Ford Motor Company (NYSE: F) may not need any help from the U.S. federal government, but it doesn't want any part of Chrysler should that automaker go through bankruptcy protection and/or be broken up into pieces. Ford also has no interest in Chrysler's brands such as Jeep and Dodge. Ford's Mark Fields indicated at the International Auto Show this week that Ford is only focused on Ford at this time, and the possibility of Chrysler being history could be shockingly near.President Obama has told Chrylser that a partnership with Fiat (the only viable lifeline left) will happen by the end of April or Chrysler won't have any further help coming from the feds. Since Chrysler is owned by Cerberus Capital Management, that financial group stands to lose a sizable investment if, in fact, Chrysler can't turn things around in three weeks. Any bets? Thought not.
Although losing an American auto icon would be a stain on the history of industrialization, it would be the result of corporate inflexibility and the economic recession combined with a stale staple of brands that can no longer compete globally with other automakers. With billions lost on Cerberus's investment (and then some), there are surely some who want to cut their losses and move on, while others want preservation of a storied company. We'll see which one wins at the conclusion of April.
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Reader Comments (Page 1 of 1)
4-10-2009 @ 8:38PM
Duke said...
I think Chrysler will go bankrupt. They have nothing in the pipe line that will compete with the imports. The Chrysler 300, prowler, and Viper were cool cars but they are not the type of cars that will not sell enough. Also Gettlefinger is staunchly refusing to concede any more wages. So bye bye Chrysler. Sad to see Chrysler go. The company that brought us some of the meanest muscle cars on the planet, the mini van, and Richard Petty's favorite brand of NASCAR is now out of touch with the consumers demands.
4-10-2009 @ 10:19PM
TruthBringer said...
Last time I heard, the deal with Fiat went through. I heard that Fiat is taking a 35% stake in Chysler.
4-10-2009 @ 10:24PM
TruthBringer said...
I also heard that that happened on January 20th, so what deal are they working on now?
4-11-2009 @ 12:03PM
Bob said...
Once Chrysler merges w/ Fiat, they should keep & not drop the PT Cruiser, which could do well in the European market through Fiat's dealer network there.
Bob
4-11-2009 @ 12:12PM
Kent said...
Chrysler-Fiat deal is a little complicated because Daimler-Benz is still in the mix. Guess they need to iron that out a bit before it is concluded from what I understand, particularly from EU's anti-trust commission also. Don't forget we need to get the UAW on board too. Chrysler made good cars with leading edge technologies over the years. A combination of strong engineering but weak marketing, the latter did them in over the long run. Grew up having 4 of them (Plymouth, Dodge and Chrysler brands).
4-11-2009 @ 12:31PM
Bob said...
I think once Chrysler merges w/ Fiat, they should keep the PT Cruiser as it could sell well in Europe through Fiat's Dealer network.
Bob