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Harry P.

Chrysler to be sold in pieces?

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From Yahoo news:

"DETROIT – A person briefed on discussions about selling Chrysler LLC says the automaker could be sold in pieces to other companies.

Chrysler's majority owner, Cerberus Capital Management LP, has been talking with General Motors Corp., the combined companies Nissan Motor Co.-Renault SA and other companies about selling Chrysler.

The person said Tuesday night that many combinations are being discussed. The person asked not to be identified because the talks are private."

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Here's the latest from CNNmoney.com,

"Cerberus wants out of the auto business. And as the credit markets have dried up, GM (GM, Fortune 500), worried about running too low on cash before the U.S. auto market rebounds, wants Chrysler's currency stockpile.

The person said that the talks have advanced to the point where top executives of both companies have looked at a deal and asked for refinements. The person spoke on condition of anonymity because the talks are secret.

In August, Chrysler said it had accumulated $11.7 billion in cash and marketable securities as of June 30. That figure remains around $11 billion, the person said, despite the Auburn Hills, Mich.-based automaker's U.S. sales being down 25% in the year through September, the largest decline of any major automaker.

Detroit-based GM is burning up more than $1 billion per month, with several analysts predicting it will reach its minimum operating cash level of $14 billion sometime next year. GM's sales are down 18%, and the company has lost $57.5 billion in the past 18 months, although much of that comes from noncash tax accounting changes.

Chrysler's money pile would help solve GM's cash problem if credit remains unavailable.

Both automakers have had to deny bankruptcy rumors in recent weeks, saying consumers won't buy cars from a company that looks like it could go out of business.

According to the person familiar with the negotiations, the deal being discussed calls for Cerberus to hand over Chrysler in exchange for GM's 49% stake in GMAC Financial Services. GM sold a 51% stake in its finance arm to Cerberus in 2006."

(end quote)

Notice the part about GM "wants Chrysler's currency stockpile". Sounds like Chrysler should be working a deal to buy GM. If Cerberus was willing to stay in the car business, maybe they could buy GM and have a larger stake in the U.S. Auto market.

Just an intersting note, and remember, Daimler has to approve this deal or sell its portion to GM, or whoever.

The plot thickens,...

Gary

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The Nissan/Renault deal would be best for Chrysler. it would allow some brand sharing. If this happens I just hope they bring the Renault Mugane over here and sell it in Dodge showrooms. thats exactly what they need right now.

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I also think they ought to be selling Renaults here. A little European style sure would counteract all the Hondas and Toyotas we see on our streets...

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I also think they ought to be selling Renaults here. A little European style sure would counteract all the Hondas and Toyotas we see on our streets...

the last time they tried that we got the LeCar what a piece of dookey and the yugo was worse the opel gt was cool but not built well .

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Chrysler to be sold in pieces?

Nothing new there. Johan did it for years. Chryslers, Plymouths, Dodges, Ramblers..........:)

Edited by LUKE'57

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the last time they tried that we got the LeCar what a piece of dookey and the yugo was worse the opel gt was cool but not built well .

Reanault has come a long way since the LeCar! The LeCar was over 20 years ago! And the Yugo was from Yugoslavia, it had nothing to do with Renault. Neither did the Opel GT.

The fact is, there are a lot of really cool European cars that aren't sold here, and it's our loss. I've seen enough Camrys and Accords to last me a lifetime... :)

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Renault ended up making Nissan a good company again. Nissan was making a bunch of garbage for a while. I, too, would like to see some of the Renault cars come over.

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Who wouldn't want a chance to buy this car??? 2010 Renault Alpine...

2010RenaultAlpine.jpg

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I also think they ought to be selling Renaults here. A little European style sure would counteract all the Hondas and Toyotas we see on our streets...

Most people don't buy Hondas or Toyotas for the styling, they buy them because they run forever. They're boring but reliable as gravity.

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GM needs the Jeep line to get rid of Hummer.... Nissan needs Dodge so they can have real trucks....

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As a diehard Mopar fanatic for 47 years, (OMG, can it be that long?) I think Chrysler needs to remain a separate company. Any other way and Chrysler will be raped into a distant memory. You may remember that Renault bought AMC/Jeep in the early 80’s(?) and gave us some of the crappiest, unmemorable cars ever made.

Chrysler bought AMC/Jeep from Renault in ’87 (I think), and all but the Jeep line disappeared within a few years. Same thing will happen to Chrysler. They’ll try to cut costs by sharing components, design teams, and engineering. Chrysler will just become another piece of boring GM ###### foisted off on the public as an automobile. Dodge will disappear so that Chev/GMC trucks have less competition. It will be the end of Viper, and Dodge in NASCAR.

That’s what I think anyway.

Gary

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more bad news for Chrysler. say goodbye to the Durango/Aspen. The plant which produces them is closing on December 31st 2008. and there is no plan on moving production to any other plant. plus the Sebring is getting ripped to shreds by the automotive media. even being called the worst car in the world by one well known journalist/TV show personality.

Chrysler can't survive as a stand alone car maker anymore. Its on life support and the only way it can survive is if they get some outside help. GM has already said they will dissolve Chrysler if they get a deal. and keep just Jeep and the Minivan. The Renault/Nissan deal would be the best for Chrysler. It would not only allow them to get some much needed new product into the marketplace. They could also do a better job of exporting the product they already have. Dodge and Nissan are already working together on the new small Dodge (The Hornet), and the new Dodge Ram based Nissan Titan.

my brother has an 08 Avenger. its not bad. the motor has ok power. but its got way too much hard plastic for my taste.

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From today's New York Times:

WASHINGTON — The Bush administration is examining a range of options for providing emergency financial help to spur a merger between General Motors and Chrysler, according to government officials.

People familiar with the discussions said the administration wanted to provide financial assistance to the deeply troubled Big Three Detroit automakers, possibly by using the Treasury Department’s wide-ranging authority under the $700 billion bailout program that Congress approved this month.

Another option under consideration is to tap a $25 billion loan program that Congress just created to help the auto companies modernize their plants. A third option would involve going back to Congress, immediately after the Nov. 4 election, for authority to spend funds aimed specifically at the auto industry. But officials have not yet decided how much assistance to provide or how to structure any aid program.

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We bailed Chrysler out once and they turned it around. Which was great while it lasted. Now threw bad management and lack of foresight here we are again . The big THREE as they were once called are all big DUDS. Poor quality , Poor gas mileage, Poor design, poor reliability , no input from the public allowed, we know it all attitude and you will buy it and you will love it. Guess what we don't . I don't think we should bail anyone of them out ever again. This from one that bleeds Ford blue from my veins.

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GM needs the Jeep line to get rid of Hummer.... Nissan needs Dodge so they can have real trucks....

i can really see that happening i can also see GM dropping the ball from the top of the sears tower as well

i Rather see Jeep go to Ford since they still know how to build trucks

time to start saving my money for a LR defender cause last thing i wasnt is a GM built jeep

Edited by Lownslow

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This is so sad to read all of this! :( :(

How does a company who was on top of the world just 15 short years ago come to this??

I've been a Chrysler fan ever since I was brought home from the hospital in a 1955 Plymouth Savoy 2 door........That's all my Dad would buy for many years was some sort of Chrysler product.

He did get fed up with Chrysler quality with the last one he had, and now drives a Honda. Guess that's speaks volumes about their quality (and dealers) of late.......to lose a near lifelong customer (my Dad's almost 76) because you let your beancounters design your cars instead of great designers and engineers. :(

It'll be a sad day in auto history the day they ink the deal.............even worse than when Olds left us-------we're talking about an entire auto company! :blink::(

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News today is that GM will need 10 BILLION from the Fed to do the merger. Surely there is another alternative. The problem of Chrysler the last few years is Daimler. They screwed up themselves and Chrysler, and are trying to blame Chrysler. The German idiots tried to push German practice in Chrysler and the best engineers and Managers bailed out. The now defunct Ford Indigo concept car was designed by engineers who left Chrysler when Daimler brought in their idiots.

Gary

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I also think they ought to be selling Renaults here. A little European style sure would counteract all the Hondas and Toyotas we see on our streets...

[/quote

I thought so, for years. But if that were to happen, what would all the 'gangstas' drive?

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i Rather see Jeep go to Ford since they still know how to build trucks

time to start saving my money for a LR defender cause last thing i wasnt is a GM built jeep

LOL Yeah Ford still knows how to make trucks that burn to the ground, just like they did in the early 80's! :o Seriously, Ford has only Designed decent trucks, they haven't built a Good truck since '79, and a good car since about '70 or so... If I was to own a Brand New Ford Truck, the first thing I would do is re-wire the Mugger, since they still haven't fixed their problems.... ;)

Hey I'm right there with you on the Defender, and it was pretty nice of Ford to not screw them up too much..... Can't really say I'd still want any of the Next Future Models, since Ford Dumped the Line, and the Current Owners are moving Production to India...... :D

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This is so sad to read all of this! :D;)

How does a company who was on top of the world just 15 short years ago come to this??

I've been a Chrysler fan ever since I was brought home from the hospital in a 1955 Plymouth Savoy 2 door........That's all my Dad would buy for many years was some sort of Chrysler product.

He did get fed up with Chrysler quality with the last one he had, and now drives a Honda. Guess that's speaks volumes about their quality (and dealers) of late.......to lose a near lifelong customer (my Dad's almost 76) because you let your beancounters design your cars instead of great designers and engineers. :o

It'll be a sad day in auto history the day they ink the deal.............even worse than when Olds left us-------we're talking about an entire auto company! :blink::(

Yeah I hear ya Bill! But Chrysler got this way due to Bad Management that was only out to make a quick buck......

Me I have been a Big3 Fan since I was little, so this just seems like the wise thing to do....... To me it seems almost like History Repeating itself, like when the Auto Union Group was created in Germany, during the 1930's(Auto Union later back what is Modern Audi AG, who is a part of VW AG)..... If Ford was Forced into the Merger with GM and Chrysler, then it would be an all New Auto Union! :blink:

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Well I did my part, I own a 2008 Dodge Grand Caravan, and soon I hope to own a Dodge Dakota, Nitro, or Caliber (leaning away from it though).

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Seems like a bad idea to me, if anything we need more domestic automakers to keep each other on their toes, not less. over the past 15 years it seems like Chrysler has been more willing to try something new, driving Ford & GM to follow when it was a success.

If this goes through creating the big two, I expect it will only be a matter of time until we have no domestic auto makers left.

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Chrysler has done a good job at creating "niche" cars. like the 300. Challenger, Magnum. and PT Cruiser. those types of cars sell good at the beginning of there life's. but don't tend too live too long. The Magnums already dead. and the 300 ain't too far behind. The Caliber is a major disappointment. rode in one over the weekend. it had no power. was cheaply made. motor was too loud. and it did'nt get the best gas mileage. Chrysler's doing a good job at sharing there platforms. (IE the VW Routan, (Dodge Caravan) Mitsubishi Raider (Dakota) and the upcoming Nissan Titan (Dodge Ram). but they need new product in there own dealerships. they only have one coming. the upcoming Dodge Hornet. but other then that there is nothing.

BTW. go south of the US border and you'll find some interesting Dodge's

Dodge Trazo (Nissan Versa)

08_2353_0004_opt.jpg

Dodge Attitude (Hyundai Accent)

attitude1.jpg

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