Report: Analyst claims Chrysler may not be able to survive in current form
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Joined: Dec 2002
Posts: 1,505
From: Charleston, WV
Report: Analyst claims Chrysler may not be able to survive in current form
When General Motors and Chrysler entered bankruptcy proceedings in 2009, it was very clear that one company had a future product portfolio and one didn't. So while The General received the lion's share of government funding, Chrysler was basically given to Fiat with the hope that Team Pentastar could benefit from platform and product sharing. The early results of the Chrysler/Fiat team have been somewhat encouraging. Fiat-Chrysler CEO Sergio Marchionne and his team have made significant progress cutting costs, and the management team created a five-year plan for Chrysler that includes new, Fiat-derived platforms and re-badged Lancias and Alfa Romeos.
Will these steps be enough for Chrysler to remain the full-line manufacturer it is today? A report in Automotive News shows that Bernstein Research analyst Max Warburton doesn't seem to think so. Warburton reportedly wrote in an assessment for Fiat investors that "we remain unconvinced Chrysler will survive in its current form despite Marchionne's blood, sweat and tears." Warburton cites four unnamed senior executives from Detroit.
The analyst's feelings come despite the fact that he feels Chrysler will come close to breaking even in the first quarter even with relatively poor sales. Warburton actually anticipates that Marchionne will announce Chrysler made a small profit in the month of March. So why the doom and gloom? Warburton cites Chrysler's still limited product development, light product portfolio and limited synergies between the two companies. The analyst also points to Marchionne's target for Chrysler to hit a 14 percent market share by 2014 as a reason for alarm. Chrysler hasn't been at 14 percent market share since 2000, and the Pentastar is currently just under 10 percent share.
In the report for Fiat investors, Warburton called a reasonable exit exit strategy from the situation "a slimming down of Chrysler to be just Ram, Jeep and a U.S. production base for Fiat." We're quite positive the folks in Auburn Hills, MI wouldn't like that plan. What do you think? Drop us a line or two in 'Comments.'
Will these steps be enough for Chrysler to remain the full-line manufacturer it is today? A report in Automotive News shows that Bernstein Research analyst Max Warburton doesn't seem to think so. Warburton reportedly wrote in an assessment for Fiat investors that "we remain unconvinced Chrysler will survive in its current form despite Marchionne's blood, sweat and tears." Warburton cites four unnamed senior executives from Detroit.
The analyst's feelings come despite the fact that he feels Chrysler will come close to breaking even in the first quarter even with relatively poor sales. Warburton actually anticipates that Marchionne will announce Chrysler made a small profit in the month of March. So why the doom and gloom? Warburton cites Chrysler's still limited product development, light product portfolio and limited synergies between the two companies. The analyst also points to Marchionne's target for Chrysler to hit a 14 percent market share by 2014 as a reason for alarm. Chrysler hasn't been at 14 percent market share since 2000, and the Pentastar is currently just under 10 percent share.
In the report for Fiat investors, Warburton called a reasonable exit exit strategy from the situation "a slimming down of Chrysler to be just Ram, Jeep and a U.S. production base for Fiat." We're quite positive the folks in Auburn Hills, MI wouldn't like that plan. What do you think? Drop us a line or two in 'Comments.'
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Joined: Jul 2005
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From: Okemos, MI
I've been worried about Chrysler since ~2007.
I do think that Ram, Jeep, and Caravan are the only vehicles in the current lineup worth keeping (assuming it's too late to keep Viper). Sebring/Avenger is an abomination, Caliber sucks, Dakota is ancient (and sucks), and the LX platform sorely needs an update.
I do think that Ram, Jeep, and Caravan are the only vehicles in the current lineup worth keeping (assuming it's too late to keep Viper). Sebring/Avenger is an abomination, Caliber sucks, Dakota is ancient (and sucks), and the LX platform sorely needs an update.
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Joined: Sep 2001
Posts: 164
From: Korea
I'm not an automotive expert, but there is nothing that Chrysler makes that I would buy (except maybe a Viper). I am sure there are a lot of other people who feel the same way. I just don't see anything in their line up that's a conquest vehicle. They need those sooner rather than later.
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Joined: Dec 2000
Posts: 1,214
From: City of Champions, MA, USA
As much as I like the Challenger, Charger and 300, Chrysler only hurts the perception of American cars. I am an American car person and wouldn't consider a Chrysler product. Most people I ask that are strictly import only always mention some Chrysler product they owned that was a piece of crap.
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Joined: Jul 2005
Posts: 9,507
From: Okemos, MI
One of my coworkers recently bought a new Avenger. I'm not sure (I've just seen it in the parking lot, haven't seen who gets in and out of it yet). I can only assume that they didn't test-drive anything else. 
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Joined: Nov 1998
Posts: 3,252
From: Knoxville, TN
I had a Caliber rental a while back. The car was horrid - it "felt" incredibly cheap and poorly put together. Also had a V6 Charger rental in the last couple of months. Much better than the Caliber, but a complete and total yawner of a car. I couldn't imagine actually spending my own money on one.
Sad.
Sad.
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Joined: Mar 2007
Posts: 1,897
From: Greenville, SC
I hope they can at least get a shot at a come back. Daimler raped them. I hope they're around to see the new 300 and Charger come to light. If they're anything like the new Ram, they have a shot.
It wasn't too long ago people were saying the same thing about GM cars. Cavaliers, (old) Malibus, (older) Aveos, Impala... oh wait, that one still sucks ***
It wasn't too long ago people were saying the same thing about GM cars. Cavaliers, (old) Malibus, (older) Aveos, Impala... oh wait, that one still sucks ***
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Joined: Feb 2002
Posts: 1,049
From: Confederate States of America
The new Rams are the baddest looking trucks out there on the road, awesome vehicle, the Caliber is pure garbage, the Avenger is as well. The Dakota is a great truck they just haven't done anything with it, the Dakota fills in nicely between the fullsize trucks out there and the too small trucks out there, everyone I know that has driven one of the newer ugraded 4.7's said how much they liked them. I have an anemic 05 with 230 hp but it is still fun to drive and handles better than almost any other truck out there. The Charger and Challenger are also great vehicles and seem to be seeling well around here, just need to update the Charger a bit. Get the 6.4 SRT engines out now! Sat in an SRT-8 Charger yesterday for the first time and I was genuinely impressed, the seats and the feel were great, much better feeling than I had in the Camaro and I could see out of it! Just wish they would offer a manual option with the SRT-8 Chargers. A 6.4 SRT-8 Charger with an M6 would be awefully tempting. i've got a little Mopar blood in me I guess, and I like to root for the underdog.
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Joined: Jun 2000
Posts: 1,215
From: Coppell, Texas
I'm beyond worried for Chrysler. You can't be non existant in the small and mid size car category and expect to increase market share. I know they're working on that, but they need to move faster. New LX's and Grand Cherokee will help in 2011, but that still doesn't address the gaping hole in the lineup. Really sucks that Chrysler couldn't maintain it's momentum of the 90's. Daimler and Cerberus raped and pillaged that company.