Providence Journal - Subscribe Now & Get Our Latest Offer
1

Cars Blog

Problems of old Chrysler linger at 'new' Chrysler

Comments  | Recommend
June 11, 2009 9:10 am
By Peter C. T. Elsworth

DETROIT -- Chrysler may have been granted a fresh start, but it still faces old problems: how to sell enough cars and realign its fleet away from the trucks and SUVs consumers seem to no longer want or be able to afford, according to The Associated Press.

A 42-day stay in bankruptcy court cleansed the company of much of its debt and labor costs, but many analysts say Chrysler's immediate future is bleak. It lost $8 billion in 2008, and sales are down by almost half for the first five months of this year.

Chrysler has few new vehicles headed to its drastically reduced network of dealers. Its aging model lineup is still heavy with bigger vehicles, and its offerings in the growing small and midsize markets haven't caught on.

Meanwhile, small cars designed by new Italian parent Fiat Group SpA won't make it to U.S. shores until late next year and there are no guarantees they will entice great numbers of American drivers.


Share Your Thoughts
Guidelines: We welcome your thoughts, but for the sake of all readers, please refrain from the use of obscenities, personal attacks or racial slurs. All comments are subject to our terms of service and may be removed. Repeat offenders may lose commenting privileges.
Providence Journal - Subscribe Now & Get Our Latest Offer
MOST COMMENTED