Chrysler has finally been sold. A private equity firm has bought it. The same firm who owns a bunch on rental car companies. They don't have to answer to any of the shareholders anymore because they are private.
DBK said:DC bought Chrysler for $37 billion dollars, spent untold billions more integrating and developing products with them, and now sold them for $7.4 billion. Good deal Germans.
This is nothing but bad news for Chrysler. I'm not sure Cerberus knows what it's doing at this point. Last year they bought a grocery chain, bought a majority stake in GMAC (which is a disaster at this point) just to stick it to KKR, and now they buy Chrysler...I'm just not sure what they want it for. Are they going to slash and burn and then attempt to liquidate? Do they want to build cars for some reason? Either way, expect major changes at Chrysler. If you work there, start filling out resumes (not that it's any different than any other car maker at this point).
I just hope they don't destroy it. It'd be nice if it was a genuine attempt to bring it back, but I don't have too much faith in that.
p.s, DC basically just paid Cerberus to take on this company. You tellin me all the assets and brand value Chrysler has isn't worth more than $7 billion? They were desperate to ditch their obligations and the Germans wanted rid of the Americans, so they took a colossal loss to do it...
wvmystichrome said:Actually I heard said on the news this morning that the new owners would have a hard time ever getting Chrysler to turn around because of "Legacy issues." People have known for years that a Chrysler vehicle's value drops as fast as a rock after it is purchased. People don't want to pay $35,000.00 for a car and 12 months later it is only worth $12,000.00 - $15,000.00. Other Legacy issues are build quality, power, and such. Also the UAW is going to have to strike some new deals to allow the new owners to survive.
Just my .02 cents worth.
wvmystichrome said:Actually I heard said on the news this morning that the new owners would have a hard time ever getting Chrysler to turn around because of "Legacy issues." People have known for years that a Chrysler vehicle's value drops as fast as a rock after it is purchased.
that would probably be the dumbest thing they could do...03cobrablack said:I hope they don't kill the new Challenger....
03cobrablack said:I hope they don't kill the new Challenger....
MonkeysL said:i don't believe this at all...u can't find a 2002-2003 300c, magnum, or charger (v8's) for under 22k hardly and that's 5yr old vehicles. all of those are holding their value as well as Jeep Commandors, Grand Jeep Cheerokes, and etc.
wvmystichrome said:Actually I heard said on the news this morning that the new owners would have a hard time ever getting Chrysler to turn around because of "Legacy issues." People have known for years that a Chrysler vehicle's value drops as fast as a rock after it is purchased. People don't want to pay $35,000.00 for a car and 12 months later it is only worth $12,000.00 - $15,000.00. Other Legacy issues are build quality, power, and such. Also the UAW is going to have to strike some new deals to allow the new owners to survive.
dougwg said:Ceberus