Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Paul A who wrote (8844)	5/1/2001 10:09:42 AM
From: Paul A	Respond to of 19633

whoops- also reshorted CCMP again at 63 and change.. Dont ask.. I covered at 64.6 yesterday, and now im paying commission a second time.. I just thought it had one last squeeze in it, but now I dont think so.. Im in small just in case and will add to short in the 50s or 70s.. good day all!

To: Paul A who wrote (8844)	5/1/2001 10:10:02 AM
From: Tom Hua	Read Replies (2) \| Respond to of 19633

Paul, Ford to hold CC at 1 pm to discuss April sales figures. Also, Monday April 30, 5:56 pm Eastern Time Chrysler sales incentive plan backfires (UPDATE: Recasts 5th paragraph to clarify, add detail) By Justin Hyde TOLEDO, Ohio, April 30 (Reuters) - A Chrysler program designed to reward dealers who meet sales goals set by the automaker backfired in April, as dealers worried about missing the goals ordered fewer vehicles, Chrysler's CEO said on Monday. Dieter Zetsche told reporters that sales of new vehicles from the arm of DaimlerChrysler AG (NYSE:DCX - news) would decline at a faster rate than the rest of the industry due to a ``miscommunication'' between the automaker and its dealers over the program, known as market performance allowances, or MPA. ``Our retail results in April will not be as satisfying,'' Zetsche said after a dedication of DaimlerChrysler's new Jeep plant here. ``It's a complication in understanding how the MPA works on both sides ... It looks like that early on they thought they might not make the targets.'' Analysts have forecast that Chrysler's sales would fall 15 percent to 20 percent in April, while the industry as a whole would be down 8 percent to 12 percent. Zetsche did not provide any exact figures for Chrysler's sales. The MPA program is part of a $500 million cut in payments to the dealers from Chrysler, which lost $1.2 billion in the first three months of this year. Under the program, Chrysler has passed onto its dealer network costs such as cleaning and preparing vehicles for their final handover to new buyers, complete with a full tank of gas. SELF-FULFILLING PROPHESY Chrysler offered dealers a way to earn back some of the money the company cut by meeting monthly sales goals. Meeting the goals earns the dealer a payment of $250 per vehicle; if the goals are missed by 25 percent or more, the dealer gets no extra payments. Dick Withnell, a Dodge dealer in Salem, Oregon, said when sales started to fall off in early April below targets, dealers started cutting back on orders. He said one dealer he knew had cut his inventory to about a month's supply, about half of normal levels. ``Not very many guys hit it (the sales goal) in April,'' he said. ``When the guys aren't hitting it they start being conservative with inventory. It becomes a self-fulfilling prophesy.'' Zetsche said the company would resolve the problems in May. Withnell said Chrysler was promising a different set of targets for the next three months. Zetsche's comments came as the company touted the new 2002 Jeep Liberty, a small sport utility vehicle designed to compete against other popular car-based SUVs, such as the Ford Escape, Toyota RAV 4 and the upcoming Saturn Vue. Zetsche said the company would sell about 70,000 to 80,000 Liberty's this year while the new factory ramps up. At full production, the plant will produce 200,000 SUVs in two shifts. The models will go on sale in the United States in June. ``In tough times, the best thing which can happen to you is new product ... and especially hitting the market segment which is the strongest, relative, of all the segments together,'' Zetsche said. Email this story - Most-emailed articles - Most-viewed articles