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Automotive News & Views Can Chrysler Turn It Around in Bankruptcy?
464 messages, Last post on Oct 02, 2009 at 2:05 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: steve_ (Dec 22, 2008 11:46 am)  
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Replying to: mickeyrom (Dec 22, 2008 12:57 pm) |
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Cerberus to invest $2 billion in Chrysler NEW YORK (AP) - Cerberus says it will invest the first $2 billion of Chrysler Financial profits back into the financing arm's parent automaker. Cerberus Capital Management LLC says the funding will back up the $4 billion loan Chrysler is getting from the government as part of its rescue package for the domestic auto industry. But Cerberus says Chrysler's labor costs must be cut to the level of its foreign competitors and its debt restructured. If that doesn't happen, it says the automaker will not be able to return to long-term viability or be able to repay its government loan. In order to make that happen, Cerberus says it will offer equity stakes in the automaker to its unions and creditors in exchange for concessions. It seems the best option for Chrysler may be to simply sell the company for whatever they can get for it. They need major concessions by the UAW (which won't happen) and their creditors to re-negotiate....all by the end of March.  And then there were 2...... |
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Replying to: steve_ (Dec 22, 2008 11:46 am) Days before the details of White House's half-hearted bailout became known, the CSM analysts spoke of the advantageous dynamics of the new "Detroit 2:" capacity utilization and flexibility will soar (thanks to, ahem, lots of shuttered Chrysler factories) as some two million or more units of vehicle-assembly capacity is removed from the manufacturing base of the now-Chryslerless domestic auto industry. I have been thinking that for a while. Nobody is taking into account the huge beneficial effect it will have on the remaining automakers if the weakest one fails and leaves the market. Of course, that STILL won't bring Ford and GM totally out of the woods, as we have lost well over 2 million annual sales this year, but it sure is a start.
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Replying to: nippononly (Dec 23, 2008 8:49 am) |
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the best future for Chrysler is to part it out- sell the 'vans and Ram to Nissan, sell Jeep to somebody, anybody, then turn out all the lights and call it quits. It's been game over for Chrysler for a long time; Daimler basically raped Chrysler... |
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Why would Nissan want their mini-vans? They have their own.
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| So said Chrysler CEO Nardelli. The tip-off will come if and when Chrysler plants reopen. I hope they do, and that Chrysler claws its way back to viability again. It would be nice if all three domestic companies survive and, eventually, thrive again. The odds are long, but one can hope. | |
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Replying to: mickeyrom (Dec 25, 2008 5:34 am) I could see VW bidding for the Caravans. Unless they decide to redo the Routan in-house after seeing how Chrysler has been building them. GMAC, 51% owned by Cerberus, is now a bank holding company meaning that they can get TARP money to use for financing car loans and leases. That's going to help GM too. (BNET)
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Replying to: steve_ (Dec 25, 2008 9:02 am) The Quest logs so little in sales, and its resale is far worse than most other Nissans, that it might simply be worth dumping anyways, though.... Nissan hasn't had much luck with minivans. The Routan is a curious case; I don't see why VW would want to get into a market that is declining every single year due to 7/8 passenger crossovers becoming better and better. Why not just develop their own crossover, or engineer the next Touareg to seat 7?
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