[Minvaren]

Didn't see this previously posted, and it's hot off the newswire...

1.1bn Euro loss : article here.

Layoffs pending : article here.

That's officially all of the big three hurting badly. Ford and GM facing solvency issues, and Daimler might (read: will probably) sell off Chrysler.

[TommyJefferson]

$this->bbcode_second_pass_quote('Minvaren', 'D')aimler might (read: will probably) sell off Chrysler.

[EnergyHog]

The low quality product that Daimler has been putting out for years won't be rectified by using Chrysler as a scapegoat. Daimler would be in a worse position if not for Chrysler.

"Most reliable-Lexus IS300, Least reliable- Mercedes-Benz S-Class"

Source: http://money.cnn.com/2004/11/08/pf/auto ... liability/

[Kingcoal]

It's much easier to layoff and fire people in the US than it is in Europe.

[Pablo2079]

Maybe the Ford and GM losses have numbed me a bit.... but this doesn't seem that bad (in comparison).

Wonder what Dr. Z will have to say for himself now?

[Dreamtwister]

I was wondering how long it would take for them to join the party.

[smiley]

$this->bbcode_second_pass_quote('', 'I')t's much easier to layoff and fire people in the US than it is in Europe.

[Tyler_JC]

Clearly Daimley needs to start selling those smaller cars here in the USA.

Right?

And if US consumers refuse to buy these cars we can cut off their HBO and McDonald's Breakfast Sandwiches.

I don't understand why American consumers aren't demanding more fuel efficient cars like the ones produced in Europe.

I do understand that no one wants a diesel (not every gas station carries this fuel and this can be a real problem if your guage is a little past the E).

But surely the European car companies have small, fuel efficient gasoline cars that would pass American safety standards...so why aren't we buying them?

Is it possible that Americans would rather go broke attempting to refill and repair their old land yatch than buy a new, small car?

Are we really that foolish?

[joe1347]

$this->bbcode_second_pass_quote('smiley', '')$this->bbcode_second_pass_quote('', 'I')t's much easier to layoff and fire people in the US than it is in Europe.

[smiley]

I don't understand it either. I mean they can make these cars, so why not sell them.

I bet you have never seen these cars in the US


FORD KA


FORD FOCUS


FORD FIESTA

[img]
CHEVROLET MATIZ


CHEVROLET KALOS

[cube]

$this->bbcode_second_pass_quote('Kingcoal', 'I')t's much easier to layoff and fire people in the US than it is in Europe.

[Bleep]

$this->bbcode_second_pass_quote('smiley', 'I') don't understand it either. I mean they can make these cars, so why not sell them.

[Dreamtwister]

$this->bbcode_second_pass_quote('Bleep', '')$this->bbcode_second_pass_quote('smiley', 'I') don't understand it either. I mean they can make these cars, so why not sell them.

[Pfish]

Any business that has it's employees retire at 55 with benefits is in for a rough ride in the US. Cities, states and counties are going to get hit very hard in years to come. The business model now consist of hiring young employees who do not get sick and have many years to go before retiring....i.e. Southwest Airlines.

[IanC]

That's depressing to see all those efficient subcompacts available in every country except the one that should be actually driving them. Gas is still relatively cheap here, so they must figure that if you want to drive something efficient, you're a rich liberal do-gooder with money to burn to make an environmental statement. When gas triples in price, we'll see all those models here, too.

-IanC

[frankthetank]

I thought they already tried this here, with this sizzling lineup

[pea-jay]

Aw, man who can forget the Pacer!

The inability of the big 3 domestic (counting chrystler here) to adapt and change is mind boggling. I do know some of this is a fault of our healthcare system.

It doesnt make a lot of sense upfront but somewhere I read that something like 1000 or more dollars of every car purchase goes to paying for the healthcare of its employees. Add in pension obligations and its pretty obvious that a significant portion of every car goes to repay unrelated costs. So it stands to reason that these car manufacturers want to build expensive large cars because they can charge more for them and in the process, make a larger profit. If the going rate for a small subcompact with a miserly 3-banger engine is $12500 and the first thousand or two the manufacture makes goes to paying for benefits and another portion (dunno the parts/labor breakdown) goes into the manufacture of the vehicle itself, it doesnt leave a lot of profit in its wake. The Koreans can crank out the same vehicle for less, cos they dont have to worry about health insurance.

Any wonder why the domestic manufacturers are keen on assembling more cars in Mexico? No insurance requirements and low pay rates. How about the part companies? Delphi? Ditto.

Big cars make (financial) sense. Each sale nets the automakers more. That's why they like to push them (and push them they do). They'll talk to no end that they are meeting American's preference for large cars, but that preference has been put there by decades of well-tailored advertisements and the occasional small car "sacrificial" flop, where one manufacturer or another "offers" up a small car so deficient in quality and or comfort that it is guarenteed to be rejected so that this "rejection" is justified as "proof" of a lack of interest in small cars. Then they still get CAFE credit for the sacrificial piece of shit so they can continue to crank out the same old gas guzzlers.

The problem with Detroit is they are too dis-incentivized from producing small cars by governmental policies and set in their ways by their own successful large car marketing ploys.

[MrMambo]

If I was CEO of Deimler Chrystler I would probably try to liquidate the bleeding Chrystler part of the organization.

I'd consider to sell it off to anyone stupid enough to buy the dead project.

If no one would pay a good enough price I would go on to sell factories, machines and property to anyone who still belives that the personal automobile is a thing of the future and who at the same time belives that it can be produced efficiently in the USA compared to for instance China.

If nothing of that worked I'd write the whole crappy chrystler organization of as a tax reducing loss.

And then I'd invest any type of money from this liquidation in electric railroad and renewable energy (solar wind waves not biofuel).

[RacerJace]

If I was CEO of Daimler Chrysler I'd be doing my darndest to be the first to mass produce an appealling electric car that costs less than $10,000 and can get 200+ miles per charge and go from 0-60 in 6 seconds with a top speed of 100+ mph. Shite, even if they ahieved half these specs they'd have a winner. We all know the technology is there it's just the collusion between government, the big oil and the auto makers that keep us painted into the corner we're in.

Sure if electric vehicles hit the market in a revolutionary sense it would impact the economy.... blow away the aftersales service and parts industry and probably wipe out most of the powertrain suppliers but surely we'd be better taking our lumps now when the economy is still holding together rather than when it's all over red rover.

[MD]

Gee, maybe they are all bailing out because all they see in NA is a rapidly evaporating market.