The news of the month is easily Cerberus’ possible sale of Chrysler, with new reports seemingly popping up by the minute. Despite all the reports, very little has actually come from Chrysler or Cerberus. But Cerberus has apparently had enough of the speculation and has spoken up for itself.
While there has been talk that Cerberus will split up Chrysler – with part going to General Motors and part going to Nissan – Cerberus says not so fast. The capital management firm says it has no plans to split up Chrysler and would prefer to sell the automaker in one big chunk. A lump sale would give Cerberus better leverage at the negotiations tables.
Moreover, Cerberus has a bigger interest in selling Chrysler to GM rather than Nissan, which would likely give Cerberus the remaining stake in GMAC. As it stands, GM owns 49 percent of GMAC while Cerberus controls the other 51 percent.
Despite the commotion surround the possible merger, Chrysler President Jim Press assured employees and stakeholders that it will continue to be business as usual at Chrysler. “The best thing we can do is focus on our business at hand and try to match and beat the competitors,” Press told The Detroit News.
10/23, 6:18 PM
posted by:
441Zuke
why would they want a ****ty auto corporation when they can make money with an auto financing corporation.
10/23, 7:58 PM
posted by:
Lariat Luxury Locomotive Liner No.3
If Cerberus and Jim Press were so interested in business as usual why didn’t they pursue these negotiations behind closed doors as many deals are done? Cerberus wants to appease the banks that hold stake in them versus selling to Nissan as then they will have to deal with international law and a whole new ball game. As it stands Cerberus is banking on the US Taxpayer to bail their sorry asses out. I say screw Cerberus!
10/23, 10:31 PM
posted by:
olds307
just put them back on the stock exchange……..problem solved
or a management buyout
10/24, 1:34 AM
posted by:
bolex
sounds like GM deal didnt satisfy Cerberus…i guess until the next offer comes ….screw cerberus.
10/24, 3:00 AM
posted by:
TOZO
Cerberus is already screwed. Their Mervyns stores are closing, and now Chrysler. Maybe Chrysler should go back on the exchange. Let’s see.. Ford is $2 a share, GM is $6… So, Chrysler could be about a quarter-dollar per share just like Sirius XM Satellite Radio. That’ll raise like a thousand bucks for Chrysler. Maybe a seizure like WaMu’s seizure by the government and the giving of control to JP Morgan. The government should just give it to GM for free. Maybe even pay GM to accept that junk company. Jeep is the only real asset there, and Carlos Ghosn is willing to take.
10/24, 5:27 AM
posted by:
fan
whys everybody talking chrysler in the ground? out of the big three, chrysler is definitely the one with the best products. (that dont mean too much, regarding Ford and GMs current products, but still)
its true, chryslers sales are the worst as far as i can see, but thats definitely not due to the products; maybe rather bad press, bad company communication (i.e. advertisement)…
anyway, i think chrysler will be around for some while, which i sometimes doubt for gm and ford…
10/24, 6:57 AM
posted by:
CanadaCraig
A very promising future for Chrysler is just around the corner. There are a lot of great new products just waiting in the wings. AND an entirely new line of V6 engines. There is no need to kill Chrysler. There is no need to SELL Chrysler. Cerberus is just being impatient. Besides – if GM buys Chrysler – it will kill Chrysler and THEN kill GM.
Cerberus wants GMAC. That’s all they care about. I hope they can’t get it and are forced to live up to their original commitment to be ‘In it for the long term’ – as they said they would be when they bought Chrysler from Daimler.
Craig!!
10/24, 8:30 AM
posted by:
carstuff
whys everybody talking chrysler in the ground? out of the big three, chrysler is definitely the one with the best products.
LOL, are you serious? What does Chrysler have? No Subcompact, a compact that is not selling, an old PT, junk/non selling midsize cars, OLD/large/heavy/not selling RWD cars, a great minivan, an old RAM truck (new one is out and that is great but trucks are not gonna save them today), and Jeep. NOthing overseas. As far as the future there are NO vehicles being developed for launch after 2010. They have killed everything. I have talked to my counterparts at Chrysler. Chrysler has one fastener engineer left to keep the plants running. GM has lots more because they are developing new products. And this is true for every department. Cererbus has killed everything in the future to save cash and get ready to sell.
GM HAS a selling subcompact, a compact (cobalt) that pretty much keeps increasing sales every month, excellent midsize Aura, Malibu and soon LaCrosse, decent FWD large cars and great trucks. Also excellent high end CTS with new versions coming out (Chrysler has nothing there). AND lots of overseas vehicles that are selling well.
10/24, 12:06 PM
posted by:
Borat
Chrysler owns 11 billion dollars in the bank and little in terms of outstanding loans. GM and Ford own less cash, property and equipment then they own to the banks. It cost for GM and Ford more to produce and sell a vehicle, then possible payoff; they cant even break even on per vehicle basis. Chrysler, wisely, almost stopped production and bleeding of cash.
To make money GM has to sell Malibu @ $45K and Ford to sell Taurus for $50K. And that’s were the problem lives.