any truth to chrysler going out of business??

[aquaholic]

i've had 3 people in the last week tell me that chrysler is going out of business. i say its total and complete BS. anyone hear anything about this?

[JBsZ06]

anythings possible although I believe we'll be seeing Chrysler taken apart piece by piece and sold off...

Could be a merger in the works as well...

Could end up being a distribution channel for foreign products as well..

All of its a guessing game at this point yet soon we'll see what will be..

Bottomline....The inventories need to be cleaned out before they start up production again which makes sense?

[ChuckG]

I have a fraternity brother at Chrysler (Jeep Division) and has been since '91. He's an electrical engineer and says there is major consolidation and layoffs everywhere. Though he's on pins and needles, no one's come for him yet.

This leads me to believe Chrysler is circling the wagons around Jeep and hoping it saves the company and if not, it's ready to be spun off to a new buyer.

If you've read histories of the auto industry, Chrysler is perpetually one bad year from the ditch and has been since the 20s. They're always under-capitalized. There have been some bright years, but in all, they're blessed to have made it this far.

Jeep will have a buyer and the patents have value, but really what does Chrysler bring to the party? The plants are surplus since there is already too much capacity in the industry. Ram trucks look nice, but they have tremendous quality issues.

In fact, I'd even say Chrysler is why the Big Three have the poor quality rap they do. The other two have improved ten-fold, but Chrysler is still thinking it's the 60s and people will buy whatever they offer.

I think we're looking at another 1920-21 year. The banks tightened money then too and the industry had too much stock on hand.

That year, many plants, Ford's Model T plant included, had months-long shutdowns and most didn't come out of it. Ford almost didn't and we all know they were very dominant in those years.

It would be like Microsoft shutting down and maybe not reopening. Imagine what that would do to today's computer industry. If the biggest can't survive, how can the others?

Today's the same with GM being Ford and Chrysler more like Peerless.

[ToolGuy]

Originally Posted by JBsZ06

anythings possible although I believe we'll be seeing Chrysler taken apart piece by piece and sold off...

Could be a merger in the works as well...

Could end up being a distribution channel for foreign products as well..

JB has it correct... Any of this is certainly possible. Lets face it, Ceribus wants to dump Chrysler and they are feeling they should have done it yesterday, figuratively speaking. Chrysler is a dog and has never had strong market share. The only winner out of all of this is Dailmer. They bought them low and when sold, made money.

Rumor has it Nissan may take Dodge Trucks and and Jeep someone else, I forget who.

I can tell you this much, if Chrysler gets bought or split up, the city it is in will all about dry up. All the hotels and small businesses around, will go under and the city will be a ghost town. My brother in law is a Chrysler direct and in emissions, he was offered a package which BTW are not really good. 75K salary and a 20K car voucher! Poor, really poor! He declined and is still at Chrysler but the next threat besides more lay offs, is the selling of the company of course.

I work in that same town Chrylser HQ is in and thank to some god, I am NOT on the auto busioness any more. I am in the military business and for now, it is the bast place I can be in Michigan... Delphi is going to lay off people soon and rumor has it GM will in March again. I also read on Friday AAA is going to lay off 200 people and guess what, 140 of them and you guessed it, in Michigan! It is just sickening to get emails from friends begging me to take their resumes into my company, you can just hear the despiration in their emails, makes me sick to my stomach thinking of them and that could have been me. I do what I can and take their resumes in but the one was a Chrysler contractor and lost his job before X-mas and the other at Delphi, said he will be gone in March.

I could go on, such as are unemployment system and level is a mess as well, but will refrain...

On a side note, the building where your frat brother works is in the ghetto of Detroit, a very rough area and the building is older then dirt. For years there has been talk of moving Jeep to the HQ and the talks got more true since all the layoffs and packages being offered, due to having the room now to move people.

[ChuckG]

AAA is heavily into the dead travel business.

BC/BS is laying off too which is more disturbing. They've been recession proof for years.

Were I your brother-in-law, I'd jump. Michigan is an at-will state and they don't "owe" him anything if he waits too long.

I was offered $10k for my two years of GM seniority in '89. I only grabbed that job out of the Amy to make dough for school, so I bit. Glad I did. It was that or nothing and that money was well-used for grad school.

Sad, but looks like we all need to de-camp Michigan. I'm going to soon. We're shackled to a corpse here and every elected idiot keeps wanting to repeat that mistake and not evolve the state past heavy industry.

Our families came here for the auto industry, so why not leave when it's gone?

Will the last person leaving Michigan please bring the Christmas lights?