Federal Investigations and Lousy Financials Haunt Chrysler

DaimlerChrysler looks to be facing tough times and tough troubles.

Recently the company announced that it had immediately suspended some senior managers after a probe uncovered what it calls "unspecified irregularities" (corporate speak for "we aren't gonna tell you how bad it is").

The company is already under investigation by the US Securities and Exchange Commission over allegations that it used slush funds to bribe foreign officials, as US financial regulators and criminal investigators continue looking into potential violations of anit-corruption laws because of payments the company has said deal primarily with transaction involving government entities in Africa, Asia and eastern Europe.

On top of that, the Chrysler group last month posted a $1.46 billion (with a "B") loss for the third quarter. Luckily, the Mercedes and Truck divisions are making up for it.

Meanwhile, rumors continue to float that the Chrysler group may be for sale. When asked, its Chief Financial Officer Uebber said "We don't exclude anything here," including structural changes as the company aims to improve its profit margins by a publicly announced $1,000 per vehicle.

Even at that, however, it's doing a lot better than GM and Ford, which are projected to be losing $1,271 and $451 respectively for each vehicle sold in the US while Chrysler squeezes out a narrow profit of $144. Even at that, all three are miles behind Nissan's $2,135 profit per vehicle Toyota's profit of $1,715 per vehicle and Honda's $1,259.

If you're in the market for a new car, the manufacturer's financial stability is something you might want to consider. When companies pinch pennies, quality control can be the first thing to go out the window. When that happens, the lemons start popping. If you get one, call or email or fax us.

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Known nationwide as a leading Lemon Law attorney, Ronald L. Burdge has represented literally thousands of consumers in "lemon" lawsuits and actively co-counsels and coaches other Consumer Law attorneys. From 2005 through 2018, attorney Ronald L. Burdge has been named as the only Lemon Law Ohio Super Lawyer by Law and Politics magazine and Thomson Reuters Corp., Professional Division. Burdge restricts his practice to Lemon Law and Consumer Law cases. The Ohio Super Lawyer results are published annually in the January issue of Cincinnati Magazine. Ronald L. Burdge was named Consumer Law Trial Lawyer of the Year 2004 by the National Association of Consumer Advocates, the nation's largest organization of consumer law private and government attorneys. "Your impact on the auto industry has been magnified many times over because of the trail you blazed for others," stated NACA's Executive Director, Will Ogburn. Burdge has represented thousands of consumers in Ohio, Kentucky and elsewhere since 1978 and is a frequent lecturer to national, state and local Bar Associations and Judicial organizations. Burdge is admitted to Ohio's state and federal courts, Kentucky's state courts, and Indiana's federal courts. Other court admissions are on a "pro hac" temporary, case by cases basis.