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	<title>Comments on: Chrysler vs BMW: survival</title>
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	<description>Chrysler, car, and other discussions by Allpar contributors</description>
	<pubDate>Thu, 04 Dec 2008 23:33:51 +0000</pubDate>
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		<title>By: Dave</title>
		<link>http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-774</link>
		<dc:creator>Dave</dc:creator>
		<pubDate>Thu, 01 Jun 2006 17:45:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-774</guid>
		<description>Some companies do sit on cash - those who know they'll need it in lean times. GM has a massive cash reserve, believe it or not. 

Chrysler's biggest profitmaker then was probably Chrysler Credit, a massive moneymaker not unlike GMAC (except of course it didn't do home mortgages). Now it delivers its massive profits directly to Daimler in Germany. 

Regarding the current losses, how does that have a bearing on pre-merger Chrysler? Back then they were intensely profitable, and didn't have to use expensive Mercedes parts in each car. I doubt the LX is as profitable as the LH - there's a reason Mercedes cost so much and yet don't earn Mercedes itself any profits, quite aside from the archaic management of their factories. The third generation LH would have been rear wheel drive and Hemi powered - just like the current ones - but I believe it would have been much cheaper to make, albeit less capable in turns.</description>
		<content:encoded><![CDATA[<p>Some companies do sit on cash - those who know they&#8217;ll need it in lean times. <a href="http://www.acarplace.com/brands/gm.html"target="_blank" title="GM"  onclick="javascript:urchinTracker ('/outbound/comment/www.acarplace.com');">GM</a> has a massive cash reserve, believe it or not. </p>
<p>Chrysler&#8217;s biggest profitmaker then was probably Chrysler Credit, a massive moneymaker not unlike GMAC (except of course it didn&#8217;t do home mortgages). Now it delivers its massive profits directly to Daimler in Germany. </p>
<p>Regarding the current losses, how does that have a bearing on pre-merger Chrysler? Back then they were intensely profitable, and didn&#8217;t have to use expensive Mercedes parts in each car. I doubt the LX is as profitable as the LH - there&#8217;s a reason Mercedes cost so much and yet don&#8217;t earn Mercedes itself any profits, quite aside from the archaic management of their factories. The third generation LH would have been rear wheel drive and <a target="_blank" title="Hemi" href="/mopar/new-mopar-hemi.html">Hemi</a> powered - just like the current ones - but I believe it would have been much cheaper to make, albeit less capable in turns.</p>
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		<title>By: Lloyd</title>
		<link>http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-773</link>
		<dc:creator>Lloyd</dc:creator>
		<pubDate>Thu, 01 Jun 2006 17:38:06 +0000</pubDate>
		<guid isPermaLink="false">http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-773</guid>
		<description>Well, I checked my last Chrysler annual report, the last one before the merger.  Sure enough, assets exeeded liabilities by 11.5 billion dollars.  But cash?  Nope.  Mostly value of plants, tools, inventory, future tax credits, consumer loans, etc.  (Plus there was a big unfunded pension liability not included.)  Companies don't sit on cash!  They invest it or pay it to stockholders (or these days, to CEOs who retire).

Here's an interesting tidbit from the news today:

"Nissan, Toyota and Honda each earned more than $1,200 before taxes on every vehicle they sold in North America in 2005. In contrast, Chrysler Group earned $223, while Ford lost $590 and GM lost $2,496 on each vehicle. This reflects differences in health care and pension costs, as well as rebates and low-interest financing used to cut inventories."</description>
		<content:encoded><![CDATA[<p>Well, I checked my last Chrysler annual report, the last one before the merger.  Sure enough, assets exeeded liabilities by 11.5 billion dollars.  But cash?  Nope.  Mostly value of plants, tools, inventory, future tax credits, consumer loans, etc.  (Plus there was a big unfunded pension liability not included.)  Companies don&#8217;t sit on cash!  They invest it or pay it to stockholders (or these days, to CEOs who retire).</p>
<p>Here&#8217;s an interesting tidbit from the news today:</p>
<p>&#8220;Nissan, Toyota and Honda each earned more than $1,200 before taxes on every vehicle they sold in North America in 2005. In contrast, Chrysler Group earned $223, while Ford lost $590 and <a href="http://www.acarplace.com/brands/gm.html"target="_blank" title="GM"  onclick="javascript:urchinTracker ('/outbound/comment/www.acarplace.com');">GM</a> lost $2,496 on each vehicle. This reflects differences in health care and pension costs, as well as rebates and low-interest financing used to cut inventories.&#8221;</p>
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		<title>By: Dave</title>
		<link>http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-764</link>
		<dc:creator>Dave</dc:creator>
		<pubDate>Wed, 31 May 2006 00:36:17 +0000</pubDate>
		<guid isPermaLink="false">http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-764</guid>
		<description>"I keep seeing that “12 billion dollars in cash.” Where do you get that? Chrysler’s finances were so bad at the time, they had to merge to stay afloat. And that’s Lutz saying that in his book."

I see that in every report that was published at the time - well, between $8 and $14 anyway, and by the way, I don't recall seeing that in Lutz's book.

Optima - yes, and very comfortable generic Japanese/Korean. Nicer than the Camry whicih is the BEST SELLER in case you hadn't noticed. 

Ram vans - no question and I said I don't balme them for killing it off, though investment might've been nice.

I never said Chrysler lost money BEFORE the merger becasue they had to support Mercedes.

I'm tired of this...</description>
		<content:encoded><![CDATA[<p>&#8220;I keep seeing that “12 billion dollars in cash.” Where do you get that? Chrysler’s finances were so bad at the time, they had to merge to stay afloat. And that’s Lutz saying that in his book.&#8221;</p>
<p>I see that in every report that was published at the time - well, between $8 and $14 anyway, and by the way, I don&#8217;t recall seeing that in Lutz&#8217;s book.</p>
<p>Optima - yes, and very comfortable generic Japanese/Korean. Nicer than the Camry whicih is the BEST SELLER in case you hadn&#8217;t noticed. </p>
<p><a href="http://www.allpar.com/model/ram/2009-ram.html"title="Ram"  >Ram</a> vans - no question and I said I don&#8217;t balme them for killing it off, though investment might&#8217;ve been nice.</p>
<p>I never said Chrysler lost money BEFORE the merger becasue they had to support Mercedes.</p>
<p>I&#8217;m tired of this&#8230;</p>
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		<title>By: Lloyd</title>
		<link>http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-760</link>
		<dc:creator>Lloyd</dc:creator>
		<pubDate>Tue, 30 May 2006 19:17:24 +0000</pubDate>
		<guid isPermaLink="false">http://www.allpar.com/weblogs/2006/05/12/chrysler-vs-bmw-survival/#comment-760</guid>
		<description>I keep seeing that "12 billion dollars in cash."  Where do you get that?  Chrysler's finances were so bad at the time, they had to merge to stay afloat.  And that's Lutz saying that in his book.

Yes, I've looked at an Optima.  Generic Japanese/Korean.  Get into one blindfolded and try to identify it.

Last gen GM SUVs?  Last in a Car &#38; driver comparison.  Last in a Consumer Reports test.  The new ones are better, sure; anything would be. They're nice, but I wouldn't want to have billions riding on 12-mpg vehicles right now.

Chrysler was selling so few of the old Ram vans, it wasn't making any money.  Sprinter does help -- first, it helps the corporation.  Second, it helps Dodge dealers.

Toyota a full line?  Only now, with a full-size pickup coming.  No full-size van, though, no sports car.  But Toyota is bigger than Ford; they should have more lines.

Chrysler lost money before the merger because they had to support Mercedes?  That makes no sense.  Chrysler has had good times and (mostly) bad times for the past 50 years; before the merger was a bad time.  And yes, the Chrysler Group has lost money some years since the merger.  And there is no Chrysler financial any more than there is a Lexus financial or a Pontiac financial.  Every corporation has one financial arm.

BTW, know what division of DC was most profitable last year?  Commercial vehicles (Freightliner, Mercedes trucks, Setra, Western Star, Orion, Fuso).  That division was tanking, losing money like crazy, a few years ago, and now it's the most profitable.  It was carried by the others and now it's helping them.  That's how a corporation works.

As an aside, do you recall that DC was going to buy into Nissan a few years back?  Nissan had lots of debt and was looking for a partner.  The Chrysler folks, those who had been at Chrysler, talked DC out of it, saying Nissan was a money pit, that they'd be throwing money away.  Let's buy into Mitsubishi instead, they said.  We know them, we've worked with them for years.  So DC bought into Mitsubishi and Renault bought into Nissan.  OK, where are Nissan and Mitsubishi today?  Nissan is contributing billions to Renault's profits and their cars are the darlings of the critics.  Mitsu?  Not so great.  Think that soured the DC folks about the Chrysler folks' judgment?</description>
		<content:encoded><![CDATA[<p>I keep seeing that &#8220;12 billion dollars in cash.&#8221;  Where do you get that?  Chrysler&#8217;s finances were so bad at the time, they had to merge to stay afloat.  And that&#8217;s Lutz saying that in his book.</p>
<p>Yes, I&#8217;ve looked at an Optima.  Generic Japanese/Korean.  Get into one blindfolded and try to identify it.</p>
<p>Last gen <a href="http://www.acarplace.com/brands/gm.html"target="_blank" title="GM"  onclick="javascript:urchinTracker ('/outbound/comment/www.acarplace.com');">GM</a> SUVs?  Last in a Car &amp; driver comparison.  Last in a Consumer Reports test.  The new ones are better, sure; anything would be. They&#8217;re nice, but I wouldn&#8217;t want to have billions riding on 12-mpg vehicles right now.</p>
<p>Chrysler was selling so few of the old <a href="http://www.allpar.com/model/ram/2009-ram.html"title="Ram"  >Ram</a> vans, it wasn&#8217;t making any money.  Sprinter does help &#8212; first, it helps the corporation.  Second, it helps Dodge dealers.</p>
<p>Toyota a full line?  Only now, with a full-size pickup coming.  No full-size van, though, no sports car.  But Toyota is bigger than Ford; they should have more lines.</p>
<p>Chrysler lost money before the merger because they had to support Mercedes?  That makes no sense.  Chrysler has had good times and (mostly) bad times for the past 50 years; before the merger was a bad time.  And yes, the Chrysler Group has lost money some years since the merger.  And there is no Chrysler financial any more than there is a Lexus financial or a Pontiac financial.  Every corporation has one financial arm.</p>
<p>BTW, know what division of DC was most profitable last year?  Commercial vehicles (Freightliner, Mercedes <a href="http://www.allpar.com/trucks/index.html"title="trucks"  >trucks</a>, Setra, Western Star, Orion, Fuso).  That division was tanking, losing money like crazy, a few years ago, and now it&#8217;s the most profitable.  It was carried by the others and now it&#8217;s helping them.  That&#8217;s how a corporation works.</p>
<p>As an aside, do you recall that DC was going to buy into Nissan a few years back?  Nissan had lots of debt and was looking for a partner.  The Chrysler folks, those who had been at Chrysler, talked DC out of it, saying Nissan was a money pit, that they&#8217;d be throwing money away.  Let&#8217;s buy into Mitsubishi instead, they said.  We know them, we&#8217;ve worked with them for years.  So DC bought into Mitsubishi and Renault bought into Nissan.  OK, where are Nissan and Mitsubishi today?  Nissan is contributing billions to Renault&#8217;s profits and their <a href="http://www.allpar.com/model/index.html"title="cars"  >cars</a> are the darlings of the critics.  Mitsu?  Not so great.  Think that soured the DC folks about the Chrysler folks&#8217; judgment?</p>
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