CNN say Chrysler to declare bankruptcy

[Miracleman89]

This morning on CNN they say they are awaiting the announcment of chrysler applying for Chapter 11 bankruptcy protection!!!!

There goes that Jeep concept vehicle I liked!

[danbucks]

"The administration plans to use the process to merge Chrysler with Italian automaker Fiat."
Eh? Wha? HA_HA_HA_HA..... :confused:

(for those who don't know the old line .... "Fix it Again Tony"... perhaps not so funny)

[RAN]

I owned a couple of '69 Fiats. Great driving cars, but not the most reliable choices out there (yeah RAN knows Fix it Again Tony lol). Also, I lived in the NE then, and Fiats were notorious for rusting through after a few northern winters.

OF course, that was 40 years ago, and Fiat's still around and still one of the largest automakers on the planet, so maybe things have changed.

[AZEqualizer]

Much like Ford (Found On Road Dead or Fix Or Repair Daily) who didn't accept a bailout because they are doing acceptable, the anachronisms of perception of a vehicle name are in the eye of the beholder. I for one had nothing but troubles with any Ford I had that was newer than the 70's muscle cars. As far as my experience with FIAT - I had a 75 Fiat X1/9 and it was a super little car. Plus since they were used in a lot of races the availability of custom parts was a regular smörgåsbord. I had it for several years until some lamo lady backed over the front end with her jacked up 4x4 monster truck wannabe because she was too big of a hurry.... she tried to leave the scene and ended up going to jail for her trouble.

According to an article in USA Today (http://www.usatoday.com/money/autos/2009-03-31-fiat_N.htm):



Josh Whitford, a Columbia University assistant professor who's spent years in Italy studying auto manufacturing, says the newest models are improved: "Fiats are quite good these days. Fiat, in 2002, went through its own deep, deep crisis and bet on innovative new products."
But two European-market surveys report dissatisfaction.

•Fiats and Fiat-owned Alfa Romeos sold in European countries are near the bottom in reliability and "need to improve significantly to move away from the foot of the table where they have languished for several years," according to U.K.-based Which?, an advice publication that accepts no ads, similar to Consumer Reports in the U.S. It says newer models are improved.

•A survey of U.K.-market models by J.D. Power and Associates and magazine What Car? put Fiat 28th of 28 brands in the 2008 Customer Satisfaction Index for 2-year-old vehicles. Quality and reliability count for 30%.

The reliablity surveys don't reflect recent improvements, and give a misleading impression of Fiat products, says Gualberto Ranieri, vice president at Fiat Group headquarters in Italy. "We take quality and customer care issues seriously, and industry audits show that our performance has dramatically improved over the past decade," he said in an e-mail.

Still, such ratings cast doubt on whether a Fiat partnership would boost Chrysler scores. The 2009 Consumer Reports April auto issue showed Chrysler's Jeep, Dodge and Chrysler among the industry's least-reliable brands the past 10 years.

"You're putting together two companies that historically have had issues with quality," notes Stephanie Brinley at consultant AutoPacific's Detroit office.

"They've been better or worse at various points," Brinley says, "and not to say they're bad now, but there's a (negative) perception."


I guess we will see what we will see - Maybe new blood will make them wake up - better than just totally going down the flusher

[Derwin]

The fact that Chrysler is filing for bankruptcy is on all the networks. I actually found out from a website that runs the AP wire.

But I'm not "overjoyed" in hearing about all of these major US companies filing for bankruptcy. It's not something to celebrate, in my opinion. To me, it's just another sign of the times that we are living in, along with the fact that people have not been BUYING cars like they have in the past.

I'll tell you what.... If the economy was booming, and people were making money hand over fist, then they would be buying vehicles. Unfortunately for the automakers, this is not the case.

I would hasten to state what should be obvious... If Persu magically put together all of the elements of the vehicle, and announced that they would be on sale next week at your local Walmart, the sales would not be stellar.

It's the times we are living in.... not necessarily the products they are marketing.

Just another one of my brilliant opinions on display! wh;aa;aa;t1

Derwin

[MikeB]

It's actually a very interesting financial transaction going on with Chrysler.

The existing Chrysler is dead and gone. But a brand new company is being formed, and it'll purchase the name, the assets, the employees, etc, of the old Chrysler. The new company is owned 55% by the UAW, 20% by Fiat (with the option to buy more) , 8% by the US Treasury and 2% by Canada.

The problem is that a few hedge funds with ownership in the old company are blocking the sale in the hopes of getting more money out of the deal. Since they are saying 'no', it's going to take a bankruptcy judge to resolve how much money they actually get.

The new Chrysler will probably be building small and more efficient cars designed by Fiat, but I expect existing Chrysler models won't go away entirely, at least not initially.