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View Full Version : WSJ Reports - Cerberus will lose their equity in Chrysler

XDCX
03-30-2009, 11:00 PM
Well, my world is starting to make sense again.

The Wall Street Journal is reporting that one of the conditions associated with the current Chrysler negotiations is Cerberus will be forced to give-up their equity in Chrysler. Not surprisingly, Cerberus will retain control of Chrysler Financial.

I've always been convinced that Cerberus wanted to dump Chrysler, that's the main reason I've thought there would be a Chrysler/GM merger. Now they don't need a GM merger, they'll be able to dump Chrysler but retain CF as part of their deal with the Treasury.

Here's a link to the WSJ news report: http://blogs.wsj.com/autoshow/2009/03/30/718/
possum
03-31-2009, 05:35 AM
This whole escapade is getting rediculous. Yesterday, there was a "deal" with Fiat, only to be recanted now. Seems there is now a 'framework" of a deal. Does anyone know anything at Chrysler? We need a Captain at the wheel of this boat.

We were starting to get some traction, sales traffic was up, and things seemed to be getting better, now we are collapsing again.
XDCX
03-31-2009, 08:25 AM
This whole escapade is getting rediculous. Yesterday, there was a "deal" with Fiat, only to be recanted now. Seems there is now a 'framework" of a deal. Does anyone know anything at Chrysler? We need a Captain at the wheel of this boat.

We were starting to get some traction, sales traffic was up, and things seemed to be getting better, now we are collapsing again.

I think there are thousands of other Chrysler dealers that share your frustration.

The retail business environment seems to be getting better. The 2009 Ram is gaining momentum and things look better now then they have in months. Then Chrysler goes into one of their "self-destructive" modes - seemingly in an effort to prove to everyone that they have the world's worse P.R. Department. :mad:
ssdd
03-31-2009, 09:08 AM
I think there are thousands of other Chrysler dealers that share your frustration.

Then Chrysler goes into one of their "self-destructive" modes - seemingly in an effort to prove to everyone that they have the world's worse P.R. Department. :mad:

Amen, Brother!
ssdd
03-31-2009, 09:40 AM
This doesn't sound good...
http://blogs.wsj.com/deals/2009/03/30/chrysler-fire-sale-one-automaker-used-may-not-run/?mod=yahoo_hs
XDCX
03-31-2009, 10:08 AM
This doesn't sound good...
http://blogs.wsj.com/deals/2009/03/30/chrysler-fire-sale-one-automaker-used-may-not-run/?mod=yahoo_hs

Thanks for the link - that was an interesting article.

I agree that it doesn't provide a very positive outlook for Chrysler. :( It does, however, help explain why President Obama is forcing Chrysler's hand with Fiat.

It's also the first time I've read about splitting Chrysler into two parts - like the "good bank/bad bank" solution the Treasury is trying to use on Wall Street. Realistically, it's probably just another way of constructing a pre-packaged bankruptcy.
XDCX
03-31-2009, 11:01 AM
There's no question that Chrysler has been a disaster for Cerberus.

That said, it looks like they have an exit plan and they may end up having the last laugh. If the Fiat deal comes together Cerberus will get to dump their equity in Chrysler but retain control of Chrysler Financial.

It's also worth noting that they own Chrysler's World Headquarters in Auburn Hills. (Click here for details) (http://seekingalpha.com/article/112284-who-owns-chrysler-s-headquarters)

In many ways it sounds similar to what they did to Mervins....