Cerberus Buying Chrysler Group?

[George Farris]

Cerberus has agreement to buy Chrysler Group

Surely sounds like it.

Just found this on the Detroit News web page.

Wolfgang is involved with this outfit.

That should be good news for Viper.

 

[MoparMan]

Let's hope Wolfie pushes hard to keep the Viper program going. No matter which buyer wins there are more cuts coming, especially with the private equity firms (of which Cerberus is one) because they are less patient than Magna would have been for the profits.

 

[Steve 00RT/10]

I believe former Vice President Dan Quayle is heavily involved with this group and a player in these types of transactions.

Steve

 

[John Johns]

Yes,

In addition to Cerberus' goal of reducing costs, there may be some opportunities for additional funding to develop new product. I'm just speculating, but when they bought 51% of GMAC last year, cost of funds was dramatically reduced and GMAC began offering enhanced incentives the day the buy-out took place. These boys have some serious money!

My big hope is that the Viper is saved.

 

[0260in3]

I heard that Mercedes paid $36 Billion for Chrysler and they just sold them for $7.x Billion. Now that's a tax write-off! I'll take a wait-and-see approach but most of these types of investor groups are interested in cost cutting and maximizing profits. It will be interesting to see how the Viper fares with that type of mentality. Not that DC wasn't looking to maximize profits but they probably cared a little more about the "Brand" than an Investor Group will. My fingers are crossed.

 

[Viper ACR]

Here's a good read about the buyout .

http://www.allpar.com/weblogs/2007/05/14/chryslers-been-sold-now-what

 

[Alabaster Mamba]

Thanks for the link. As you stated, it was pretty good reading and a good perspective of the possibilities to come.