DC sold C!

[SnoKing]

It is a done deal. DC sold off the Chrysler. SNOKING

 

[Doubleclutch]

To whom? Did this get pulled from a smelly orifice, or a document that can be looked at? Inquiring minds would like to know.

Greg

 

[SLangegger]

Look here... .



Chrysler Sale - MSN Money

 

[Gary - K7GLD]

WELL, I guess all we can do now is sit back and see what the end result is - wonder what in-depth experience in auto production the buying group has - hope their focus is more on production of quality vehicles than simple bottom line profit - or worse, selling off portions of Chrysler to the highest bidders and removing yet another domestic maker from our available selections...



For my part, I fear the worse over the long haul...



Here's an interesting news quote:

Cerberus also gave itself an edge by hiring Chrysler's former chief operating officer, Wolfgang Bernhard, as an adviser.

I wonder HOW keeping on the CEO who was in charge of record losses is a PLUS?



Another:

"It's very, very worrisome for us," Canadian Auto Workers union President Buzz Hargrove told Reuters today. "I don't have any bone to pick with (Cerberus), but the whole point of private equity is not to grow the business over the long term, and that's what we need. "

THAT would be exactly my fear and expectation as well...

 

[SnoKing]

Cerberus Capital Management is a equity firm and not related to the auto industry. SNOKING

 

[Gary - K7GLD]

Cerberus Capital Management is a equity firm and not related to the auto industry. SNOKING

Pretty much as I figured - and not particularly a good thing...



It means the company is in the hands of, and controlled by beancounters...

 

[SnoKing]

You got it! SNOKING

 

[Tractorat]

If I was in the market for a new truck right now (and Im not), I definitely would not consider the Dodge. The new owner is obviously not interested in building up a product line, or bringing new technology to its current offering.

Of course these guys are in it for the profit. They think they can make a go of it. Otherwise, they wouldnt have purchased C.

Maybe they will be able to turn C around, but at what cost ? And would that turn around include getting rid of some products (the Cummins powered Ram for example) ?

I dont have a crystal ball to get even a good wild guess there. But these trucks cost a lot of money. And I just wouldnt be willing to take a gamble on "support and parts" (ha) being readily available for warranty issues etc.



Just my thoughts,

TRat

 

[Steve St.Laurent]

We'll just have to wait and see how it goes. I do like hearing this from one of the articles and hopefully it's not just air:

"A private investment firm like Cerberus will provide management with the opportunity to focus on their long-term plans rather than the pressures of short-term earnings expectations. "

 

[AKaiser]

If I was in the market for a new truck right now (and Im not), I definitely would not consider the Dodge. The new owner is obviously not interested in building up a product line, or bringing new technology to its current offering.

Why do you assume that? Why do you think that they are "obviously not interested in building up a product line?" You can't make money if your products don't sell. Besides, Daimler still has 19. 9% share in Chrysler Corp. and is still going to be heavily partnered with CC in the alternative power and transmissions areas.

Maybe they will be able to turn C around, but at what cost ? And would that turn around include getting rid of some products (the Cummins powered Ram for example) ?

Why would they get rid of a signature vehicle? Something like 80% of all Ram HDs sold have a Cummins diesel in them.

 

[Tractorat]

Dont mind me, Im pretty cynical. But I dont know what their game plan is. And if it is to break up C, I dont think they would tell anyone at this point (see my cynical side coming out ?). My hope (and guess) is that they've made the decision to keep signature products such as the diesel RAM and ramp the company up. (I like some of their cars as well).



My comment about them not really being interested in building up the product has to do with the fact that they are a fanancial company whose prime interest is in making money. In my somewhat naive world, the best of all worlds is a company that wants to make great products, and that making money is the outcome of that.



Because, IMO, the future of Dodge may be a little cloudy right not, I just wouldnt make the move on spending $30 or $40 k on a new truck if I had to buy one today. Im sure my opinion will change in the next 6 months when it becomes more apparent what will happen at C. I certainly hope it is for the better.



TRat

 

[JasonCzerak]

Daimler sheds Chrysler to private equity firm | Reuters





This is good! Since my grandma passed a few years ago I couldn't get any discounts. My brother works for a company that is owned/invested by Cerberus, so he can get the discounts and I may be able to as well.



shwwweeeeet.

 

[TowPro]

They buy companies; fix them up so they make money, then sell them for a profit. It might be good that someone from the Auto industry is not picking the future path for Chrysler. Look at the other Big 3, are any of them going the right direction? There full of Auto industry experts.

 

[MMeier]

Daimler sheds Chrysler to private equity firm | Reuters





This is good! Since my grandma passed a few years ago I couldn't get any discounts. My brother works for a company that is owned/invested by Cerberus, so he can get the discounts and I may be able to as well.



shwwweeeeet.

Don't forget about your extended family here!

 

[FATCAT]

Cerberus Capital Management is a equity firm and not related to the auto industry. SNOKING

This deal reminds me of the deal in the movie "Wall Street" when Gordon Gekko's firm bought Blue Star airlines and was going to piece it out. Chrysler will soon fade into history like Packard and Plymouth.



#ad

 

[Pawpaw]

Look at the other Big 3, are any of them going the right direction? There full of Auto industry experts.

That's one heck of a good point!



Bob

 

[SnoKing]

Head guy at Ford now is from Boeing! SNOKING

 

[jamnram]

Interesting article on private equity and electrcity. FATCAT may be right on with Gordon Gecko scenario (though I hope not).

The war for your electric bill - MSN Money