Posts Tagged ‘chrysler’

Ford for Facebookers

Friday, February 12th, 2010

American automakers shift their focus to smaller vehicles and younger consumers. Who’s buying?

  • Ford, Chrysler and GM are attempting to expand their consumer base by utilizing social media platforms such as Facebook.
  • Dealerships are remodeling their stores and lots, so they no longer resemble truck lots and instead have a clean, modern aesthetic intended to appeal to people who buy small cars.
  • Salespeople are being taught how to effectively discuss potential buyer concerns, such as fuel efficiency, as well as how their cars compare to Toyota’s and Honda’s.

Facts & Figures

  • In 2009, small cars made up 19% of the 8.65 million light vehicles sold in the U.S, which pickups and SUVs composed 46%.
  • Only 7% of “millennials” (people born between 1979 and 1985) consider a Ford when shopping for a small car.
  • Ford will send a social media consultant to its largest 800 dealerships – about 25% of its stores, to build an online infrastructure within the company.

Best Quote

“Gas prices and lifestyle changes are going to push more people into small cars.” – Tony Pack, General Manager of “Five Star Ford” in Dallas, TX

Fiat Rescues Chrysler Just In Time

Tuesday, June 30th, 2009
About to collapse in the heat of the recession, American car giant Chrysler is picked up by Italian automaker Fiat.
  • The U.S. government brokered a deal between Italian automaker Fiat and the recently bankrupt Chrysler; Fiat’s CEO Sergio Marchionne will become the CEO of the newly formed Chrysler Group LLC .
  • It may take up to two years for Chrysler to unveil smaller cars, which are a key ingredient to Fiat’s success in Europe.
  • Although Chrysler has sold its assets to the newly formed Chrysler Group LLC, it will most likely stay in bankruptcy for quite some time.

Facts & Figures

  • Fiat will initially inherit a 20% stake in Chrysler, but has the potential to increase its stake to 35% should it meet certain fuel-efficiency goals.
  • The new Chrysler will be owned by many different groups: 55% will be owned by the United Auto Workers union, 8% by the U.S. government, and 2% by the Canadian government.
  • If Fiat is able to repay the $22.1 billion Chrysler was lent from the U.S. Treasury Department, it will be allowed to take a majority stake in Chrysler.

Best Quote

“This is by no means the end of Chrysler’s bankruptcy case. So many issues still need to be resolved, which may take months or even years.” – Ed Neiger, Founder of Neiger LLP (a creditors’ rights and bankruptcy law firm)