A few days back we asked "Does God Hate Chrysler?" We're beginning to think that was more than just a rhetorical question. Regardless of your theological beliefs, it's obvious Chrysler has pissed off someone on a higher plain of existence. Hot on the heels of broken equipment, bankrupt suppliers and assembly plant fires, a "mechanical problem" forced Chrysler to shut down their main office in Windsor, Ontario. Mlive doesn't identify the culprit, but they revealed that the utility company has cut off the building's water and power. Chrysler hasn't said how long it'll be before their Canadian HQ is back in operation. Farago thinks there may be a terrorist/disgruntled employee lurking behind the scenes. I'm thinking Bob Nardelli needs to hire an exorcist.
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Just imagine if “the Higher power” went down to earth, rented a car for a week, and got afflicted with a Sebring. I’d be pissed too!!
Maybe they didn’t pay their bill.
My bet is on the disgruntled employee. Rumor has it that a vast majority of Chrysler employees are trying to get out the door as fast as they can. Resumes are being printed off in plain site in Auburn HIlls.
Perhaps the demon is within.
Maybe it’s just the CAW trying to set themselves up for an autumn fight that they can’t win.
Just think of the mischief they’ll get up to after Chrysler pulls the tools & dies for the Chrysler 300 from Bramalea/Brampton and sends them to Toluca, Mexico for production (i.e. closes down Canadian production for good).
After all, isn’t there a minivan producton facility in St Louis?
Maybe the three headed dog team is thinking “we can run one plant to take care of the production needs for these minivans – they’re not selling anyway!”
If they made more fuel-efficient cars, God would give them more breaks. God doesn’t like car companies that don’t have hybrids.
Either that, or it’s just the same kind of stuff that happens on occasion when you’ve got old manufacturing plants and old facilities.
Menno, are you merely surmising that the Pentastar will pull up anchor in Canada and sail for Toluca, or do you see some evidence of that?
Any introverted employees there have their beloved red Swingline staplers taken away recently?
I’m not connected to any car company, eastaboga. I just can read the entirely obvious that it is now something like 60% more expensive to build cars in Canada than it was a mere 5 years ago (due to the collapse of the US dollar, more than the increased value of the Canadian dollar/loonie).
So, if we are seeing / have seen tons of jobs moving from the US ($75 an hour including bennies for work which can be done by 8th grade graduates) to Mexico, due to their $3 or $5 per hour total salary and bennies package outlay, and jobs move from Mexico to China because of costs being 1/3 to 1/2 of that (including shipping), then it’s not such a stretch to say that the only Canadian car manufacturers left standing in the not so distant future will be Honda and Toyota, both of which have indicated that they take the long view of currency fluctuations and won’t be leaving Canada.
If you owned a business in a nation with absolutely open borders to a neighboring nation, and had to pay 60% more wages on one side of the border, or could choose to go to a 3rd country and cut expenses 95%, what would you do? Hence, tons of work has and will continue to move to Mexico.
Interestingly, it’s also a fact that the CAW is in neither the Honda nor Toyota factories in Canada.
Menno, I don’t work for any OEM, and I think those are all good points, but Ontario actually passed up Michigan last year in vehicle production.
The coming CAW showdown should be a slugfest, and undoubtedly more jobs will head south, but the minivans are selling well. Chrysler bet the farm on this one, the same way Ford bets the farm on the F-150. It looks like that gamble is paying off and both St. Louis and Windsor should stay busy.
Now you bring up an interesting point with Toluca. With the cancellation of PT Cruiser, that leaves only Journey for this plant. If Journey is a hit, then there’s probably not room. If Journey flops…..
Also, Honda and Toyota have remained non-union due to a young workforce and very busy plants. As some transplant sales slide (particularly for Toyota with plants slowing in San Antonio, Princeton, etc.) and the transplants continue with agressive cost controls, eventually they will be vulnerbale. The transplants have matured and when the layoffs start, it’s probably just a matter of time.
At this point we should probably define “selling well”, in regards to Chrysler’s new minivans.
Because I would second the notion that “they are NOT selling well”.
I agree with GS650G… I think they just didn’t pay their utility bills. If they treat the electric and water companies like they do their suppliers, then it is no surprise. You can’t short-pay the electric co.
The minivans are not selling as well as they once did, true. They still sell well enough to turn a profit though.
The Chrysler Minivan is a lot like the F-150. It’s heyday is long gone, but it will always be a staple product for the company.
There will always be a market for minivans. Chrysler still has a lock on the low end of that market.
There is no need to look for theological explanations for Chrysler’s problems. Extended periods of cost-cutting invariably mean deferred maintenance. Defer it too long and it comes back to bite you. Force your suppliers to sell you stuff below cost for too long and they will go bankrupt.
@ eastaboga:
Ford shut down the Norfolk assembly plant which produced the F150. It was among the leaders in quality for Ford plants and had been totally revamped for the 2004 F-150 production and flexible manufacturing capability.
What did Chrysler do to deserve this? It’s simple, really: They built (and continue to build) lousy cars that no one wants to buy.
Even back in the glory days, Mopar products were problem-prone. I laugh at everyone who is singing the praises of the Challenger. They obviously never owned one. I did. Yes, it had a killer 440 motor. But it was an absolute bucket with an awful iterior, terrible brakes and steering that was nautical in nature. With a lousy electrical system. My ’69 Charger’s electrical system was done in by the shorted high-beams caused by the rubbing of the wires against a raw sheetmetal edge that resulted each time the headlight covers operated. A cheap rubber grommet would have prevented this.
And things went downhill from there. Part of me is attracted to certain Chrysler products. But I know that I could never actually bring myself to buy one.
The post should be titled “What Chrysler Didn’t Do To Deserve All This?”
Now, I can easily answer that question.
They did not build one car in the last 10 years to turn my head on the streat or interest me enough to visit their dealership. For that matter they deserve everything that happens to them lately.
Good night!
“Farago thinks there may be a terrorist/disgruntled employee lurking behind the scenes.”
Actually, most of the work forced is disgruntled.
I’ve seen it where I work when a new president arrived one day from the outside and most of everyone working there has been there over ten years. In fact, many have been there over twenty.
Very little effort, if any, is made to involve the rank and file on the best way to implement the new program. Low morale and an unfriendly work environment ensue.
Chrysler has to become a superb niche player to survive. The me too approach with sub-par offerings like the Sebring/Avenger has to change.
That’s a lot of change and money. It ain’t goin to happen.