[Sulu]

Chrysler LLC won't survive on its own and its private-equity owners should sell the company to a foreign automaker, Dow Jones reports a former finance chief of the automaker.

"Step A is that Cerberus Capital Management should do everything they can to fix it, and step B is that they should sell it to a foreign automaker that has strong market share in emerging markets," said Jerry York, who was Chrysler's chief financial officer between 1990 and 1993. He now serves as a representative of billionaire investor Kirk Kerkorian.

...

Chrysler executives also told dealers at their recent convention it could cut its number of models by as much as half and reduce the number of dealerships selling its cars by as much as a third in an effort to boost efficiency.

...

York said he still wasn't convinced.

"Most of Chrysler's volume is in the U.S., which is a mature market that is using dog-eat-dog incentives (to sell cars)," York said. "Their styling is way off, and they are not connecting with the customer."

The full article is available here: http://www.autoobserver.com/2008/02/chrysler-wont-s.html#more.

I suspect that as a private equity firm, Cerberus will sell off Chrysler once they believe they can make money on the sale, and I suspect that will be sooner rather than later, but I doubt Cerberus would bail out now. They bought Chrysler believing that they could easily (and relatively cheaply) fix it up and sell at a profit. Private equity firms are all about return on investment and getting a return for shareholders as soon as possible, not losing shareholders' money.

 

[toyotafanfan]

The full article is available here: http://www.autoobserver.com/2008/02/chrysler-wont-s.html#more.

I suspect that as a private equity firm, Cerberus will sell off Chrysler once they believe they can make money on the sale, and I suspect that will be sooner rather than later, but I doubt Cerberus would bail out now. They bought Chrysler believing that they could easily (and relatively cheaply) fix it up and sell at a profit. Private equity firms are all about return on investment and getting a return for shareholders as soon as possible, not losing shareholders' money.

Exactly. They bought it to make some obvious changes. cull dealers, cull product lineup, cull employees. Sell.

Fan

 

[eyeball96]

I think Toyota should buy Chrysler.....POWER WAGON Tundra.....Toyota Challenger!...Jeepoyta!!:lol::lol:

 

[ECale3]

I think chrysler should die. It earned its plight and should lay in the grave it dug for itself.

 

[dakmor]

HAHAHH, 90-93? This guy is way out of the loop.

If toyota buys it, they'll fire all employees, and then move all the factories down to the dirty south and hire non-union people to build more camrys.

 

[eyeball96]

I think chrysler should die. It earned its plight and should lay in the grave it dug for itself.

A lot of people will loose their jobs if that happens!

VVVV but there will be more jobs in the Dirty South:lol::lol::lol::lol:

HAHAHH, 90-93? This guy is way out of the loop.

If toyota buys it, they'll fire all employees, and then move all the factories down to the dirty south and hire non-union people to build more camrys.

 

[ECale3]

If i was toyota, i would buy it and use the factories to manufacture new toyota models.

or burn it all down and laugh!

 

[100$ GUY]

So sell it to another automaker so chrysler can live and have better vehicles with the knowledge , cash and efforts of this new automaker?

 

[Dana_15]

Chinese or Korean owned Chrysler....could happen.

 

[eurohazard]

F that....anyone who think Chrysler should die is retarded. Do you realize what you're "really" saying? Or are you saying it because it's popular to hate Domestics?

Think of all the jobless people is Chrysler went under. Those jobless people will put a strain on the American economy.....and that means you too!

p.s. Chrysler was doing pretty damn good until Mercedes Benz bought them...then they started losing money (again). The RWD sedan platforms are very good, and their minivans are still probably tops in the industry.

 

[CharmCityES]

I think chrysler should die. It earned its plight and should lay in the grave it dug for itself.

i concur.
foriegn owned chrysler is a better chrysler than chrysler now

 

[HL2k]

The RWD sedan platforms are very good, and their minivans are still probably tops in the industry.

Have you ever driven any of those minivans? they all break down just before the warranty expires. My friend's parents have a 04 I think Grand Cara and the dealership did tranny fluid change, took it to a mechanic on a whim and found out the tranny was about to drop.

They only 'top' the industry, because they sell them for dirt, $18k for a base model minivan? thats cheaper than most sedans!

You pay for what you get.


In additon, my thoughts are that Kia or Hyundai should buy them to get a leg up in the NA markets, would be powerful competition for Toyota and allows them to have better vehicles. That or let it die, despite the fact that people would lose jobs and such, thats business. The reason to go into business is to MAKE MONEY if you haven't succeeded in this feat, you've failed (see: Blane). People can see market trends, Chrysler is up to their asshole in debt from what I know, and because of that continue to lose, the best idea would be to firesale everything and start over with a new manufacturer so you have a clean slate to work on.

 

[ECHOKnight2000]

I read there are talks that an Indian company might buy out the Jeep brand. Also to note Hyundai owns KIA so it would be Hyundai that would buy Chrysler but I don't think they want that mess. Hyundai is doing fine as it is, it doesn't need weight to pull it down.

Even if a Chinese company buys out Chrysler do you really think they would stay here?? Maybe but all the jobs (China).

 

[Sulu]

Before Cerberus won the bid for Chrysler last year, Magna, a Canadian-based international auto-parts manufacturer (and assembler of complete vehicles in Europe), was very interested in purchasing Chrysler. Frank Stronach, owner of Magna, has been interested in adding an auto manufacturer to his stable, and even had a Russian company invest in Magna in an effort to make sure he could afford it.

I don't know if Magna is still interested in purchasing Chrysler, and if they are, if they would be willing to wait a few years until Cerberus is willing to sell, but as a Canadian, I would like to see Magna purchase Chrysler. If Cerberus waits to fix up Chrysler before selling it -- at a profit -- which I believe they will do, there will inevitably be more interest in Chrysler, and more competition for Chrysler.

BTW, Frank Stronach has a REAL stable, full of real horses, just one of his little hobbies that he is able to afford. Perhaps Chrysler will be another.

 

[EchoHoLiK]

F that....anyone who think Chrysler should die is retarded. Do you realize what you're "really" saying? Or are you saying it because it's popular to hate Domestics?

Think of all the jobless people is Chrysler went under. Those jobless people will put a strain on the American economy.....and that means you too!

p.s. Chrysler was doing pretty damn good until Mercedes Benz bought them...then they started losing money (again). The RWD sedan platforms are very good, and their minivans are still probably tops in the industry.

I agree that people shouldn't wish Chrysler to die. I for one wish to see Chrysler back to being a real player.

 

[Jonathan_N]

Hmm, Jerry York, eh? He's one of Kirk Kerkorian's top dogs and actually represented Kerkorian on GM's board back when the former owned 10% of the company, so I see definate conflict of interest here, given Kerkorian's past attempts to acquire Chrysler (including the one in the '90s that spooked then-CEO Rob Eaton into selling the company to Daimler). Methinks "Captain Kirk" just wants Cerberus to sell Chrysler so he can have another shot at buying up at least part of it. He'd probably have it so this unnamed foregin automaker would buy the majority of the stake, while he himself would own enough (say, a third) to heavily influence company decisions.

 

[eurohazard]

Have you ever driven any of those minivans? they all break down just before the warranty expires. My friend's parents have a 04 I think Grand Cara and the dealership did tranny fluid change, took it to a mechanic on a whim and found out the tranny was about to drop.

They only 'top' the industry, because they sell them for dirt, $18k for a base model minivan? thats cheaper than most sedans!

You pay for what you get.


In additon, my thoughts are that Kia or Hyundai should buy them to get a leg up in the NA markets, would be powerful competition for Toyota and allows them to have better vehicles. That or let it die, despite the fact that people would lose jobs and such, thats business. The reason to go into business is to MAKE MONEY if you haven't succeeded in this feat, you've failed (see: Blane). People can see market trends, Chrysler is up to their asshole in debt from what I know, and because of that continue to lose, the best idea would be to firesale everything and start over with a new manufacturer so you have a clean slate to work on.

I absolutely have driven those Dodge/Chrysler minivans........and I have driven Toyota Siennas too. The last Sienna I rented had a power steering leak (and a neat squeal associated with it). And there were SEVERAL squeaks and rattles inside, and one of the sliding doors wasn't working properly. I was honest to God shocked........because I had just driven a Dodge Caravan earlier that day and it was flawless (if a bit soulless). We rent vans all the time when I travel for work, and I know who has the better vans.

p.s. "letting" Chrysler die vs. "hoping" Chrysler will die is a big difference IMHO. I am not going to go trade my Nissan Armada in for a Dodge Durango in the hopes that I can personally save Chrysler......however, it will be a sad ass day if an American icon like Chrysler goes down the tubes.

 

[100$ GUY]

Havent many automakers had big financial troubles and yet survived??
Whats the difference with chrysler so people are almost certain it will dissappear or be bought?

 

[SilverCamry02]

Judging from my Chrysler van and how unreliable it's been I wouldn't be surprised if it it went bankrupt. I'm not going to go buy a Chrysler! A lot of their cars have been riddled with the same problems for years. The worst part of it is they've neglected to fix the problems. If they aren't trying to make their cars better they will get worse and people won't buy them.

Compared to other companies Chrysler doesn't have and doesn't seem to have any plans to come out with good cars. They have a restyled Town and Country/Caravan, but car companies can't rely on 1 vehicle anymore to carry them. I saw in the New-York Times Cerberus isn't planning on doing much to change the company, which is needed if they want to turn a profit.

Maybe Chrysler will prevail maybe they won't. Keep in mind a lot of car companies have had financial trouble and gone under.