RE: Chrysler Loses £550 On Every Car Sold In 2006
RE: Chrysler Loses £550 On Every Car Sold In 2006
Friday 10th August 2007

Chrysler Loses £550 On Every Car Sold In 2006

Top cheeses remain blameless


Big, bulky, inefficient cars are the reason they're in this mess
Big, bulky, inefficient cars are the reason they're in this mess
US car manufacturer Chrysler lost money on each car they sold in North America last year.

They reportedly lost $1,111 on each car they sold in 2006, while in 2005 they made $114 per car.

They attribute the high losses to inefficient design and engineering, as well as not being able to sell their SUVs, which dominated their US portfolio.

Chrysler now has a rejuvenation plan; they plan to cut 13,000 jobs within three years, invest $3billion in more fuel efficient vehicles and attempt to better control their inventory.

Why don't they just stop making SUVs?

Author
Discussion

Mattygooner

Original Poster:

5,302 posts

227 months

Friday 10th August 2007
quotequote all
Another 13,000 people out of a job...

i want an aero

642 posts

229 months

Friday 10th August 2007
quotequote all
they will probably be mainly over here as so easy to sack people in the uk. won't be management either

Daniel Green

753 posts

249 months

Friday 10th August 2007
quotequote all
How many people do you think work for Chrysler in the UK? I think you will find most jobs are to go in the US.

flattotheboards

6,688 posts

229 months

Friday 10th August 2007
quotequote all
why dont they focus on making decent quality cars rather than loads of cheap tacky ones.

Lowbourne1

79 posts

272 months

Friday 10th August 2007
quotequote all
I just can't understand why, the have sold hundreds of thousands of Voyagers alone!!! My family have one, & I think they're the best looking MPV shoping car still on the road, especially when you spec them up with tints, running boards etc!! On our third one now & they still look cool, they were used for the TV show Apprentice & others!!!!

Mannginger

10,099 posts

280 months

Friday 10th August 2007
quotequote all
i want an aero said:
they will probably be mainly over here as so easy to sack people in the uk. won't be management either
Not as easy as it is in the states, my understanding is that contracts are very weak out there...

"Oi You - you're fired. Clear your desk in an hour and begone"


Phil

beefcake#42

267 posts

224 months

Friday 10th August 2007
quotequote all
it's not the cars that are the problem...or thier engineering.

i imagine it might be something along the lines that each car could need to contribute maybe $1,500 dollars or some other amount to thier leaky pension fund defictit..or something else maybe.

but i am only guessing. wink

Frimley111R

18,392 posts

257 months

Friday 10th August 2007
quotequote all
It just makes me wonder how long the US manufacturers can keep on making such low quality products that only stupid US people buy. I was in a Hummer and a Mustang last year and the quality is so low it almost defies description! Even more amazing is that their European brands or products (i.e. made here) are so much better made. They are so focussed on the US they are not looking at the global market. Asia is coming up fast and it will soon be only in the history books that the big three (or is it two) in the world reside in the US!

They are clueless and will get what they deserve! (IMHO)

doogalman

814 posts

268 months

Friday 10th August 2007
quotequote all
Best for them to pay you £500, to not buy one of their cars.

Volte

9,780 posts

246 months

Friday 10th August 2007
quotequote all
My company has been bought by the same private equity company that bought Chrysler - and the first thing they have done is slash jobs - I appear to have survived this time - but the new owners have a pretty brutal attitude to turning companies around. To be honest it needs doing for both companies - without change they would go under, but it is so painful even if you survive redundancy as you have to watch your colleagues and friends get their lives turned upside down by losing their job. frown I work in the IT industry, so at least there are plenty of other jobs about - I wouldn't want to be looking for a car industry job in either in the UK or the USA.

bri_the_fly

180 posts

234 months

Friday 10th August 2007
quotequote all
Picture caption said:
Big, bulky, inefficient cars are the reason they're in this mess
That's just one reason, the millions of other reasons would be seen as Anti-American so I'm not going there smile
they just copy their mates GM and Ford in EVERYTHING!

saw a thing on CNN (via net)this morning and someone says 'yea but in Europe 100 miles is a long trip" which necessitates ecomomical cars..cos USA is such a big country they need bigger engines do they? morons! Brazil- also a BIG country has millions of 1.0 litre motors.

Toyota is now numero uno in the world putting GM into second.






Mafioso

2,408 posts

237 months

Friday 10th August 2007
quotequote all
Lowbourne1 said:
I just can't understand why, the have sold hundreds of thousands of Voyagers alone!!! My family have one, & I think they're the best looking MPV shoping car still on the road, especially when you spec them up with tints, running boards etc!! On our third one now & they still look cool, they were used for the TV show Apprentice & others!!!!
Oh very dear! Get out more! smile

On a serious note, if they ever went under who would miss them!?

Black S2K

1,803 posts

272 months

Friday 10th August 2007
quotequote all
Frimley111R said:
It just makes me wonder how long the US manufacturers can keep on making such low quality products that only stupid US people buy. I was in a Hummer and a Mustang last year and the quality is so low it almost defies description! Even more amazing is that their European brands or products (i.e. made here) are so much better made. They are so focussed on the US they are not looking at the global market. Asia is coming up fast and it will soon be only in the history books that the big three (or is it two) in the world reside in the US!

They are clueless and will get what they deserve! (IMHO)
The appeal seems to be very 'redneck' I agree.

Yours was probably Daimler's viewpoint, too. I always thought the merger was hare-brained.

If you look at current US sales figures, it's them pesky Japs that are only slightly down on sales, whilst the big three plummet groundwards.

To paraphrase Jack White, "my baby killed the Big Three."

Maxwedge

361 posts

230 months

Friday 10th August 2007
quotequote all
In a capitalist system "Cheep" dominates...havent any of your read any Marks? you know capitalism ultimately leads to a race to the bottom...the US is the first there. Why do you think Chinas economy has been and will continue to grow at 4x what Europe's is?
I will give you a hint, it isnt being driven by quality products, near slave labor makes things cheep and cheep sells better than a flashy add.
the Problem for the Americans cars is they are built cheep and what they charge the customer isnt cheep enough.

scottiedog

191 posts

232 months

Friday 10th August 2007
quotequote all
Frimley111R said:
It just makes me wonder how long the US manufacturers can keep on making such low quality products that only stupid US people buy. I was in a Hummer and a Mustang last year and the quality is so low it almost defies description! Even more amazing is that their European brands or products (i.e. made here) are so much better made. They are so focussed on the US they are not looking at the global market. Asia is coming up fast and it will soon be only in the history books that the big three (or is it two) in the world reside in the US!

They are clueless and will get what they deserve! (IMHO)
You were in a Hummer and a Mustang and you felt the quality was crap? Yup, its crap compared to say BMW, these are cheap cars, name another 200BHP V6, 2 Door Coupe, thats as big as the Mustang and costs just $19k. Suprised it isn't made from the finest Italian leather? New Hummers are at my local car lot for $29k with 0% finance over 5 years, cheap cars, although in a way good value for money IMHO, even though they are pretty crappy.

The big problem is that "Stupid" US people are not buying these cars, they are buying Honda, Toyota, BMW's & Merc's. The volume sales count for nothing as the big three in the US are giving huge discounts and 0% deals just to keep shifting cars. Lots of ex-demo cars appearing on the lots just so dealers can shift them. Low profits and high insurnace/pension bills mean the US is in serious trouble. Proof is in sales jobs, no one wants to work for a Ford/GM etc dealer as its near impossible to sell the cars and make a good commision, the Honda sales guys don't even have to try and sell the cars. I suggest reading the below article (its very interesting)....

http://www.edmunds.com/advice/buying/articles/42962/article.html 

bri_the_fly said:
Brazil- also a BIG country has millions of 1.0 litre motors.
No one travels far in Brazil to work, I remember reading 70% of the work force in big cities use public transport. Also, $3.63 a gallon for fuel down there (last time I checked), thats pretty high for the small wages.

I don't want to appear pro American, the US does have its problems, but then I also hate to see how quickly people are to judge the US. Yes, cheap sells in the US, consumers demand low pricing, compared to say the UK where we seem to complain about our high car prices but do nothing about it (ouch, flame time) smile

Strawman

6,463 posts

230 months

Friday 10th August 2007
quotequote all
When they were merged with daimler their engineers saw they were paying less than a third what Mercedes paid for their seats. They sent two over to Germany for evaluation 1 to the engineering dept 1 to the accounts dept, the Germans wrote back "you are paying too much for your seats"

cglock

84 posts

241 months

Friday 10th August 2007
quotequote all
Daniel Green said:
How many people do you think work for Chrysler in the UK? I think you will find most jobs are to go in the US.
About half of them (couldn't resist cheap joke)!!

cglock

84 posts

241 months

Friday 10th August 2007
quotequote all
doogalman said:
Best for them to pay you £500, to not buy one of their cars.
I love the logic here... so GM loose less and we have less of their cars on the road... and we're £500 up on the deal... genius!!

Edited by cglock on Friday 10th August 23:26

mattbvw

375 posts

238 months

Saturday 11th August 2007
quotequote all
Lowbourne1 said:
I just can't understand why, the have sold hundreds of thousands of Voyagers alone!!! My family have one, & I think they're the best looking MPV shoping car still on the road, especially when you spec them up with tints, running boards etc!! On our third one now & they still look cool, they were used for the TV show Apprentice & others!!!!
No thanks!! They are bloody unsafe - they LOST one of their two Euro NCAP stars! Not to mention being used in stupid staged wannabe celebrity TV shows. AND Tony Blair had one...



http://www.euroncap.com/tests/chrysler_voyager_200...

huge

1,138 posts

307 months

Saturday 11th August 2007
quotequote all
£550 on every car sold ??...that's nothing...I lost nearly £10,000 on every car I sold in 4-year period wink