Financial problems are looming for The Chrysler Group of DCX. Here's the story.

 

They really dug themselves into a hole by not cutting production of their bigger vehicles. This is going to kill them and their dealers dearly.

 

Ouch.

 

They have Mercedes to bail them out.

 

Precisely. And Mercedes is, I believe, profitable again with products back on the upswing.

 

I'm sure with the Challenger and other new models for 08 they'll rebound

 

It was bound to happen. I'm honestly somewhat surprised it's taken this long.

 

Yep, you nailed that one. http://www.cnn.com/2006/BUSINESS/07/....ap/index.html

 

The Challenger's going to be too low-volume to be anything other thana Halo vehicle. While Halos are great, Ford's experience with the GT shows it's not enough to rely on them to reignite sales. If anything saves the Chrysler side of the coin it will be nwe crossovers and other volume models.

They have a similar situation to Ford, though DCX is better off, where the American-branded NA operation is bleeding cash while the European brands are doing quite well worldwide. This is why I believe Ford will be allright even if NA struggles for a few more years, Europe will buy them time (especially if Jaguar gets back in the black with its new lineup).

 

The XK better pull it's weight, bring in some cash so we they can redesign the XJ..and this time, maybe the new MY of it wont look like the last...what..15 MY?

 

More important for Jag is the S-class replacement, which is immenient, and doing something about the X-type. The XJ just needs a re-style, mechanically its a great car.