Chrysler

GM & Chrysler hold merger talks

Published by G

General Motors has held discussions about acquiring Chrysler, The New York Times and Wall Street Journal reported late Friday.

The talks between GM and Cerberus Capital Management, which owns Chrysler, began more than a month ago, the Times reported on its Web site.

The Journal reported that the talks were “rendered inactive” because of the upheaval in financial markets but that people familiar with the developments said the talks could be revived quickly if markets stabilize.

Two people close to the talks told the Times the chances of a merger were “50-50.”

Sources:
From MSNBC
FULL Article from NY Times

“Holy Auto Merger Batman!” Can you imagine how things will turn out if this happens…will GM quality drop to Chrysler standards? Or will Chrysler quality raise to GM standards? Or perhaps they are both too low to matter? Either way they shakes out, I am suspecting that GM may be on the verge of pulling out of leasing completely.

Quality Issues at Chrysler? Yes Indeed!

Published by G

From the AP…

TRAVERSE CITY, Michigan – Chrysler LLC’s manufacturing chief says the company is working with great energy and speed to fix its quality problems, but the payoff hasn’t shown up yet in external quality studies.

Frank Ewasyshyn, executive vice president of manufacturing, said Monday that many problems reported in such studies have to do with perceived quality issues, such as ride and handling, or interiors with too many hard surfaces. In each case, the company is working hard to fix the problems, he said.

The number of actual mechanical problems has dropped and is much lower than it has been in the past, he said.

FULL ARTICLE

No surprise there! This reminds me, some time ago, I got a video clip from BOUNCEwithB, one of our fellow contributors, showing us first hand what “Quality” issues Mr Frank Ewasyshyn is talking about. I’ll get around to posting that video, so bare with me. Definitely worthwhile!  In a way, I feel bad kicking them while they are down, but “Quality” seems to be the forgotten word when times are good. That goes for pretty much every manufacturer.

Chrysler Leaving Auto Leasing Business

Published by G

It’s official! Chrysler is no longer leasing cars to the general public. Am I surprised? Not really, their lease rates have been notoriously horrendous because they offer the worse  MF/RV combination you could possibly hope for. Chrysler has relied heavily on cash rebates to move their cars, which explains why they don’t finance leases too well.  I suspect the main reason for this move is due to Chrysler’s inability to resale their lease returns since they make such poor cars. For those who still want to lease Chryslers, you can lease them through private lenders such as Leasecompare.com. At times, they even have better rates than the manufacturer’s captive bank.

Here is a brief insert of the article from Yahoo News.

“DETROIT – Chrysler LLC said Friday its financial arm will get out of the auto leasing business by the end of the month because economic conditions have made leasing more expensive than buying, for both consumers and the company.

The move comes as Chrysler Financial is in the process of renewing a $30 billion credit line with banks amid a startling drop in values for leased trucks and sport utility vehicles that are coming back to automakers as leases end.”

Leasing isn’t supposed to be more expensive than buying. Unfortunately, that is the case with in Chrysler and their horrible rates. What really worries me about the entire thing is that due to the economy, automakers will probably make leasing more expensive, forcing us to buy their vehicles. I hope this is not a trend-setting move by Chrysler because it would spell bad news for those of us that enjoy leasing cars.

“Let’s Refuel America”, Scam or Great Deal?

Published by G

By now, most of you have probably heard about the Chrysler’s “Let’s Refuel America” program, were they lock-in the price of gas at $2.99 for 3 years if you purchase or lease a Chrysler vehicle. The concept is not bad, specially with out gas prices going up 10 to 20 cents a week. Even with a 708 gallon per year cap, the deal is still not terrible. Here in lies the problem, Chrysler is not know to lease cars for low MF and their vehicles have poor residual values. So if you think about it, the “savings” you get from the “Let’s Refuel America” program are pretty meaningless.  Certainly, this deal only works for people who pay cash for their cars or get that 0% financing or get hefty cash incentives. But then, you’ll have to BUY the car. For us lesses, its pretty much pointless and borderline “scammy”.

For more information on the “Let’s Refuel America” program, CLICK HERE.