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Cerberus looking to unload Chrysler?

12/22/2008, 9:35 AM

By Andrew Ganz

Cerberus Capital Management is offering up its entire share in beleaguered automaker Chrysler in order to allow the automaker to secure its $4 billion portion of the low-interest federal loan granted late last week by the Bush Administration. Cerberus is apparently seeking to focus primarily on the automotive lending market with Chrysler Financial and GMAC.

Automotive News says that the private equity firm is offering up its entire stake in Chrysler to “make the accommodations necessary to affect [Chrysler's] restructuring.”

“They’re effectively offering up the automotive side of the operation,” Lars Luedeman, head of auto analysis for Grant Thornton in Southfield, Michigan, told the publication. “Cerberus is really focusing on the lending side of the automobile industry.”

Cerberus owns a stake in GMAC and Chrysler Financial.

Under the loan announced by President George W. Bush, Chrysler must swap equity for debt to reduce its debt load and to fund about half of its obligations to the UAW’s Voluntary Employee Beneficiary Association trust with stock.

Chrysler Financial will offer $2 billion in order to backstop the government’s loan, which must be repaid by March 30.

“It’s a cooperative way of handing over your position in a company to help it see another day. It’s an industry-supportive move by Cerberus, which is more beneficial to the other OEMs,” Kimberly Rodriguez, also with Grant Thornton, told the publication.

Analysts have said that Chrysler’s future lies in partnerships with other automakers. It currently works with Volkswagen and Nissan, but it will almost certainly need to expand those partnerships and seek others in order to stay afloat.

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12/22, 9:53 AM

posted by:

MercMark

Any takers… anyone…

12/22, 10:08 AM

posted by:

snork

Bueller? Bueller?

12/22, 10:39 AM

posted by:

strongbad

As a long time supported of Mother Mopar… I don’t see the point in its existence anymore. They literally offer nothing of value to the consumer. For every car or truck line they have, there are plenty of better examples from other stronger companies. Who would buy the automotive side and for what purpose?

12/22, 11:23 AM

posted by:

JakeK66

Nissan, you’re time has come… You will be a 3 headed company that you’ve always wanted to be. Please come and buy them! I beg you! At least you won’t completely strip them of everything.

12/22, 11:41 AM

posted by:

johnnycanuck

3rd time lucky? Please? Anybody? And I’m with JakeK, Nissan would have to be looking at this now.

strongbad, don’t give up the faith. Chrysler still does have value and I know a little piece of me would die if they did. Or that could just be part of my liver.

12/22, 11:47 AM

posted by:

shread1273

Strongbad, you forgot about Jeep. There are no realy competitors to the Jeep wrangler.

12/22, 11:56 AM

posted by:

Tripleoneflipper

shread 1273, what about Acura and Honda?? Check KBB and you’ll get educated.

12/22, 11:58 AM

posted by:

RaineMan

What a BS title.

Cerberus has been looking to unload Chrysler since day 1. That is all they do… break companies up and sell them for a profit… we all know it.

12/22, 12:04 PM

posted by:

shread1273

flipper, how is acura, a luxury auto maker, in competition with Jeep??? If I want a confident 4×4 to hit the trails, the last place I would look is Acura, haha. and I don’t think KBB holds much water for anything…

12/22, 12:06 PM

posted by:

anti-believer

Just let Chrysler die.

I could care less about Jeep. Never appealed to me.

Chrysler is a dying company just like it’s generation.

GOODBYE!

12/22, 12:11 PM

posted by:

Tripleoneflipper

1115 here, they have the MDX AND the Pilot. Those are offroading champs. The original WW2 Jeep was a direct copy of historic Honda’s/ Too bad the Japanese did’nt win that war. If I were not just 14 years old and lived back in that day, I would have crossed enemy lines and fought with the Japanese Empire. Just check KBB?? You will all see for yourself you flag hugging jerks.
Oh well , my Mom need me to put on a dress and go make some money to pay for her Cocaine issue. Gotta go.

12/22, 12:15 PM

posted by:

shread1273

I actually drive imports myself, Lexus at the moment, best cars on the road. But offroad, you really can’t beat a jeep for the money. You’ll understand when you get older…

12/22, 12:19 PM

posted by:

Lariat Luxury Locomotive Liner No.3

Truly nothing worth purchasing from Chrysler any longer…including Chrysler itself. I hope the three-headed dog chokes on itself.

12/22, 1:04 PM

posted by:

tripleonefive

the Flipper is still mad that he cant provide ANY solid fact that D3 make decent cars
Keep posting Like I said Ill have you posting all day pretending Must suck to be you lol

12/22, 1:12 PM

posted by:

yarddog82abn

LOL……..LOL……………LOL……………..

12/22, 1:49 PM

posted by:

RaineMan

Actually… Jeep is the best selling brand of SUV in the world and is instantly recognisable anywhere. I think Ford or GM would be very smart to acquire the brand while it is available. I would hate to see it in the hands of a Japanese or (heaven forbid) Indian manufacturer. Chrysler/Cerberus really made the mistake with Jeep when they expanded the lineup and brought on the rebadges. Wrangler and Grand Cherokee… that’s all Jeep needed. Then they brought in Liberty and it’s rebadge the Nitro, Commander and its rebadge the Durango… and Compass/Patriot and their twin the Calibur. Poof! What do ya know… Jeep is now competing directly with Dodge for sales.

It doesn’t take an idiot with an MBA to figure out that you shouldn’t really compete with yourself for sales in a fickle and rapidly shrinking market. But then I see that GM hasn’t learned this lesson either.

12/22, 1:56 PM

posted by:

Tripleoneflipper

I am pretty sure no one here could prove that the Big 3 are capable of producing a quality, well designed and dependable car. They suck. Look at KBB for the resale #’s people.
I wish I had even more time to be critical of all things American and put down all that is patriotic. Oh I do have plenty of time, just look at how much I , 1115 am on here, everyday and all times of the day. Because I live with my Mom in her basement. Oh well time to go watch transgender porn with my Mom’s boyfriend. I can’t quite figure out why he won’t let me wear pants. Honda’s rule.

12/22, 2:48 PM

posted by:

Borat

RaineMan, you are forgetting that GM is on government supplied life support and Ford will be there in 3 months. Expansion by acquisition is perfect business strategy, if your business either has cash (Microsoft purchasing Yahoo) or is stable enough and backed up by strong management team that can get line of credit from banks. Neither Ford or GM qualified for ANY line of credit.

12/22, 3:35 PM

posted by:

tripleonefive

You still cant prove that D3 can make a decent car When you type all I see is you saying youre an asshole lol
Keep posting ..all times of the day

12/22, 3:43 PM

posted by:

Commodore

Really? Cerberus doesn’t want Chrysler? Thanks! I learn something new here everyday

12/22, 3:50 PM

posted by:

RaineMan

If GM would unload Hummer and Saab… then close GMC they could probably generate enough cash to buy Jeep.

12/22, 3:52 PM

posted by:

Tripleoneflipper

Yea that’s right the Big 3 suck c^^%k just like me and Planet Drive

Love

Tripleonefive
xoxoxoxoxoxox

12/22, 3:57 PM

posted by:

tripleonefive

LOL keep going

12/22, 4:09 PM

posted by:

Tripleoneflipper

LOL keep going

12/22, 4:10 PM

posted by:

Tripleoneflipper

O.K. I will

12/22, 4:19 PM

posted by:

TomF

Only Jeep has brand equity and intrinsic value. The cars all suck — they are everyone’s fifth choice, in every segment — and the minivans have had their day. Sell Jeep to Nissan, kill off everything else.

12/22, 4:35 PM

posted by:

tripleonefive

lol Im sure you will bc I say so. Post something bitch

12/22, 5:09 PM

posted by:

jayjc08

Wow, just reading your posts give me a ****ing headache. We all know 1115 is full of it, just imitating his ignorance is so **** childish.

All Jeep needs is the Wrangler and a small SUV. Jeep GC sales will indefinitely continue dropping off in the near future, and make it difficult to meet CAFE. Just go with something about the size of the Patriot, refine it a bit, and offer a bit more in terms of “off-road package”. Hell, even offer a damn hybrid and small truck version! Make use of the damn platform.

12/22, 7:30 PM

posted by:

CanadaCraig

Chrysler didn’t all but destroy Chrysler – Mercedes-Benz did that. Chrysler was ROLLING in dough when MB bought it. The only good thing to come out of that ‘merger’ [haha] was the LX models. [Think 300C, Charger, Magnum and now Challenger] And the ONLY THING not so hot about the LX cars are the choices DaimlerChrysler made regarding interior materials. Everything inside is put together nicely – it just looks and feels cheap. And I know – I own a 300C SRT8. Which – by the way – has been a problem free car that’s truly wonderful to drive. Chrysler does not deserve to die. If a person marries a dope and then remarries someone who only wants to tear them apart for their money – does that mean they deserve to die? Of course not. I’m hoping that someone, somewhere who KNOWS how to run a car company [And I'm leaning heavily toward Renault/Nissan] will buy Chrysler and bring it BACK to where it rightfully belongs. Craig!! :o )

12/22, 8:19 PM

posted by:

miket

Dear President Bush,

Thanks for the loan. I understand that you will be looking for a new position in a month or so….If that’s the case, would you be interested in purchasing and running a once great motor company? We have some very good products, like the legendary Jeep brand. Our books are in the red slightly, but we also have a huge line of credit.

The company was on a roll for a while after we purchased it from those darn “feringers”, then we turned things over to the bean-counters. Those guys are awesome. They ran our interior design dept. for the last few years. These guys are so good–would you believe that you can make an entire car interior for 6 dollars? Those accountants in design alone are worth the purchase price of the company. Let me know if you are interested.

thanks again,

Steve Feinberg

PS – we make some good trucks. They could be an excellent prop for the “brush clearing” show you put on at your ranch.

12/22, 10:51 PM

posted by:

Commodore

haha no one posted anything 1115, regardless of the fact that you wanted him to

12/23, 9:29 AM

posted by:

tripleonefive

Dont worry he will and if he doesnt i still win Just like Honda and Toyota win over D3

 
 
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