11-21-08 Conference Call

[XDCX]

I'm just curious to see how many had a chance to listen to the Press/Landry Conference Call this afternoon?

I thought Press did a good job of recapping the whole Washington D.C. circus. Essentially the Democrats was to embarrass the Republicans by forcing a bill that would tap into the TARP funds and the Republicans want to tap into the Technology funds to embarrass the Democrats as being weak on environmental issues.

The whole process, especially the televised hearings, is just political posturing by both parties.

It was clear that Chrysler is still pushing for orders and they're trying to get more dealers to participate in the wholesale program.

It was interesting to hear that they plan to sell off a large number of rental vehicles in December - that may be a buying opportunity for dealers that are willing to increase their flooring expense.

I also smiled when they mentioned "curtailments" again. I think they know that's going to be a big problem for some dealers in January and they want to keep the issue on the "radar screen."

Overall, I thought it was a pretty positive Conference Call.

[dodgeboy]

I thought it was a positive call too. I was a little confused by the example of the floor plan reduction of 2% and how it worked. I also had another thought. When Chrysler was in trouble before, Iaccoca got lots of face time on TV and sold the American public on our products and America in general. What if Jim Press got on TV and gave the public the same pep talk that we just got? It would go a long way toward "humanizing" our company and problem. We might win some friends. We need them.

[dealer3100]

I agree.
Jim Press would be a great face for Chrysler. Everybody not in the car business would wonder who this guy is. It could revolve around an American who wants to help save America and a great car company who defected from a high level postion in Toyota. He seems like a down to earth and a likeable guy.

[XDCX]

Originally Posted by dodgeboy

I thought it was a positive call too. I was a little confused by the example of the floor plan reduction of 2% and how it worked. I also had another thought. When Chrysler was in trouble before, Iaccoca got lots of face time on TV and sold the American public on our products and America in general. What if Jim Press got on TV and gave the public the same pep talk that we just got? It would go a long way toward "humanizing" our company and problem. We might win some friends. We need them.

Great point.

To the extent that most dealers think that the current commercials are having no impact on sales/traffic, a switch to an Iacocca type commercial would make sense. I especially like the part about "humanizing" Chrysler - I think most Americans either think Chrysler is still controlled by Daimler or it's the puppet of some mysterious Private Equity Fund named after the dog that guards the Gates of Hell.

Concerning the 2% Flooring Credit, I haven't studied it very closely and share your confusion. Hopefully someone that's better informed can chime in.

Originally Posted by dealer3100

I agree.
Jim Press would be a great face for Chrysler. Everybody not in the car business would wonder who this guy is. It could revolve around an American who wants to help save America and a great car company who defected from a high level position in Toyota. He seems like a down to earth and a likable guy.

Press does come across as a nice guy that's down to earth. He's really the only logical choice - Nardelli, LaSorda or Landry would all be disasters in the spokesman roll. (Although, Nardelli did score a few points this week. LaSorda and Landry should have been fired a year ago.)

[XDCX]

Was it just me or did Landry seem uncomfortable when he was talking about following GM's lead and delaying Incentive Payments?

Essentially the message was that Chrysler's not going to follow GM's lead because they're so busy working on wholesale. I think it was meant to come across as a veiled threat but it wasn't delivered with much conviction.

I got the impression that he was told to cover that issue in the Conference Call and he felt awkward about it.

[okcarl]

I was shocked by one of the callers who asked for help getting rid of 2007 models. Based on the rentals and the such they are looking to unload at fire sale prices I dont think there is any amount of money that could offset any potential losses to get rid of that new 2007 merchandise. I have been paying well under 50% of invoice recently for low mileage 2008's.

[XDCX]

Originally Posted by okcarl

I was shocked by one of the callers who asked for help getting rid of 2007 models. Based on the rentals and the such they are looking to unload at fire sale prices I dont think there is any amount of money that could offset any potential losses to get rid of that new 2007 merchandise. I have been paying well under 50% of invoice recently for low mileage 2008's.

It didn't sound like there was going to be too much help offered. When they start their answer with "Those vehicles qualify for the coupon program ..." you know you're pretty much screwed.

It is hard when there's more incentive money on a 2008 than there is on a 2007, but with only 3,000 '07s on the ground it didn't sound like it was going to be any help from Auburn Hills.

[XDCX]

I think it was Landry that mentioned that there was a semi-rural dealer that took 300+ units over his allocation to earn extra incentive money.

Holy smokes, I'd love to hear from that dealer.

Given that Chrysler is still looking for 30,000 orders, all they need to do is find another 100 dealers that are just as optimistic about the future and they've covered their number.

[dafuzz1956]

OK I missed the conference call is ther a recording somewhere or a transcript available, because I feel totally out of the loop right now HELP!!

[XDCX]

Originally Posted by dafuzz1956

OK I missed the conference call is ther a recording somewhere or a transcript available, because I feel totally out of the loop right now HELP!!

That's a great question. Although they always say that the call is going to be recorded I don't think they make the call available after the fact like they do with the webcasts.

Given that the call was on a Friday afternoon I'd be curious to know how many dealers participated. To the extent that it was a positive Conference Call you'd think they would find a way to make a replay available.

[dafuzz1956]

If you hear or see anything please let me know

[ssdd]

I missed it too... luckily we were actually busy and I did not get to listen. the recap I got was positive too.

[XDCX]

Originally Posted by ssdd

I missed it too... luckily we were actually busy and I did not get to listen. the recap I got was positive too.

That's great that you were too busy to listen to the call - definitely a nice problem to have.

One additional detail I forgot to mention, CFC is aware that their recent buying practices have made it almost impossible for a dealer to hit their "Awards" level and they're looking at several solutions.

CFC's Darryl Jackson called in to respond to a question a dealer asked during the Q&A session. He sounded like he knew that the problem was beyond the dealer's control and that CFC needed to step-up and do the right thing.

[ssdd]

Originally Posted by XDCX

That's great that you were too busy to listen to the call - definitely a nice problem to have.

One additional detail I forgot to mention, CFC is aware that their recent buying practices have made it almost impossible for a dealer to hit their "Awards" level and they're looking at several solutions.

CFC's Darryl Jackson called in to respond to a question a dealer asked during the Q&A session. He sounded like he knew that the problem was beyond the dealer's control and that CFC needed to step-up and do the right thing.

Well, that will be a first, if they do..

[XDCX]

Originally Posted by ssdd

Well, that will be a first, if they do..

It will be interesting.

Like I said before, the tone of the call was positive - like they were eager to get some of the problems fixed. As always, we'll have to wait and see if their actions live-up to their words.