Chrysler To Sell Two Axle Plants
Because outsourcing axle-making has turned out so well for GM, Chryler will be selling two Michigan-based axle factories. The Wall Street Journal reports that Chrysler has approached Dana Holding Corp and American Axle (as well as other private equity firms) with an offer to sell the two plants for $400m. Shockingly, "the offer has sparked little interest," according to "people familiar with the discussions." The two factories on the sale block are Detroit Axle and Chrysler's Marysville axle plant, the latter of which is still being built. The usual Michigan labor bugbears appear to be the main culprit for the lack of interest, as any buyer would have to also buy out Detroit Axle's UAW contract. Still, Chrysler has got to slim down, meaning the price might just drop until someone can
be saddled with find value in the axle plants. We'll be right here holding our breath.