Product Hits Keep Chrysler Plants at Full Capacity While Ford and GM Struggle

Discussion in 'OT Driven' started by TriShield, Dec 27, 2005.

  1. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    North American factories will be at capacity for first time since 1999

    [​IMG]
    Chrysler will keep the hits coming

    December 20, 2005
    BLOOMBERG

    DaimlerChrysler AG's Chrysler Group will operate its North American factories at full capacity for the first time since 1999 as 10 new models help increase U.S. market share, the unit's chief said.

    New products such as the Dodge Caliber small car made in Belvidere, Ill., will allow the automaker to fill up extra capacity next year, Chrysler CEO and President Tom LaSorda said in an interview in New York on Monday. Chrysler executives expect the automaker to gain U.S. market share in 2005 for the second year in a row following five years of declines.

    "Chrysler is Exhibit A for being able to revive a brand with good product," said Rebecca Lindland, an analyst for Lexington, Mass.-based Global Insight Inc. "This just proves that a successful product can really help to turn the business around."

    DaimlerChrysler is relying on new Chrysler vehicles to boost profit amid losses at its Mercedes-Benz unit. Chrysler was the only U.S.-based automaker to increase sales in the U.S. this year through November, gaining 5.4%. The unit's operating profit was 1.1 billion euros ($1.32 billion) through three quarters, while Mercedes lost 506 million euros.

    "When we get to the end of next year, that's when we'll really be operating on all cylinders," LaSorda said. "Depending on the plant, it's a lot of money to be made."

    Chrysler's U.S. market share rose to 13.6% through November from 13.1% for the same period a year ago. General Motors Corp. and Ford Motor Co. have lost U.S. buyers this year, while Toyota Motor Corp., Nissan Motor Co. and other Asian automakers have increased share to record levels.

    Chrysler's plants ran at about 90% capacity last year, second only to Toyota, which operated at 107%, according to a report from Troy-based Harbour Consulting. Using full capacity makes a factory more efficient because it has roughly the same costs regardless of its output.

    Chrysler used 84% of its capacity in 2001 and 2003 as it eliminated 40,000 jobs to end 4.7 billion euros of losses over four years. The automaker's previous capacity peak was 106% in 1999, according to Harbour. Chrysler should hit 95% in 2006, up from 90% in 2005, LaSorda said.

    "When you're only using 80%, you're just letting equipment erode away that you could be making products with," Lindland said. "It's like just letting heat leak out of your house."

    Chrysler, which makes Jeep, Dodge and Chrysler cars and trucks, is in the early stages of a plan to add robots at plants in Illinois, Michigan and St. Louis that make it possible for a factory to switch to building a different model in 47 seconds. Changing between models faster means the automaker can respond to changes in consumer demand more quickly.

    The Auburn Hills-based automaker has announced more than $6 billion in plant improvements in the last two years as it gains U.S. market share. The unit plans to keep its investment in the factory equipment at about $3.3 billion to $3.5 billion a year, he said.

    Chrysler should be able to build multiple vehicles on the same assembly line at 78% of its plants in 2007, second to Nissan Motor Co. in North America, Prudential Securities Inc. analyst Michael Bruynesteyn said in a report last week. This year, Chrysler is building multiple designs at 32% of its plants, beating only Ford, according to the report.

    The new investments come as GM and Ford, the biggest U.S. automakers, work on plans to close plants and cut workers after losing a combined $6.3 billion on North American auto operations so far this year. LaSorda said he doesn't believe GM will go bankrupt and expects the UAW to work to ensure all three companies are competitive.

    Chrysler has cut total product-development expenses to about $6 billion this year from $8.4 billion in 2000, even as it added more models to future plans. Cost cutting will continue even if U.S. market share keeps improving, he said
     
  2. c-f0o

    c-f0o New Member

    Joined:
    Dec 19, 2004
    Messages:
    13,003
    Likes Received:
    0
    Location:
    SOUL COW
  3. ruserious

    ruserious New Member

    Joined:
    Aug 27, 2004
    Messages:
    21,920
    Likes Received:
    0
    I love my Jeep Grand Cherokee. Guess that helps explain why Chrysler is doing so well.
     
  4. AMOK

    AMOK New Member

    Joined:
    Sep 12, 2003
    Messages:
    6,957
    Likes Received:
    0
    Location:
    kraprooM, CA
    Really? Build a decent American car and people will buy it?
     
  5. Professional

    Professional Guest

    GM is getting OWNED.

    Say goodbye to Durham's economy :riaa:
     
  6. GochuBoy

    GochuBoy OT Supporter

    Joined:
    Aug 6, 2003
    Messages:
    31,264
    Likes Received:
    9
    New concept for American car companies.
     
  7. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    Imagine that!
     
  8. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    Chrysler is still supporting Mercedes-Benz too. :mamoru:
     
  9. frankelefritzsux

    frankelefritzsux OT is a mental disorder OT Supporter

    Joined:
    Aug 5, 2001
    Messages:
    82,720
    Likes Received:
    111
    Location:
    Chattanooga, TN
    nice lens flare :mamoru:
     
  10. MartyFukstein

    MartyFukstein OT Supporter

    Joined:
    May 10, 2005
    Messages:
    9,686
    Likes Received:
    0
    Other than the 300c I can't think of a Chrysler model I'd want.
    And the product is still crap. Ever been in a 5 year-old Chrysler, then sat in a 5 year-old Toyota? Gee, I wonder why they depreciate so differently.
     
  11. fusion210

    fusion210 New Member

    Joined:
    Dec 9, 2001
    Messages:
    160,079
    Likes Received:
    0
  12. therealciviczc

    therealciviczc New Member

    Joined:
    Sep 3, 2004
    Messages:
    25,740
    Likes Received:
    0
    Location:
    Ohio
    I can't believe GM can't see the reality. I looked at a GM ad the other day and there isn't a single one that I'd even consider buying outside of the few obvious specialty cars.

    Not that I don't see the union issues, but as long as GM keeps making excuses and doesn't step it up, they're going to continue to fail regardless of union costs. Didn't someone post something a couple of weeks ago showing that GM spends something like $1200 in "union costs" per car and around $3500 per car in incentives due to undesireable cars?
     
  13. Simple

    Simple Sexy Beatch

    Joined:
    Nov 29, 2001
    Messages:
    68,987
    Likes Received:
    63
    Location:
    Edmonton, Alberta
    they have branding issues. pontiac has a reputation for plastic schmuck
     
  14. Wakefield

    Wakefield Active Member

    Joined:
    Oct 15, 2001
    Messages:
    28,867
    Likes Received:
    0
    Location:
    KY
    Give the cherokee a facelift and reintroduce it to gain more market share :x:
     
  15. Cobber

    Cobber Wanna touch my bunny hole?

    Joined:
    Jul 5, 2003
    Messages:
    13,732
    Likes Received:
    0
    Location:
    :canada:
    Chrysler has changed my opinion on them in the last few years ... if only they would stop the shit like Neons
     
  16. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    No it isn't. In fact their new vehicles are so vastly improved it's like they came from an entirely different company. Then again Chrysler is an entirely different company from five years ago.
     
  17. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    The Neon is already dead.
     
  18. CrosseyeLion

    CrosseyeLion delight in our youth...

    Joined:
    Jul 8, 2002
    Messages:
    36,677
    Likes Received:
    0
    Location:
    Sterling Heights, MI
    I told all the Dodge dealers around me to fuck themselves with their shitty pricing :o
     
  19. zatar

    zatar New Member

    Joined:
    May 15, 2002
    Messages:
    17,129
    Likes Received:
    1
    Location:
    South of Graceland
    We have a bunch of 5 year old toyota's at work. They are nothing special.
     
  20. TriShield

    TriShield Super Moderator® Super Moderator

    Joined:
    Jul 6, 2001
    Messages:
    132,732
    Likes Received:
    1,596
    Location:
    PRESIDENTIAL TOWER, GREAT AGAIN, NY
    Hot products = no incentives and very little dickering :hs:
     
  21. Xeelee

    Xeelee Baryonic Lord

    Joined:
    Apr 12, 2003
    Messages:
    75,792
    Likes Received:
    0
    Location:
    american cars have been crap for a long time...
     
  22. Xeelee

    Xeelee Baryonic Lord

    Joined:
    Apr 12, 2003
    Messages:
    75,792
    Likes Received:
    0
    Location:
    i could never bring myself to even ride in a ford.
     
  23. FUBU

    FUBU Guest

    As long as they don't kill Jeep off I don't care. :o
     
  24. Xeelee

    Xeelee Baryonic Lord

    Joined:
    Apr 12, 2003
    Messages:
    75,792
    Likes Received:
    0
    Location:
  25. wangatang

    wangatang backing it in your mom

    Joined:
    Dec 20, 2001
    Messages:
    38,914
    Likes Received:
    2
    Location:
    erf
    i dont like the caliber or whatever its called :hs:
     

Share This Page