. There’s only one reason for them to take any more vehicles: to help justify the company’s desire to milk/bilk/fleece/con Uncle Sam for more “loans.” And still Cerberus point blank refuses to reveal to us, their supposed paymasters, who owns the company. No matter what you think of a ChryCo Chapter 7 or 11 or car dealers, this is an unseemly, disgusting clusterfuck. Look what they done to my Chrysler, ma.

Get the latest TTAC e-Newsletter!

36 Comments on “ChryCo Co-Prez Press’ Channel Stuffing Plea: “You Can Either Help Us or Burn Us All Down”...”


  • avatar
    seanx37

    I have a stupid question. Is what Chrysler is doing to the dealers legal? Forcing them to order cars they can’t afford or sell? Seems like extortion to me.

  • avatar
    hitman1970

    So the supplier treats the dealers like the dealers treat the customers…..

    Seriously, this situation sucks for dealers right now. Love them or hate them. There are still plenty of hardworking honest people who will lose jobs over this mess.

  • avatar

    Clearly a desperate ploy, and very interesting in that the manufacturers are no longer floor planning the stock….let some other lender be stuck with the cars, just so we get them off OUR books.

  • avatar
    snafu

    . . . throw some more money on the fire. no more chunky monkey ma, it makes my head hurt.

  • avatar
    Mark MacInnis

    When someone buys a new car, I would imagine that they hope they are dealing with a reputable, ethical company whose business practices, from top to bottom, are professional and honest.

    After all, when you buy a car, you are also buying a “promise” from the company, that the car was designed, engineered and built to be safe and reliable, among other things. And that warranties will be honored and retail customers treated fairly.

    When a potential buyer sees the car manufacturer engaging in such a reprehensible manner with a business partner such as a dealer or supplier, how is that buyer likely to feel about the manufacturer’s opinion of it’s obligations to the retail buyer, who is more remote than the dealer, and therefore apparently of less immediate concern?

    Don’t the people at Chrysler realize that the whole world is watching this sordid mess? It’s almost like witnessing people beat up on their kids in public…..shameful, disturbing behavior. At what point do these people realize that it just isn’t worth it? Cut your losses, have a little bit of dignity….go out with a little bit of class.

    It’s sad and disturbing to see this once-proud company reduced to such sociopathic and ruthless behavior. Time to pull the plug on this patient. Next stop, chapter 7.

  • avatar
    pnnyj

    Does anyone have a match?

  • avatar
    BuzzDog

    Good comment, pnnyj…let me know when you find a match, and I’ll supply the gasoline.

  • avatar
    CarPerson

    The match is just to light the gas they’re passing.

  • avatar
    Mike Stevens

    Seanx37:

    That’s a very good question. You are right, they are forcing their dealers to take on 15K more cars that they don’t need, but they are doing it legally.

    There are already 359K Chryslers on dealer lots, and they sold a little more than 60K last month. Chrysler dealers can’t afford to see another 18 wheeler roll into their lots filled with Sebrings, but probably some of them will order cars, after being sweet talked by Jim Press.

    Per the automotive news article, Press states (when pleading with them to order 15K more cars by Monday): “If you decide not to do that, we’ve got a good memory of who helped this company make it.”

    Now, in my book, that’s a threat. A threat without teeth, but a threat no less. Just the kind of thing that dealers that have no decent product to sell, who have been forced to consolidate, and have been told will be weeded out in urban areas want to hear. A real pep talk.

    To me, the sick desperation in Press’ statement smacks of a company in its death throes. Getting your dealers to take on 15K more cars that they can’t sell does not prove that Chrysler is viable.

    If the dealers were able to move the metal, that might. But then, Chrysler was outsold by Honda last month, by around 10K units. If there is a future for these guys, it’s hard to see.

  • avatar

    Saw the quote in AN…can’t imagine Press sounding more desperate without the aid of a firearm and a basket full of puppies.

  • avatar
    pb35

    Wake me up when they launch “employee pricing plus plus plus…”

  • avatar
    stevelovescars

    “If you decide not to do that, we’ve got a good memory of who helped this company make it.”

    Pot, meet Kettle.

  • avatar
    mtypex

    “Wake me up when they launch “employee pricing plus plus plus…”

    I hope you like a 3 AM wakeup call tomorrow.

  • avatar
    holydonut

    I still chuckle at how Joachim Eberhardt went on to “manage” Benz and Smart dealerships instead of Chrysler-branded ones.

    If there’s ever anyone who deserved to have karma come back and Ram trucks down his throat – it’d be him.

    Too bad karma never seems to punish the right person.

  • avatar
    TheRealAutoGuy

    Amazing how everyone thinks Daimler is so freakin’ brilliant.

    As this article mentions, they rode Chrysler hard and put it away wet.

    These guys are first-class jerks, not “brilliant German engineers.”

    Buy a Jeep and help the cause…

  • avatar
    gslippy

    Cerberus owns the company, plain and simple.

    Just because you receive a welfare check from the government, that doesn’t give the government the right to air your private business. Chrysler is NOT a public company, so the public whining about transparency is for naught.

    And that 151-day supply isn’t much different from GM or F, both of whom are shoving cars down their dealers’ throats as well.

  • avatar
    John Horner

    “Chrysler is NOT a public company, so the public whining about transparency is for naught.”

    When the public’s money is the only thing keeping the lights on then guess what, it is a “public company”.

  • avatar
    tesla deathwatcher

    When the public’s money is the only thing keeping the lights on then guess what, it is a “public company”.

    Huh?

  • avatar
    ihatetrees

    Combine Press’ quote with the recent Fiat story and the only logical conclusion I can draw is that Nardelli has been replaced by David Lynch.

    For future MBA students, this will be a classic case study of a firm’s meltdown.

  • avatar
    Dimwit

    When it’s all said and done, it doesn’t matter. Every built vehicle has to go somewhere. When Chryco gets pushed into C7 the total production will have to be sent to the dealers. Where else is it going to go?

    I’d like to know the total number of vehicles available. It could be a year before the last “new” unit actually gets into someone’s hands.

  • avatar
    menno

    No; the dealers DON’T have to take all of the excess cars if/when Chrysler does take its final dirt-nap (Chapter 7 bankruptcy, closure, wrap up of the business).

    When General Messup yanked the rug out from under Daewoo USA, the Daewoo dealers did not have any obligation at all to take the unordered cars (by the thousands) at the ports.

    The banks ended up selling them wholesale. I know, we gambled (big time – but won) and bought a “used” 2002 Daewoo Nubira with 25 miles on it, in 2003, at a huge Ford-Hino dealer in northern Ohio. MSRP was $14,800; we paid $7800.

    But then again, the Daewoo Nubira is a damn sight better car than anything Chrysler produces (but of course, that’s truly damning it with faint praise).

    The Daewoo is still running well in the hands of our youngest son, with 75k on the odometer. It has been one of the better cars we ever bought, in fact.

    The purchase of Daewoo by GM was one of the only smart things they did over the past 1/2 century; I bet they did it by accident, with their record. But I have to say, the way they treated Daewoo USA was despicable.

    Kind of like how Chrysler treated AMC when they bought it.

    Kizmet (karma) can truly be a bitch, eh?

  • avatar
    cwallace

    Cheers menno, I always wondered what kizmet meant.

  • avatar
    Rod Panhard

    After seeing the two rented Chrysler products come-and-go from my neighbor’s driveway, and seeing the cars up close, I have to admit….

    I actually feel sorry for the dealers who sell this garbage. I feel sorry for the people who build them. I feel sorry for the people who process the loans that enable the poor bastards who feel compelled to buy these inferior products.

    But that doesn’t mean “Save the Company!”

    Neither of those two cars were made as well as the 1980 Ford Fairmont my wife “inherited.” That’s how bad it’s gotten.

  • avatar
    mel23

    Just because you receive a welfare check from the government, that doesn’t give the government the right to air your private business. Chrysler is NOT a public company, so the public whining about transparency is for naught.

    From what I understand it wasn’t, but should have been, a condition to getting the money. Then there would be no question. But that’s not how stuff is normally done in DC. With Feinberg making a non-public appearance with some congressional types, so who knows what went on. The fact that it was semi-secret tells us all we need to know I’m afraid.

    From what I can see on the local Chrysler dealer’s lot, he hasn’t gotten the message. His inventory is WAY down. I suppose hope springs eternal, even in the minds of the dealers who should be able to see the writing on the wall. Unless Press is a con man to the core, he has to be very uncomfortable with what he’s doing.

  • avatar
    BDB

    “The banks ended up selling them wholesale. I know, we gambled (big time – but won) and bought a “used” 2002 Daewoo Nubira with 25 miles on it, in 2003, at a huge Ford-Hino dealer in northern Ohio. MSRP was $14,800; we paid $7800.”

    You mean if they got Cap. 7 I could get a Wrangler Rubicon at half price?

  • avatar
    bomberpete

    BuzzDog :
    February 5th, 2009 at 9:51 pm

    Good comment, pnnyj…let me know when you find a match, and I’ll supply the gasoline

    Actually, weren’t Chrysler and its dealers supplying the gasoline last summer? It wouldn’t surprise me if some of them weren’t reading over their property insurance policies right about now.

    I never thought I’d feel sympathy for a Chrysler dealer, but I do.

  • avatar
    guyincognito

    @ ihatetrees :

    ‘For future MBA students, this will be a classic case study of a firm’s meltdown how to bilk billions from taxpayers.’

    There fixed that for you.

  • avatar
    moedaman

    Neither of those two cars were made as well as the 1980 Ford Fairmont my wife “inherited.” That’s how bad it’s gotten.

    I just can’t believe that statement. As bad as some vehicles are, nothing being sold in the USA today is as bad as D3 vehicles from the late 70’s to mid 80’s.

  • avatar
    BDB

    The cars from EVERYONE in they early 80s and late 70s were awful compared to today’s cars, not just Detroit.

    Early ’80s Accord, anyone? Piece of junk.

  • avatar
    mpresley

    TheRealAutoGuy : Buy a Jeep and help the cause…

    That is what some think, but after my experience with a Wrangler, perhaps the worst car I’ve owned with the possible exception of an MG Midget, I don’t think so. Jeep? I thought, “they’ve been making these things for years, surely they must be acceptable quality.” After all, there’s not much to them, really. How stupid I was. I’m rooting for Chrysler to go belly up; the sooner they go, the happier I’ll be. Unlike Chrysler, even British Leyland, as a company, probably had some redeeming qualities, although I can’t think of any, off-hand.

  • avatar
    BDB

    I hope the folks over at Diamler that screwed over this once great company rot in hell.

  • avatar
    menno

    Don’t worry, BDB. There truly IS a God. And guess what? He’s a “car guy” too. Why do I know that?

    Because everything you see on planet earth, all the intellect put into humanity, the materials to make cars, everything – He put into place.

    Of course, God is also a racquetball fan, a Cubbies fan, enjoys bird watching…

    How longayagot to read all that God is?

  • avatar
    BDB

    “Don’t worry, BDB. There truly IS a God. And guess what? He’s a “car guy” too.”

    I’d like to believe that, but why didn’t he instantly smite the designers of the Sebring (Old Testament style) then?

  • avatar
    HarveyBirdman

    Michael Karesh,

    Perhaps Press should have taken some sales techniques from this used car dealer…

  • avatar
    fincar1

    “Early ’80s Accord, anyone? Piece of junk.”

    BDB, it was those early 80’s Accords that helped boost Honda into the position it’s in now. We had an 80 and an 82; both of them ran into the high 100,000’s with their original engines and clutches, and were the reason why we have kept on buying Accords.

    It could be that I’m not the only one with a story like this.

  • avatar
    amadorgmowner

    Cereberus has no business owning a car company. My local dealer (who has been closed down by Cerberus owned-GMAC when they cut off his floorplanning credit lines) said that after they took over Chrysler, dealer relations deteriorated to the point he wish he didn’t own a Chrysler dealer. They don’t know what they are doing. Daimler bled Chrysler and then shit-canned it to a bunch of money-grubbing investment bankers who cannot manage their own financial affairs right, let alone a car company’s. What is Cereberus going to do now that their cronies in the crooked Bush administration are gone?

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • RHD: Yaffle, dear readers, means an armful, or a green woodpecker. Maybe what the author could have written was...
  • Inside Looking Out: If DeLorean had 14 billion $$ and if he did not betray original engineering team and did not twit...
  • Inside Looking Out: And Saturn.
  • 28-Cars-Later: Just an opinion for the editor, why do you maximize the size of the blue GM logo? I ask because it...
  • RHD: The original post in this thread had the analysis of its content in the very last line: “All BS.”...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber