By Edward Niedermeyer
October 15, 2008 -
With all the talk of GM-Chrysler mergers, many have lost sight of the fact that automakers hold strategic talks with each other on a regular basis. Of course, GM talks grab the spotlight, thanks to the sheer size of the company. But Chrysler is by far the more interesting story. The Detroit News reveals that Chrysler’s owners Cerberus Capital began entertaining offers from a number of firms within a year of acquiring the Pentastar brand. In addition to the now much-speculated-upon GM talks, Cerberus has also met “in recent months” with Renault-Nissan, Fiat and Tata, in hopes of pulling Chrysler’s fat from the fire. Unfortunately, we aren’t getting many details on possible tie-up strategies. Nissan-Renault talks certainly revolve around platform-sharing in the short-term, although Carlos Ghosn is said to be “dispassionate” on the subject of closer ties with Chrysler. “I think that initiatives, in terms of alliances, are frozen for a very simple reason: Everyone is scared of credit crunch and cash problems,” says Ghosn. And that’s really the issue. There are plenty of second- and third-tier global automakers that would enter platform and capacity sharing agreements with Chrysler, but nobody wants to break out the checkbook for an equity position. Especially considering Cerberus expects to retain a stake in Chrysler in the event of a sale. Why buy a failing firm in this market when your cash could be better spent on new product?
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POWERED
October 15th, 2008 at 8:21 am
There’s a girl in the corner who’s been checking you out, Chrysler. Over there, yeah, the one with the weight problem and glasses who looks like she hasn’t showered in a month. My roommate told me that underneath all those sweaters she’s got an unbelievable D-platform available to anyone who asks.
So strap on your recession goggles, Chrysler and buy her a drink. What’s that, you need to borrow $10? For you, buddy, anything.
October 15th, 2008 at 10:25 am
As I’ve stated before, I’m a Jeep guy, and so it hurts me to see the Jeep brand in the mess that it is.
With that being said, I don’t know why anyone would want to tie themselves to a manufacturer that has the UAW as a noose around their neck (unless they already have that noose as well)?
October 15th, 2008 at 11:16 am
Can I live without those fine Chrysler automobiles? Will my life have meaning without the Avenger and that…um… Nitro thingie? And the Caliber, which only kind of looks like the bastard child of a Dodge Omni and a Fisher Price?
October 15th, 2008 at 12:20 pm
Is it just me, or is Chrysler ‘news’ spinning a wheel, and writing about the topic the pointer’s chosen? This is just not news anymore, guys.