Cerberus Moves To Sell Chrysler By Month's End

Automobile Staff

Though both parties are far from a finalized deal, Cerberus Capital Management hopes to arrange a sale of Chrysler - possibly to GM - by the end of the month.

If such a merger is to happen, it's not likely that today's Chrysler would survive intact. The Wall Street Journal reports that Cerberus is looking at possibly breaking up the company into smaller groups that would be sold to different parties. For instance, Cerberus may look to spin off Chrysler's engineering wing as a standalone company, sell the Mopar parts operations to another purchaser, and possibly consolidate Chrysler Financial into GMAC - which it also owns a majority stake in. Likewise, Chrysler's current vehicle portfolio could also be divested in multiple ways. Automotive News suggests GM may be most interested in Chrysler's minivan lineup (a segment missing from GM's offerings), as well as a truck production facility in Mexico. Although GM could purchase more than those assets, any leftover bits or divisions may be sold to other companies. One possibility is Renault, whose executives disclosed their interest in Chrysler during the 2008 Paris motor show. While the folks at Cerberus are busy ironing out the details, so too are GM executives. The Wall Street Journal claims GM has teams analyzing the deal, and have identified nearly $10 billion in cost savings that reportedly could be attained through a merger. Source: Automotive News

Wait, this is dated October 17, 2008... Wth?
I agree, if GM does shut down Chrysler, I can honestly say I'll never buy GM vehicle again.
What?! What kind of BS is this?? What happened to Fiat? What happened to Cerberus's promise to not do exactly this-- to sell Chrysler off at a profit. A great company is in danger of disappearing. I'm glad Walter P. Chrysler isn't here to see "what a mess they made of my boy." VW should buy it. It would guarantee continued production of the Routan, add muscle cars and trucks to their line-up, and help them get to their 800,000 in the U.S..

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