Archived

This topic is now archived and is closed to further replies.

francishsu

Private equity firm Cerberus to acquire Chrysler

18 posts in this topic


Selling it to an equity firm mostly likely means it will be chopped up for the pieces and sold off to the highest bidder. I agree that it doesn't sound good for Chrysler. If you want a good analysis, watch CNBCW tomorrow. (This is the one that transmits from Europe, not the USA one).

Share this post


Link to post
Share on other sites

Yes, this doesn't sound good for Chrysler, at all. Cerberus (how ironic the company is named after the three-headed hound of Hell) will most likely to the axe to Chrysler.

Share this post


Link to post
Share on other sites

Yes, I was rooting for Magna to take over. Their HQ's are nearby in Canada, they have a big presence in Michigan already, and they are one of the few well run profitable Tier I auto suppliers. They also have experience building cars already.

I can't believe though that it will be the death of Chrylser altogether. It might mean drastic cuts, but isn't that already going on now? My guess is they will streamline the hell out of it and then try to sell it for a profit over the $7 Billion they are paying (probably to someone like Magna). I don't see another automaker being interested in buying just JEEP, for instance. Maybe, I don't know.

Share this post


Link to post
Share on other sites

It's the dealership network and the financing arm that is considered valuable. The Chinese are looking to establish a presence with their automobiles there but the lack of a dealership network keeps them from doing so.

Share this post


Link to post
Share on other sites

I saw an interview with John Snow with Cerebus who claims they have no plans to break up the company. If, what he says is true, this could be a good thing for Chyrsler.

Share this post


Link to post
Share on other sites
I saw an interview with John Snow with Cerebus who claims they have no plans to break up the company. If, what he says is true, this could be a good thing for Chyrsler.

Share this post


Link to post
Share on other sites

Dr. Z was desperate to get rid of Chrysler. It's cost them dearly over the last 9-10 years. Diamler-Chrysler is going to change its name to just Diamler. They are not going to Diamler-Benz because they don't want to remind anyone this was the most profitable company in Europe prior to the merger.

Share this post


Link to post
Share on other sites


Why wouldn't they want to remind everyone of that? Did I read your post wrong?

I agree, Mr. Snow is saying what he needs to save the last vestiges of morale the company has. One has to realize that he couldn't say anything else.

Share this post


Link to post
Share on other sites

I can't believe Chrysler will no longer be a Michigan based company.

Share this post


Link to post
Share on other sites

Chrysler has been and will continue to be based in Michigan, unless it is sold off in pieces. It's former and future parents just happen to be outside of the state.

Share this post


Link to post
Share on other sites
Why wouldn't they want to remind everyone of that? Did I read your post wrong?

.....

Share this post


Link to post
Share on other sites
I can't believe Chrysler will no longer be a Michigan based company.

Share this post


Link to post
Share on other sites
I am paraphrasing the German commentator. Reverting the company back to Diamler-Benz would remind people, mainly in Europe, that merging with Chrysler was one of the worst decisions made in corporate history. The present Diamler is worth far far less than the old company and they don't want people reminded of those old days by using they old name. Diamler now finds itself in the position of being a takeover target itself.

Share this post


Link to post
Share on other sites

What happens with legacy costs and the like? Really it's the legacy costs stifling the entire automotive industry. Depleting profits and resources for R & D, and competitive pricing for like products. Does Cerberus have any recourse for voiding previous contracts shedding legacies and moving towards competitive profitability? Making Michigans manufacturing labor market more competitive would translate into betterness for everyone state over. Tho it would throw liberals and auto unions into a tizzy and it would screw hundreds of thousands of retirees. I don't see any other way for the American auto industry, and really Michigan itself to stay healthy any other way than something drastic like this.

Share this post


Link to post
Share on other sites


Is it possible that this company might take Chrysler completely out of Michigan, or would that be too costly due to the high concentration of suppliers and etc. companies here that cater to them?

Share this post


Link to post
Share on other sites

Why would they want to? That wouldn't make sense, at all.

MJLO, you better believe that Cerberus, being a private company that wants to turn this back into a money-making company sooner rather than later so that they can flip it, will try whatever they can when renegotiations come back around.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.