Off-lease inventory at auction
Part of the cost issue with Chrysler products in particular are the high floors that Chrysler is putting on their off-lease inventory as of late. If they don’t get it, they just no-sale it. I am sure all of the manufacturers are following the same game plan I was reading some of the restucturing details and found this paragraph interesting.
“Chrysler’s plan includes cutting $5 billion of outstanding obligations from certain creditor groups, which would also provide immediate cash flow from interest savings of between $350 million and $400 million annually.”
If you take the approx $5,000 hit per off-lease unit times the 100,000 plus units comes out pretty close to the 5 billion$. Be interesting to see who these certain creditor groups are.