Chrysler could be sold in pieces: Report

[autoque]

Good riddance! Make that incompetent car manufacturer go down in history. I own a Dodge and it's a complete garbage.

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http://www.wheels.ca/reviews/article/422088

DETROIT–Chrysler LLC could be sold in pieces to other companies as its majority shareholder Cerberus Capital Management LP seeks to exit the auto business, according to a person briefed on the discussions.

Cerberus, the New York-based private equity firm, has been shopping the beleaguered automaker to General Motors Corp., the combined Nissan Motor Co. and Renault SA and other companies.

Many combinations are being discussed, said the person who has been briefed on the talks. The person asked not to be identified because the discussions are private.

Chrysler spokeswoman Shawn Morgan and Cerberus spokesman Peter Duda declined to comment.

Cerberus's efforts to exit the automobile industry have been widely reported in recent weeks, though speculation has swirled over what shape the final deal might take.

One deal being discussed reportedly calls for Cerberus to hand over Chrysler to GM in exchange for GM's 49 per cent stake in GMAC Financial Services.

GM sold a 51 per cent stake in its finance arm to Cerberus in 2006. Cerberus also would get an equity stake in GM, hoping to get a good return should GM recover when U.S. auto sales bounce back from a serious slump.

GM is said to be interested in Chrysler for its cash. Chrysler, whose sales have dropped 25 per cent during the first nine months of the year, reportedly has about $11 billion available.

It also has debt, but the amount hasn't been disclosed because Chrysler a private company. Cerberus bought an 80.1 per cent stake in Chrysler from Germany's Daimler AG in a $7.4 billion deal last year.

Chrysler's cash may not be enough for GM to take on its money-losing rival, and the federal government may be involved in an effort to inject cash to prop up the deal.

Auto industry analysts said financing for the deal remains a key element to any final deal. Citi Investment Research analyst Itay Michaeli said in a recent report that a combined GM and Chrysler would require at least $10 billion to $12 billion in fresh liquidity.

However, this could pose a problem given the turbulence in the capital markets, Michaeli said, making it "feasible that the government could step in to provide support.''

Detroit-based GM is itself burning up cash, going through more than $1 billion per month. Several analysts have predicted it will reach its minimum operating cash level of $14 billion sometime next year.

GM's sales were down 18 per cent for the first nine months of this year. The company has lost $57.5 billion in the past 18 months, although much of that comes from noncash tax accounting changes.
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[realchef]

Originally Posted by autoque

Good riddance! Make that incompetent car manufacturer go down in history. I own a Dodge and it's a complete garbage.-

DODGE is a damn fine car.....Ran over my first wife with a Dodge!

(my only Dodge joke)

[Wagner]

Ah, I'll take a Dodge Challenger right now.

[E61Silver]

I think that the impact on Detroit would be huge if GM takes over, we need a better plan.

[MrLabGuy]

Laid off 25% of their salaried workforce today. Too bad because Chrysler has come a long way in the last decade and really started to make some desirable cars. We're on our second 300C, leased the first and purchased the second. $13,000 + off the sticker price closed the deal.

[JGQ]

Never owned a chrysler product in my life, but back in the middle east, Jeep is an icon and viewed as one of the best 4x4's. Sad to see it disappear!!(potentially)

[E61Silver]

Had a 1969 Town & Country, 1974 Imperial, 1978 Valarie and brother had a 2000 minivan.

They all ran ok but not very refined. I recently look at a Dodge Wagon but the interior is so plastic and it looks like a kids hot muscle car, to bad they did not make a 300 Wagon.

[Wagner]

Originally Posted by MrLabGuy

Laid off 25% of their salaried workforce today. Too bad because Chrysler has come a long way in the last decade and really started to make some desirable cars. We're on our second 300C, leased the first and purchased the second. $13,000 + off the sticker price closed the deal.

I love the look of the 300. Just wish the SRT8 had better handling characteristics. I'm finding it interesting that there isn't a whole lot of news about Toyota, Honda or Nissan having financial issues...wonder if labor unions are playing a part

[realchef]

Originally Posted by MrLabGuy

Laid off 25% of their salaried workforce today. Too bad because Chrysler has come a long way in the last decade and really started to make some desirable cars. We're on our second 300C, leased the first and purchased the second. $13,000 + off the sticker price closed the deal.

Last year my buddy sold his ORIGINAL 300 'c' for 58k...had the cross ram manifold etc....sweet car.

[autoque]

Originally Posted by Wagner

I'm finding it interesting that there isn't a whole lot of news about Toyota, Honda or Nissan having financial issues...wonder if labor unions are playing a part

Well, here's the answer to your wondering!

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http://www.motorauthority.com/toyota...this-year.html

Report: Toyota's slumping sales will lead to first loss ever in U.S.

While most of its rivals all reported significant losses through the first half of 2008, Toyota managed to increase market share to 16.8% and post a $3.8 billion profit for the second quarter. Despite this, both analysts and the carmaker itself are predicting a drop in year-on-year sales volumes for the first time since 1999, and now reports indicate that falling sales in the U.S. will drive the carmaker to post its first-ever operating loss in North America.

Toyota is expected to post a loss of several hundred million dollars in North America for the first half of the current financial year, which ran through the six months leading up to September. Despite the loss on the carmaking side of the books, Toyota's North American operations should still come out with a net profit thanks to the sale of some financial assets, according to Japanese sources Jiji Press and Mainichi Shimbun.

Japan’s Nikkei business daily reported earlier this week that Toyota will post a drop in sales for the current year, with the final tally coming in 2% lower than last year’s total of 8.43 million vehicles. Toyota recently revised its global sales targets for 2008, adjusting the total down from the 9.85 million cars it had expected at the start of the year to a more realistic 9.5 million.

However, it is now hopeful of achieving about 8.3 million sales worldwide. As for the U.S., the carmaker is only predicting 2.45 million sales for 2008, compared to 2007's tally of 2.6 million it sold across its Toyota, Lexus and Scion brands.

While the Toyota brand itself is expected to sell around 8.3 million units, when combined with its subsidiaries Daihatsu and Hino sales are expected to reach 9.3 million units - still around 700,000 less than last year's 9.37 million sales for the entire Toyota group.

The fall in sales this year has been attributed to a combination of factors, although the current credit crunch and recent high fuel prices are claimed to be the main driving forces behind the drop.

Despite its dropping sales, Toyota has not been affected as badly as its competitors. While 2008 may have been the worst year for the carmaker in more than a decade, its market share compared to most of its rivals has not changed and in many cases has actually improved. As one spokesman put it, Toyota now has a larger piece of a smaller pie and that will allow it to build a larger customer base once sales pick up.
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