Ram ecodiesel problems?
After doing a little research with a buddy of mine that was thinking of buying a new Ram with the ecodiesel... I thought they were doing pretty good? This was just some of the highlights. I think if a...
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An interesting article to read:
Jan. 2 (Bloomberg) -- Fiat SpA secured full ownership of Chrysler Group LLC in a $4.35 billion agreement that will conserve the Italian company*s cash while creating a global carmaker with better scale to take on General Motors Co.
Including earlier purchases of holdings from the U.S. and Canadian governments, Fiat*s spending on Chrysler stakes will total $3.7 billion. That compares with the $36 billion that the then Daimler-Benz AG paid for the U.S. company in 1998.
The DaimlerChrysler combination unraveled in 2007, when Cerberus Capital Management LP bought 80 percent of Chrysler for $7.4 billion. During its nine years of ownership by the Stuttgart, Germany-based maker of Mercedes-Benz luxury cars, Chrysler posted annual profits of as much as $5 billion and losses almost as large.
Chrysler and Fiat together delivered 4 million vehicles worldwide in 2012. That compares with 9.07 million vehicles sold by Wolfsburg, Germany-based VW, 9.3 million by GM and 9.75 million by Japanese competitor Toyota Motor Corp., according to Bloomberg Industries data. Marchionne estimated in June that a merged Fiat and Chrysler will rank seventh in global deliveries.
Fiat already relies on Chrysler to sustain profit amid losses in Europe, where the car market has fallen to a two-decade low. Group net income, including minority holdings, totaled 1.41 billion euros in 2012. Without Chrysler, Fiat would have posted a 1.04 billion-euro loss.
What it means:
Note that Daimler paid 36 billion for Chrysler in 1998 and then 80% of Chrysler now majorally owned by Cerberus since 2007 to Fiat of Italy for 7.4 billion as it was a huge financial loser and cost Daimler/Cerberus billions each year instead of being profitable. Guess who took it in the shorts? Fiat today continues to lose billions each month in Europe and is relying on the Chrysler Group LLC of Fiat Chrysler to inch along and with the hoping that the European sales do not continue on its downward spiral as the losses will exceed the profits gained by Chrysler Group LLC. The present Chrysler profits are needed and should they drop off, there will be an unsustainable finamcial crisis created at Fiat SpA.
With 4 million vehicles sold each year by Fiat/Chrysler while their competition only of the top 3 sells over 28 million vehicles (each with more than 9 million vehicles) and that doesn't even include Ford Motor Corporation which also dwarfs Fiat Chrysler. The fact remains that Fiat Chrysler (Fiat SpA) is very insignificant in the automotive industry in reality and is walking on eggs financially. Even when includinding the Chrysler sales increases as of Jan 1, 2015, the best Fiat Chrysler can muster is 7th place among the automotive manufacturers. All these new very numerous recalls including on the Eco Diesel are not going to help Fiat Chrysler's bottomline nor it's sales.
Jan. 2 (Bloomberg) -- Fiat SpA secured full ownership of Chrysler Group LLC in a $4.35 billion agreement that will conserve the Italian company*s cash while creating a global carmaker with better scale to take on General Motors Co.
Including earlier purchases of holdings from the U.S. and Canadian governments, Fiat*s spending on Chrysler stakes will total $3.7 billion. That compares with the $36 billion that the then Daimler-Benz AG paid for the U.S. company in 1998.
The DaimlerChrysler combination unraveled in 2007, when Cerberus Capital Management LP bought 80 percent of Chrysler for $7.4 billion. During its nine years of ownership by the Stuttgart, Germany-based maker of Mercedes-Benz luxury cars, Chrysler posted annual profits of as much as $5 billion and losses almost as large.
Chrysler and Fiat together delivered 4 million vehicles worldwide in 2012. That compares with 9.07 million vehicles sold by Wolfsburg, Germany-based VW, 9.3 million by GM and 9.75 million by Japanese competitor Toyota Motor Corp., according to Bloomberg Industries data. Marchionne estimated in June that a merged Fiat and Chrysler will rank seventh in global deliveries.
Fiat already relies on Chrysler to sustain profit amid losses in Europe, where the car market has fallen to a two-decade low. Group net income, including minority holdings, totaled 1.41 billion euros in 2012. Without Chrysler, Fiat would have posted a 1.04 billion-euro loss.
What it means:
Note that Daimler paid 36 billion for Chrysler in 1998 and then 80% of Chrysler now majorally owned by Cerberus since 2007 to Fiat of Italy for 7.4 billion as it was a huge financial loser and cost Daimler/Cerberus billions each year instead of being profitable. Guess who took it in the shorts? Fiat today continues to lose billions each month in Europe and is relying on the Chrysler Group LLC of Fiat Chrysler to inch along and with the hoping that the European sales do not continue on its downward spiral as the losses will exceed the profits gained by Chrysler Group LLC. The present Chrysler profits are needed and should they drop off, there will be an unsustainable finamcial crisis created at Fiat SpA.
With 4 million vehicles sold each year by Fiat/Chrysler while their competition only of the top 3 sells over 28 million vehicles (each with more than 9 million vehicles) and that doesn't even include Ford Motor Corporation which also dwarfs Fiat Chrysler. The fact remains that Fiat Chrysler (Fiat SpA) is very insignificant in the automotive industry in reality and is walking on eggs financially. Even when includinding the Chrysler sales increases as of Jan 1, 2015, the best Fiat Chrysler can muster is 7th place among the automotive manufacturers. All these new very numerous recalls including on the Eco Diesel are not going to help Fiat Chrysler's bottomline nor it's sales.
