BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Can Nardelli and Cerberus possibly make money with Chrysler?]]>http://www.bloggingstocks.com/2008/08/27/can-nardelli-and-cerberus-possibly-make-money-with-chrysler/http://www.bloggingstocks.com/2008/08/27/can-nardelli-and-cerberus-possibly-make-money-with-chrysler/http://www.bloggingstocks.com/2008/08/27/can-nardelli-and-cerberus-possibly-make-money-with-chrysler/#commentsFiled under: ,

Sometimes, it's hard to determine if major investors are being overly optimistic, outright daffy, or are simply seeing something that the rest of us just don't see.

In my view, the current course of events at Chrysler Corp. is one of those difficult to determine situations. On its face, it looks like it could be a case of basic business logic in action. But on closer examination, it just doesn't make sense, at least not to me.

Declaring a payoff horizon of ten years, Cerberus Capital Management has placed a great deal of faith in Chrysler, the American auto manufacturer which is best described these days as an also ran. The kicker is, the Cerberus ten year plan is being initiated at a time when auto industry profitability is near impossible. Consider also the fact that current Chrysler management openly admits that the company isn't in any condition to go it alone.

And there's more trouble in the mix. Cerberus said in a New York Times story that Chrysler is meeting "every financial metric." But Cerberus considers the world's current economic turmoil to be a temporary problem, not the economic world change that it actually is. Meanwhile, Chrysler CEO Bob Nardelli is smiling because Cerberus has given Chrysler lots of money, and he gets to cut heads.

Continue reading Can Nardelli and Cerberus possibly make money with Chrysler?

Can Nardelli and Cerberus possibly make money with Chrysler? originally appeared on BloggingStocks on Wed, 27 Aug 2008 14:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bob NardelliBobNardelliCerberusCerberus Capital ManagementCerberusCapitalManagementchryslerhybrid suvHybridSuvNissanRam truckRamTruckRobert NardelliRobertNardelliWed, 27 Aug 2008 14:20:00 EST