Chrysler goes private?

[Jeff]

I'm not sure of any of the details yet. I haven't even got a chance to read CNN on it. I just wanted to post up that word on the street is Chrysler is being sold to a private firm and will no longer be a public company...anyone heard anything?

[CaptainHenreh]

I'm not sure of any of the details yet. I haven't even got a chance to read CNN on it. I just wanted to post up that word on the street is Chrysler is being sold to a private firm and will no longer be a public company...anyone heard anything?

It's true.

<!-- m --><a class="postlink" href="http://www.detnews.com/apps/pbcs.dll/article?AID=/20070514/UPDATE/705140389/1148/AUTO01">http://www.detnews.com/apps/pbcs.dll/ar ... 148/AUTO01</a><!-- m -->

[Jeff]

I don't know how to feel. This could be good or very very bad. I guess only time will tell.

[John]

I don't know how to feel. This could be good or very very bad. I guess only time will tell.

I don't think it could get any worse - their recent quality is an abomination. I had a Sebring rental this weekend in SF - absolutely the worst car I have ever driven - PERIOD. 4400 miles, turn signal stuck in both directions and would never turn off (I'd be trying to turn it off for a half mile after I changed lanes - left right left right), didn't start twice, tranny would downshift randomly, CV joint noises, and other noises I couldn't identify. My Honda with 300K miles ran 10x better. Sad, very sad.

[Jeff]

I don't know how to feel. This could be good or very very bad. I guess only time will tell.

I don't think it could get any worse - their recent quality is an abomination. I had a Sebring rental this weekend in SF - absolutely the worst car I have ever driven - PERIOD. 4400 miles, turn signal stuck in both directions and would never turn off (I'd be trying to turn it off for a half mile after I changed lanes - left right left right), didn't start twice, tranny would downshift randomly, CV joint noises, and other noises I couldn't identify. My Honda with 300K miles ran 10x better. Sad, very sad.

Thanks for your incredibly insightful input. What a great blanket statement based on one abused rental car, glad you could help us all learn. It should be obvious to any reasonable person that the car has be beaten like a red-headed step child (ginger?) Even with 4000miles if the car is having that many problems it has seen its share of neutral drops. Nothing you have stated is common. It is absurd to make an assumption about a whole product line based one one car....especially a rental car. Also, you cannot say with any certainty that "all recent quality is in an abomination," get outta' here Junior. Even if you want to say "all Sebrings and Stratus' (Avengers...whatever) are junk" that would be a more accurate statement then "anything made by Chrysler is junk." Your scope of experience hardly qualifies you to pass reasonable judgement. I'm not saying they are the best cars in the world, but you can't write a "review" like that and expect it to be taken as a viable criticism.[/rant]

[John]

I knew that you'd chime in.

I'm sharing my experience b/c I've driven other Chrysler products in in the past, and they've never been more than mediocre.

And much to your disappointment, 99% of rental cars aren't used for neutral dumps - especially a Sebring. Perhaps I got a lemon, nevertheless, with the product I had, I wouldn't be sad to see it become part of the history books. That car definitely should have never left the assembly line and Chrysler really needs to work on their QC.

[Dave]

I think one of the most interesting parts in this is the incredible amount of money Dailer is losing on this. In 1998, they paid $36 billion to acquire Chrysler and now, less than 10 years later, are selling an 80.1% stake in it for $7.4 billion. If you made it whole company deal that is still only $9.23 billion, roughly a quarter of what they paid for it. Even worse once you account for inflation!

[.RJ]

Thanks for your incredibly insightful input. What a great blanket statement based on one abused rental car, glad you could help us all learn. It should be obvious to any reasonable person that the car has be beaten like a red-headed step child (ginger?) Even with 4000miles if the car is having that many problems it has seen its share of neutral drops. Nothing you have stated is common. It is absurd to make an assumption about a whole product line based one one car....especially a rental car.

I understand you have a personal interest in the brand, but dont let it cloud your judgement here.

I've traveled for work and vacations quite a bit, and I have had a lot of rental cars here and there. Some are good (Mazda, Nissan), some are so-so (Chevy, ford focus) and some suck (Chrysler, V6 mustangs). You can say they are abused rentals, but hey have all had some miles on them and probably subject to the same abuse and it comes down to the build quality. Ergonomics, steering, transmissions and interiors on most of the smaller american cars just suck. It really is awful and it has nothing to do with abuse - and if it cant hold up to a few thousand miles of rental use how is it going to hold up to 100K miles, or more, of daily driving?

The american mfr's seem to get it right with trucks, but they really miss the mark with sedans.

[John]

The cars that everybody is quick to make fun of are the ones that are really going to put a dent in the economical / basic cars that American companies produce - those companies are Kia and Hyundai. Why? Because they're using proven technology developed by Honda and Toyota, and are able to slap a 100K mile warranty on them. Sure they aren't overly fancy, but they work. Most American cars aren't anything fancy, use outdated technology as well, and still can't even get that right.

[bassmangrammy]

I've spent some time studying the deal and moreover the trend towards private equity. The more private will have a positive effect on the operating speed of the business. They will become more nimble, and they need to. And I like the deal and I'm looking forward to a more progressive Chrysler.

The only two problems I see are these:
1. Private equity firms generally load up companies with debt, as has already been done to Chrysler (or at least agreed to by a number of major banks). This makes everything more risky.

2. The leadership at Chrysler, specifically Bob Lutz is quoted as saying the solution to the problems at Chrysler is "products, products, and more products!!" It's not, and that statement could be the 800-lb monkey in the room.

[Andy]

Bob Lutz works for GM. I think your books are 80's editions but seriously, how is product not their problem? Obviously, I don't know my head from my ass but producing something that doesn't sell seems to be the big problem, no?

[.RJ]

The more private will have a positive effect on the operating speed of the business.

Which is also not always a positive effect for the business - just because its moving faster, could just be moving faster in the wrong direction, and end up in over their heads faster than they can correct it.

[HAULN-SS]

I've never had too much of a problem with chrysler vehicles. They had some paint issues in the 80's and 90s, but I guess that's mostly sorted out. The interiors is what kills a chrysler for me. every chrysler I've been in I think had an interior that felt like a Playskool car. cheap plastic, cheap vinyl, clunky design..etc

[Jeff]

Too much to say and not enough time to say it. I'll think about this the rest of the night and figure something smart to say then. I just got done washing 65 QUALITY Chrysler products... now I'm off to circuit city for 5 hours! YAY

So...
Fuck the Germans
Fuck RJ
Fuck the Japanese
EDIT- BOB EATON CAN ROT IN HELL

That is all for now :wink:

[.RJ]

I just got done washing 65 QUALITY Chrysler products...

Its leaking into your brain....

Go drive a mazda 6 and a chrysler back to back and try tell me the quality is equal...

[Jeff]

Which Chrysler are you talking about? Caliber seems to be a very well put together little car. Every bit as well put together as Rex's car. Not as cool, but well put together. I mean, just as much as I love, you hate. I'm not saying they are the best cars in the world, not by a long shot. But they are not the worst. For every shitty Chrysler you have been in, I have been in 10 that are fine. For every POS Toyota I have been in at Circuit city you have been in 10 that are OMG BEST CARS EVAR!!!11!!11! It goes both ways.

Every car/car company has someone that will "never buy one!" American car companies have let it slip since the late 70's so they get what they deserve. The market is forcing them to correct quality, cut costs, and compete with the Japanese. John is right when he speaks of old technologies. The 2.4L takes its technology from the early 80's. Most of the Neon's suspension was directly from the K-car. The 4-speed Chrysler automatic is one of the worst auto trannies ever. So I'm not trying to make them out to be the best cars...but far from the plight of locusts you make them out to be.

[Jeff]

BTW- Sold the Viper truck today...guy just got a GT500 last week. He told Bucky (the salesman) "I think I need to have that truck too." Someone doesn't give a damn about $3.25/gal.

[white_2kgt]

Which Chrysler are you talking about?

*

The last car they made worth a damn was the K car, and that ain't saying much.

[.RJ]

you are an ass

you are correct sir! [/ed mcmahon]

At any rate, I'm not really being biased or an ass about this, at least not intentionally. I love my ford truck, I hated the V6 mustangs I've rented, along with every chrysler product I've encountered. Its just that they suck - rattles, build quality, interior materials, comfort, ergonomics, and so on, in comparison to what Mazda, Honda, Toyota are producing now. They may be "fine" but they're just nowhere near the competition, and thats not going to get them out of their financial hole.

[Jeff]

Which Chrysler are you talking about?

*

The last car they made worth a damn was the K car, and that ain't saying much.

Wow...and you are a Ford man? Not to change the subject, but I read the other day that the stock the Ford family owns is worth half of what it was ten years ago. Ford hasn't made much worth a damn either it seems.