That’s what happens when a slick salesman gets you to buy a used car company.
Posted on 09/16/2009 2:25:00 PM PDT by Nachum
NEW YORK (CNNMoney.com) -- The situation at recently rescued Chrysler Group is even more dire than first thought, the CEO of Italy's Fiat -- which came to the aid of the U.S. automaker -- said Wednesday.
"We were surprised by how little had been done in the past 24 months," Sergio Marchionne told reporters in Frankfurt, Germany.
Chrysler will present a revised business plan in November, Marchionne told reporters.
(Excerpt) Read more at money.cnn.com ...
The list, ping
want to buy the Brooklyn Bridge?
Obama hawked this turkey to you in overly glowing terms, eh?
We know how you feel, Fiat.
TRANSLATION: “We need a bailout”
Having done M&A, it appears Fiat did not perform adequate due diligence. Fiat is to blame for any decision unless Chrysler flat out lied or provided dishonest documentation.
jeez thats why Chrysler was failing. their product suck...and what does our government do ???? Prop them up so we can give them more money.....
Go ask George Soros for one then.
Sheesh...what a mess.
Surprised a government owned entity has not done anything to innovate?
More likely, Turner said, Marchionne is laying the groundwork for drastic actions that will be announced in November but may have been planned all along.
A message to the bond holders - or the UAW that is...
Jeez, what did you expect, it is a union shop.
It seems to me that's what happened, only in one huge chunk. From what I read in the article, much of it won't survive, anyway.
I always wanted to work in a lax office where nothing much happened, like government work, for example. However, I seem doomed to be part of organizations that demand long hours, personal sacrifice, and measured productivity. I call no fair.
No returns! No refunds!
“Fix it again Tony”
Yeah closing dealerships that have been around since after WWII sure made sense
Chrysler has always been a basket case.
That’s what happens when a slick salesman gets you to buy a used car company.
Given that the deal was driven and inspired by a collection of loons (lawyers, failed businessmen, crooked senators, and a completely incompetent president) to whom the operation of a model T Ford is rocket science, what could you expect?
Chryslers revised business plan in a nutshell
1. Build more cars that no one wants
2.Pay Union Labor more than fair productive wages
3. Go back to Czar Obama for more money
Wash...Rinse....Repeat!
Shoulda talked seriously with Daimler Benz. (But possibly DB deceived, because they stood to benefit from Chrysler Fiat deal).
Shoulda reasoned “...why did Mercedes Benz bite into the Chrysler morsel, and then spit it out?”
Now they know.
You're probably right. In fact, let's stipulate that you're absolutely right. But, doesn't Obama and his administration have at least some culpability in this mess as well? After all, it was Obama that set the arbitrary deadline for the merger, not Fiat.
Fiat was performing due diligence, but had explicit and immediate government-imposed deadlines it had to answer to, which is hardly the case for the standard merger & acquisition. If fact, what Obama did with respect to his own deadline fiat (sorry for the intended pun), may be been unprecedented in the history of the republic.
They’re a lock to be funded handsomely thru Nov 2012.
After that, maybe not.......
Bummer about the Free Trader Globalism, Fiat...looks like you wont be able to dump your claptrap cars on the US market.
Never buy a company that is owned by an investment group...they do not know how to run a company. You get a bill of goods, while the PIG gets the gold
When Daimler basicly paid someone to take Chrysler off their hands, Fiat should have taken notice.
Sadly, unless the government is willing to throw good money after bad, Chrysler will probably be sold off piece-meal. The Ram truck line would likely be gobbled up by Toyota or Nissan and Jeep picked up by someone. Not much value in anything else.
However, Fiat should have walked away rather than be pressured into a decision. A deal made under pressure invariably always goes bad.
fiat put no money in to the deal for 20% share? What do they do for their stake?
One of my auto gnomes and I have been predicting that they will fail are were better off splitting it up before they went bailout.
What is funny if Fiat bails sells that all off and especially the Van Business to VW a competitor or do they try to screw them.
Another auto gnome warned of Fiat's reputation of being a scoundrel. They come in take what they want, usually suck some Gov't into giving them some money and leave everyone else holding the bag.....
It was run by American unions for decades, idiot, what did you expect? 
The only thing I know about the auto industry is as a car buyer the last 35-40 years, but do you really think Toyota or Nissan would want to wade into the mess that is the UAW, just to pick-up the RAM brand name?
While we're on the subject, I'm still a little fuzzy what the pressure was on Fiat. I'm not denying it was there - clearly it was - but, I can't figure out precisely what it was, nor who was exerting it. From my estimation, Chrysler would have gone Chapter 11 in very short order. Couldn't FIAT have picked up the company - and more specifically, just the pieces it wanted - at fire-sale prices had they just walked away.
Or, was the government-backed financing and sweeteners better than they could have hoped to do through a bankruptcy liquidation?
Also, I wonder if some other trade preferences or or hindrances weren't promised or threatened by the Obama administration if Fiat didn't play ball.
“Not much value in anything else.”
A few years ago, I liked the Magnum wagon from a distance.
At the dealership I saw the interior materials, and color combos.....and lost all interest.
Of course now that I've said that.....
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