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Chrysler shut down all 30 of its factories for much of December and January. By not producing, the company reduced its inventory from 498,000 at the end of last year to 456,000,
(foxnews.com/story/0,2933,482687,00.html)

http://www.cleanmpg.com/photos/data/501/2009_Chrysler_200C_PHEV_Concept.jpgAP – Jan. 25, 2009

A positive outlook usually generates a positive atmosphere. -- Ed.

NEW ORLEANS —  A top Chrysler LLC executive says the automaker should be viable by springtime because of its restructuring, introduction of new and improved vehicles, and higher sales due to loosened credit and sweetened incentives for buyers.

Vice Chairman and President Jim Press defined "viable" as remaining solvent and continuing to invest in new products, with an ability in the future to repay government loans.

But he told reporters Saturday at the National Automobile Dealers Association annual convention that he doesn't know when the privately owned Auburn Hills, Mich.-based company will return to profitability.

Press said Chrysler can be viable if the U.S. light vehicle market shrinks from last year's 13.2 million in sales to just over 10 million. As recently as 2007, the market exceeded 16 million.

The struggling Chrysler has received $4 billion in government loans so far to hold off bankruptcy, and it expects to get $3 billion more after it files a viability plan with the government by Feb. 17. Without the loan money, its executives have said it would run out of cash.

Press told reporters that the country was living off loose credit and fast spending for years, and a correction probably is good. But that means automakers have to be prepared to make it on sales that are… http://www.foxnews.com/story/0,2933,482687,00.html

Hi Ricardo:

___With just 1,453,122 units sold through all of last year, I wonder how reducing inventory from 498,000 to 456,000 is going to help?

___This sounds like a ploy for the next round of government financing.

___Good Luck

___Wayne

Wayne:

It certainly seems like a ploy to get the additional financing, however I suppose they will have formulated a plan that seems viable to congress at least? I guess I can only hope that they have fuel efficient cars, but they've shown nothing in comparison to the magnitude of ford. All their ideas seem to be concept at best.

Am I reading this correctly? It appears that Chrysler only sold 50,000 units over that time span. So, that would be about one tenth of it's inventory. If that is true, why would they start producing again?

Am I reading this correctly? It appears that Chrysler only sold 50,000 units over that time span. So, that would be about one tenth of it's inventory. If that is true, why would they start producing again?

I was thinking the same thing. 498000 - 456000 is 42,000 sold in the month or so that the plants have been closed. At that current selling rate (42k/mo), they have enough stock to sell for another 10.857 months. So they can leave the plants closed and sell what they have and then roll out the 2010s on 01/01/10.

I sure appears to me that it is OVER for Chrysler. How can they compete against the better automobile companies?

I sure appears to me that it is OVER for Chrysler. How can they compete against the better automobile companies?

Same way they always have:

1.) Get government money.
2.) Sell a bunch of middling quality cars very cheaply.

If Chrysler becomes 35% owned by Fiat will it affect future requests for more gvt support? Sounds sorta like sending taxpayers money to Italy.

DAS