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Old 1st May 2009, 16:33   #1
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Default Chrylser files for Bankruptcy Protection

So its happened. The maker of such storied muscle cars like the Challenger, gangsta cars like the 300, all American fast cars like the Viper and last but not the least Jeep, has filed for Chapter 11 Bankruptcy.

This is the first time that a mainstream US Automaker has had to take recourse under the country`s widely lauded Bankruptcy protection.

Google for more details on the actual process.

The good thing is that Chapter 11 Bankruptcy allows a company to restructure to become better. The US Government will also support all warranties until then.

The king is dead. Long live the king!
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Old 1st May 2009, 17:04   #2
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What do you mean the King is dead? They are looking at emerging from bankrupcy in 60 days.
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Old 1st May 2009, 17:40   #3
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Which is why, Long Live the King.

I`m looking forward to a leaner Chrysler that sells the 500 from its 1000 odd dealerships!
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Old 1st May 2009, 18:52   #4
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Chrysler already have a good enough line up. they have to add on a few more pocket friendly cars to dig deep in the market. i just hope they revive back to be US no. 1.
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Old 1st May 2009, 19:33   #5
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Its not all over yet. Fiat: Chrysler's Italian style - Coming to America? (1) - CNNMoney.com

Its time that the American Big 3 start taking a practical look at the market and bring in smaller, greener cars. Fiat would be a good partner to give them a head start with the 500, Panda 4x4 and the likes of Grande Punto and Bravo. Its a tremendous opportunity for Chrysler and Fiat as well, to bring in their Alfas, once more in US.
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Old 1st May 2009, 20:23   #6
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Heard that Saturn will be shut down for good. Pontiac will slash most models.
Sad state of affairs!
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Old 1st May 2009, 21:08   #7
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Heard that Saturn will be shut down for good. Pontiac will slash most models.
Sad state of affairs!
Yeah Pontiac and Saturn have been killed off by GM as well.

I went to the local Chevy dealership in town and they said that although GM will back all Saturn warranties, they can only be serviced at Saturn exclusive dealerships, which are quite rare to find.

Wonder what's gonna happen with Chrysler's warranties, even though the Government says they'll back 'em.
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Old 1st May 2009, 21:25   #8
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I wonder who's next on the chopping board.
GM will stop production for 9 weeks. over 50% of their dealerships will close, in an effort to help those dealerships that are doing better in sales.
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Old 1st May 2009, 23:18   #9
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quite sad...but it's funny that govt is going to repair cars. nice democracy.
for the people, by the people and repaired by the people....
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Old 2nd May 2009, 10:47   #10
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I somehow liked Chrysler out of all the three.

Call it the Underdog Supporter Syndrome, but they were good.

Ofcourse they had disgusting cars like the Dodge Neon too, but all in all, their cars had more attitude. Even their normal cars like the Sebring were better than the bland Middle America cars that the other two made.

What do you think about the 500? They are planning to sell it without any badge, not Chrysler, not Fiat, just 500. How would people react to that?
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Old 2nd May 2009, 11:40   #11
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I hope that they don't stop making jeeps. There is no better off roader than a jeep wrangler in US.
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Old 2nd May 2009, 12:30   #12
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Quote:
Originally Posted by evo View Post
What do you think about the 500? They are planning to sell it without any badge, not Chrysler, not Fiat, just 500. How would people react to that?
In a discussion that was happening on CNBC an American auto expert said that Fiat 500 was the wrong car to launch in USA and people would not take to it as it is too small. I agree with him. At best, it will be reduced to niche buyers like the Mini and Beetle. Right now what Chrysler needs is a volume seller and not a lifestyle car. Maybe they should look at the Bravo. Make a sedan out of it and launch it as a Chrysler. Even the GP based Linea is a good option. They can badge it a Chrysler and launch it Chrysler engines and transmissions. A Linea with a nice V6 should be fun .
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Old 2nd May 2009, 13:45   #13
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Originally Posted by raveen_2023 View Post
I hope that they don't stop making jeeps. There is no better off roader than a jeep wrangler in US.
The Jeep brand is the most valuable part of the whole company! So you can rest assured that they will not stop making Jeeps, they may stop making everything else!

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Fiat 500 was the wrong car to launch in USA and people would not take to it as it is too small.Even the GP based Linea is a good option. They can badge it a Chrysler and launch it Chrysler engines and transmissions.
Thats true that the 500 is a tiny car but it`ll do wonders for sheer PR. Tonnes of people will walk into dealerships to atleast check it out, so it may actually increase sales of other Chrysler vehicles.

A Linea would compete with the Civic there I suppose. I`m assuming that Chrysler will price it cheaper than Honda sells its civic there. Ya, that sounds like it may be a good start.

The other thing they talked about is selling Alfa Romeo, which is a little strange since the entire recession thing is anti Luxury Cars, but then again, it`ll add volume to an existing dealer infrastructure, and since they`ll be importing the cars, the only costs will be sales and marketing.

The great thing for Fiat is that they have a chance to literally triple their size if they manage to get both Opel and Chrysler. In case of Chrysler there is also the benefit of no model overlap and no geographical overlap.

Closer home, if Fiat decides to bring in the Jeep brand to India, then it will be very ironic. At one point of time TELCO(now TATA MOTORS) was in talks with Chrysler to bring some of their products into the country. I think they talked about the stupid Neon and some Jeep products.

So if Fiat does do that, and since TATA is Fiat`s distributor in India, things would have come a full circle!
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Old 3rd May 2009, 07:38   #14
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Chrysler already have a good enough line up. they have to add on a few more pocket friendly cars to dig deep in the market. i just hope they revive back to be US no. 1.
Quote:
I somehow liked Chrysler out of all the three.
You guys are kidding, right?

In the last few years, Chrysler has had the worst line-up amongst the American big 3 in the compact and mid-size segment, where it matters the most.

Mid-Size: Chrysler Sebring is a piece of junk compared to the Ford Fusion and the Chevy Malibu/Saturn Aura. I mean it doesn't even look like its from the same generation as the other two.

Full Size: The gas guzzling Chrysler 300 and Dodge Charger are no match for the new 2010 Ford Taurus, although props to Chrysler for keeping it RWD. The 5.7L Hemi is easily bested by the Taurus SHO with the Ecoboost V6.

Compact: Chrysler doesn't really have anything here. Maybe the Dodge Avenger which is a sham, and so is the Dodge Caliber, which is all about looks with no brains. I think the Japanese and the Koreans have the Americans beat here without doubt. Ford's upcoming Fiesta and Focus and the Chevy Cruze should hopefully shake things up in this segment.

Also it's funny but sad that Chrysler tried to forge alliances or sell some of its assets to pretty much every auto manufacturer in the world, and all of them had refused. Some of them even included GM (their biggest rivals), some Chinese automakers, Tata, Mahindra etc. Source: Chrysler tried in vain to sell parts to Chinese, form partnerships | detnews.com | The Detroit News


The only vehicles from Chrysler I'm gonna miss will be the Viper, Jeep TJ/Sahara, and the Dodge Ram.

Last edited by sujaylahiri : 3rd May 2009 at 07:48.
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Old 3rd May 2009, 09:40   #15
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I think Chrysler had it long coming. Their line up was broad but was not appealing. The 300 and the Town and country were holding it all together. Jeep vehicles have been doing good and appeal to the SUV guys a lot, Dodge appeals to the truck guys more. Dodge has nice cars and I love the brand but some how has not been able to take off in that segment. But overall a very sorry state for Chrysler group of companies. I think they need to come up with more fuel efficient cars and lay a little low on the HEMIs for a while

GM is also in the same boat, Killing Pontiac and Saturn will i guess help but they need to do a lot more. I was reading some where the other day that the cost of labor per hour for non American cars Honda Toyota stands at around 17-20 USD per hour at the same time for GM and all it is in excess of 30 USD per hour, that is a huge cost factor right there.

But this whole US auto market scene is getting pretty slick pretty fast and in the mean time it is a great auto buyers market. My friend bought a Honda Accord last week and the dealers were ready to do anything to get his business needless to say he got an awesome price and good freebies.
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