And the band plays on while the ship sinks

[Tilted (Premo)]

Dealers asked to buy more Chryslers to aid company

NEW ORLEANS - With Chrysler LLC's U.S. sales down 30 percent last year, an economy mired in recession and the automaker living on government loans, the last thing you'd expect a dealer to do is order more cars and trucks.

But that's exactly what Michael Andretta, owner of a Chrysler-Jeep-Dodge dealership in central Pennsylvania, intends to do after being inspired by Vice Chairman Jim Press' presentation at an auto dealers convention in New Orleans.

"I'm going to go back and I'm going to order cars that I don't need," Andretta said Sunday after Press and other Chrysler managers met with dealers at the National Automobile Dealers Association convention.

When the hull of your ship is ripped open, and the frigid ocean waters pouring in make sinking a certainty, you have 2 choices. (1) Try to get out while you can and hope to emerge with your life and as much else as you can, or (2) get distracted by the band that's playing on deck, trying to put a good spin on the situation. After all, if you pretend hard enough that things aren't all that bad, then maybe, just maybe, the water will stop flowing into the ship and it will magically stay afloat.

Phil LeBeau, CNBC's Auto Industry reporter, says (video) that Chrysler is now offering Employee Pricing and 0% financing and cash back bonuses, and they are still aren't seeing any sales activity.

Here's a hint: When you have to force your product down people's throats, and do all but give it away, and people still don't buy your product - stop making your product. Stop wasting resources, stop wasting labor and stop wasting capital making stuff that nobody wants.

On another note, auto parts manufacturers are supposedly planning on asking for about $10 billion in TARP funds.