You have to wonder when companies make big statements that they're not planning on doing something. "This just in: we're not merging with X." Great. Neither am I. Even if the news is pretty good, the fact that the company opts to make such a statement may not be a positive sign.
DaimlerChrysler
And even Chysler's biggest victories have come with an asterisk. The company released the acclaimed and extremely popular PT Cruiser in 2000, but failed to produce enough to meet demand, allowing easy sales to go by the wayside.
Dieter Zetsche, Chrysler's CEO responded to the latest quarterly loss of nearly $1 billion by stating that the company believes that its cost cutting measures ought to be sufficient, and that he was hopeful that the new product mix and the potential for a better sales environment would preclude more drastic measures.
According to the company's conference call (transcript provided by CCBN), sales are up for the new year's truck models, particularly the RAM, which had August unit sales 12% higher than last year's levels. But the overall market is still beset by heavy incentives to attract buyers, and this makes for a tough environment for a struggling producer to get back on its feet.
You can't cost cut your way to prosperity. And while the company's intention not to restructure is heartening news for investors, it's unnerving that the question needs to be pondered at all.