In a recent interview with AutoObserver, Chrysler’s Jim Press tries desperately to state the case that somehow things could be worse at Auburn Hills. In the process he piles on the layers of denial that keep the smallest Detroit automaker senselessly hanging on. “It’s hard to say things are good when sales were only down 25 percent [retail],” press tells AO’s Michelle Krebs. “That’s terrible, but it’s less terrible than the industry decline of 40 percent.” It’s also less terrible than the 44 percent overall sales drop that ChryCo endured last month, but then the fact that Press only mentions retail sales kind of says it all. Especially considering he made AO’s editors include [retail] in his otherwise misleading (or is that self-deluding?) quote. But, “things aren’t so bad,” concludes Press. “At 80,000 vehicles sold in February, we’re doing OK.” Apparently we will know things are bad when Press starts lying about sales rather than pathologically misrepresenting them.
“Looking at retail in prior months, we did pretty well. We’ve shown we’ve been able to cope in these conditions, particularly since we were the first to lose leasing and the first to encounter the credit situation,” says Press lowering the bar just a little further. Press pimps the “intentional lowering of fleet sales” meme with gusto, despite admitting that Chrysler has more 2008 inventory than its competitors. Which explains why ChryCo’s incentives “look” high, argues Press, who swears that 2009 transaction prices are “pretty much in line with competitors in most cases.” Press completes his assault on reality by disputing Edmunds’ $5,556 per vehicle incentive average without providing an alternative figure.
As “OK” as things are though, Chrysler is not making money at current sales rates, says Press. “No one is making money. That’s not in the cards until we are in a much more normal environment in the marketplace.” Pay no attention to the incentives behind the curtain. But Press is blithely optimistic. “Perhaps the rate of decline [in auto sales] will slow down,” he says. Perhaps Jim, perhaps. “If we get [bailed out],” he continues, “we’re viable and can continue to invest in future. If we get the relationship with Fiat, we’ll go from viable to being in really good shape.” Press’s blithering optimism would be almost heartening in these trying times if it werent so disingenuous and cynical. Unrelenting (and wholly unfounded) optimism is the only thing that can win Chrysler more bailout bucks, and those tax dollars are the only chance Chrysler has at surviving. That Chrysler’s retail sales are only dropping at half the rate of the larger market (and its own overall sales) is hardly “vaibility.” Or cause for optimism.
His BS would be believable if his checks were still coming from Toyota. From Chryco? I don’t think so.
A you wonder why they call Jim’s area of expertise S&M.
Is that a barrel that fish is swimming in?
–chuck
That’s like saying the Titanic stopped to take on ice.
Now that is one hunk of manhood.
Said Press… “That’s not in the cards until we are in a much more normal environment in the marketplace.”
Perhaps the previous marketplace with 17 million new car sales was the abnormal environment, propped up by easy credit and home equity loans.
I would have the same smug look on my face if I had a retirement in the bank and not a care in the world. Just like Press.
Has anyone ever reported how much cash Press got for jumping from Toyota to Chrysler?
I know Toyota is known for paying its executives significantly less than other non-Japanese automakers. But I wonder if Jim thinks the upfront cash from Chrysler was really worth it.
I mean, wasn’t he the first non-Japanese member of Toyota’s Board? Even if Toyota’s current sales drop forced him to resign, you’d have thought he could have found a cushier job with good pay, compared to what he’s facing everyday now.
Has anyone ever reported how much cash Press got for jumping from Toyota to Chrysler?
I suspect he didn’t get much cash, but instead got equity, all of which is worthless at the moment. If Chrysler can survive and then thrive, he’ll make out like a bandit. If not, he gets nothing. That’s how it usually works in the private equity world.
Look! The emperor has no clothes!
Jim Press is remarkably like Iraq’s Information Minister (“Baghdad Bob”) during the initial invasion. He knows things are basically hopeless at Chrysler and has chosen the “deny and misrepresent everything” route. In six months after they’re sold or bankrupted and he’s out, I’m sure we’ll hear a half-hearted “I was making the best of a difficult situation”.
Ooooh, cheescake!
The facts that Jim Press is reporting are true. Chrysler is gaining retail market share which is the true measure of a manufacturer’s health. Fleet sales have basically zero margins and are used to spread fixed costs over more units and lower a manufacturer’s break-even point. The issue is that Chrysler is buying it’s market share with unprecedented level of incentives (roughly double than its closest competitor). Maybe Jim Press thinks he’ll be able to fool the Automotive Task Force or Chrysler’s dealer network. Then again, a former leader once declared that the war in Iraq had been won and he got reelected. So there is still hope for Press.
Keep in mind a large part of his job right now is helping to convince Washington that Chryco deserves more bail out money. Under the circumstances what kind of spin would you think he’d put on things? Personally I think if they can survive long enough to get Fiat involved they will have a good shot at survival, better than the ever clueless GM.
Press: Chrysler sales sufficient
March 7th, 2009 by Bill Cawthon
http://www.allpar.com/news/index.php/2009/03/press-chrysler-sales-sufficient/
In spite of a 44 percent drop in February sales, Chrysler Vice-Chairman Jim Press says the volume is sufficient to keep the company going as sales should rise in the coming months. February is typically a slow month for light vehicle sales.
In an interview with the Associated Press, the Chrysler executive noted the automaker’s February retail sales were better than Ford’s as Chrysler continued to curtail lower-margin fleet sales. He also said the volumes being forecast for 2009 are within the estimates Chrysler envisioned in preparing its viability plan for the federal government. [note the Chrysler Viability plan states they can survive on a SAAR of 9.1 million US sales]
One analyst said the company will not need its current level of production until 2013, when it is estimated the U.S. light vehicle market will return to the 16-plus million unit levels seen up until late 2007.
psarhjinian:
“Ooooh, cheescake!”
I think the appropriate term is beefcake (unless you have doubts about Mr. Press’ manhood!).
Coming Soon to TTAC…
Jim Press Insanity Watch
I think Jim Press is vying for the coveted adoration that we all share for the retiring “Maximum” Bob Lutz.
Keep up the hard work “Krazy” Jim! The Lutzies could soon been the Pressies (with that hot bod maybe the “Sexy Pressies”). I’ll be rooting for you!
Great picture – what is this guy selling Flowmax?
Jim not-to-imPress.
Putz is no longer king.
I think that picture was taken when he was at Toyota. That would have to be the case, as there’s no way he’s smiled like that since being at Chrysler. He may be making more money right now, but every penny of it’s pretty hard earned.
Insane in the brain or insane in the membrane?
To sell it’s whatever amount of cars last Month, Chrysler needed almost $6000 per unit of cash on the hood. That is about double of Ford & GM and much more than the Japanese. At some price point anything sells. However, this does not give you the economic ability to make another batch and lose the same amount again. But then, it’s not Cerberus money, it’s we the people’s money. There is not one bright spot in the chrysler operation. Even jeep, which in it’s hayday would have brought a kings ransome, will be distressed merchandise in this market. How does a buyer get to the CJ’s if he has to buy all of the failed SUV’s in the jeep lineup?
Is the pool set at 65 degrees like the temp at CTC?
He looks cold.
“Perhaps the rate of decline [in auto sales] will slow down…”
Rate of Decline….. That means you sell less and less every month, but the month-on-month difference gets a little less each time eh? Hmmm what an unfortunate phrase.
Gliding in with pulse to a flat-lined ‘do not revive’.
“It’s hard to say things are good when sales were only down 25 percent [retail],” press tells AO’s Michelle Krebs. “That’s terrible, but it’s less terrible than the industry decline of 40 percent.”
SO WHAT
My little brother and I once had stomach flu at the same time. I threw up once. I think he did twice. The point is we both still had to stay home from school.
Note to Jim – Chrysler is still in the shitter.
This is a man who left a company that has a good chance of survival to a Dying Ship. Sad for him.
Sad for him.
I’m not crying for him. He knew (or should have) that Chrysler was in deep trouble when he made the switch. Undoubtedly, his pay package included a huge upside if he was able to save Chrysler. He placed a bet and lost. He’s a big boy. And I’m sure he’s salted away plenty of money over the years, so he won’t be worrying about the size of his 401k.
I’m not crying for him. He knew (or should have) that Chrysler was in deep trouble when he made the switch. Undoubtedly, his pay package included a huge upside if he was able to save Chrysler.
If he can save Chrysler, this guy needs to run for President! I don’t think anyone can shine that turd.
i wonder if jim press and bob lutz go to the same tanning salon?