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It's official - Cerberus buys Chrysler

KCRam@EdmundsKCRam@Edmunds Mt. Arlington NJPosts: 3,495
edited March 21 in Chrysler
Daimler Press release:
Cerberus Acquires Chrysler

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KCRam - Pickups/Wagons/Vans+Minivans Moderator

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Comments

  • seminole_kevseminole_kev Posts: 1,722
    Well this is certainly interesting. Wonder what the future holds.......
  • british_roverbritish_rover Posts: 8,476
    Hear it on NPR this morning. Mercedes retains 20% of chrysler but chrysler's pension and healthcare liablity remains Chrysler's problem.
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,931
    Notes from the Wall St. Journal:

    Slash and burn. LaSorda stays on and the plan to cut 13,000 jobs and close one factory remains in place.

    Cerberus owns 51% of GMAC so they'll try to drive financing to that company.

    The retirement and health care liabilities get folded into a holding company (the pension fund is significantly overfunded at the moment).

    The UAW supports the acquisition (it's hard to call it a sale to Cerberus - more like MB is paying Cerberus to take Chrysler off its hands).

    WSJ registration req'd link

    Cerberus has stakes in a bunch of other companies, including Formica -- maybe we'll start seeing some interesting dash treatments in the near future? :P
  • lemkolemko Posts: 15,068
    In Greek mythology, Cerberus or Kerberos (Greek Κέρβερος, Kerberos, "demon of the pit") was the hound of Hades, a monstrous three-headed dog (sometimes said to have 50 or 100 heads) with a snake for a tail; he was also seen with a dragon's tail and serpentine mane.

    Cerberus guarded the gate to Hades and ensured that spirits of the dead could enter, but none could exit.

    Could this mean that Chrysler has died and literally gone to h***?
  • british_roverbritish_rover Posts: 8,476
    I always wondered why you name a company after Cerberus the hell hound. Considering what Cerberus the company does to what it buys, kills and dismembers for the most part, I guess it makes sense.
  • seminole_kevseminole_kev Posts: 1,722
    Somebody go turn on the "bat signal" for Andre......
  • fintailfintail Posts: 32,902
    Hopefully MB can stick to working on recovery now.
  • lokkilokki Posts: 1,200
    "Mother of Mercy. Could this be the end of CHRYSLER?"

    image
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,637
    How is the stock market reacting to all of this?

    My initial impression, based on nothing but gut feelings, when Chrysler joined up with Mercedes was that that was a big mistake.

    My impression now, based on nothing but gut feelings, is that Chrysler is screwed and is being measured for a coffin.

    MrShiftright
    Visiting Host
  • gagricegagrice San DiegoPosts: 28,681
    So many times the corporate pieces are worth way more than the whole corporation.
  • british_roverbritish_rover Posts: 8,476
    Yup Jeep on its own is worth a fair amount. I bet cerberus makes back most of their investment just divesting themselves of jeep.
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,931
    Another blurb about the buyout:

    Cerberus to take majority stake in Chrysler (Straightline)
  • oldguy70oldguy70 Posts: 97
    The price of Cerberus stock has gone up a couple of points following the announcement.
    Private equity firms like Cerberus are noted for breaking up their purchases and selling them piecemeal.
    That's not to say it'll happen here, but I would think the odds are pretty good that it will.
    These types of predatory businesses are notorious for their "flipping" practices. Not a good thing, I think.
    The UAW says this is good for Chrysler employees. The CAW (Canadian version) says it isn't a good thing for employees.
    It's early in the game --the ink is still wet. We'll just have to wait and see how the scenario plays out.
    All things considered, is anyone really surprised at the outcome?
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,637
    I'd sell Jeep whole to Harley Davidson or some other conservative, sober company that knows how to market an average product brilliantly, (look what BMW did with MINI) and then just dismantle the rest of the company for parts.

    MrShiftright
    Visiting Host
  • british_roverbritish_rover Posts: 8,476
    I actually think BMW wouldn't be a bad buyer for Jeep. That was my first thought if BMW is looking to stretch their legs a little bit.

    Then my second thought was how the BMW aquisition of Rover didn't turn out so great so maybe BMW buying Jeep is a bad idea.
  • nwngnwng Posts: 664
    I think big H might be interested. There's your street cred with a bof vehicle. Does Jeep have a common rail diesel engine in europe from DC?
  • gagricegagrice San DiegoPosts: 28,681
    The current Grand Cherokee is offered with a 3.0L diesel from Mercedes. A Wrangler with a diesel would be ideal for me.
  • british_roverbritish_rover Posts: 8,476
    Yeah they do and I think it is going in the Grand Cherokees for next year.

    Not many jeeps are BOF anymore though. Just the wrangler I think as all the rest are care based from the Caliber or on their own unique platforms.
  • volvomaxvolvomax Posts: 5,274
    Dunno if that is a great idea.
    Harley prob doesn't want the headaches of Jeep.
    Plus, w/ gas prices as they are, who can say that Jeep would be profitable in the future?

    The only company that makes any sense at all to sell Jeep to is Hyundai.
    They have the capital to run the co,and they have no full size SUV's of their own.
  • nwngnwng Posts: 664
    the use of MB diesels itself is worth the ticket to get Jeep, if it is going to be sold. I thought the liberty is sold in europe with mb diesels.
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