The latest merger rumors for Chrysler
 

This has been a strange week for news-flow regarding Chrysler:

First we have some good news with the launching of the Chrysler 200C Concept Car and Nardelli is quoted in the press saying that Chrysler doesn't need to do a merger.

Then we get headlines stating that Chrysler needs another $3 Billion from the Treasury and they feel that GMAC has an unfair advantage, so they want help for CFC too.

Then we get Senator Corker telling the press that Chrysler can't survive without a merger.

Then we learn that Wolfgang Bernhard has been hired on by Magna.

Finally the news breaks that Nissan's looking at the Jeep Division, Magna wants the assembly plant in Belvidere and Cerberus is looking at selling the PT Cruiser and the assembly plant to a Chinese company for $100 Million.

Who knows what will happen next?

Here's a link to the news report: http://www.reuters.com/article/wtMos...BrandChannel=0

Proof the Chinese are weird people! :)

Interesting about Wolfgang & Magna... very interesting.

I just read an article from the detnews.com that had Lasorda state Chrysler is not in negotiations to sell brands nor plants that sell current models. I guess you can read between those lines. I would like to believe them, and at least that did make a statement instead of just letting the rumor fester.....I would include the link to this article, but I am technology challenged.....I will try to have my 14 year old daughter show me how that is done....

I have a few new 2008 PT's left the Chinease could purchase as demo's so they can see what type of vehicle they are buying....

Scooter I think this is the article you are referring to. I agree and hope Lasorda is being 100% upfront but I really doubt it. I don't think anything is off the table or out of the realm of possibility in this market.




Chrysler LLC is not in talks with its largest supplier, Magna International Inc., to sell the automaker's assets, nor is the Auburn Hills company in discussions to sell any of its brands, Chrysler President Tom LaSorda said today.


“We will not separate the brands from the company,” LaSorda said this morning during a conference call with reporters intended to “set the record straight,” after a report surfaced Tuesday night that the company is in discussions with Magna and Renault Nissan to sell key assets.


Reuters news service released that report Tuesday, saying the automaker is in talks to sell the Jeep brand, factory tooling for the PT Cruiser and its plant in Belvidere, Ill., which makes the Dodge Caliber and two Jeep models, and hand off production of those models to Magna.


LaSorda said flatly that the company is not in discussions to sell the Jeep brand or to sell the Belvidere plant. He also said Chrysler would be interested in selling the PT Cruiser, whose life cycle ends this summer. Chrysler, however, does not have any offers on the model, he said.


Chrysler is not currently in talks with Magna, he said. Talks about a potential partnership in Russia, after Magna bought the tooling for an older-model Sebring to build in Russia, were put on hold as the U.S. and Russian economies deteriorated.


LaSorda said there are no talks with Renault and that its deal with Nissan -- to make trucks for Nissan, and the Japanese automaker to build small cars for Chrysler -- remains.


Moreover, he said, any substantial deal would need the approval of the federal car czar.


“If we were to sell any assets … the loan agreement would never allow us to do that without going through the car czar,” LaSorda said.

You nailed it, I agree 100%.

My first thought when I read Chrysler's response this morning was that I was glad they're fighting back and challenging the media. Then I wondered, why does it have to be LaSorda and does he really know Cerberus' true agenda for Chrysler? I doubt it.

It also seems strange that Chrysler only responds to certain media reports. When the GM/Chrysler rumors were back in the news a couple of weeks ago it was GM, not Chrysler, that killed the story in the press.

But when Automotive News ran their story about Chrysler's "Sales Bank" the Chrysler PR department was in attack mode.

My gut feeling is that this is like the "Sale Bank" story - the media has uncovered information that Chrysler/Cerberus doesn't want reported because it's too close to the truth.

Magna denies that there are any talks with Chrysler
 

News reports indicate that Magna has stated that they are not having any discussions with Chrysler regarding the purchase of assets.

Magna already operates the paint plant for Chrysler's Jeep Wrangler plant in Toledo and there was speculation that they wanted to expand their operations.

So, at this point all three parties; Chrysler, Nissan and Magna, have denied there are any discussions. Perhaps it was an inaccurate rumor - time will tell.

Here's a link to the news report: http://www.thestar.com/Business/article/571003

You can't always trust their words - Steve Jobs and Apple
 

I thought of this thread when I heard this afternoon that Steve Jobs will be leaving Apple for five months for a medical leave.

For months, Apple and Jobs have been telling Wall Street that everything's fine - it's just a hormone imbalance. Now investors get word that he'll be gone for five months.

What does this have to do with Chrysler? Hopefully, nothing.

It's just a reminder that when it comes to corporate executives, what they say doesn't always line up with what they do.

Here's another re-cap of LaSorda's response to current rumors
 

Here's another re-cap of LaSorda's response to the rumors that Nissan and Magna are making offers to purchase certain assets: http://www.mediapost.com/publication...&art_aid=98383

The article is very clear - if you believe LaSorda then Cerberus will not be splitting Chrysler up and selling off pieces.

To the extent that I believe that Cerberus wants to dump Chrysler, and to the extent that I believe that there's no one that wants to buy 100% of Chrysler it will be interesting to see what happens.

Phil Lebeau's response to the Chrysler Rumors
 

Here's a link to CNBC's Phil Lebeau's thoughts as they relate to the current Chrysler rumors: http://www.cnbc.com/id/28654280

His strongest prediction - Chrysler is sold in whole to a foreign company.

What I thought was most interesting was his comment that it may not be a familiar company - something like China's SAIC.

Who knows? But I remember when Daimler first started shopping Chrysler I didn't even know that Cerberus existed.