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Is Chrysler/Jeep Doomed?


glundblad
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Our wonderful government has decided that Chrysler has been "hollowed out" by it's previous owner and can no longer stand on it's own. So now they are relying on Fiat to keep it afloat?

 

I am 46 years old and remember very well when Fiat had a greater presence in the US than they do today. I can think of no worse designed and built cars than Fiats. The spider had visual appeal but the build quality and design quality were toward the bottom of the heap.

 

I had a friend that had two of them. A 124 and then a spider. He was always stranded. One time he was driving through a housing addition and his wheel fell off (and I don't mean the lug nuts came off).

 

I remember reading an article a few years back about inexpensive collectible sports cars from the '70's & '80s. Datsun 240z/280z, Triumph Tr6, Spitfire. There were several. In the article, their short list of bad choices were "Any Fiat".

 

I am very discouraged with where Jeep seems to be headed. My feeling is if the Fiat deal falls through and Chrysler is liquadated, perhaps another company will pick up the Jeep brand. They have been bought and sold many times throughout their history and I believe the Jeep brand has the most appeal of any Chrysler product (although I am a bit bias).

 

I am almost rooting against the Fiat partnership. I am curious if anyone else has similar opinions of Fiat? FIAT. Eeek. :grrrr:

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Think about what cars Chrysler was building back then. Or any manufacturer as far as that goes. Couldn't say I would favorably compare an Aries K with a Hemi 300C. Things can change, and Chrysler needs small fuel efficient cars to sell. I think the Fiat move is the best scenario to keep Chrysler Jeep afloat as a unit.

What will appeal to the gov'nment is that Fiat wants to manufacture in the states, using now shuttered Chrysler plants, and workers. CAFE standards will be in the 30 mpg range in just a couple of years, and Chrysler currently has no vehicles that get that. Importing a few Fiat models (prior to local manufacture) will allow Chrysler to cease production on losers like the Caliber, Compass, Patriot triplets, and the Sebring/ Avenger twins that have been flops (although I happen to like them).

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Iagree with JOe...this is ag ood thing. FIAT is actually a pretty strong corporation and with their stated willingness to bring manufacturing to the US, it will be a good shot in the arm. IF this doesn't happen, and Chrysler is forced in to Chapter 11, there will be A LOT more people on the unemployment payroll like me.

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i don't think anyone can mess up jeep anymore then what chrysler has already. compass?? commander?? C'Mon! and fiat is a division of nissan, which is great news for a 4wheel drive vehicle. i like the idea of fiat buying out jeep, its the best solution if we want to see the jeep brand continue. and if the mess up.... oh well, they havent made a "real" jeep in the last 5 years. jeep is already gone.

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Giffer... where did you get the info that Fiat is a division of Nissan?? I don't think that is correct. I do know that Chrysler has a deal with Nissan right now for a couple of vehicles in the near future, and that that particular deal has nothing to do with the Fiat deal, but I do not beleive the Fiat is a division of Nissan. Wouldnt it just be then that Nissan is taking over Chrysler??? I don't think so. Fiat is its own company based in Italy, and some rebadged Fiats are exactly what Chryco needs to get their CAFE standards in line with everyone else. I for one can't wait to see what they would bring to the states!

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The deal with Fiat can't possibly be any worse than AMC's deal with Renault, and Fiat cars aren't any worse than Renaults were. As I understand it, the initial deal will give Fiat a 40% stake in Chrysler. That's not a controlling interest, so it's not the end of the universe. Hopefully, sane minds will prevail and somebody will remember what a Jeep is and why people used to want to buy a Jeep -- as opposed to a "Jeep."

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As I had indicated in my 'The price is right' thread, I don't believe the US Government really cares who buys them, they just want someone on the hook for the taxpayer dollars (so they can tell the taxpayers they are spending the money wisely).

 

Fiat is just the ticket, because if they succeed the government looks like a hero for 'saving a failing company', and if they fail then the goverment can take over the company under the excuse they are taking care of the investment. That is when you'll really need to moan about Chryco's fate....

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The purpose here for Fiat is not to buy Chrysler or even take on any of Chrysler's debt, it is to take a few unused or under utilized Chrysler plants and make Fiats here, for sale here. Nothing more. If the deal goes through, Fiat ends up with 35% of Chrysler which could go to 55% in a few years. Mecedes already owns 20% of Chrysler and the US made MB Sprinter van is the only bright spot here.

 

Fiat does know right now how to make decent small cars and trucks that get good gas or diesel mileage, Chrylser does not.

 

Chrysler is hampered by the same things that the other US carmakers are dealing with....UAW contracts negotiated when the market was booming, health care cost for employees/retired employees, and a weak economy where car buyers are few. And even fewer are buying big honker trucks and cars that get poor mileage or are pooly crafted. Why would you?

 

When we enacted the "chicken tax" a 25% tariff on imported trucks back in the 60's to protect American Car Makers, the American makers just raised thieir prices because they could. Sorry, but you reap what you sow.

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