So far I've been sitting on the sidelines just taking it all in. The second sale of Chrysler is coming and it's not going to be pretty.
Bob Eaton knew what was happening back in the mid to late 90's. He knew Chrysler could not stand on it's own. Nothing has changed and today matters are much worse. There is far to much competition in the US market and lower cost producers were going to eat Chrysler for lunch, if not the entire US based auto industry. Chrysler could not go it alone.
Chrysler's portfolio has only one significant player, the mini-van. They do it very well, but it's a market who's importance is waning. Cross-over's are the new mini-vans, and Chrysler has the half-baked Pacifica. Jack Welch once said that if you're not number one or two, get out of the game. Chrysler is clearly number three, if not four these days in every market segment.
If Chrysler and it's portfolio folded, would you miss it? Some one may buy the fabled Jeep brand. But even that these days has been watered down by "front wheel drive" based products. Not very Jeep and they would shed their underpinnings on the Rubicon Trail before the ride was over.
Editor's Note, I have a Jeep Grand Cherokee 4x4.
It's recently been published that Chrysler is worth approximately $5 Billion. You may say "Wow" to that, but hold your breath. Ford sold 90 percent of Aston Martin this week for about $850 Million. Ford's share is worth $77 million making it worth near a $1 Billion dollars. What's the significance of all this?
Last year Aston Martin sold about 7000 cars, making them worth about $145,000 per car, close to their transaction price. Chrysler made approximately 2.7 million vehicles. Their value? About $185.00 per car.
Say goodbye to Chrysler.
3 comments:
Long live Ford!
PS: Can I say Hi to Jon on your blog? If so, Hi Jon!
ohmygod your Mom makes me laugh... Hi back atya Foxie Lady!! Guess I should put something about Chrysler here huh... we had a Plymouth Satellite Regent station wagon - blue with wood (decal) paneling no less - when I was a kid... Of course, by the time I learned to drive, the family car was a 280Z (thank God).
Jeep Story........When I was a kid my Dad had a Willie's Jeep.Shortly after WWII. I won't say how short tho. There were seats only in the front. My brothers and I sat on boxes or on the floor in the back. Dad was starting his own business and this was work and family transportation. Seemed like fun at the time. Not to worry about safety...Dad was the best driver I ever knew and traffic was a bit lighter in those days and our lives were a lot less regulated.Somewhere on my list of favorite things is that old Willie's Jeep.Wish I had one of my own. And if I remember right...I think it was a reddish color. I can't remember what we had after that so it must not have been as memorable.
Gee...Can't believe I typed all this!
Hey Jon....love ya.
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