Autoblog: Flop of 2006: Chrysler dealers cry all the way to the sales bank

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Flop of 2006: Chrysler dealers cry all the way to the sales bank

Filed under: Plants/Manufacturing, Chrysler, DaimlerChrysler, Earnings/Financials

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So what would you consider the biggest automotive flop of 2006? The Chrysler Sebring? McDonald's Hummer Happy Meals? Schumacher leaving F1 without a ring for every finger? Well, Automotive News thinks it was Chrysler's refusal to face the music and scale back production. Even when faced with a huge loss and plummeting demand for SUVs and trucks.

 

They remind us that Lee Iacocca had been cautioning Chrysler about creating a sales bank 25 years ago. Not only did they ignore the advice, but Chrysler's management team kept building as many of the vehicles as they could. In the process, the company racked up a $1.48 billion loss in the third quarter of 2006.

 

More info post jump.

 

[source: Automotive News, sub req]Continue reading Flop of 2006: Chrysler dealers cry all the way to the sales bank

 

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