Good Auto News: Chrysler Restarts Production, Ford Confirms Profit Plans

As the 2009 recovery gets underway, Chrysler and Ford (F) may be leading renewed optimism for US automakers.

About a week after emerging from bankruptcy protection and finalizing a deal with the Fiat Group, Chrysler confirmed on Wednesday that the company plans to resume production of vehicles at seven assembly plants in the US, Canada, and Mexico by the week of June 29. Two facilities are in Michigan, one in Missouri and another in Ohio. Three other assembly plants are in Canada and Mexico.

The Dodge Viper's Conner Avenue factory in Detroit reopened on Monday,

"A restart of production at other Chrysler assembly plants will be announced at a later date," the company said in a statement. Chrysler had shut down all of its North American operations for a period of two months as it entered Chapter 11 bankruptcy protection in May.

Separately Ford's (F) CEO Alan Mulally stated that his firm is on track to get back to profitability. "Over the last couple of months we’ve reduced our debt by over $10 billion, we also (on the strength of our business plan) went to the equity markets and raised over $1.6 billion in fresh equity... so we’ll continue to look for opportunities along the way here (as we march back to profitability) to improve the balance sheet."

These among other developments will likely continue to have positive implications for an improved employment picture in the US.

Comments

[303820:]

The good news will be short lived ...unless Americans start to buy american!!!!!!!!

Jun 18 10:24 AM

[Jeff B.:]

OH thank God!
There has been considerable civil unrest in my neighborhood over the inability to purchase new Chrysler vehicles. How have we managed with more new cars rated lowest in reliability, customer satisfaction, etc by every major auto publication & consumer group?
Especially since Chrysler has now told its past customers that it will no longer honor any defect claims for their past vehicles, that should send people back to Chrysler dealerships in droves!
Mark my words, before the end of the year, Chrylser/FIAT will have thier hands out for more taxpayer dollars or be liquidated.

Jun 18 11:13 AM

[User 428448:]

Apparently bankrupcy is the new fashion. Just tell your creditors to forget and forgive every few years and then throw a party and go out and buy all new stuff! It works for big business, why not for all of us (at least all who voted for Obama)?

Jun 18 01:08 PM

[Speedzzter:]

Interesting that the first assembly plant "Fix-It-Again-Tony-Chr... Group" is reopening in the VIPER PLANT!

More than likely there's a backlog of orders for Vipers, anticipating that the model and the plant that builds it will be short-lived.

Of course, limited production Vipers ought to be nearly pure profit machines for "FIAT-C Group" and they need to get busy building as many as current CAFE averages will allow before the 2012-2016 CAFE hikes kill off the 600+ h.p. sports car niche forever.

Jun 18 01:32 PM

[cynnatalie2000:]

FIAT has stood for "Fix It Again Tony" for so many years. Chrysler now has a Detroit stigma, a UAW stigma, a bankruptcy stigma, the stigma of hundreds of closed dealers, and a FIAT stigma.

It is hard to imagine anyone buying a Chrysler without a giant rebate and free financing. That giant rebate will have to grow much bigger for anyone to touch a Chrysler prodct.

Jun 18 03:49 PM

[violet:]

Why are you people so against the American car companies?They are not the ones who put us in the shape we are in , it was the banksand insurance co.Listen up people without our American car co. we can all kiss are A--es good bye. Their wont be a America

Jun 18 07:22 PM

[303820:]

would some one please explain to me what's the problem with buying American?

Jun 18 10:21 PM

[Jobu37:]

The pro import groups would say that you should buy imports because they are better cars and that you should not support the failed American companies. Essentially you should reward the companies that have done what it takes to make the best product.

However, the best products are no longer imports. GM and especially Ford have improved their products to the point that they match the best the imports have to offer and in many cases with Ford they have surpassed the imports.

The market has evolved into one in which you can buy the highest quality vehicles from American manufacturers for less money but import loyalists are resistant to accept it.

Having acknowledged the gains that GM and Ford have made it is important to point out that not all American manufacturers are the same. Chrysler essentially lags everyone in any metrics used to judge an auto manufacturer. They exist on fleet sales and heavily discounted retail sales that drive down the transaction prices for the two brands that are most often cross shopped with them, GM and Ford. The worse thing that could happen to the overall industry is the re-opening of any Chrysler plant other than the Jeep Wrangler plant since they will basically go back to pushing product on the market that is not being pulled by true consumer demand. That may not be entirely true, there are always going to be people that demand the cheapest thing they can get their hands on regardless of quality and in this arena Chrysler competes very well with the Kias, Suzukis and Hyundais of the world. The difference being that Kia and Hyundai are actually starting to put out good product and they are heavily discounting to establish marketshare.

In short if Chrysler's capacity were gone everybody in the industry would benefit via higher transaction prices. The downside would be the effect on overall unemployment and the fact that consumers would be paying more for cars. However, consumers should be required to pay at least what it costs to produce an automobile.



On Jun 18 10:21 PM 303820 wrote:

> would some one please explain to me what's the problem with buying
> American?

Jun 19 08:04 AM

[The Betsy:]

Already did! So did many other motorists around here. We are everywhere!!!! Keep it up!!


On Jun 18 10:24 AM 303820 wrote:

> The good news will be short lived ...unless Americans start to buy
> american!!!!!!!!

Jun 19 04:46 PM

[The Betsy:]

It's hard to imagine any of the lower and middle class affording or buying ANY cars without financial aid / incentives in today's torched economy. Still recovering from third-degree burns of the last eight years, I'm glad the incentives were there for me. If you haven't test-driven a Chrysler or GM product lately, do so. I will never trust Consumer Reports again without test-driving and thoroughly investigating on my own. Do your own research whenever you can. Honest journalism is almost all gone.


On Jun 18 03:49 PM cynnatalie2000 wrote:

> FIAT has stood for "Fix It Again Tony" for so many years. Chrysler
> now has a Detroit stigma, a UAW stigma, a bankruptcy stigma, the
> stigma of hundreds of closed dealers, and a FIAT stigma.
>
> It is hard to imagine anyone buying a Chrysler without a giant rebate
> and free financing. That giant rebate will have to grow much bigger
> for anyone to touch a Chrysler prodct.

Jun 19 05:43 PM

[buoy:]

Everything Chysler has done, past and present, has been "bad business", It will take a miracle to turn that around in the eyes of consumers, dealers, creditors and investors.

Jun 20 03:01 PM

[sethmcs:]

Toyota and Honda make the ugliest cars I have ever seen. Fuel is the cheapest thing you put into a car. Give me a 5,500 lbs Lincoln Town car every time.

Jun 22 12:50 AM