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Posted by R1 Man on :
 
Dear Employees,

This afternoon, Chrysler submitted to Congress an 18-page overview and a full 120-page plan detailing our plans for future viability as part of our request for a federal bridge loan to help us get through the current economic crisis and continue our transformation of Chrysler.

The plan addresses all the points spelled out in the letter we received from House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. I will appear on your behalf before the Senate Banking Committee on Thursday and the House Financial Services Committee on Friday to discuss our plans and answer questions from the committees. I will drive one of the company’s fuel-efficient hybrid vehicles to get there.

The plans we submitted to Congress answer the questions we’ve heard most often over the past few weeks, and I’d like to share a brief overview with you.

What changes has Chrysler made to help itself?

Since Chrysler became an independent company in 2007 and started our recovery and transformation to return to profitability:
• We eliminated 1.2 million units of capacity, or 30 percent
• We reduced fixed costs by $2.4 billion and separated more than 32,000 employees

And at the same time:
• We invested in product improvement, including a half a billion dollars in our first 60 days
• We improved our latest J.D. Power quality scores and reduced our warranty claims by 29 percent
• We began transforming our business model through alliances and partnerships—including cooperative manufacturing agreements with VW and Nissan

As a result of the changes we made, Chrysler met or exceeded our operating plan through the first six months of the year, ending the first half with $9.4 billion in unrestricted cash.

In addition, as part of the shared sacrifice at all levels required of the plan, we are suspending the company match of 401(k) contributions. This is an action that we have taken before during tough times, and it is one we regrettably are forced to re-enact now

Why does Chrysler need the funding?

We need to address the unprecedented drop in vehicle sales caused by the financial crisis that interrupted our business transformation. U.S. sales are down from a 17 million unit selling rate in early 2007 to an annual selling rate of 11 units million for the fourth quarter in 2008—a 38 percent decline. We lost 20 percent of our sales virtually overnight when the financial market crisis forced us out of the consumer lease business. With customers not buying, with dealers not ordering, with our plants not producing, Chrysler’s cash inflow has suffered.

How will the bridge loan be used?

Cash will support ongoing operations as we continue to restructure the business, including in the first quarter alone:
• $8 billion in payments to parts suppliers
• $1.7 billion for other suppliers
• $900 million in wages
• $500 million in health care and legacy costs
• $500 million in capital expenditures

Without an immediate working capital bridge, Chrysler’s liquidity could fall below the level appropriate to ensure ordinary operations by the first quarter of 2009.

Who is contributing to saving Chrysler?

First and foremost, Chrysler and its extended enterprise will. That starts with me. I receive a salary of $1 a year. I have no employment contract, no change of control agreement, no “golden parachute” and receive no health care or life insurance benefits from the company.

The suspension of the 401(k) match is part of this shared sacrifice. In addition, we are committed to negotiate concessions from all our constituents. In total, we’ve identified more than $8 billion in potential savings over the four-year period. Conservatively, only half of that is included in our projections.

How does Chrysler plan to build cars and trucks that consumers want to buy and that support the country’s energy security and environmental goals?

Our product plan features 24 major launches from 2009 through 2012. For the 2009 model year, 73 percent of our products offer improved fuel economy compared with the 2008 models. We’re also launching new smaller, fuel-efficient vehicles in conjunction with business partners.

ENVI is our breakthrough family of all-electric and range-extended electric vehicles. Our first electric-drive vehicle is planned for 2010, with three additional models by 2013. Chrysler’s product plan also includes the introduction of the Ram Hybrid in 2010.

Does Chrysler have a viable plan?

With federal assistance, we absolutely have a viable plan. I also believe that further partnership, restructuring and consolidation would make the U.S. auto industry more viable and competitive in the long run. Further opportunities for technology sharing would provide fuel-efficient cars and trucks more cost effectively, and with greater speed to market.

The three-company alliance that developed the dual-mode hybrid is a good example. As a country, we should not trade our dependence on foreign oil for a new dependence on foreign technologies.

When will Chrysler pay back this loan?

We will be well positioned to begin repayment of the federal loans in 2012. We recognize that this is a significant amount of public money. However, this is the least costly alternative considering the depth of the economic crisis and the options we face.

In this critical time for the company, the industry and for America, we continue to ask for your help. The e-mail sent yesterday details how you can contact your senators and representatives at GrabDemocracyByTheHorns.com and how you can send letters and videos for posting to GrabDemocracy*gmail.com. In addition, you can get on Chrysler’s **** at VoicesofChrysler.com and post your support for our company.

More than ever, this is the time to make your voice heard! I will be proud to share that voice with our members of Congress on Thursday and Friday. Please continue to visit The Scoop and Video Scoop all this week for on-going updates on our activities in Washington, D.C.

If you’d like to know more details about what we submitted to Congress, the entire plan is available for you to read at: (http://www.thescoop-cg.com/2008/12/02/chryslers-plan-for-short-term-and-long-te rm-viability/)

Bob
 
Posted by Propertymanager on :
 
This is all just a really big joke being perpetrated on the American people. Does anyone really think that our idiot representatives (that gave Wall Street Fatcats $700 Billion with no strings attached) will refuse to bail out the Big 3 and the union employees that work for the Big 3? The bailout is on the way and $34 Billion is just the first installment. It may last until early spring! Then, on to round 2.

I am against ALL the bailouts. However, if we are going to bailout banks, insurance, states, deadbeat homeowners, credit card companies, etc, etc, etc - why not bail out the auto industry? That hardly seems fair.
 
Posted by bdgee on :
 
quote:
Originally posted by Propertymanager:
This is all just a really big joke being perpetrated on the American people. Does anyone really think that our idiot representatives (that gave Wall Street Fatcats $700 Billion with no strings attached) will refuse to bail out the Big 3 and the union employees that work for the Big 3? The bailout is on the way and $34 Billion is just the first installment. It may last until early spring! Then, on to round 2.

I am against ALL the bailouts. However, if we are going to bailout banks, insurance, states, deadbeat homeowners, credit card companies, etc, etc, etc - why not bail out the auto industry? That hardly seems fair.

Just more quasi-cut-and-past righ-wing blather.

"I am against ALL the bailouts."

Of course you are. Sean Hanity, in his quest to destroy anything that can be considered a union and toward his love of destroying the middle class (each of which could resist a march toward that goal he desires), so as to generate a Fascist States of America, has told you to be.
 
Posted by The Bigfoot on :
 
I don't care about fair when it comes to protecting taxpayer money but I too am against all bailouts using public funds.
 
Posted by glassman on :
 
what is so hard to understand (for some people) is that the bailouts to everybody but the (now defunct) brokerage/commercial banks have been FORCED by traders.

or maybe i should say Traitors.

the "bailouts" would not be be needed by the auto industry if the financial industry had not collapsed.

there is nobody else to lend the auot industry the money they need. they need the money due to the extreme finacial absurditites we've seen over the last year.

it is not the the big three's fualt. it's not the fault of individual homeowners either,

it is the fault of the lenders that made the worst possible policy decisions for the last five years.
 
Posted by bdgee on :
 
"the "bailouts" would not be be needed by the auto industry if the financial industry had not collapsed."

YES INDEED!

And if we allow the auto industry in the U.S. to fail, then there will be no heavy industry left that the Nation can turn to in a true fight to the death. It, almost entirely, is what amounted to the overwhelming superiority that created the overpowering ability to wage war by the Allies in the two great wars. Without our industrial strength (read that auto industry), there would have been no victorys at Stalingrad or in North Africa or in the South Pacific or the Battle of Britain ........ and the trench war in Europe would have fallen to Germany long before our own entrance into the Great War.

With that in mind, assessing blame for their current financial status ceases to be important or even pragmatic. The U. S. must, as a matter of national defense (Wall Street's assessment of the financial worth or lack thereof of the auto industry be damned) keep them viable. Blame doesn't count when survival or absolute destruction of the Nation becomes the alternatives.

To hell with the free market's desires or goals! We are talking survival of America.

The great lesson to be learned from the New Deal is that, until political pressures allowed Roosevelt to demand that the auto industry turn its production capabilities to goals other than output of cars, complete recovery from financially created crises was impossible.

Not only must the auto industry be saved, so that we can have the necessary heavy industry to turn to in time of real danger, that industry must be required to participate in more than simply crafting stylish and economical vehicles......diversification and competition in other markets, even if that means doing so under the direction of the government. (green stuff?) The auto industry needn't and shouldn't be allowed to remain just "The American Auto Industry".

(The same workers and factories that design and construct SUVs can manufacture the construction equipment and parts that would be that new electricity grid and production machines that feed that grid. Those engineers that are now styling new body shapes and paints and computers to manage the operation of the internal combustion engines of those SUVs can concentrate on fuel cells and batteries and dynamic breaking and suspension in absolutely green transportation options, including highway safety and design.)
 
Posted by The Bigfoot on :
 
quote:
it is the fault of the lenders that made the worst possible policy decisions for the last five years.
Which is why we should have let the fail, claim bankruptcy, create a panel in each state that goes through the mortgages of any pre-foreclosures and fix the paper if it was unreasonable, and then sell the loans to a responsible lender.

Then go through the rest of their papers and close any and all quasi-legal shelters that they cooked up like they did with the rail car deal.

There should also be a headhunter party out right now looking for the heads of those who defrauded the public, the industry, and the government.

We will not get investors back into the mortgage bond sector until they are sure the junk is out of the system and the lender network is trustworthy. If things were running normal right now a 30 yr mortgage would be running under 5% right now with where the bonds are at currently. And where we at is only because fannie is artificially creating this environment. If individuals were actually participating in that market like they used to the coupon price would be even higher and rates would be even lower.
 
Posted by Propertymanager on :
 
quote:
it's not the fault of individual homeowners either
RIDICULOUS! Of course it is. If a homeowner borrowed more than they could afford, it's their fault! If a homeowner borrowed using ridiculous gimmick introductory rates - it's their fault! If a homeowner refinanced over and over and is now upside down on their loans - it's their fault! They should be foreclosed upon and their house taken away. Likewise, any lender that made these loans and investors who bought this worthless paper are also responsible for their stupidity and they should be also allowed to fail!
 
Posted by glassman on :
 
quote:
Originally posted by Propertymanager:
quote:
it's not the fault of individual homeowners either
RIDICULOUS! Of course it is. If a homeowner borrowed more than they could afford, it's their fault! If a homeowner borrowed using ridiculous gimmick introductory rates - it's their fault! If a homeowner refinanced over and over and is now upside down on their loans - it's their fault! They should be foreclosed upon and their house taken away. Likewise, any lender that made these loans and investors who bought this worthless paper are also responsible for their stupidity and they should be also allowed to fail!
people with money to lend are supposed to protect their/our money. that's why they get the big paychecks. they didn't protect it. so they went to Bush and told him they had to have more or the depression was coming, cuz it was.

you think in two dimensions and you make it clear with every post that you cannot penetrate the veil of illusion that your propagandists have spun for you.

we've been robbed. not just of cash, but of a way of life that the country shared.

in your hate-filled mind? you see poor lazy slobs everywhere, that's the life you chose for yourself.

i see honest hard-working people everywhere that are struggling to earn enough to buy their kids christmas presents, and spend all their spare time trying to help them get athletic scholarships to college cuz that's the only way they are going to get out of labor positions.
 
Posted by Lockman on :
 
I agree with PM. No bailouts! The auto industry will not disappear if GM goes into chapter 11, they will have to reorganize just like any other company with a poor plan.

What our government is doing now is weaking us for future generations.
 
Posted by glassman on :
 
quote:
Originally posted by Lockman:
I agree with PM. No bailouts! The auto industry will not disappear if GM goes into chapter 11, they will have to reorganize just like any other company with a poor plan.

What our government is doing now is weaking us for future generations.

see? you don't understand how many honest restaraunteurs, parts suppliers, subsidiaries and retail merchants will be filing two weeks after they do.

you really think this is caused by individuals borrowing too much on their homes?

Pauslon went to China July '07 and BEGGED the Chinese to lend more mortgage money, they said no... the house of cards collapsed a month later.

everybody WAS saying the Chinese were not very "sophisticated" in their finacial practice. those people saying that sounded like thanksgiving turkeys to me [Big Grin]
 
Posted by Lockman on :
 
quote:
Originally posted by glassman:
quote:
Originally posted by Lockman:
I agree with PM. No bailouts! The auto industry will not disappear if GM goes into chapter 11, they will have to reorganize just like any other company with a poor plan.

What our government is doing now is weaking us for future generations.

see? you don't understand how many honest restaraunteurs and merchants will be filing two weeks after they do.

you really think this is caused by individuals borrowing too much on their homes?

Pauslon went to China July '07 and BEGGED the Chinese to lend more mortgage money, they said no... the house of cards collapsed a month later.

everybody WAS saying the Chinese were not very "sophisticated" in their finacial practice. those people saying that sounded like thanksgiving turkeys to me [Big Grin]

When do the bailouts stop? Every industry in the U.S. is going to be asking for bailouts in the near future. We can screw around and prolong the inevitable but at some point someone is going to have to take a dive. Why not do it now while we still have a viable government to oversee the carnage.
 
Posted by glassman on :
 
When do the bailouts stop? Every industry in the U.S. is going to be asking for bailouts in the near future. We can screw around and prolong the inevitable but at some point someone is going to have to take a dive. Why not do it now while we still have a viable government to oversee the carnage.


they stop when everybody realises that we have to socialise medicine to compete. because we are the ONLY industrialised nation (were industrialised, i don't think we really are anymore) that doesn't have it.

they stop when we put a reasonable import tax on every single thing we import. including fuels.
 
Posted by Lockman on :
 
Why stop with socialized medicine?
Everyone needs a home so why don't we come up with a formula to determine how many square feet of living space we each should be allowed?

Why not just nationalize the auto industry and only make auto's based upon an individuals needs?
We could limit the amount workers are paid and because they no longer have to worry about medical or housing needs everything will be real nice.
 
Posted by Lockman on :
 
Maybe what Chrysler should be doing is showing their plan to investors and see if anyone thinks it's a good enough plan to invest in. That's the way our economy use to work.
 
Posted by glassman on :
 
quote:
Originally posted by Lockman:
Why stop with socialized medicine?
Everyone needs a home so why don't we come up with a formula to determine how many square feet of living space we each should be allowed?

Why not just nationalize the auto industry and only make auto's based upon an individuals needs?
We could limit the amount workers are paid and because they no longer have to worry about medical or housing needs everything will be real nice.

i'm not happy about this stuff either Lock,

but it's too late to close the barn door..

maybe i should point out how many white collar jobs will be lost too?

advertising of all types?

it just doesn't end.

when the kid has an earache you get antibiotics, you don't throw the kid out in the cold to find out how tough they are.

why wasn't anybody pointing out how stupid all this stuff was before the economic engine threw a rod?

in China? most factory workers live in company owned housing (dorms). shop in company owned stores.
kinda like the mining towns here before WW2...
 
Posted by bdgee on :
 
"they stop when we put a reasonable import tax on every single thing we import. including fuels."

Add skilled labor, particularly scientifically skilled labor, to those thing imported!

I cannot count on all the fingers and toes on the hands and feet of a whole crowd of people the Americans I have seen deprived of graduate education in the sciences and engineering or employment therein, so that foreigners could be brought to fill those positions.

That, IU can declare, while having the experience and qualifications to reach a professional judgment that the general and average overall talent, educational development, and talents of those rejected is not less than that of the imported.
 
Posted by glassman on :
 
quote:
Originally posted by bdgee:
"they stop when we put a reasonable import tax on every single thing we import. including fuels."

Add skilled labor, particularly scientifically skilled labor, to those thing imported!

I cannot count on all the fingers and toes on the hands and feet of a whole crowd of people the Americans I have seen deprived of graduate education in the sciences and engineering or employment therein, so that foreigners could be brought to fill those positions.

That, IU can declare, while having the experience and qualifications to reach a professional judgment that the general and average overall talent, educational development, and talents of those rejected is not less than that of the imported.

and that is why i don't hold the GOP strictly individually liable bdgee.

when i have posted here in the past? i have been called a liberal and a socialist. when i associate with ejerkatud libarel tipes? i am called a hick, gorrilla, caveman and even a hillbilly and mountainman by some.

but i have never changed my viewpoint [Wink]
 
Posted by Lockman on :
 
quote:
Originally posted by glassman:
quote:
Originally posted by bdgee:
"they stop when we put a reasonable import tax on every single thing we import. including fuels."

Add skilled labor, particularly scientifically skilled labor, to those thing imported!

I cannot count on all the fingers and toes on the hands and feet of a whole crowd of people the Americans I have seen deprived of graduate education in the sciences and engineering or employment therein, so that foreigners could be brought to fill those positions.

That, IU can declare, while having the experience and qualifications to reach a professional judgment that the general and average overall talent, educational development, and talents of those rejected is not less than that of the imported.

and that is why i don't hold the GOP strictly individually liable bdgee.

when i have posted here in the past? i have been called a liberal and a socialist. when i associate with ejerkatud libarel tipes? i am called a hick, gorrilla, caveman and even a hillbilly and mountainman by some.

but i have never changed my viewpoint [Wink]

Your such a glass blower! LOL
 
Posted by glassman on :
 
liver eating johnson is my ideal role model [Big Grin]
 
Posted by Lockman on :
 
quote:
Originally posted by glassman:
liver eating johnson is my ideal role model [Big Grin]

LMAO
 
Posted by R1 Man on :
 
Hey, Glassman's post summed it all up. I fully agree that its not the people's fault or the big 3. Its the stupid banks that gave money to people over and over...refinancing homes, extending credit to people who are living out of the means. I blaime the government for giving the damn banks all that money too...they shouldn't of bailed out the BANKS!!! They could of giving us all the money and we could pay our bills. But I haven't had time to read my original post just yet. Will read it all at work.

By the way...we only make $30 an hour....we have 1/2 the workforce compared to 10 years ago. We are more productive then ever. We have tons of robots that replaced jobs that people did. That is why the job bank was set up to ensure that the workers have jobs by forcing the company to utilize the workers better. Some robots were needed because some jobs were dangerous. But I feel that a lot of people HATE US and don't understand that we work our butts off every day.
 
Posted by glassman on :
 
But I feel that a lot of people HATE US and don't understand that we work our butts off every day.

IMO? those people that are communicating that? and there's lots of 'em; just hate life in general and want to spread their gloom...

speaking for myself? i do alot of critisizing, but i usually do it with the intent to see some sort of good come of it, even if it's only trying to pry open closed minds [Big Grin]
 
Posted by IMAKEMONEY on :
 
[Roll Eyes] [Roll Eyes] [Roll Eyes] [Roll Eyes] [Roll Eyes] [Roll Eyes] [Big Grin]
 
Posted by bdgee on :
 
I ain't sure you can pry open a closed mind, whatever you have as a pry bar. What seems to work, just every now and then, is to set them to working on trying to justify their most obnoxious notions and that stewing may create enough pressure on the inside to to crack the shell.
 
Posted by IWISHIHAD on :
 
R1 Man, why are you sending me a PM that i should read your report you posted, and that you work at Chrysler?

Is there something i am suppose to see or something that is suppose to be different because you work there or you post a topic?

I already saw it.

I actually own a chrysler and my brother did.

He had so much trouble with his, he said he would never own another one, he sold it at 60,000 miles.

I like mine.
 
Posted by Lockman on :
 
quote:
Originally posted by IWISHIHAD:
R1 Man, why are you sending me a PM that i should read your report you posted, and that you work at Chrysler?

Is there something i am suppose to see or something that is suppose to be different because you work there or you post a topic?

I already saw it.

I actually own a chrysler and my brother did.

He had so much trouble with his, he said he would never own another one, he sold it at 60,000 miles.

I like mine.

I've had two chrysler mini vans... like clock work I needed a new transmission at 80,000 miles.
Seems that's the norm according to the transmission dealer.
 
Posted by raybond on :
 
Whats happening now is just business,

The market cannot support all the auto manufactuers so somebody has to go.

The population of the country did not make weak market conditions.

I don't think a chapter 11 will damage the image of any of the big three anymore than begging for money.

Its to late for our auto industry to say I am sorry for the way they did business and what they did with there money.

As far as I am concerned if they need money sell thier foriegn assettes and stay in business here or go broke.
 
Posted by IWISHIHAD on :
 
Quote Lockman:

"I've had two chrysler mini vans... like clock work I needed a new transmission at 80,000 miles.
Seems that's the norm according to the transmission dealer."

__________________________________________________

That's funny, mine went out at 83,000, wait maybe that isn't so funny.

To think they use to have one of the best transmissions made... Torqflite


-
 
Posted by raybond on :
 
I had a dodge product once a dodge aspen brand new in 1978.

And I could not dump it fast enough, I knew it was not a Rolls Royce but the damn thing could not even get me back and forth to work.
 
Posted by IWISHIHAD on :
 
http://www.latimes.com/business/la-fi-chrysler-dealers9-2009jun09,0,5596063.stor y
 
Posted by moremula on :
 
Out of curiousity, what is the mark up on a new vehicle vs the actual cost to produce. I know it varys from brand to brand just wondering if the standard is like 30%, 40%
 
Posted by raybond on :
 
The mark up on domestic cars from msrp to invoice depending on the amount of extra options are on the car is 8 to 17 percent. This does not inclus holdback ,dealer cash,or rebates which are really manufactuors incentives,but they do lower the price of the vehicle
 
Posted by R1 Man on :
 
I found out today that they locked the contract rules on STRIKE. We can no longer go on strike until 2024. Geez....guess they can say we can all make $10 a hour and eat a fat D*CK and all we can do is say...not fair and quit. Hmmm....but the clause says they can adjust wages to be competetive. So Honda and Toyota lower their wages...Chrysler can lower mine.

Now when we voted on the concessions...they never once said we had the no strike clause. I think the union is PRO-MANAGEMENT!!!
 
Posted by Pagan on :
 
quote:
Originally posted by R1 Man:
I found out today that they locked the contract rules on STRIKE. We can no longer go on strike until 2024. Geez....guess they can say we can all make $10 a hour and eat a fat D*CK and all we can do is say...not fair and quit. Hmmm....but the clause says they can adjust wages to be competetive. So Honda and Toyota lower their wages...Chrysler can lower mine.

Now when we voted on the concessions...they never once said we had the no strike clause. I think the union is PRO-MANAGEMENT!!!

As they should be. The Unions saw the end game, make concessions or fade away. IMO, it was either do or die with the auto unions. At least people still have jobs.
 
Posted by retiredat49 on :
 
Yeah...at least people have jobs...

Too bad that those jobs no longer pay a living wage...

Your wage cut will be coming soon Pagan...
 
Posted by Pagan on :
 
quote:
Originally posted by retiredat49:
Yeah...at least people have jobs...

Too bad that those jobs no longer pay a living wage...

Your wage cut will be coming soon Pagan...

Ahhh....sooo sorrry dude. I don't have to work anymore. Better luck next time on that. LOL!
 
Posted by IWISHIHAD on :
 
This thing sticks the more i read about it.

Can't put it all together yet, but i think we have been had even more than we can realize yet.

People wanting to buy any franchise are going to have to think real hard about doing it anymore, just because the decisions made here.

Does anyone know how much these franchises cost?
 
Posted by Lockman on :
 
quote:
Originally posted by Pagan:
quote:
Originally posted by retiredat49:
Yeah...at least people have jobs...

Too bad that those jobs no longer pay a living wage...

Your wage cut will be coming soon Pagan...

Ahhh....sooo sorrry dude. I don't have to work anymore. Better luck next time on that. LOL!
You don't have yo work? Retired?
 
Posted by IWISHIHAD on :
 
"Chrysler contends that it must reduce its dealer ranks to return to viability, pointing out that competitors such as Toyota have far fewer dealers yet sell more cars. Reducing its number of dealers, the automaker says, will allow the remaining locations to operate more profitably and provide better customer service."

_________________________________________________


Does having fewer dealers really have anything to do with selling more cars or did it have to do with Toyota having a better reputation.

Sure seems like the opposite would be true... more dealers more cars sold.

Isn't that why many of these automakers put these auto malls together?

Why would less dealers make better customer service?

Seems like customer service usually has to do with customer service and the particular dealer.

If you think of a typical theory involving this idea, the more competition the more they fight to get your business, so you should get better customer service, in theory.

Isn't that why we do not want monopolies, to prevent companies from controling markets, prices etc.

Plus the more the dealers the easier it is to find one closer to you.

Just doesn't seem like these are very good arguments for some judge to consider strong information, especially considering the magnitude of the case.

It seems to go on and on.
 
Posted by retiredat49 on :
 
quote:
Originally posted by Pagan:
quote:
Originally posted by retiredat49:
Yeah...at least people have jobs...

Too bad that those jobs no longer pay a living wage...

Your wage cut will be coming soon Pagan...

Ahhh....sooo sorrry dude. I don't have to work anymore. Better luck next time on that. LOL!
Good for you...

the fact remains that the wage and benefit cuts being forced on the middle class, will surely affect some of your friends, family, & neighbors...what do you say to them?
Sooo sorry...it doesn't affect ME

I could understand your negativity towards unions if you were akin to the far right, but the majority of your posts here lead me to believe otherwise...

You are SERIOUSLY misinformed about unions and what they have done for the working class in this country...
 
Posted by R1 Man on :
 
Wish....I can fully agree with you but I can see some arguement in it. I just like Retiredat49 live in Detroit area. I don't know how many GM/Chrysler dealerships are here but the Ford commercials brag about the 31 metro detroit dealerships. So lets say this...there are more F dealerships then Mercury. Saturn is seperate from a GM dealership. GM sells more cars nationally then F or Chrysler. Chrysler has just as many Dodge dealerships as Chrysler/Jeep. Ford and Mercury are identical cars....Taurus/Sable....Expedition/Navigator. Chrysler and Dodge are not nearly the same except....Town and country/Caravan. GM has some cars that look almost identical...Malibu/Impalla....Trailblazer/Envoy...etc. I think these auto makers need to cut Mercury/GMC. Chrysler is hard because Dodge trucks are big sellers so Dodge has a good reputation. But who knows.

But getting back to your point. IWish...living here we constantly try to play dealerships against each other. Now they do have some rules like I can't bring an ad in from more then 50 miles....or whatever it is. But having all these cities all crammed together where you can drive through them all in a hours time...make it tons of competition. I think they need to cut the dealerships where they have a horde of them. But same point is they MUST make the remaining dealerships bigger then with more mechanics to pick up the slack of customer service goes to crap. I think they want to kill the incentive wars. Toyota/Honda/Nissan never offered nearly what US auto makers did in incentives. I think they match it by half....so the profit margins were higher.

So to answer someone question about profit per vehicle.

My plant makes the Dodge Ram and Dodge Dakota. Each truck we makes pays my plant $1,000. Each truck also profits $7,000....so they say. Now if that is the case....we are making the new Rams and some of them cost $58,000+. That is a lot of money...its like buying a 2nd house almost. Now the Rams back in 2004 when they brought back the HEMI....well, they were selling them for $36,0000-45,000+. Today you can but a 2008 for around $22,000 built exactly the same options as the 2004. So that leads me to believe the $7,000 profit is a SCAM. I don't think its possible to know for sure. I saw a sheet on how much the metal costs per door, tailgate, etc and the costs for the metal for the entire CAB/BED. Its around $1,450 for the complete TRIM. A truck has 2 lines. TRIM and CHASSIE. Trim is everything you sit inside...including the box. Chassie is the Engine/Transmission/Suspension/etc. Well, with the Bare TRIM its $1,450. I'm guessing as others at work have...we assume the cost to build a Truck is around $5,000-7,000. We have 2,200 workers divided by 2 shifts. So 1,100 workers on a whole shift. We build 450 trucks on a 8 hour shift. So take 1,100 and divide it by 450. You get 2.44. Multiply that by 8 hours and $30 a hour. You get $586.66 labor cost per truck at my plant per vehicle. They get $1,000 back per truck. So my plant makes a profit of $313,000 per working day minus energy/part costs/etc. I think they make a killing on the cars/SUVs/Trucks. I would say they mark it up 40-120% depending on the demand for the car/truck/SUV at the current time. Think back to what I said...same truck sold for $36-45k...now can sell for $22k which they still make a profit. The extra is 63-104% mark-up on top of what they are selling them for. And they said we didn't make any money then...whatever!!!

Sorry for the educational lecture. Hope I answered your question the best of my ability...but all that crap about high labor costs is a crock of you know what. Some of the figures they came up with were as high as $87 per hour. I would take $87 per hour with no benefits period over $30 with benefits. Come on now....someone was adding some ZERO's to the numbers....or did they add the CEO/Executives bonuses in with the hourly costs and cry wolf????
 
Posted by IWISHIHAD on :
 
I have never been there, sounds different than here, we have a lot of dealers, but generally there spread pretty good, at least as i see it.

A freind of mine keeps trying to get me back there, he has a place on one of the rivers a few hours from Detroit. Most of his family works or worked for Ford.

Are there a lot of francised dealers or are many factory dealers. It easy if there factory ones, because they did not have to pay the francise fee, they lose nothing.

But i think the new owners are making sure they could eliminate what they want before buying, thus forcing these judges to rule in their favor.

From what i am gathering there are both and somehow i think the independents must have been protected, otherwise it seems they would not have had to rule on it.

I see things in a few years getting back to same o same o when it comes to the top guys taking big chunks out of these companies, many still do, except this time there might be more there, with less costs.

Nothing changes for the middle and lower class except less. And not just in the auto industry.

We need big changes here or were not going anywhere in the longer run, but i guess we have to take a step at a time, hopefully there going to be the right steps, i really have my doubts.

We need another new major industry to set us going again, like when the computor was new.

Or we need to close off a lot more.
 


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