travelnutz wrote:
FCA's ultimate short term existence will depend on you blind suckers throwing ever higher purchase dollars at them and must continue with those who are born each day. However, the financial guru's sure don't see it that way. As what has been posted by the respected financial reporters and institutions now for months is that FCA's long term debt is unsustainable and it's only a matter of time before FCA's bankruptcy unless another sucker is willing to throw money at FCA and subsidize them on any expenses going forward.
Few are stupid enough to jump into that and given the long term track record established by Chrysler and Fiat over the last 50+ years, it's would be akin to jumping off the Empire State Building with the sure results from the sudden stop at the ground!
Selling a product at such a low profit level while the corporation's long tern debt continues to increase raises the finacial risk which vastly increases interests rates. A death spiral that's unavoidable! So many posters on this thread clearly do NOT understand at all how corporate financial structures function and servicing long term debt, yet give off-the-wall writings that don't cut it. Obviously they do not own or have owned a larger business with many employees and accrued ongoing related business costs and liabilities.
Money doesn't grow on trees and only comes from the actual competitive products, goods, and services produced by the business operation. Easy when your true profit is high, 6%+ with very low long term debt or zero long term debt, but almost impossible with appreciable long term debt and/or low profitability with constantly rising expenses. So many on this thread with "champange tastes" and only having a "tap water" budget!!! Stay tuned an education will be free if some haven't noticed the thousands of businesses that have cloed, gone bankrupt, sold, moved totally offshore, etc over the last 25-30 years... FCA is in major trouble and is seeking a way of survival but had burnt their bridges behind them so many time already and have a very bleak future at best. Even the Fiat Family wants OUT as has been posted many times and why do you supposed that is???
