Chrysler - Fiat

[Canada]

Just curious.  Since the new 2011 Crhrysler 300 will be produced in Italy, what will happen to other cars produced on the same assembly line ie. Challenger, Charger etc. What will happen to the Brampton / Bramalea plant if some / most / all of these models will be built in Italy.  Re-tooled for other models or just closed?

[IceAndFire]

I didn't know the new 300 would be produced in Italy?  I thought it would be produced here and sold here and in Europe.  The small cars would be produced in a combination of locations.... thats what I thought.

[Canada]

Yeah I believe there was some consideration to that end.  Who knows maybe when push comes to shove they will just leave well enough alone.  Interesting to see what happens in the next 12 to 24 months.  I hope the Chrysler name does not go the way of the dodo.  I would hate to see the company picked over by vultures until there is nothing left.  I know some would say they got what they deserved but after so many years. 

[ovr50]

http://www.canadiandriver.com/2009/11/05/union-protests-chrysler-over-car-hauler-jobs.htm

Jim Hoffa? Son of lost forever "swims with the fishes James"? Is this for real? Teamsters? Shades of the past.....

[ovr50]

The following is from Phil Bailey's site - sounds about right to me.

November 6th 2009
Jeep's new ad theme: "I live. I ride. I am."

This has been a very bad week for Chrysler, with six strikes against them.

Strike # 1
A recall in which front wheel nuts were left off some Challengers, Chargers and Chrysler 300s.
This does not mean the wheel will immediately come off, because the wheel bearing
is a press fit on the spindle, but any vigorous cornering would encourage the wheel,
calliper and brake hose to detach, leaving you without a wheel or any brakes.

Strike#2
Consumers Reports gave quality a very low rating on most Chrysler products.

Strike #3
Sales were down 30% year on year.

Strike #4
Chrysler announced that they had improved their cash position by two billion dollars.
Only for it to be revealed later that they had hardly paid any of their suppliers in
the last 90 days and so, when they started up production they would have to pay their bills
and start burning through cash at a phenomenal rate.

Strike #5
At a "power pointless" news conference on Wednesday last, it transpired that it was going to take at least two,
maybe three years for any new product from FIAT to arrive in the showrooms.
Which means that they are going to rely on massive discounts and smoke and mirrors ad campaigns to try
and survive.
Sure, you're going to be able to buy a Caliber for $9500 and a Caravan for $17000, and lots of unthinking people,
mostly those that also pay 28.5% on a retail credit card, will buy these things and when they discover that they're
worth about 35% of their new value after two years, will roll them over and refinance.

Fortunately, most consumers are much smarter than that, but Chrysler is pinning its hopes on the fact there's
less of you out there than we think.

They are hoping that the old saying "There's a sucker born every minute" still applies.

Strike #6
During this jaw fest of a press conference, it was announced that Chrysler knows it has a terrible quality track
record and every effort will be made to bring quality control up to (at least!) FIAT standards.
Which is no great feat, considering that FIAT has the worst quality record of any European manufacturer


After this all-day press conference, Chrysler’s new Italian caretakers, FIAT, came through with little — if anything
—that makes it anything but obvious that this enterprise isn’t going to make it to 2012, the year when reskinned
Fiats will start selling in Chrysler showrooms. Maybe.

Except for the no-news of any plans for North American Alfa Romeos, the product plan varies little from what
was leaked last week.
The Plan calls for deep-sixing next year the PT Cruiser and Jeep Commander, and the Dodge Dakota in 2011
—something consumers have already effectively done, what with Chrysler’s U.S. sales as mentioned,
off 30 per cent last month.

But the cars that no one is buying today—like the Sebring, Avenger, Caliber, etc.—will be gathering dust in
Chrysler dealerships for another three years until their respective Fiat replacements come to the rescue.

So how in the name of Lee Iacocca does Fiat keep Chrysler in business until then?

The reality is, Chrysler is still in deep doo-doo. It’s still stuck trying to sell the low-quality, unattractive and
getting-older-by-the-day products that currently no one’s buying.

Except for the niche Fiat 500 (that’s coming next year as a Chrysler) consumers will have no compelling reason
to visit a Chrysler/Dodge/Jeep showrooms until 2012, expect for refreshed 300 and Charger sedans and a new
Grand Cherokee and Durango—not exactly the types of products that are selling, n’est pas?

And then what? By then, Chrysler will be even further behind the competition.

Rivals will have jumped into the small car market (Ford Fiesta, Focus, C-Max, Mazda2, Chevrolet Spark,
Aveo, Cruze, etc.) that the reskinned Fiats hope to compete in.

Even if customers suddenly flock to the Chrysler-badged Fiats, realistically, it will take at least a full generation
of product (eight years) to win people back.

So, does Fiat have deep enough pockets to keep Chrysler afloat until 2020?

Here’s a hint: Go see what Google has to say about the debacle that was the marriage between
“Renault” and “AMC”.

[Roddy]

The following is from Phil Bailey's site - sounds about right to me.

November 6th 2009
Jeep's new ad theme: "I live. I ride. I am."

This has been a very bad week for Chrysler, with six strikes against them.

Strike # 1
A recall in which front wheel nuts were left off some Challengers, Chargers and Chrysler 300s.
This does not mean the wheel will immediately come off, because the wheel bearing
is a press fit on the spindle, but any vigorous cornering would encourage the wheel,
calliper and brake hose to detach, leaving you without a wheel or any brakes.

Strike#2
Consumers Reports gave quality a very low rating on most Chrysler products.

Strike #3
Sales were down 30% year on year.

Strike #4
Chrysler announced that they had improved their cash position by two billion dollars.
Only for it to be revealed later that they had hardly paid any of their suppliers in
the last 90 days and so, when they started up production they would have to pay their bills
and start burning through cash at a phenomenal rate.

Strike #5
At a "power pointless" news conference on Wednesday last, it transpired that it was going to take at least two,
maybe three years for any new product from FIAT to arrive in the showrooms.
Which means that they are going to rely on massive discounts and smoke and mirrors ad campaigns to try
and survive.
Sure, you're going to be able to buy a Caliber for $9500 and a Caravan for $17000, and lots of unthinking people,
mostly those that also pay 28.5% on a retail credit card, will buy these things and when they discover that they're
worth about 35% of their new value after two years, will roll them over and refinance.

Fortunately, most consumers are much smarter than that, but Chrysler is pinning its hopes on the fact there's
less of you out there than we think.

They are hoping that the old saying "There's a sucker born every minute" still applies.

Strike #6
During this jaw fest of a press conference, it was announced that Chrysler knows it has a terrible quality track
record and every effort will be made to bring quality control up to (at least!) FIAT standards.
Which is no great feat, considering that FIAT has the worst quality record of any European manufacturer


After this all-day press conference, Chrysler’s new Italian caretakers, FIAT, came through with little — if anything
—that makes it anything but obvious that this enterprise isn’t going to make it to 2012, the year when reskinned
Fiats will start selling in Chrysler showrooms. Maybe.

Except for the no-news of any plans for North American Alfa Romeos, the product plan varies little from what
was leaked last week.
The Plan calls for deep-sixing next year the PT Cruiser and Jeep Commander, and the Dodge Dakota in 2011
—something consumers have already effectively done, what with Chrysler’s U.S. sales as mentioned,
off 30 per cent last month.

But the cars that no one is buying today—like the Sebring, Avenger, Caliber, etc.—will be gathering dust in
Chrysler dealerships for another three years until their respective Fiat replacements come to the rescue.

So how in the name of Lee Iacocca does Fiat keep Chrysler in business until then?

The reality is, Chrysler is still in deep doo-doo. It’s still stuck trying to sell the low-quality, unattractive and
getting-older-by-the-day products that currently no one’s buying.

Except for the niche Fiat 500 (that’s coming next year as a Chrysler) consumers will have no compelling reason
to visit a Chrysler/Dodge/Jeep showrooms until 2012, expect for refreshed 300 and Charger sedans and a new
Grand Cherokee and Durango—not exactly the types of products that are selling, n’est pas?

And then what? By then, Chrysler will be even further behind the competition.

Rivals will have jumped into the small car market (Ford Fiesta, Focus, C-Max, Mazda2, Chevrolet Spark,
Aveo, Cruze, etc.) that the reskinned Fiats hope to compete in.

Even if customers suddenly flock to the Chrysler-badged Fiats, realistically, it will take at least a full generation
of product (eight years) to win people back.

So, does Fiat have deep enough pockets to keep Chrysler afloat until 2020?

Here’s a hint: Go see what Google has to say about the debacle that was the marriage between
“Renault” and “AMC”.

Fantastically put!

[Mitlov]

If the Chrysler-Fiat merger doesn't result in a mid-engined, Hemi-powered, Cinquecento Abarth SRT8, I'm going to cry.

Think Renault Clio V6 Renault Sport, only with extra insanity.  Or GTI W12 with actual production.





Anyhoo, sorry for the tangent.

[Leviathan]

I may not be fast on the uptake but splitting RAM into its own division seemed like a dandy way for Fiat et al  to carve up the Chryco carcass when it all goes bust. Jeep and/or RAM would be salable as stand alone units or a package and the rest would be quietly assigned to automotive history.

[Scaerio]

Actually, in Top Gear magazine's recent surveys and Germany's Dekra ratings, Renault and Peugeot products tend to do worse than FIAT...

[Canada]

Let me see the worst quality rated European company buys the worst quality rated North American company.  I just don't know.  I think Walter (Chrysler) would be be pizzed off.  How many here think this Fiat Chrysler marriage is a good thing?  How many here would buy any Chrysler product rebadged as a Fiat or a Fiat rebadged as a Chrysler.  I think Chrysler will slowly go down the toilet.  The few names worth anything will be sold off to the highest bidder and Chrysler will be no more.  Maybe we'll have a Fiat YJ - Wrangler or a new Ferrari model named the Viper.  How does a Fiat Challenger sound?  I am always amazed at companies that have been around for a hundred years now go down the toilet.  Somebody has been sleeping at the wheel for at least 20 or 30 years?