It's official - Cerberus buys Chrysler

dsirias · August 2007

Apples and oranges. We're not talking about a foreign nameplate/newcomer seeking entry into this market at one time all by it's lonesome--like Toyota and Hyundai. I'm speculating about just the opposite: an established brand that very likely will be killed off(by being sold off to a new (probably chinese) newcomer). They might keep the Chrysler badge, and it might survicve or eventually thrive here, but those cars won't be built here with unionized American labor for a very long time, if ever. Toyota and Hyundai never sought entry into this market by assimilating one of the big three. Now as for Chery.......?

stever · August 2007

New Chrysler website:

link

They're blogging.

And a rep is on CarSpace:

chryslerinfo, "New Chrysler Corporate Website" #1, 6 Aug 2007 12:24 pm

volvomax · August 2007

Poor guy. He's gonna get eaten up here.

stever · August 2007

I think that was probably more of an informational post.

jchan2 · August 2007

I'm sure eventually some tough questions will get out and the guy will have to really start working hard at answering them.

Either that, or he could just quit CarSpace...

british_rover · August 2007

I think that was probably more of an incorrect informational post.

Fixed that for you

stever · August 2007

:shades:

Just heard a New Chrysler ad on the radio; can't remember the last time I heard one that wasn't just a local dealer sales pitch.

If they've reached me that way, their marketing machine must be in high gear.

wtd44 · August 2007

Give Chrysler a chance. What can YOU gain by attacking someone from Chrysler on an Edmunds forum? That behavior speaks poorly of the person performing it. No one is helped, and no gain is made for anyone of acceptable mental stability.

jchan2 · August 2007

I heard one of those ads too. Very nicely done, actually.

The marketing guys are working 12 hours a day :surprise:

stever · August 2007

"New CEO Bob Nardelli has hired his first "car guy"  from Toyota, no less  to oversee global marketing. Smart move."

Lexus Exec Jumps Ship for Chrysler (Inside Line)

hpmctorque · August 2007

Uh, Nardelli's new hire is a car GAL.

stever · August 2007

Thus the quotes around "car guy."

Glad to see someone is paying attention around here.

Can you be a Detroit native and not be a car guy/gal?

hpmctorque · August 2007

Since I've never lived in Motown, I don't know, but I suspect it would be rare for Detroiters to not have some passion about cars.

wtd44 · August 2007

...that was apparently held all over the country during the evening hours at all Chrysler Corporation dealerships. I enjoyed the food and customized (old) muscle cars. It was quite low key in my community. I wondered what the "hoopla" prior to the event was all about. I got the feeling that the dealers were pressed into service on this deal, and were less than exuberant over it. :shades:

stever · August 2007

And even more dealers are getting irritated with limits on online sales leads. Wonder if Cerberus is trying to run some of them off?

Chrysler Limiting Online Shoppers to Five-Star Dealerships

volvomax · August 2007

I don't think its a bad idea.
It rewards the dealers that earn the 5 Star status,and motivates the slacker dealers to do better.

wtd44 · August 2007

The last time I checked, my "5 Star" dealer was not giving access to current inventory online, but that was admittedly back in the first quarter of the year. I did buy (at deep discount). I am now enjoying a new 2007 Jeep GC.

stever · August 2007

The WSJ is reporting (paid link, sorry) that the new Chrysler may put Mopar on the auction block. Or just shut it down.

wtd44 · August 2007

Maybe that action will leave Chrysler more "lean and mean" for the tough job ahead.

qbrozen · August 2007

any free link? or can you give a summary? is this the name Mopar? Or the parts division?(??) I'm a bit confused. Maybe I don't know what Mopar is.

wtd44 · August 2007

Go ahead and click the link as Steve put it up. You will answer most of your questions on the lead in to the rest of the story. Free WSJ must be an oxymoron! :P

stever · August 2007

Nippononly found a good story about Mopar.

nippononly, "Chrysler Downsizing - A Path to Profitability?" #99, 29 Aug 2007 9:52 am

qbrozen · August 2007

OK. The parts biz.

Seems odd to me, though. I guess if you need cash? I just wouldn't think you'd want someone else selling parts with a name that is so closely tied to the manufacturer. I mean, 90% of people will probably buy Mopar parts not knowing they are no longer actual genuine chrysler parts, ya know? Then, if they are made cheaply and fail, guess who gets blamed in the mind of the consumer?

stever · September 2007

"Buyout firms like to present themselves as a can't-fail combination of operational genius and financial support that can heal sick businesses and create thriving companies. But sometimes, as in the case of Aegis Mortgage, genius fails and bankruptcy is declared. The private investment firm Cerberus bought a controlling stake in the Houston-based mortgage lender in 1998, but despite an infusion of cash and talent, Aegis ceased operations on Monday, August 6. Now hundreds of employees have been laid off - all without health insurance. It's a reminder that risky turnarounds can mean real pain for more than just investors raising questions about how Cerberus will treat other ailing companies it has purchased, notably Chrysler."

The darker side of buyout firms (Fortune)

lemko · September 2007

From the Philadelphia newspaper:

http://www.philly.com/philly/wires/ap/business/20070906_ap_toyotaexecleavestojoi- nchrysler.html

stever · September 2007

Big shocker eh?

More links:

Chrysler nabs Toyota's Jim Press! (Straightline)

Chrysler lures Toyota's top U.S. executive (Detroit News)

BREAKING NEWS: Toyota's Press Goes to Chrysler (AutoObserver)

iluvmysephia1 · September 2007

Cerberus in their strong new efforts to turn Chrysler around. I mean, Press is a winner, a successful executive, not someone who has fallen from grace for some particular reason nor failed to produce great performanace results.

I say great...now Mr. Press watch closely over the Chery of China-built Hornet and make sure it comes out a winner before hitting U.S. shores. Chrysler needs many things now, but one of them is a Scion-Mini-fighting small car. Right now the Hornet is that car, along with the SRT4 Caliber.

stever · September 2007

Chrysler "has hired Phil Murtaugh away from Shanghai Automotive Industry Corp., General Motors joint venture partner in China.

AutoObserver has wondered if Cerberus is scurrying to turn Chrysler around so it can sell it to a Chinese company. In the early days of Chrysler being on the auction block, some analysts had speculated that Chrysler could be purchased by a Chinese company. It would be a ready-way  with Chrysler's extensive distribution network and manufacturing operations  for the Chinese to quickly gain a foothold in North America."

Another Shocker: Chrysler Steals Expert on China (AutoObserver)

I guess that's your China connection, Iluvmysephia1.

iluvmysephia1 · September 2007

Great story on Cerberus grabbing another hot automaking talent and the possible linkage of his hiring to the Chinese market. Mr.Murtaugh may indeed work with Chery on the Hornet...since the SAIC link has been cut as well as the link to GM then that leaves Chery building the Hornet for Dodge. Mr.Murtaugh is now building Dodge's and Chrysler's! What an acquisition!

Cerberus has not only bought Chrysler but they're buying some proven top talent to bring Chrysler around....quickly. Both of these new guys will fit right in to Cerberus' quick results plan. Even if Cerberus were to sell out to a Chinese carmaker these two will be excellent leaders for the Chinese company and make the sale of Chrysler worth more to Cerberus as a result of their hiring.

We knew these boys meant serious business and now we have some visible evidence of just that. Serious carmaking business going on here.

davethecarnut · September 2007

Very interesting, the China Connection. But do you guys think Cerberus can do a "quick" sale to a chinese company? How quickly do you think americans will embrace a chinese Chrysler?
Press had his work cut out for him in the 70's with this japanese company on our shores. But let's face it, Toyotas sold themselves with their quality and reliability in the late 80's to today. He just had to "kick-back" and maybe come up with a few entertaining commercials and promotions every now and then. No offense to Press personally, but what makes him a such a genius (Real question. I can accept to be put in my place)?
Will Press stick around for the next 10 to 15 years to make this new "chinese company" a success in America? He is 60 years old. Of course, there are plenty of people working into their late 70's.
Equity firms and hedge funds like the quick turn-around, but Chrysler is going to be a long term investment, in my opinion. I hope Cerberus is up to that.
Also, with Nardelli on board, will Chrysler salespeople have to wear orange aprons?

iluvmysephia1 · September 2007

most of us know very little about Jim Press or Mr.Murtaugh. But with links like the one provided a few posts above we can learn. Right now it is only speculation about Cerberus selling Chrysler to a Chinese automaker.

I would guess that Cerberus has a lot brewing in their pot right now enough to just work on repairing and building Chrysler up and in to a company that can be profitable.

The more write-ups we can find like the one above the more we'll learn.

I know that I like the quirky body design of the new Dodge Hornet coming here in 2009. I did not like the Neon and the SRT4, though, and it seems that reliability issues haunted the car. I want to see if Dodge-Chery can build the thing right and then modify it properly to suit U.S. emissions standards, etc., and not change it much from the concept.

That's what makes this story interesting to me, Chrysler getting great new talent and building some great new product to go with it. The Lifetime Powertrain Warranty was a good move and it can't hurt as they "grow" the brand up. Or back up. Or grow the brand up for the first time. Maybe that's what they're after, eh?

stever · September 2007

"Those hires, the employees say, suggest Cerberus isnt doing the typical private equity drill of breaking up and selling the pieces. Instead, they say the company appears serious about investing what it takes, as it did in attracting outside talent, to turn Chrysler around, even if Cerberus ends up taking Chrysler public or selling it down the line."

Chrysler: Employees Heartened by New Hires, Investments (AutoObserver)

wtd44 · September 2007

I just got a message from a close friend in another state who bought a brand new 2007 four door Wrangler. At 1500+ miles it destroyed a bearing and had to have a short block installed! Then, it threw a code that turned out to be a nearly closed spark plug gap. I guess the mechanic was in a hurry. Plainly, this tale scares me. I have a new 2007 GC Laredo with 1750 miles I've put on it... :surprise:

fintail · September 2007

This won't help anything

wtd44 · September 2007

Thanks for the URL. I haven't been contacted by Chrysler yet.

stever · September 2007

"They need some good, fresh direction, some consistent thoughts and observations, and I can bring those."

Chrysler's Jim Press speaks

alltorque · September 2007

Surely outfits such as Cerberus only buy an outfit cheap with a view to turning a profit from it, in a relatively short time. If they really wanted to go into the car producing game they could buy a smaller company, (Volvo ?, Jaguar ?), as a plaything. Buying Chrysler can only be on the basis that they shine the chrome, black the tyres, clean the windshield, wax the body and sell the old girl, as a supposedly revitalised runner, for a profit, with the garage full of spares etc adding the icing. Any promises now about long-term future will be explained away as "in the current and perceived future market environments the Chryler Corp was not thought to be a viable mass market producer. So we sold it in bits to China, (or India). Sorry guys, we really did try".

The UK motor industry should be your guide. Same problems of bad management, silly unions, poor design and quality as most American car makers but with a much smaller domestic market. What do we have left ? Not very much in the way of mass producers; and none UK-owned.

We do have some brilliant specialist, though.

It's the new way of the world, guys. It just took a little longer to get to you.

wtd44 · September 2007

I sure hope it turns out otherwise, alltorque. Foreign car dealers remind me of old jokes about "fly by night" hucksters. I'm dependent on USA brand names and dealerships to support my addiction to vehicle trading/exchanging and I want whatever is left of the Big Three to stay in business right here, in downtown USA.

It's official - Cerberus buys Chrysler

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