How do you think the Chrysler bailout money will be spent?
This story parallels my previous diaries on the Ford Bailout story and the despair at GM..
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Latest Chrysler Buyout Offer Lures Quarter of Salaried Staff
Published: November 28, 2008
AUBURN HILLS, Mich.
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The historic downsizing of the Detroit automakers has already eliminated more than 100,000 factory jobs over the last three years.
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The company is committed to reducing its salaried staff by 25 percent, or about 5,000 employees, by the end of the year.
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By the end of this year, Chrysler will have cut 32,000 jobs since the beginning of 2007, its chief executive, Robert L. Nardelli, told Congress this month.
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Executives from G.M., Ford and Chrysler are spending the holiday weekend assembling their revival plans for Congress, which refused their initial request for $25 billion in loans but will reconsider the matter over the next few weeks.
Without federal aid, G.M. and Chrysler have said they could soon run out of money, and industry specialists say one bankruptcy could cause the others to collapse, ultimately resulting in broad job losses.
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Chrysler-Mahindra Cooking Up India Deal?
January 07, 2008
With Ford officially anointing India’s Tata Motors as the top bidder for Jaguar and Land Rover, it looks look Chrysler is trying to cook up a deal with an automaker in India as well.
Several global media outlets reported over the weekend that Chrysler is in talks with India’s Mahindra & Mahindra, archrival to Tata, for some kind of partnership, the nature of which is unclear.
Chrysler: Expanding Global Reach
From the day it took over Chrysler, Cerberus Capital Management has said it intends to expand Chrysler’s global reach.
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Chrysler’s Other Overseas Connections
Chrysler also reportedly is talking with Russian automaker Gaz. An unnamed Gaz executive reportedly told the Financial Times in London in December that the two companies were in talks.
In China, Chrysler appointed former GM and Shanghai Automotive executive Phil Murtaugh to head Asia-Pacific operations so expansion in China and elsewhere in the region is expected.
What’s less clear is Chrysler’s partnership with China’s Chery Automobile Co., signed last year. The deal was supposed to yield a small car to be sold under the Dodge brand in North America, Central America and Europe. But a Chery executive said late last year the companies are still in the phase of exploring options, which could take a couple of years.
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Chrysler to source auto parts from India
Speaking to Business Line on the condition of anonymity, ...
"We buy $40 billion worth of supplies each year. We would like to procure as much as possible from South-East Asia," he said. India will be in Chrysler’s radar to procure parts that involve "a lot of engineered and laboured content" such as aluminium castings, power train parts and car interiors, the official said. Last year, the company lost about 30 per cent of projected revenues due to currency movements and supply chain-related inefficiencies. It expects to make up for this loss by buying auto parts from South-East Asia.
"That our competition has done it proves there must be value in doing so," the official said adding cost alone was not the reason for outsourcing. Creative intellectual capital, availability of latest technology and ease of procurement were other reasons.
This is keen insight into how executives think.
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Chrysler-badged Chinese cars to be sold in Mexico next year
Posted Tue May 13 2008 11:53 AM
The first fruits of the Chrysler-Chery partnership may be realized as early as next year with news today that a Chinese-built car will be sold wearing Chrysler badges in Mexico within the next 12 months.
Despite Chrysler’s desperation for small cars as revealed by its co-President Tom LaSorda earlier this week, the A1 won’t be sold in the U.S. However, LaSorda confirmed that both carmakers were discussing plans for the development of a new model that could be built in China and sold in both the U.S. and Europe as a Dodge.
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GM/Chrysler talks intensify, Europe carmakers warn
October 24, 2008 6:09 PM ET
DETROIT/PARIS (Reuters) - General Motors Corp intensified talks to acquire Chrysler LLC on Friday amid a worsening global auto downturn that forced deep cuts of salaried jobs at Chrysler and a warning from France's PSA Peugeot Citroen .
So, GM will use the bailout money to buy Chrysler and to expand foreign operations.
Chrysler Mexico Sets a New Sales Record in July
Chrysler/Nissan partnership bears fruit in South America: the Dodge Trazo C1.8
Chrysler Looks for Russia to Become a Top Ten Market for its Vehicles