LaSorda: Chrysler Tried to Hook-Up With Toyota. And Everyone Else.

Edward Niedermeyer
by Edward Niedermeyer
lasorda chrysler tried to hook up with toyota and everyone else

No, really. The Detroit News reports that prior to its Chapter 11 filing, Chrysler sought to sell off parts of the company to everyone. “Chrysler sent letters to parties, primarily in China, whom we thought would be potentially interested in purchasing our assets,” writes ChryCo’s Tom LaSorda in a bankruptcy filing affidavit. “Over the next two months, several companies, including Beijing Automotive Industry Holding Co., Tempo International Group, Hawtai Automobiles, and Chery Automotive Co., expressed interest in purchasing specific vehicles, powertrains, intellectual property rights, distribution channels and automotive brands.” But guess what? Not even these ambitious firms were tempted to spend a dime on Chrysler’s alleged assets. And the major OEMs in the global auto game? Chrysler’s efforts to form alliances with Nissan, GM, Volkswagen, Tata Motors, Magna, GAZ, Hyundai, Honda and Toyota “have been determined and undertaken in good faith but have met uniformly without success,” admits LaSorda.

Chrysler approached Toyota last June, suggesting that “Toyota use Chrysler’s excess capacity to build new products or work to develop advanced technology vehicles, such as hybrids.” A month later, Toyota wrote back saying thanks but no thanks. It only took Honda a single day last December to politely decline Chrysler’s offer. Nissan took a little more time to decide against a Chrysler tie-up. Rumors of a Chrysler-Nissan alliance were thick in 2008, as executives met half a dozen times, even exchanging term sheets. “In May, the teams reported that an alliance between Chrysler and Nissan could generate operational synergies on a gross cash basis of more than $11.8 billion in cash flow for Chrysler only ($18 billion for both companies),” says LaSorda. And still no deal emerged, reportedly because Nissan couldn’t commit enough financing resources. Even after those talks fell apart, Chrysler went back to Nissan looking for another deal as its position crumbled further late last year. No deal.

But really, “the hedge funds” are to blame for Chrysler’s bankruptcy. Just ask the Michigan House of Representatives.

Join the conversation
2 of 16 comments
  • Wsn Wsn on May 01, 2009
    psarhjinian : May 1st, 2009 at 1:42 pm It didn’t work because: a) Companies that could afford it already had decent products and didn’t need the help** I want to add that it also depends on whether the companies line up is bloated or not. Toyota has a large number of models, so they considered for longer. Honda is very careful not to add unnecessary models and declined in one day. Chrysler might have better luck with Daimler, since Daimler has 3432 AMG models in its lineup. Wait, oh, Daimler was Chrysler's ex. Well ...

  • Brettc Brettc on May 01, 2009

    Yes, the Routan comment was dripping with sarcasm, too bad it's hard to tell on the interwebs. Thanks for the numbers on the Routan, Edward N. I've gotta subscribe to Automotive News I guess. The total production number vs total sales doesn't quite match up! I wouldn't be surprised to see them discontinue it and have some good deals on the remaining inventory soon. Not that I'd ever buy one though. I'd buy a Sprinter first.

  • Inside Looking Out This is actually the answer to the question I asked not that long ago.
  • Inside Looking Out Regarding "narrow windows" - the trend is that windows will eventually be replaced by big OLED screens displaying some exotic place or may even other planet.
  • Robert I have had 4th gen 1996 model for many years and enjoy driving as much now as when I first purchased it - has 190 hp variant with just the right amount of power for most all driving situations!
  • ToolGuy Meanwhile in Germany...
  • Donald More stuff to break god I love having a nanny in my truck... find a good tuner and you can remove most of the stupid stuff they add like this and auto park when the doors open stupid stuff like that