With the third deadline for Detroit’s viability plans rapidly approaching, President Obama needs something, anything, to work with. “My goal, consistently has been to offer serious help once a plan is in place that ensures long-term viability and that we’re not just kicking the can down the road,” Obama tells Reuters. “What the nature of what that help ends up looking like, I think is going to depend on the plan.” And at first blush, Detroit’s task appears to be an easy one: tell the President what you need to survive and he’ll give it to you. But there’s a catch. “If a plan is presented to us premised on 20 million sales when we just know that’s not going to happen, then we’re going to have to ask them to go back to the drawing board,” says Obama. Seriously though, isn’t a plan premised on 10m sales this year a bit overoptimistic?
Chrysler doesn’t plan on running the risk, as the AP (via MSNBC) reports that Auburn Hills plans on submitting two separate viability plans to congress. One plan shows a path the solvency for Chrysler as a standalone firm, while the other is predicated on a potential merger with Fiat. Chrysler’s Frank Klegon insists that in either scenario, Chrysler can survive. Unfortunately, it appears that at least one of the plans depends on Chrysler dealers ordering up 78k vehicles in the month of February, a goal that they fell short of when the ordering deadline passed on Monday. Klegon insists that this wasn’t a hard deadline, saying “I think they’re out there still pressing the flesh so to speak, and working on it. We have a little leeway, obviously, to manage our volume.” To which Chrysler dealers everywhere responded “what do you mean, ‘we'”?
Talks are progressing on the Fiat front, says Klegon. Chrysler wants Fiat’s compact and subcompact cars and small engines, Fiat wants Chrysler’s truck products, emissions control technology and its new fuel-efficient Phoenix V-6 engine. But, says Klegon, nothing is settled. So how is Fiat part of the viability plan? Who knows. Meanwhile, there’s more partner trouble to report. According to the IHT, Nissan has halted preparations for its long-discussed partnership with ChryCo, possibly preventing the truck and compact collaboation between the two firms. Chrysler Vice Chairman Jim Press told the IHT in Chicago that the alliance is still on, and said Chrysler just reviewed interiors for one of the projects. Klegon meanwhile confirms that no contract has yet been signed.
“…ensures…we’re not just kicking the can down the road…”
So you’ve recently driven one, Mr. President?
He had a 300 a while back.
They got 78,000 orders.
http://www.allpar.com/news/index.php/2009/02/chrysler-gets-78000-orders/
I’m such a nerd. I keep reading that as “Klingon says…”?
…..but at least it’s not “Corporate Welfare”….wait a minute…….uh…….I’ll have to get back to you on that.
Line items in the viability plan:
1. Channel Stuffing
2. Share bailout money with overseas partners
3. Embezzlement.
Oops, did I say that?
Ford’s image has benefited greatly by looking like Cinderella next to the two ugly step-sisters.
Now it is clear that even among ugly step-sisters one looks better with a bag over her head than the other.
Red in Rick should have a one sentance plan for the Feds. “Kill the ugly bitch and Alan an me will pick up enough survivers to get by for a while longer.”
Red in Rick should have a one sentance plan for the Feds. “Kill the ugly bitch and Alan an me will pick up enough survivers to get by for a while longer.”
Problem is that there will not be enough to ensure GM’s survival. As a matter of fact if all of Chrysler’s 1,452,000+ sales last year were given to GM they would still have lost money. And all of those customers will not go to GM. They won’t go to Ford either. Some will go to Hyundai, Nissan, Honda, Toyota, VW, Volvo, Subie, Kia, etc.