Also in this playlist...
This transcript is automatically generated
All right Chrysler group but that a company Jeff knows very well is -- that got a government requests are called two point seven million of its vehicles.
Other companies claiming these models are safe but is that enough for the automaker to keep driving sales growth.
Richard -- is an equity analyst at Morningstar Richard thank you for being here you know I just curious -- -- -- was this a good idea for Chrysler.
To basically ignore rejects a recall I mean we just we don't hear of this ever really happening with auto makers.
Although we did have one happen with Ford just a couple years ago but it usually doesn't play out very well for the auto maker.
It you know and win there is a lot of difficulty with the recall or there's a highly publicized recall.
A lot of times it turns out to be a good buying opportunity for investors.
But -- it's a little early to tell at this point it's gonna depend on how it plays out in the media.
Is this going to be a case of you know Chrysler trying to get away with not having to pay for something they should.
Or is -- gonna wind up being perceived by the public as an overzealous government agency.
Really hammering on a business that it really doesn't deserve to be hammered out.
But it's different -- -- talking about a regulatory issue of say a bank verses a consumer that's gonna be worried if there but get a buyer.
Or if they are driving a Chrysler vehicle there's a safety problem or some type of issue there are so do you think that this could -- up hurting sales.
For -- -- they just report 11%.
Jump in sales and a nice number but is that -- going forward.
And yet it could and again it's going to be dependent on how it -- perceived and obviously.
You know Chrysler's us saying things like -- -- they national highway transportation safety administration's.
Dana wasn't correct their conclusions were incorrect or they were in complete.
You know they're saying things like look we've recalled.
Out of the less -- it over the last three years we've recalled 51 vehicles.
49 of which we did of our own accord and we notified -- -- so you know were very much out on the forefront of taking care of our customers.
But in this particular instance Chrysler saying look we think that the data just does not support that this is a problem.
With our vehicles it's not a defect.
Okay so are other parents what the next move is they're going to be especially with Sergio Marchionne -- I'm curious say what you think of them as a leader but if he's been kind of got the right fit.
Along with Fiat for Christ -- -- they do want to take over the rest of the company -- also do you think what is next for him in this story does he make another move.
Against our regulators when it comes to the recall.
Well when it comes to the recall there is the policy or procedure that has to be followed.
And I believe that the next step is going to have to be some hearings between the two.
Unless they come to some kind of amicable agreement prior to those her hearings.
But you know Chrysler's gonna bring up the fact that you know look this is something.
That it has only occurred one in something like every one million years of operation of these vehicles.
According to their statistics you know so they're gonna try to play it.
As much as they can that know it's a really didn't have the right data but as far as Marchionne is concerned as far as him being a leader.
For this organization I think he's done a fantastic job he's got a great track record of turn during the turning around operations and I think that combining the two merging Chrysler and Fiat.
Doing more global architectures and you know extracting some cost synergies because of having higher scale.
Because of combination of the two is a great move for the company.
And they really need it.
Well it's a good move for you know the Italians and has -- A fellow Italian I had to salute actually -- has -- -- public Goodell and Richard Richard -- what exactly analyst Richard vague yet.
Thank you --
Filter by section