Chrysler heading down the Chapter 11 walk to restructuring the company assets to begin hopeful turnaround? I’m not so sure that is going to happen, the turn around that is. Yes, they have done it before but that was in a total different environment. It can’t be a fun walk by the way and I do feel for everyone at Chrysler.
Chrysler like many other companies especially the U.S. automakers reminds me of our current economy. They didn’t recognize the changes to the industry until it was too late. When foreign car makers started making strong in roads in the U.S market in the 70’s, those companies have basically stayed with what got them to the dance and now dominance. The built regular size cars, that got good miles per gallon, were reliable vehicles and priced right. The other big key for them, I believe is that they had a brand or two and very few models along with very few bells and whistles that could be added.
For many years almost all U.S. car companies kept making new brands, new models and yes, you need that to stay fresh to a point. What the car makers really needed was to take a hard line stance on the UAW. I am not against unions by no means but year after year when your business keeps losing market share and you (the union) keeps asking for more, eventually something has to give.
When the United States and most of its people spend more than they make, something has to give. That is where we are at today. This is not a happy day to see Chrysler head down this walk because other companies will suffer both short term and long term. I don’t think they will come out of Chapter 11. I think total bankruptcy or sell off is next. They had a hard enough time selling cars before. I certainly don’t think you know a lot of people that will be running out today to buy one. I wish them luck.
This article has nothing to do with gas or diesel fuel unless you connect the dots that say Chrysler vehicles run on those fuels. New fuel news and fuel information coming soon. May’s newsletter will be out Tuesday.
Sokolis is a fuel management & fuel consulting company that can be reached at www.sokolisgroup.com or 267-482-6155.
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