CNN report re Chrysler shut down

[OUR72GTO]

The engine may be in use but the one for my car has too be assembled from parts...and those parts suppliers if not paid do not just give someone the goods without payment. Will you pay for a car that the dealer can't deliver? You want a car without seats? It is 90 days to start up and you can bet they have not yet stocked the warehouse.

They ALL need the money now just to pay for the yet to be delivered components.They have a huge amount of old stock sitting in storage ...the cost to build it was spent weeks ago ...now they have 45% less sales = no cash flow.

You can have all the gross margin you want but without cash flow a company is dead in the water.

[FenwickHockey65]

Originally Posted by OUR72GTO

It is 90 days to start up and you can bet they have not yet stocked the warehouse.

Oh really? Do you work at Oshawa? Do you work at the Flint Engine Plant? How do you know that GM hasn't produced more than enough engines? How do you know that the suppliers haven't already been paid for parts?

Folks, we're sitting on a 100+ day inventory. For those of you who don't know what that means, it means that we could just stop producing cars for 100 days, and there would still be cars on dealer lots. The only reason the new engine plant is being delayed is because GM still has time before the two cars that depend on the engines, the Cruze/Volt, are still a long way off.

[camaro5]

Originally Posted by camaro1

GM sells toyota's, ever see a pontiac vibe, it is all toyota matrix with gm badges

also GM sells daewoo, ever see a chevy aveo, it is a daewoo with gm badges

i hate having to work on these gm models

I was a Chevy tech when there was the

Chevrolet Nova - really a Toyota Corolla

The Chevrolet Sprint made by Suzuki

Chevrolet Spectrum - made by Isuzu

plus all the domestic models.

GM co-owns NUMMI in Cali with TOYOTA.

GM recently slapped a Pontiac sticker on the Daewoo, and call it a G3.

[OUR72GTO]

If you have ever restored a Corvette or GTO you will find everything is date coded. In the modern AGE OF JIT (just in time inventory) the date of the engine, door panels, alternator,glass, seats, etc etc etc will all be less than 30 days from the VIN #. Some as little as 7 days.

They do not pay in advance (though some sub suppliers are requesting it now) to fill a warehouse 3 months before start of production.

You can kick your heels and wish.... but Dorothy this is a different world.

[HeatherR]

Originally Posted by OUR72GTO

The engine may be in use but the one for my car has too be assembled from parts...and those parts suppliers if not paid do not just give someone the goods without payment. Will you pay for a car that the dealer can't deliver? You want a car without seats? It is 90 days to start up and you can bet they have not yet stocked the warehouse.

They ALL need the money now just to pay for the yet to be delivered components.They have a huge amount of old stock sitting in storage ...the cost to build it was spent weeks ago ...now they have 45% less sales = no cash flow.

You can have all the gross margin you want but without cash flow a company is dead in the water.

Excellent point...especially if suppliers are skittish and demand COD (which I bet most are)--More reaosn why Bush needs to quite dragging his feet and clean up after the mess the senate made...and now he's talking about an "orderly" bankruptcy

I still don't anticipate a major delay...