 Cerberus Looks to Build Chrysler Brand - Not Selling Jeep |
The chairman of Cerberus, former United States Secretary of the Treasury John Snow, recently spoke at an event in Detroit and discussed the Cerberus plan for Chrysler Group.
In short, they have no plans for an "exit strategy", the talk seemed to focus on the fact that Cerberus "fixes" companies, then holds on to them.
Mr. Snow made a specific point to mention that they will not be selling off the Jeep brand.
From The Oakland press:
Snow also said Cerberus' acquisition of Chrysler will be good for Chrysler and for metro Detroit.
Cerberus founder Stephen Feinberg believes in American manufacturing, Snow emphasized, adding the purchase will create a "new environment," which will give the company more freedom.
"I think the current Chrysler employ- ees have an opportunity in this new environment. I really do think this new environment is one that can open up the potential (of) Chrysler and let the Chrysler (management) focus on the day-to-day business rather than continually looking over their shoulder at what some analyst is writing about," he said.
"In this new environment, quarterly reports don't matter," Snow said. "You don't have the problem of missing the market's estimates of what your quarterly earnings are going to do."
"What you get to do is run the business. That's what (Chrysler Chief Executive) Tom LaSorda and his team want to do, and I think that's a plus for the employees."
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| Poster | Thread |
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| myhotwheels22981 | Posted: 2007/7/18 1:23 Updated: 2007/7/18 1:23 |
Home away from home   Joined: 2002/3/21 From: Posts: 183 |
 Re: Cerberus Looks to Build Chrysler Brand - Not Selling ...According to JP Magazine, the Hybrid Durango and the Hybrid Aspen are a go for 2008...It looks like the Aspen is not dissappearing, so mabye the Commander isn't going anywhere either. Mabye we will see a Cherokee/Commander Hybrid also.
I don't know why Chrysler doesn't make every car a Hybrid, even if it is a simple start-stop hybrid system like the VUE Hybrid. Would certainly be a great PR move. The price has come down significantly on motors, batteries, and electronics. A Wrangler with a S/S Hybrid could traverse water on electric-only power, and forget about having to remove the starter-interlock fuse to creep using the starter---A S/S Hybrid system would do the job much better with clutchless first gear and the tap of the foot. |
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| xjken99 | Posted: 2007/7/16 7:04 Updated: 2007/7/16 7:04 |
Quite a regular  Joined: 2005/9/14 From: Posts: 58 |
Re: Cerberus Looks to Build Chrysler Brand - Not Selling ... I really hope this works out, time will tell. Private or public it still comes down to product, if they focus on product they better know that in todays market you must produce world class vehicles. A big part of the Detroit 3's problems is that they still insist on building cars for the U.S. consumer as opposed to the world consumer. That worked fine 20 years ago but the american consumer today wants the same vehicles their counterparts in asia, europe or down under.
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| erik | Posted: 2007/7/15 8:13 Updated: 2007/7/15 8:13 |
Not too shy to talk  Joined: 2005/12/28 From: Williamsport, PA Posts: 37 |
Re: Cerberus Looks to Build Chrysler Brand - Not Selling ... The CEOs and CFOs are accountable to shareholders in a publicly traded company. Unfortunately, most shareholders just want quarterly increases in their stock price, not long-term strategies.
This is what led to the 1990s Enron and WorldCom frauds. However, the people most responsible are the shareholders demanding more and more and more because they could have invested in some internet company that wouldn't know good business from feces. Chrysler will succeed. Their flex manufacturing should position them to be far more efficient than even the Japanese, providing Cerberus can get a handle on the legacy costs. |
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| MarkH | Posted: 2007/7/13 11:26 Updated: 2007/7/13 11:27 |
Home away from home Joined: 2005/7/20 From: The Great White North Posts: 406 |
Re: Cerberus Looks to Build Chrysler Brand - Not Selling ... No arguments, here!
 So, you mean overpaid CEOs & CFOs might now be held accountable to actually make profitable decisions and justify their existence? Hmmmm, what a concept! Maybe GM should try it, too...  |
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| RUBICON | Posted: 2007/7/13 11:06 Updated: 2007/7/13 11:06 |
Home away from home Joined: 2005/7/13 From: Chandler, AZ Posts: 357 |
Re: Cerberus Looks to Build Chrysler Brand - Not Selling ... If a company can afford it, privatization almost always helps a company out. You remove most of the analyst chatter, you remove some burdening regulations, you can focus more on the business.
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