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Sunday, October 22, 2006

Weekend Edition: Chrysler's Investory: Detroit's Problem

Chrysler is having trouble selling its cars. Its bloated inventory is not shrinking as fast as management would like, and the company may be facing a rough fourth quarter. The company has already signalled it will lose $1.5 billion in Q3.

What is left unsaid is whether the same problem faces GM and Ford. Why not? Should they be immune from the same issues that face Chrysler?

While sales of the big three were about flat in September, Toyota's sales rose 25%. Share is still moving to the big Japanese car company as it tries to pass GM to become the top auto company in the world.

Things in Detroit may be worse than the September numbers show, but October reports are just around the corner.

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