All Blog Posts from Couric & Co.

You have to hand it to Chrysler. Their sales in the United States dropped 30 percent in October compared to October 2008, but they’re crowing that October was six percent better than September. I don’t know whether that says more about Chrysler or September. In fact September was a pretty bad month for all the carmakers because it was the first month up after the expiration of the popular Cash for Clunkers program. All of Detroit suffered a bit of a hangover when the deals stopped being done.

By comparison, GM and Ford did pretty well. GM, which had a 4.7 percent jump in October would have been up 11.6 percent, but it was dragged down by its Hummer, Saab, Saturn and Pontiac brands – all of which are being dropped eventually. Ford kept up its hot streak, recording a 3 percent bump in October sales. It’s already benefitting from positive consumer reviews of its products and fresh profits in the third quarter.

Auto industry writer Paul Ingrassia, author of the forthcoming Crash Course was impressed by both Ford and GM.

“The progress is welcome and it’s real,” he said in an interview. “There’s a long way to go, but you have to have a few first steps.”

And you have to step in the right direction, which is what Chrysler is not doing.

Says Ingrassia: “Chrysler is still in the deep woods here and it’s unclear what will happen.”

A look at their report for October shows incredible declines in almost all of its models except the Dodge Challenger. Chrysler Sebring? Down 69 percent. Chrysler Aspen? Down 68 percent. Town and Country minivan? Down 33 per cent. Zheesh!

This is a company in desperate need of a turnaround plan, which is exactly what its new owner, Fiat, will unveil this week. The word is that Fiat plans to introduce many smaller models to Chrysler showrooms.

Judging from the way its current lineup has been selling, Chrysler could use anything other than what it already has on offer.

Katie's on assignment, this is Jeff Glor.

The waiting is over - 789 Chrysler dealers got the word today that they are out of business. That is a quarter of Chrysler's 3,200 locations.

For those getting the axe, the news hit hard and fast. Chrysler wants them gone by next month. Instead of having separate Dodge and Jeep dealers, for example, one will stay and one will go. There is no compensation and no appeal.

The dealers we spoke with are angry. Many spent millions on glitzy showrooms and put their homes on the line to stay in business. Many expect now to face bankruptcy themselves , and they worry about their employees, and suppliers, who may also go under.

And there is more to come. GM plans to close 1,100 dealers by next year.

Most analysts think the auto giants will survive, but in a story we've heard repeatedly this recession, for countless businesses which depended on the status quo, this truly is the end of the road.

When Chrysler's future looked bleak in 1979, then Chairman Lee Iacocca went to Congress and asked for a bailout.

He got it, and then he got to work. Chrysler developed the wildly successful minivan, and suburbia was forever transformed.

Like the Manhattan skyscraper named for its founder, Chrysler has been a symbol of the heights of American industrialization since 1925.

That's why today's bankruptcy announcement stings. Already in a bailout, the government and Chrysler's creditors couldn't agree on terms to pay off the company's $7 billion debt.

But bankruptcy might not be such a bad thing.

As President Obama noted, the chance to shed debt and partner with Italian automaker Fiat could provide a new lease on life for Chrysler.

Lee Iacocca once said that the key to business is people, product and profits.

Two out of three ain't bad, and with a little vision, this day could be just a bump in the road.

That's a page from my notebook.