Buyout Firm Meets With Chrysler

Buyout experts from Cerberus Capital Management met Monday with Chrysler Group executives to evaluate a possible bid for the troubled U.S. division of DaimlerChrysler AG, according to people close to the situation.

Cerberus, a leading private-equity firm, is the first Wall Street investor to visit Chrysler headquarters in Auburn Hills for an in-depth review of the automaker's finances and operations.

A second private-equity powerhouse, the Blackstone Group, is scheduled to meet one on one with Chrysler management later this week, people familiar with the matter told The Detroit News.

The meetings suggest that the sale process for Chrysler is entering a critical phase, as big-money investors begin to dig deep into the prospects of purchasing the one-time No. 3 U.S. automaker.

Chrysler was essentially put up for sale Feb. 14 when DaimlerChrysler CEO Dieter Zetsche announced that "all options" were being considered for the struggling automotive icon.

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answer - 3/6/2007 10:31:39 PM

+1 Boost

I really think the introduction of the original Viper just gave one final jolt of life to Chrysler.

If anything they should trim down to just the Dodge truck/SUV line and a tiny lineup of Chrlysler branded cars.

Agent63 - 3/7/2007 7:14:27 AM

+2 Boost

I think they should take out the Pacifica, Town&Country, PT Cruiser, and really concentrate on the 300C/300C SRT8, Sebring, Crossfire, and the latest addition ASPEN. This way they could put more money into making those cars 10 times better with quality materials. The crossfire needs a lot of work just as much as the new Sebring does. The 300C looks stunning but the materials used aren't that great at all. Same goes for the Aspen. If a full size SUV like that wishes to stand a chance in a GM dominated industry they really need to step up their game or they will be eventually squashed to the ground.

As for the Dodge brand they should worry about the trucks and vans more. The new Dodge Nitro should be discontinued as well because it looks too much like the shape of a Jeep. I think the Viper platform should be used to create a true luxury Sports Car for Chrysler to compete with the XLR at the LEAST. As for the Charger and Challenger it should be well thought out so it can revive the old school muscle car and give these cars the feel and ambiance of the 60's.

As for Jeep the Liberty, Compass, and Patriot should be taken out so they can concentrate on the Wrangler, Commander, and Grand Cherokee.

With these major cutdowns, a new business plan, and marketing ideas the Chrysler Group can be saved.

-Agent63