Chrysler's future

[Silva86]

With gas prices skyrocketing and SUV sales slumping across the board in the US market, isn't it time Chrysler made a small, affordable, compact entry level car? The Caliber is great, but the "global" 2.4 isn't exactly the most fuel efficient 4 cylinder on the market. I think Chrysler had the right idea with the Neon...Even though it debuted with plenty of problems, within a few years it was actually a fairly reliable car with an unbeatable entry price. Chrysler never really advertised the improvements that were made to it, which was a shame, but it's proof the Chrysler CAN build a solid, fuel efficient car. Now, more then ever, they need one. To start, I think Chrysler should invest in the development of a new, smaller (1.8-2.0L) modern DOHC engine. If not for the Caliber, than something smaller. Nissan is supposed to be sharing the Versa platform with Chrysler, but so far, there's been no word as to whether or not it will even be sold in the U.S. Most people are predicting that Chrysler will make a solid profit off the new Caravan. I say use some of that profit to build a car for the future.

At any rate, if Chrysler doesn't sell something more economical than the Caliber, I just don't see them being a big player in the future, and I would hate to see them slump further than they already have. That's my 2 cents.

[wafrederick]

I did read a rumor about Chrysler,the investment firm that bought Chrysler is going to sell every division off.GM would buy Jeep and I am not sure about the rest.

[Silva86]

:O Where did you read that?

[MagicRat]

Originally Posted by wafrederick

I did read a rumor about Chrysler,the investment firm that bought Chrysler is going to sell every division off.

Rumors and just that, rumors.
Cerberus Capital Mgt, who bought Chrysler tend not to sell off companies. They likely will keep Chrysler whole and make it more profitable.

Here is Wikipedia's description of them:

The company has been a voracious acquirer of businesses over the past several years and now includes sizable investments in sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. Its holdings amounted to $24 billion in 2006. While many of its peers have bought out companies in order to strip assets and sell on for a profit, Cerberus builds its reputation on identifying firms that are undervalued, and assisting in rejuvenating them by working with current management.

[Silva86]

Originally Posted by MagicRat

Rumors and just that, rumors.
Cerberus Capital Mgt, who bought Chrysler tend not to sell off companies. They likely will keep Chrysler whole and make it more profitable.

Here is Wikipedia's description of them:

The company has been a voracious acquirer of businesses over the past several years and now includes sizable investments in sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. Its holdings amounted to $24 billion in 2006. While many of its peers have bought out companies in order to strip assets and sell on for a profit, Cerberus builds its reputation on identifying firms that are undervalued, and assisting in rejuvenating them by working with current management.

That's definitely good news.

Plus, their new $2.99 gas guarantee, though bold, will surely get some attention from new buyers.

[wafrederick]

On another message board from one member.