Readers of the nation's major newspapers -- those still reading paper, anyway -- by now have seen splashy full-page ads from Chrysler LLC thanking "America" for its bailout-investment in the company.
No harm in being contrite, but just like winging into Washington, D.C., on a trio of exec jets to demonstrate their dire financial straits, the "Thank You, America" ad isn't going to go down as one of Detroit, Inc.'s more wizened PR stunts.
Chrysler's $200,000-a-pop Hallmark moments are being called out in all quarters as mindless and myopic. Fox News criticized not only the "spend" itself but the symbolic cluelessness of it all. If Chrysler had a brain, it could have done a "viral" Web campaign for practically no cost, and appeared all the more intelligent and resourceful for doing so.
And, as one advertising-world reaction rightly noted, Chrysler's profligate ads are likely to be construed as proof the car companies simply can't figure out how to stop spending money -- particularly for inanities such as extravagant ads to express gratitude for the federal loans necessary to keep them from going bankrupt.
Even one of Detroit's hometown newspapers, the Detroit News -- which itself would have been happy to cash a taxpayer-funded Chrysler check for a piece of the thank-you business that went to the Wall Street Journal and USA Today -- busted Chrysler's chops:
"Although [the Detroit News] applauds spending money for any newspaper ads, we need to point out that most of the Americans you're thanking still don't think carmakers should get any taxpayer-backed bailout loans. Those folks may get even more cheesed-off seeing you write six-figure checks for their money to buy ads thanking them for something they don't think you deserve and didn't want to give you in the first place."
Showing posts with label Chrysler. Show all posts
Showing posts with label Chrysler. Show all posts
Saturday, January 3, 2009
Thursday, December 11, 2008
25 years of the world’s first MPV
Chrysler is celebrating a quarter-century of MPV innovation, on-going development and leadership since launching the world’s first MPV. The year was 1983. The Internet was created, and the first mobile phones were introduced to the public, U.S. astronauts completed the first space shuttle spacewalk; and Dallas was the most popular programme on TV ...... and Chrysler hit a home run with the introduction of the world’s first MPV.
On November 2, 1983, the first MPV rolled down the assembly line in Windsor, Ontario, Canada. The launch of Chrysler’s MPV in 1983 created an all-new vehicle segment and was an instant success.
As the MPV became a cultural icon throughout North America in the 1980s, its introduction to the international markets helped establish and solidify the Chrysler brand worldwide. It was in 1987 that Chrysler’s new MPV began sales in Europe.
Diesel-powered MPVs were introduced in 1993, aimed at further strengthening the presence of Chrysler MPVs in Europe. In 1996, the Company offered right-hand-drive versions, opening up sales opportunities in markets such as the UK, Japan, Australia and South Africa. Since then more than 53,000 versions have been sold to date in the UK alone.
Chrysler defined the ‘family room on wheels concept’ in 1983. In 2008, Chrysler has taken this concept to a new level.
The newest, fifth-generation of Chrysler MPVs – The Grand Voyager, launched in March 2008 – encapsulates more than 65 MPV-first features and more than 25 years of development. The latest generation offers more than 35 new or improved features over the previous generation including: dual-screen DVD entertainment system that can play different media simultaneously on two screens; ambient halo lighting package with directional LED pinpoint lights; removable and rechargeable LED flashlight; a six-speed automatic transmission; stain repelling seat fabric. Not forgetting Chrysler’s unique, renowned and innovative Stow ‘n Go® seating and storage system.
Other new innovations include Chrysler’s Swivel ‘n Go™ seating system which allow the two second row seats to be rotated 180 degrees to face the third row of seats so rear passengers can chat face to face; three-zone climate control for ultimate comfort; power windows for all three rows of passengers; and standard power sliding side doors and tailgate.
Improved active and passive safety features have also been introduced: next generation, multistage front airbags, full-length side curtain airbags and supplemental front seat-mounted side thorax airbags. Additionally, electronic stability programme (ESP), panic brake assist, all-speed traction control and anti-lock brakes all become standard across the entire range.
Federico Goretti, Managing Director of Chrysler UK Ltd, said: “The Grand Voyager is a firm favourite in the UK and the latest model has all the right ingredients to make it the most successful Chrysler ever. It has an unrivalled blend of luxury, equipment, comfort, versatility, performance and load-carrying capacity at a very competitive price – offering customers a hassle-free motoring package.”
UK models have a six-speed automatic transmission and either a 2.8-litre diesel engine or a 3.8 V6 petrol engine. There are three trim levels – LX, Touring and Limited. Prices start from £25,456.49 OTR.
In the first 25 years, Chrysler has sold more than 12 million MPVs – more than any other manufacturer in the world and have claimed over 260 awards – including 2008 “MPV of the Year” and “International Truck of the Year” by the International Car of the Year organisation – Chrysler MPVs are continuing to make history.
Source: Chrysler
On November 2, 1983, the first MPV rolled down the assembly line in Windsor, Ontario, Canada. The launch of Chrysler’s MPV in 1983 created an all-new vehicle segment and was an instant success.
As the MPV became a cultural icon throughout North America in the 1980s, its introduction to the international markets helped establish and solidify the Chrysler brand worldwide. It was in 1987 that Chrysler’s new MPV began sales in Europe.
Diesel-powered MPVs were introduced in 1993, aimed at further strengthening the presence of Chrysler MPVs in Europe. In 1996, the Company offered right-hand-drive versions, opening up sales opportunities in markets such as the UK, Japan, Australia and South Africa. Since then more than 53,000 versions have been sold to date in the UK alone.
Chrysler defined the ‘family room on wheels concept’ in 1983. In 2008, Chrysler has taken this concept to a new level.
The newest, fifth-generation of Chrysler MPVs – The Grand Voyager, launched in March 2008 – encapsulates more than 65 MPV-first features and more than 25 years of development. The latest generation offers more than 35 new or improved features over the previous generation including: dual-screen DVD entertainment system that can play different media simultaneously on two screens; ambient halo lighting package with directional LED pinpoint lights; removable and rechargeable LED flashlight; a six-speed automatic transmission; stain repelling seat fabric. Not forgetting Chrysler’s unique, renowned and innovative Stow ‘n Go® seating and storage system.
Other new innovations include Chrysler’s Swivel ‘n Go™ seating system which allow the two second row seats to be rotated 180 degrees to face the third row of seats so rear passengers can chat face to face; three-zone climate control for ultimate comfort; power windows for all three rows of passengers; and standard power sliding side doors and tailgate.
Improved active and passive safety features have also been introduced: next generation, multistage front airbags, full-length side curtain airbags and supplemental front seat-mounted side thorax airbags. Additionally, electronic stability programme (ESP), panic brake assist, all-speed traction control and anti-lock brakes all become standard across the entire range.
Federico Goretti, Managing Director of Chrysler UK Ltd, said: “The Grand Voyager is a firm favourite in the UK and the latest model has all the right ingredients to make it the most successful Chrysler ever. It has an unrivalled blend of luxury, equipment, comfort, versatility, performance and load-carrying capacity at a very competitive price – offering customers a hassle-free motoring package.”
UK models have a six-speed automatic transmission and either a 2.8-litre diesel engine or a 3.8 V6 petrol engine. There are three trim levels – LX, Touring and Limited. Prices start from £25,456.49 OTR.
In the first 25 years, Chrysler has sold more than 12 million MPVs – more than any other manufacturer in the world and have claimed over 260 awards – including 2008 “MPV of the Year” and “International Truck of the Year” by the International Car of the Year organisation – Chrysler MPVs are continuing to make history.
Source: Chrysler
Monday, December 1, 2008
Detroit Three: Making the Sales Pitch of a Lifetime
The Detroit Three are putting the finishing touches and obtaining the blessings of their boards and upper management for the biggest sales pitch of their lives this week. They are preparing the viability plans due to Congress on Tuesday in order to obtain the $25 billion in bridge loans they are seeking.
Executives from General Motors, Ford and Chrysler worked through the Thanksgiving holiday putting together plans after Congressmen criticized them for lacking such plans in the last round of hearings. While each company's plan is individual to their unique circumstances, all are expected to detail even deeper cuts, including executive compensation and perks, than have already been made and an acceleration of environmental and fuel-saving initiatives. Their plans also are expected to include even more concessions from the United Auto Workers (UAW) union.
Meantime, the Detroit Three's plea for help is likely to get a boost from the continued deterioration of auto sales in the U.S., where automakers report November results Tuesday. Sales are expected to hit 25-year lows. That sales slide is spreading globally with a number of markets reporting dismal sales on Monday.
Schedule of Events
After their dismal performance in Congressional hearings last month, the Detroit Three were criticized for not having a plan to show how the $25 billion in bridge loans would be used, how the loans would keep them financial viable and how the loans would be repaid.
The lack of plans prompted Democratic leaders from the House and Senate to send them a letter requiring them to submit "a credible restructuring plan" by Tuesday, December 2. The companies are likely to send two plans to Congress -- one a short public summary and another longer report intended to be confidential. GM has said it will deliver its plan after Tuesday's stock market close.
Then it is back to the hot seat for the CEOs of the Detroit Three. The senate Banking Committee has set a hearing for Thursday morning; the House Financial Services Committee has scheduled one for Friday morning. If they find the Detroit Three plans satisfactory, Congress will reconvene for a vote next week.
UAW: Signaling More Concessions
UAW President Ron Gettelfinger told CNN on Sunday that the union is willing to consider more concessions than were already made in the last contract, which was hailed by experts as a landmark concessionary agreement.
"We're prepared to go back to the table," he told CNN." But he noted the union expects others to make sacrifices, too, hinting that executive compensation should be capped. "They need to establish that executive compensation is something that they're willing to curtail.... They can also give the government an equity stake in the business," he said in the interview.
It further appears the union is ready to give up the controversial Jobs Bank, a program that gives nearly full pay to idled workers. The number of laid-off workers in the Jobs Bank has been dwindling in recent years but still is seen by some outsiders as a reason the Detroit Three are uncompetitive.
GM: Deeper Cuts, Possible Brand Eliminations
General Motors' board of directors had a series of conference calls over the holiday week and a meeting on Sunday to review the plan.
The plan is likely to include executive pay cuts, more salaried job cuts and a request from GM to some bondholders to convert to equity and some cash payout to redeem the debt they hold. At the same time, GM's plan will push the Chevrolet Volt as its way to achieve dramatic fuel savings.
Also, reportedly on the table, were the possible elimination of more GM brands. Bloomberg reported that Saab, Pontiac, Saturn and/or others of GM's eight brands could be axed. Meantime, GM has asked the Swedish government for help with Saab; Ford has done the same with its Volvo division.
A point of contention appears to be brewing between GM CEO Rick Wagoner and some board members. Some GM directors insist all options should be on the table, including a Chapter 11 bankruptcy filing or a prepackaged bankruptcylike restructuring. However, Wagoner and other board members disagree, saying, as Wagoner has repeatedly in public, that an auto company in any kind of bankruptcy would be unable to sell cars to wary consumers.
Ford: Focus on Fuel Economy
Ford's plan is likely to focus on its already-existing plan to convert its fleet from larger SUVs and trucks to mostly fuel-saving models.
The subject of executive compensation has been taken up at Ford. But what may not wind up in the plan presented to Congress are cuts in CEO Alan Mulally's pay. Ford's board reportedly wants the compensation package of Mulally, who left Boeing to take over at Ford just over two years ago, to remain status quo.
In a rare interview, Ford Chairman Bill Ford Jr. told NPR radio last week Mulally and the board's compensation committee were discussion compensation. But he noted that he himself had not taken any compensation for the past four years. The Ford family, however, controls 40 percent of the voting power of Ford via just under 3 percent of a separate class of shares. What's not clear is if that arrangement would stay intact if the government took an equity position in Ford.
Ford's Mulally testified to Congress that the automaker had enough money to make it through 2009 but wanted, in essence, a line of credit in case the economy and auto sales soured more than the automaker predicted. Indeed, Ford appears to be in a stronger financial position than GM and Chrysler, if only by a narrow margin.
An analyst for Barclays Capital said Ford "is likely to fall below minimum cash levels" in the second half of next year.
Chrysler: Looking for a Partner While Squabbling With Daimler
Chrysler says it is fine-tuning its plan. The now privately owned Chrysler says it still needs an alliance with another automaker. The automaker reportedly tried to restart merger talks with GM after the last round of Congressional hearings.
Meantime, Chrysler is squabbling with its current partner, Daimler AG.
Last week, Daimler accused Cerberus of demanding that Daimler pay Cerberus as much as $9 billion to take Daimler's 19.9 percent stake in Chrysler. That's more than the $7.2 billion Cerberus paid Daimler last year for 80.1 percent of the company.
Daimler and Cerberus have been negotiating since September over Cerberus taking over Daimler's equity stake in Chrysler.
Meantime, Daimler took a $452-million charge for its Chrysler stake on its third-quarter earnings report and assigned the stake a book value of zero. Daimler apparently is unwilling to pay Cerberus to take the stake off its hands.
In response, Cerberus implied it was duped by Daimler about exactly what it was getting with the purchase of Chrysler. Cerberus accused Daimler of "deliberate conduct that resulted in the impairment of Chrysler's business." The private equity firm charged that the German automaker "intentionally and materially breached its obligations" under the contracts related to last year's deal and of "misrepresentations" relating to Chrysler's vehicle financing and leasing arrangements in the lead-up to the sale.
Cerberus, saying it was exploring "strategic options," hinted it was considering filing a lawsuit against Daimler.
Executives from General Motors, Ford and Chrysler worked through the Thanksgiving holiday putting together plans after Congressmen criticized them for lacking such plans in the last round of hearings. While each company's plan is individual to their unique circumstances, all are expected to detail even deeper cuts, including executive compensation and perks, than have already been made and an acceleration of environmental and fuel-saving initiatives. Their plans also are expected to include even more concessions from the United Auto Workers (UAW) union.
Meantime, the Detroit Three's plea for help is likely to get a boost from the continued deterioration of auto sales in the U.S., where automakers report November results Tuesday. Sales are expected to hit 25-year lows. That sales slide is spreading globally with a number of markets reporting dismal sales on Monday.
Schedule of Events
After their dismal performance in Congressional hearings last month, the Detroit Three were criticized for not having a plan to show how the $25 billion in bridge loans would be used, how the loans would keep them financial viable and how the loans would be repaid.
The lack of plans prompted Democratic leaders from the House and Senate to send them a letter requiring them to submit "a credible restructuring plan" by Tuesday, December 2. The companies are likely to send two plans to Congress -- one a short public summary and another longer report intended to be confidential. GM has said it will deliver its plan after Tuesday's stock market close.
Then it is back to the hot seat for the CEOs of the Detroit Three. The senate Banking Committee has set a hearing for Thursday morning; the House Financial Services Committee has scheduled one for Friday morning. If they find the Detroit Three plans satisfactory, Congress will reconvene for a vote next week.
UAW: Signaling More Concessions
UAW President Ron Gettelfinger told CNN on Sunday that the union is willing to consider more concessions than were already made in the last contract, which was hailed by experts as a landmark concessionary agreement.
"We're prepared to go back to the table," he told CNN." But he noted the union expects others to make sacrifices, too, hinting that executive compensation should be capped. "They need to establish that executive compensation is something that they're willing to curtail.... They can also give the government an equity stake in the business," he said in the interview.
It further appears the union is ready to give up the controversial Jobs Bank, a program that gives nearly full pay to idled workers. The number of laid-off workers in the Jobs Bank has been dwindling in recent years but still is seen by some outsiders as a reason the Detroit Three are uncompetitive.
GM: Deeper Cuts, Possible Brand Eliminations
General Motors' board of directors had a series of conference calls over the holiday week and a meeting on Sunday to review the plan.
The plan is likely to include executive pay cuts, more salaried job cuts and a request from GM to some bondholders to convert to equity and some cash payout to redeem the debt they hold. At the same time, GM's plan will push the Chevrolet Volt as its way to achieve dramatic fuel savings.
Also, reportedly on the table, were the possible elimination of more GM brands. Bloomberg reported that Saab, Pontiac, Saturn and/or others of GM's eight brands could be axed. Meantime, GM has asked the Swedish government for help with Saab; Ford has done the same with its Volvo division.
A point of contention appears to be brewing between GM CEO Rick Wagoner and some board members. Some GM directors insist all options should be on the table, including a Chapter 11 bankruptcy filing or a prepackaged bankruptcylike restructuring. However, Wagoner and other board members disagree, saying, as Wagoner has repeatedly in public, that an auto company in any kind of bankruptcy would be unable to sell cars to wary consumers.
Ford: Focus on Fuel Economy
Ford's plan is likely to focus on its already-existing plan to convert its fleet from larger SUVs and trucks to mostly fuel-saving models.
The subject of executive compensation has been taken up at Ford. But what may not wind up in the plan presented to Congress are cuts in CEO Alan Mulally's pay. Ford's board reportedly wants the compensation package of Mulally, who left Boeing to take over at Ford just over two years ago, to remain status quo.
In a rare interview, Ford Chairman Bill Ford Jr. told NPR radio last week Mulally and the board's compensation committee were discussion compensation. But he noted that he himself had not taken any compensation for the past four years. The Ford family, however, controls 40 percent of the voting power of Ford via just under 3 percent of a separate class of shares. What's not clear is if that arrangement would stay intact if the government took an equity position in Ford.
Ford's Mulally testified to Congress that the automaker had enough money to make it through 2009 but wanted, in essence, a line of credit in case the economy and auto sales soured more than the automaker predicted. Indeed, Ford appears to be in a stronger financial position than GM and Chrysler, if only by a narrow margin.
An analyst for Barclays Capital said Ford "is likely to fall below minimum cash levels" in the second half of next year.
Chrysler: Looking for a Partner While Squabbling With Daimler
Chrysler says it is fine-tuning its plan. The now privately owned Chrysler says it still needs an alliance with another automaker. The automaker reportedly tried to restart merger talks with GM after the last round of Congressional hearings.
Meantime, Chrysler is squabbling with its current partner, Daimler AG.
Last week, Daimler accused Cerberus of demanding that Daimler pay Cerberus as much as $9 billion to take Daimler's 19.9 percent stake in Chrysler. That's more than the $7.2 billion Cerberus paid Daimler last year for 80.1 percent of the company.
Daimler and Cerberus have been negotiating since September over Cerberus taking over Daimler's equity stake in Chrysler.
Meantime, Daimler took a $452-million charge for its Chrysler stake on its third-quarter earnings report and assigned the stake a book value of zero. Daimler apparently is unwilling to pay Cerberus to take the stake off its hands.
In response, Cerberus implied it was duped by Daimler about exactly what it was getting with the purchase of Chrysler. Cerberus accused Daimler of "deliberate conduct that resulted in the impairment of Chrysler's business." The private equity firm charged that the German automaker "intentionally and materially breached its obligations" under the contracts related to last year's deal and of "misrepresentations" relating to Chrysler's vehicle financing and leasing arrangements in the lead-up to the sale.
Cerberus, saying it was exploring "strategic options," hinted it was considering filing a lawsuit against Daimler.
Tuesday, November 25, 2008
Okay, Who Can Resist a Good Bailout Joke?
Detroit's Big Three Automakers are jousting with the U.S. Congress for their continued existence, and nobody denies that's serious business.But as usual, what got the auto companies to this place has opened Detroit Inc. to plenty of ridicule - and not all of it is mean-spirited.
conan o'brien.jpgLaughter may or may not be the best medicine for this predicament. Either way, here are a few examples of our favorite "bailout humor" that hit the national stage:
NBC's Conan O'Brien:
"The auto executives for the Big Three are being criticized now, because, before they asked Congress for billions of dollars, they all flew to Washington in private jets. Yeah, separately, in private jets. In their defense, the executives said, 'We would have driven, but our cars only get three miles to the gallon.'"
And,
"Earlier today, the heads of the GM, Ford, and Chrysler appeared together in front of Congress to ask for a $25 billion bailout. When asked what they would do with the money, all three said, 'Buy a new BMW.'"
NBC comedy legend Jay Leno:
"The three big domestic automakers are now saying they are working jointly on a new hybrid car. It runs on a combination of state and federal bailout money."
Maybe you've heard a bailout funny. You can share via AutoObserver's comment function below.
PHOTO:
Late-night comedy host Conan O'Brien (courtesy NBC).
Monday, November 24, 2008
Gas Prices and Heavy Incentives Keep Car Sales From Sinking Below October's Depths
SANTA MONICA, Calif. -- November car sales improved over October's historic lows thanks to lower gas prices and high incentives.
November new vehicle sales, including fleet and retail sales, are expected to be 850,000 units, a 27.6 percent decrease from November 2007 but showing a 1.9- percent increase from last month, according to Edmunds.com's forecast.
Still, the Seasonally Adjusted Annual Rate (SAAR) for the month is expected to be only about 11.5 million units.
"Sales improved slightly over October thanks to near record high incentives and perhaps a sense of relief that the presidential election is over," observed Jesse Toprak, executive director of Industry Analysis for Edmunds.com. "Also, remarkably low gas prices motivated shoppers to seriously consider the tremendous deals available on SUVs and trucks."
The combined monthly U.S. market share for Chrysler, Ford and General Motors domestic nameplates is estimated to be 47.1 percent in November 2008, down from 51.1 percent in November 2007 and up slightly from 47.0 percent in October.
The domestic automakers are in the midst of scrambling to develop a viability proposal in order to earn government loans, making it more important than ever for them to demonstrate that their products are appealing to the American public.
Company by company, Edmunds.com predicts:
Chrysler will sell 94,000 units in November, down 41.7 percent compared to November 2007 and down 0.3 percent from October. This would result in a new car market share of 11 percent for Chrysler in November, down from 13.7 percent in November 2007 and down from 11.3 percent in October.
Ford will sell 119,000 units in November, down 33.1 percent compared to November 2007 and down 7.8 percent from October. This would result in a new car market share of 14 percent of new car sales in November for Ford, down from 15.1 percent in November 2007 and down from 15.5 percent in October 2008.
General Motors will sell 188,000 units in November, down 28.2 percent compared to November 2007 and up 11.2 percent from October. GM's market share is expected to be 22.1 percent of new vehicle sales in November, down slightly from 22.3 percent in November 2007 and up from 20.3 percent in October.
Honda will sell 88,000 units in November, down 20.6 percent from November 2007 and up 3 percent from October. Honda's market share is expected to be 10.4 percent in November 2008, up from 9.5 percent in November 2007 and up from 10.3 percent in October.
Nissan will sell 57,000 units in November, down 29.3 percent from November 2007 and up 0.2 percent from October. Nissan's market share is expected to be 6.7 percent in November 2008, down from 6.9 percent in November 2007 and down from 6.8 percent in October.
Toyota will sell 150,000 units in November, down 24.2 percent from November 2007 and down 1.7 percent from October. Toyota's market share is expected to be 17.6 percent in November, up from 16.8 percent in November 2007 and down from 18.2 percent in October.
November new vehicle sales, including fleet and retail sales, are expected to be 850,000 units, a 27.6 percent decrease from November 2007 but showing a 1.9- percent increase from last month, according to Edmunds.com's forecast.
Still, the Seasonally Adjusted Annual Rate (SAAR) for the month is expected to be only about 11.5 million units.
"Sales improved slightly over October thanks to near record high incentives and perhaps a sense of relief that the presidential election is over," observed Jesse Toprak, executive director of Industry Analysis for Edmunds.com. "Also, remarkably low gas prices motivated shoppers to seriously consider the tremendous deals available on SUVs and trucks."
The combined monthly U.S. market share for Chrysler, Ford and General Motors domestic nameplates is estimated to be 47.1 percent in November 2008, down from 51.1 percent in November 2007 and up slightly from 47.0 percent in October.
The domestic automakers are in the midst of scrambling to develop a viability proposal in order to earn government loans, making it more important than ever for them to demonstrate that their products are appealing to the American public.
Company by company, Edmunds.com predicts:
Chrysler will sell 94,000 units in November, down 41.7 percent compared to November 2007 and down 0.3 percent from October. This would result in a new car market share of 11 percent for Chrysler in November, down from 13.7 percent in November 2007 and down from 11.3 percent in October.
Ford will sell 119,000 units in November, down 33.1 percent compared to November 2007 and down 7.8 percent from October. This would result in a new car market share of 14 percent of new car sales in November for Ford, down from 15.1 percent in November 2007 and down from 15.5 percent in October 2008.
General Motors will sell 188,000 units in November, down 28.2 percent compared to November 2007 and up 11.2 percent from October. GM's market share is expected to be 22.1 percent of new vehicle sales in November, down slightly from 22.3 percent in November 2007 and up from 20.3 percent in October.
Honda will sell 88,000 units in November, down 20.6 percent from November 2007 and up 3 percent from October. Honda's market share is expected to be 10.4 percent in November 2008, up from 9.5 percent in November 2007 and up from 10.3 percent in October.
Nissan will sell 57,000 units in November, down 29.3 percent from November 2007 and up 0.2 percent from October. Nissan's market share is expected to be 6.7 percent in November 2008, down from 6.9 percent in November 2007 and down from 6.8 percent in October.
Toyota will sell 150,000 units in November, down 24.2 percent from November 2007 and down 1.7 percent from October. Toyota's market share is expected to be 17.6 percent in November, up from 16.8 percent in November 2007 and down from 18.2 percent in October.
| Change from November 2007 | |
| Chrysler | -41.7% |
| Ford | -33.1% |
| GM | -28.2% |
| Honda | -20.6% |
| Nissan | -29.3% |
| Toyota | -24.2% |
| Industry Total | -27.6% |
GM, Tiger Woods Part Ways
General Motors and golfing great Tiger Woods announced Monday they were parting ways.GM's longtime deal with Woods, who served as spokesman for Buick for the past nine years, ends December 31.
For GM, it is a cost-cutting move as it struggles to survive. GM reportedly paid Woods $8 million a year for the endorsement. Woods claims he wants more personal time since he and his wife are expecting a second child in late winter.
"Tiger has been a great friend to GM and a fantastic asset through the years helping to bring consumer awareness to many new GM products," said Mark LaNeve, General Motors North American vice president of Sales, Service and Marketing said in a statement. "In light of the news coming out of Washington, this decision is the result of discussions that started earlier in the year and the timing of this agreement with these other activities is purely coincidental."
Detroit automakers were chastised by Congressmen last week for extravagant spending, in particular for the three executives flying into Washington for hearings on government loans in corporate jets. Meantime, GM has said it ended the lease on two such jets earlier this year and is ending the lease of two more. Ford is considering ending the lease of some corporate jets.
In addition to eliminating some jets from its fleet, GM is scrutinizing every cost for possible cuts.
Photo by GM
Tiger Woods helped introduce the 2008 Buick Enclave..
Friday, November 21, 2008
Pelosi to Big Three: Show Us A Plan, We’ll Show You The Money
If you hadn't heard already, the Big Three's pleas
to Congress fell on deaf ears today. Pelosi, Reid, and seven other Democratic Congressional leaders upstaged a meeting between the Big Three and a bipartisan group of senators to discuss a compromise surrounding the already-approved $25 billion in Federal aid. The Democrats' message, as voiced by Nancy Pelosi: "Until they show us a plan, we can't show them the money."
Specifically, Pelosi and other Democratic leaders want to see viability plans from the Big Three that ensure good stewardship of taxpayer money, and clear, concise plans towards corporate health and intelligent re-structuring. The bipartisan group of senators and the Big Three had hoped to redirect the $25 billion in low-interest loans towards simply bridging their current cash crises and remaining solvent for the time being.
In blocking immediate emergency Federal loans to the Big Three, Democrats have forced the domestics to show just how they would use the aid. Hearings on their plans are scheduled for December 2, and a vote by Congress is scheduled on or around December 8 when Congress returns to consider aid to the struggling Big Three.--Colin Mathews
---
to Congress fell on deaf ears today. Pelosi, Reid, and seven other Democratic Congressional leaders upstaged a meeting between the Big Three and a bipartisan group of senators to discuss a compromise surrounding the already-approved $25 billion in Federal aid. The Democrats' message, as voiced by Nancy Pelosi: "Until they show us a plan, we can't show them the money."Specifically, Pelosi and other Democratic leaders want to see viability plans from the Big Three that ensure good stewardship of taxpayer money, and clear, concise plans towards corporate health and intelligent re-structuring. The bipartisan group of senators and the Big Three had hoped to redirect the $25 billion in low-interest loans towards simply bridging their current cash crises and remaining solvent for the time being.
In blocking immediate emergency Federal loans to the Big Three, Democrats have forced the domestics to show just how they would use the aid. Hearings on their plans are scheduled for December 2, and a vote by Congress is scheduled on or around December 8 when Congress returns to consider aid to the struggling Big Three.--Colin Mathews
---
Tracking the Bailout: When the Music Stops, Who's Going Bankrupt?
The CEOs of Ford Motor Co., General Motors Corp. and Chrysler LLC loaded up on their much-maligned corporate jets and winged out of Washington, DC, this week with no bailout money - but the assurance of a shaky holiday season.
After Democratic deal-makers conceded this week there would not be sufficient bipartisan support to approve a bill to "repurpose" the existing and already approved $25-billion Department of Energy loan (originally intended to promote the development of fuel-efficient technology and retool factories), the initiative was shelved until a possible vote on Dec. 8.
That promises to be a rocky 17 days for GM and Chrysler, whose bosses insinuate the companies may not have the funds to enable them to see the New Year.
Costly Holding Pattern
Many Congressional members - some of them lame ducks with barely weeks left in office - seemed as concerned about getting home for the Thanksgiving holiday as they did about putting in the heavy lifting required to potentially help resurrect the nation's largest single component of the manufacturing sector.
Others, however, remain either doubtful GM and Chrysler face imminent insolvency or unconvinced one or both companies' slide into bankruptcy (presumably of the Chapter 11 variety) is not the best way to let economic forces take their course.
Congress sent the chastised CEOs back to Detroit with instructions to work up a blueprint to demonstrate a cash infusion will keep them viable long enough to transform their business models into something approaching sustainability.
But at this juncture, even the matter of the few weeks before a potential new vote - a vote with anything but a guarantee of approval - could be too long for at least one of the two industrial giants to wait.
That could be the plan.
Chrysler Without A Chair
Although GM chief executive Rick Wagoner insinuated his company is in desperation mode, it is Chrysler that likely is closer to the brink; CEO Bob Nardelli said the company's cash-in-hand exceeds its monthly expenditures by a mere $1 billion and change. That suggests if Chrysler isn't extended some type of funds, the music stops sometime around the end of December.
Rumors continue to abound that GM, meanwhile, has a plan in place to effectively shut down the company - across the globe - if necessary to reduce expenditures to a level that allow GM to keep its head above water.
Meanwhile, although industry sales have cratered in the latter part of this year, December historically is a comparatively strong month for auto sales. A skeleton-crewed GM, one with dealers continuing to sell vehicles, could temporarily stem the titanic cash burn that has scorched the company's books.
Even without a drastic "winter shutdown," some sources think a parsimony-minded GM could keep going enough, at least, to wait for President-elect Barack Obama's mid-January inauguration and perhaps a change in Congress' - and the public's - mood about assisting the automakers.
Not Enough For Three
Meanwhile, with the auto market not expected to improve and more likely to deteriorate further in 2009 and thus the cash-burn rates presumed to remain consistent (although continuing cost-cutting efforts may reduce expenditures a measurable, if not exactly meaningful, amount), it's not hard to do the math. Even if the hoped-for $25-billion in funds, which is designated to be shared with desperate auto suppliers as well, is approved and made available by sometime early next year, it's not going to be enough to sustain three battered automakers who between them have spent an almost unbelievable $18 billion more than they took in during the last quarter.
At that rate, $25 billion would not take the current Detroit Three to the beginning of a new baseball season.
Forecasting expert IHS Global Insight this week issued a warning that without the bridge loan, the odds that GM and Chrysler both would file bankruptcy early next year are 75 percent.
But the larger question seems to be whether even with the loan, whether it could possibly sustain all three anyway.
While political grandstanding certainly has a role in the current situation, the delays Congress' vacillation impose may be serving a deeper purpose: culling the Detroit Three to just two.
It's long been assumed Chrysler is the weakest of the trio, the least able to pull off a "transformation:" it has no global footprint to speak of; it has the smallest market share; and it has the heaviest ratio of trucks and SUVs in its portfolio, vehicles that do not place the company in good stead either with consumers or politicos scrutinizing the possibilities for a prompt turnaround.
Finally, there is Chrysler's uncomfortable status as a privately held company. Although to now this has not seemed to be an important point, it may emerge as one if push comes to shove next month in Washington.
After Democratic deal-makers conceded this week there would not be sufficient bipartisan support to approve a bill to "repurpose" the existing and already approved $25-billion Department of Energy loan (originally intended to promote the development of fuel-efficient technology and retool factories), the initiative was shelved until a possible vote on Dec. 8.
That promises to be a rocky 17 days for GM and Chrysler, whose bosses insinuate the companies may not have the funds to enable them to see the New Year.
Costly Holding Pattern
Many Congressional members - some of them lame ducks with barely weeks left in office - seemed as concerned about getting home for the Thanksgiving holiday as they did about putting in the heavy lifting required to potentially help resurrect the nation's largest single component of the manufacturing sector.
Others, however, remain either doubtful GM and Chrysler face imminent insolvency or unconvinced one or both companies' slide into bankruptcy (presumably of the Chapter 11 variety) is not the best way to let economic forces take their course.
Congress sent the chastised CEOs back to Detroit with instructions to work up a blueprint to demonstrate a cash infusion will keep them viable long enough to transform their business models into something approaching sustainability.
But at this juncture, even the matter of the few weeks before a potential new vote - a vote with anything but a guarantee of approval - could be too long for at least one of the two industrial giants to wait.
That could be the plan.
Chrysler Without A Chair
Although GM chief executive Rick Wagoner insinuated his company is in desperation mode, it is Chrysler that likely is closer to the brink; CEO Bob Nardelli said the company's cash-in-hand exceeds its monthly expenditures by a mere $1 billion and change. That suggests if Chrysler isn't extended some type of funds, the music stops sometime around the end of December.
Rumors continue to abound that GM, meanwhile, has a plan in place to effectively shut down the company - across the globe - if necessary to reduce expenditures to a level that allow GM to keep its head above water.
Meanwhile, although industry sales have cratered in the latter part of this year, December historically is a comparatively strong month for auto sales. A skeleton-crewed GM, one with dealers continuing to sell vehicles, could temporarily stem the titanic cash burn that has scorched the company's books.
Even without a drastic "winter shutdown," some sources think a parsimony-minded GM could keep going enough, at least, to wait for President-elect Barack Obama's mid-January inauguration and perhaps a change in Congress' - and the public's - mood about assisting the automakers.
Not Enough For Three
Meanwhile, with the auto market not expected to improve and more likely to deteriorate further in 2009 and thus the cash-burn rates presumed to remain consistent (although continuing cost-cutting efforts may reduce expenditures a measurable, if not exactly meaningful, amount), it's not hard to do the math. Even if the hoped-for $25-billion in funds, which is designated to be shared with desperate auto suppliers as well, is approved and made available by sometime early next year, it's not going to be enough to sustain three battered automakers who between them have spent an almost unbelievable $18 billion more than they took in during the last quarter.
At that rate, $25 billion would not take the current Detroit Three to the beginning of a new baseball season.
Forecasting expert IHS Global Insight this week issued a warning that without the bridge loan, the odds that GM and Chrysler both would file bankruptcy early next year are 75 percent.
But the larger question seems to be whether even with the loan, whether it could possibly sustain all three anyway.
While political grandstanding certainly has a role in the current situation, the delays Congress' vacillation impose may be serving a deeper purpose: culling the Detroit Three to just two.
It's long been assumed Chrysler is the weakest of the trio, the least able to pull off a "transformation:" it has no global footprint to speak of; it has the smallest market share; and it has the heaviest ratio of trucks and SUVs in its portfolio, vehicles that do not place the company in good stead either with consumers or politicos scrutinizing the possibilities for a prompt turnaround.
Finally, there is Chrysler's uncomfortable status as a privately held company. Although to now this has not seemed to be an important point, it may emerge as one if push comes to shove next month in Washington.
Wednesday, November 19, 2008
Nardelli says he’ll accept a $1 annual salary
While Bob Nardelli certainly isn’t anywhere close to the turnaround man for Chrysler as Lee Iacocca was, he is offering to follow in his footsteps if it helps Chrysler get a $7 billion of the $25 billion automaker rescue package. In a response to Senator Jon Tester, D-Mont., Nardelli said that he would accept $1 per year in salary if it that’s what it took for Chrysler to get aid.
A similar sacrifice was made by Iacocca in 1979 which helped Chrysler get a $1.5 billion loan guarantee.
According to Automotive News, GM’s Rick Wagoner said that he would cut his salary by 50 percent while FoMoCo’s CEO Alan Mulally said that he was concerned that cutting bonuses and compensation may cause Ford to lose top executives. Mulally earned $21 million last year.
We’re still wondering if Chrysler is going to go ahead and hand out $30 million to keep top execs with the automaker.
A similar sacrifice was made by Iacocca in 1979 which helped Chrysler get a $1.5 billion loan guarantee.
According to Automotive News, GM’s Rick Wagoner said that he would cut his salary by 50 percent while FoMoCo’s CEO Alan Mulally said that he was concerned that cutting bonuses and compensation may cause Ford to lose top executives. Mulally earned $21 million last year.
We’re still wondering if Chrysler is going to go ahead and hand out $30 million to keep top execs with the automaker.
Saturday, November 15, 2008
Nissan may be best partner for Chrysler
Nissan, the Japanese auto giant, is likely the best partner and the best fit for struggling Chrysler LLC, now that General Motors Corp. has dropped plans to acquire the company, analysts say.
"Nissan is relatively strong in small cars, and Chrysler is strong with bigger vehicles. It would be more of a dovetailing of product portfolios between those two companies," said Tom Libby, senior director of industry analysis at the Power Network at J.D. Power and Associates.
"Chrysler already has a relationship with Nissan, so that provides a potential for a reasonable fit. Whatever is done, though, it would have to be accompanied by a substantial cash war chest because all automakers are burning up an unbelievable amount of cash each month," said Jack Nerad, editorial director of Kelley Blue Book.
Under a current agreement, Nissan is to provide Chrysler with a new car for limited distribution in South America next year, and in 2010 Nissan is to provide a new fuel-efficient car based on a Chrysler concept and design to be sold in North America, Europe and other markets. For its part, Chrysler is to build a full-size pickup for Nissan, based on a Nissan design, to be built in Mexico. Sales of that truck are set begin in 2011.
Though Nissan officials confirmed last summer that they were talking to Chrysler about expanding their partnership, Renault Chief Executive Officer Carlos Ghosn said recently that "deals involving cash won't happen" during the economic slump unless the car companies "have access to a big pot of cash coming from the government."
Nissan is having its own financial problems. It slashed its full-year profit forecast by over half last month because of the dismal global car market.
"Both Nissan and Renault [which owns Nissan] are in a tough position and they're eating up cash," said Koji Endo, a Tokyo-based analyst at Credit Suisse. "It's not wise to do anything with the Big Three while their fate is still unclear."
Renault's share value has plummeted 77 percent this year and Nissan's has dropped 66 percent.
Nissan may not be Chrylser's only hope. While GM CEO Rick Wagoner said last week that the efforts toward acquisition of Chrysler have "been set aside," it does not mean that talks won't start up again.
"The talks have been called off, but not for the long term," said Mr. Libby. "They've just been called off for now. Our position is that there would be some benefits to a merger, but there would definitely be some challenges for what it would have created."
Those challenges include grappling with product and brand overlap and how to integrate the dealer networks.
Peter Morici, a University of Maryland business professor who tracks the auto industry, said there was another road that Chrysler could take.
"Chrysler ought to just go ahead and jump through Chapter 11 right now, and emerge as a smaller, leaner company -- and then sell themselves," he said.
"Nissan is relatively strong in small cars, and Chrysler is strong with bigger vehicles. It would be more of a dovetailing of product portfolios between those two companies," said Tom Libby, senior director of industry analysis at the Power Network at J.D. Power and Associates.
"Chrysler already has a relationship with Nissan, so that provides a potential for a reasonable fit. Whatever is done, though, it would have to be accompanied by a substantial cash war chest because all automakers are burning up an unbelievable amount of cash each month," said Jack Nerad, editorial director of Kelley Blue Book.
Under a current agreement, Nissan is to provide Chrysler with a new car for limited distribution in South America next year, and in 2010 Nissan is to provide a new fuel-efficient car based on a Chrysler concept and design to be sold in North America, Europe and other markets. For its part, Chrysler is to build a full-size pickup for Nissan, based on a Nissan design, to be built in Mexico. Sales of that truck are set begin in 2011.
Though Nissan officials confirmed last summer that they were talking to Chrysler about expanding their partnership, Renault Chief Executive Officer Carlos Ghosn said recently that "deals involving cash won't happen" during the economic slump unless the car companies "have access to a big pot of cash coming from the government."
Nissan is having its own financial problems. It slashed its full-year profit forecast by over half last month because of the dismal global car market.
"Both Nissan and Renault [which owns Nissan] are in a tough position and they're eating up cash," said Koji Endo, a Tokyo-based analyst at Credit Suisse. "It's not wise to do anything with the Big Three while their fate is still unclear."
Renault's share value has plummeted 77 percent this year and Nissan's has dropped 66 percent.
Nissan may not be Chrylser's only hope. While GM CEO Rick Wagoner said last week that the efforts toward acquisition of Chrysler have "been set aside," it does not mean that talks won't start up again.
"The talks have been called off, but not for the long term," said Mr. Libby. "They've just been called off for now. Our position is that there would be some benefits to a merger, but there would definitely be some challenges for what it would have created."
Those challenges include grappling with product and brand overlap and how to integrate the dealer networks.
Peter Morici, a University of Maryland business professor who tracks the auto industry, said there was another road that Chrysler could take.
"Chrysler ought to just go ahead and jump through Chapter 11 right now, and emerge as a smaller, leaner company -- and then sell themselves," he said.
Friday, November 14, 2008
Chrysler Executives Could Receive Bonuses, Report Says
The revelation that Chrysler is paying millions of bonuses to keep top executives at the automaker while it cuts thousands of jobs ought to really help the Detroit Three get government bailout funds that already look like they are doomed.
The lead story in Friday's edition of the Detroit Free Press says Chrysler is paying about $30 million in retention bonuses to keep top executives on the job. Chrysler owes the bonuses under its contracts with about 50 executives, based on a retention incentive plan crafted early last year by former German parent DaimlerChrysler, when it was preparing to sell Chrysler, the paper reported.
Documents obtained by the Free Press show bonuses ranged from a high of $1.89 million to $200,000. At least six Chrysler executives are due to receive bonuses of more than $1 million apiece to stay through August 2009, the two-year anniversary Cerberus Capital Management buying 80 percent of Chrysler.
The agreements called for 25 percent of the bonuses to be paid February 2008, which they were and the remainder in August 2009. It's not clear what happens to those bonuses if Chrysler, if it exists at all, is sold.
Those promised the largest retention bonuses, according to the newspaper, are: Frank Ewasyshyn, executive vice president, manufacturing, $1.89 million; Frank Klegon, executive vice president, product development, $1.8 million; Nancy Rae, Chrysler executive vice president for human resources and communications, $1.66 million; Simon Boag, president, Mopar/global service and parts, $1.65 million; Steven Landry, executive vice president, North American sales, $1.63 million; and Michael Manley, executive vice president, international sales, marketing and business development, $1.53 million.
Chrysler's current top three leaders were not included in the $30-million retention bonus plan. They presumably have separate contracts. Chrysler Chairman Bob Nardelli as well as President and Chairman Jim Press joined the company after Cerberus Capital Management took over last August.
Former Chrysler CEO Tom LaSorda, now co-president and vice chairman, received a $15.7-million bonus from Daimler for helping with the sale of Chrysler to Cerberus. Reported earlier, LaSorda received a total of $20.7 million in total 2007 compensation.
The top executives of Chrysler, General Motors and Ford are scheduled to testify next week before a House committee on a proposal for $25 billion in bridge loans to keep them afloat. Executive compensation is expected to be a hot topic during those discussions.
The lead story in Friday's edition of the Detroit Free Press says Chrysler is paying about $30 million in retention bonuses to keep top executives on the job. Chrysler owes the bonuses under its contracts with about 50 executives, based on a retention incentive plan crafted early last year by former German parent DaimlerChrysler, when it was preparing to sell Chrysler, the paper reported.
Documents obtained by the Free Press show bonuses ranged from a high of $1.89 million to $200,000. At least six Chrysler executives are due to receive bonuses of more than $1 million apiece to stay through August 2009, the two-year anniversary Cerberus Capital Management buying 80 percent of Chrysler.
The agreements called for 25 percent of the bonuses to be paid February 2008, which they were and the remainder in August 2009. It's not clear what happens to those bonuses if Chrysler, if it exists at all, is sold.
Those promised the largest retention bonuses, according to the newspaper, are: Frank Ewasyshyn, executive vice president, manufacturing, $1.89 million; Frank Klegon, executive vice president, product development, $1.8 million; Nancy Rae, Chrysler executive vice president for human resources and communications, $1.66 million; Simon Boag, president, Mopar/global service and parts, $1.65 million; Steven Landry, executive vice president, North American sales, $1.63 million; and Michael Manley, executive vice president, international sales, marketing and business development, $1.53 million.
Chrysler's current top three leaders were not included in the $30-million retention bonus plan. They presumably have separate contracts. Chrysler Chairman Bob Nardelli as well as President and Chairman Jim Press joined the company after Cerberus Capital Management took over last August.
Former Chrysler CEO Tom LaSorda, now co-president and vice chairman, received a $15.7-million bonus from Daimler for helping with the sale of Chrysler to Cerberus. Reported earlier, LaSorda received a total of $20.7 million in total 2007 compensation.
The top executives of Chrysler, General Motors and Ford are scheduled to testify next week before a House committee on a proposal for $25 billion in bridge loans to keep them afloat. Executive compensation is expected to be a hot topic during those discussions.
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