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Credit Union Members Can Save Thousands on Latest Chrysler Group Vehicle Incentives

Preferred pricing and low interest rates add up.

by on Nov.04, 2009

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More than 2,000 credit unions in all 50 states are promoting the “Invest in America” discounts.

America’s credit unions are offering new discounts on Chrysler Group vehicles through the “Invest in America” program. By offering “Affiliate Rewards” to credit union members and knowing the loyalty that credit union members have toward domestic vehicles, the partnership is expected to once again match members with Chrysler’s line of vehicles.

Credit union members will receive preferred pricing on all 2009 Chrysler, Jeep, Dodge and Ram Truck vehicles and some 2010 vehicles. Click here for more information.

More than 2,000 credit unions in all 50 states have been promoting the “Invest in America” discounts. These are, it is claimed, driving members back to the domestic automakers.
“As ‘Invest in America’ sales pass 200,000 vehicles, research shows that credit union members are increasingly coming back to the domestic brands,” said David Adams, CUcorp CEO (sic).

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Chrysler Can Fire Dealers Says Bankruptcy Court

However, Chrysler must take their vehicle inventory back.

by on Jun.09, 2009

Pentastar

The sales challenge confronting Chrysler as it emerges from bankruptcy is gargantuan.

The judge in the Chrysler bankruptcy case  late this afternoon granted Chrysler’s wish to fire 789 dealers. Judge Arthur Gonzalez of the Federal Bankruptcy Court for the Southern District of New York overruled the objections of the terminated dealers.

Gonzalez also rejected the notion that he should wait to see if the Supreme Court will even consider dealer and bondholder objections to the sale of Chrysler to Fiat.

The order is effective immediately, and barring an appeal, the “rejected” dealers have no claims against the New Chrysler Group when it emerges from bankruptcy. 

The judge also agreed to a modified deal negotiated between Chrysler LLc and the dismissed dealers, which has Chrysler taking back their inventory and placing it with continuing dealers. This is likely in Chrysler’s best interest anyway, since closed dealers could and are dumping the vehicles at distress prices on the market, hurting the remaining dealers that Chrysler needs going forward. Half of  the continuing dealers account for 90% of Chrysler, Dodge and Jeep sales.

A large, potentially fatal, issue remains with Chrysler’s currently depressed sales levels, and as a result how long it takes to sell off the current inventory. All Chrysler plants have been idled since its bankruptcy filing and it is uncertain when they will resume production.

Since January of 2008 an “unprecedented ” number of Chrysler dealers , totaling 397 and rising,  have filed for bankruptcy. Its suppliers are also living on the ragged edge of solvency.

The sales challenge confronting Chrysler as it emerges from bankruptcy is gargantuan. Before the Chrysler bankruptcy filing in March, the company had an average of $5,566 of incentives in play – roughly 20% to 25% of the wholesale cost of a vehicle — and sales declined almost 50% anyway.

Toyota Topsy-Turvy with $7.7 Billion Quarter Loss

Revenues dive 71%, with no upturn in sight. Future prospects are grim with another $6 billion loss predicted.

by on May.08, 2009

Akio Toyoda, CourtesyToyota

Akio Toyoda, the founder of the company's grandson, takes over next month as more losses are predicted.

Toyota Motor Corporation finished off fiscal 2009 with a huge $7.7 billion loss during the fourth quarter of the traditional Japanese fiscal year, which ended March 31. The fourth quarter loss left the Japanese auto giant with a decidedly non-traditional full-year loss of $4.4 billion, the largest in the company’s 71-year history. Net revenues dropped 22%.

Toyota also released guidance that it expects another loss ¥550 billion or nearly $6 billion for the coming year. The company, used to never-ending expansion, is having extreme difficulties managing contraction.

“Both revenues and profits declined severely during this period,” said President Katsuaki Watanabe, who is being replaced next month by Akio Toyoda, the founder of the company’s grandson.

“The negative impact was a consequence of the significant deterioration in vehicle sales, particularly in the U.S. and Europe, the rapid appreciation of the yen against the U.S. dollar and the Euro and the sharp rise in raw materials.”

Subscribe to TheDetroitBureau.com“It appears that it will take some more time before the financial markets in the U.S. and Europe normalize and the global economy recovers,” Watanabe predicted

The Japanese automaker reported that North American vehicle sales dropped more than 25% to 2.21 million units. The North American unit also finished the fiscal year with a ¥390 billion loss or a -$4.2 billion based on an exchange rate of ¥93 to the dollar

“The decrease in operating income was mainly due to decreases in both production volume and vehicles sold, and increases in the provision for credit losses, net charge-offs and allowance for residual value losses in sales finance subsidiaries in the United States of America,” Toyota said.    (more…)