Chrysler is soooooo doomed
The new Chrysler...HAHAHAHAHA
I really didn't start blogging regularly in CAPS until the end of March / early April. On April 3rd, I wrote my first piece on the auto sector: "Auto Industry Analyst: "current market for light vehicles in the U.S. is about as bad as I have seen it in the past decade" (link). I was bearish in the industry then, but that's not the point of this post. At the time, I singled out one manufacturer as the worst-of-breed...Chrysler. Here's what I said about the company:
"The one automaker that is probably in the worst shape right now is Chrysler. It is absolutely shoveling money at its vehicles in the U.S. right now through higher incentives and it doesn't have any plans for outstanding new products that I am aware of. New products are the lifeblood of automakers. Without them, it is difficult to succeed in this market. Compounding the lack of new products in the pipeline is the fact that the quality of Chrysler's current products is significantly below that of its competitors, especially the Japanese."
I haven't seen any articles out there on this news item yet, but here's the latest evidence that Chrysler is doomed: Chrysler's December sales were down 52 to 53% year-over-year! OUCH.
If a solid German company like Mercedes-Benz couldn't fix Chrysler, then private equity certainly isn't going to be able to fix it with a mish-mash team lead by the ousted head of Home Depot. The government's donation to Chrysler was a complete waste. I would be absolutely shocked if it survives this recession on its own. I strongly suspect that Chrysler will either be forced to file for bankruptcy or into a merger...if anyone will take it. Its days as a stand alone entity are numbered.