The "Good" Chrysler Thread: Making Vanilla, Vanilla

[Jim Prower]

Hurrah! The corporate raiders have been kept at bay!

 

[YSSMAN]

Word is that Chrysler has broken off talks with Nissan-Renault...

God help us all.

 

[buickgnx88]

Man...a world in which MOPAR guys and GM guys are stepbrothers...almost as weird as your mom also being your sister!

 

[Omnis]

Why doesn't Chrysler just die? Nobody wants you. Go away. They should just sell their plants to manufacturers of other stuff.

 

[Philly]

They should just sell their plants to manufacturers of other stuff.

Like GM?

 

[YSSMAN]

Here I Come to Save the Day!​

Hyundai + Chrysler = Hot New Romance?

Its a surprise to see the Koreans coming in, but like GM, it looks as though its Jeep and a few other things coming into play. Who wants to bet that Hyundai is interested because of the truck platforms and the R&D department? Its odd, really, because the last time these two worked together Hyundai walked away a little disappointed...

 

[Omnis]

Nooooooo. Man, if Hyundai gets into it with Chrysler, I really really hope Hyundai goes into Chrysler and not the other way around.

 

[Philly]

Chrysler is starting too look like that frat boy douche bag who will bounce around a Sorority all quarter just so he can get some in bed...

 

[a6m5]

Were they the one that used to sell knockoff Jeep like a decade or two ago? They were called Korandos or something?

My bad: it was: SsangYong

 

[V1P3R]

Chrysler is starting too look like that frat boy douche bag who will bounce around a Sorority all quarter just so he can get some in bed...

That's kinda funny since Hyundai looked like the FAT version of that not to long ago.

 

[Perfect Balance]

Nooooooo. Man, if Hyundai gets into it with Chrysler, I really really hope Hyundai goes into Chrysler and not the other way around.

Agreed. Hyundai is putting out some decent cars right now, and I don't think mixing GM in there would be a good idea. The other way around though 👍

 

[Omnis]

Agreed. Hyundai is putting out some decent cars right now, and I don't think mixing GM in there would be a good idea. The other way around though 👍

Not GM, Chrysler. (even worse!)

Cerebus should sell everything except for the interior dept. They can burn that one. Or sell it to Janet Reno so she can Waco it.

 

[Sniffs]

everybody wants Jeep, screw the Mopar guys, huh?

okay, I got an Idea to scare the crap outa everybody.
Studebaker still exists, as a finance company...have THEM buy a piece.

 

[red70mach1]

There is an official website of the Studebaker Motor Company. They on their own venture for the last six years. But in this economic atmoshphere its questionable to me.

 

[The Vanishing Boy]

-> I have a firm belief that Hyundai could handle Jeep in a huge way, since Hyundai has is 4WD know-how from Mitsubishi (with its 1st-gen Pajero/Montero/Shogun/Raider) with its Galloper series and the Terracan:

Galloper I

Galloper II

Terracan:

^ Hyundai would like to further know its 4x4 (Jeep) know how and to improve the Jeep brand altogether.

 

[nissan tuner]

everybody wants Jeep, screw the Mopar guys, huh?

When the neon replacement (Caliber) is a POS and the only cars in the line-up are the Avenger, Charger, Challenger and Viper, its not hard to see why.

Avenger isn't selling, Everytime a viper is produced, dodge takes a hit, SRT8's IMO are a waste as i dont see a 40K dodgecar leaving the dealership and the charger is meh.

The challenger will sell i guess because its something new but i would hate to be a dodge fan right now. Everything is in shambles

 

[Tornado]

The sad thing is that Dodge put all that money into the Ram to essentially make it (as pretests have been calling it) akin to the best in class. Just take that interior and put it in all of the other cars.

 

[Sniffs]

dodge is still considered a Sports brand, and the emphasis went to performance. Plymouth was the common cars when it was alive, and that's what kiled it. Chrysler, itself, can't compete nowadays. I think MB sucked chrysler dry and threw off the empty shell.

 

[The Vanishing Boy]

-> Uh oh, looks like there really is no love to Chrysler after all:

Hyundai denies claims of talks with Chrysler

Late last week we reported on news that Hyundai was in talks with Chrysler to potentially acquire the Jeep brand, and other assets from the Auburn Hills carmaker. Now, Reuters is reporting that the South Korean manufacturer has denied any interest in Chrysler's assets due to the fact that its own "hands are full".

Company spokesman Jake Jang made Hyundai's position clear, stating that it "has no interest whatsoever in acquiring Chrysler, including Jeep, and have not engaged in any discussions with Cerberus (owners of Chrysler) on this matter".

Hyundai was reportedly interested in Chrysler following General Motors’ announcement that it had ended merger talks, however the South Korean carmaker is more concerned with raising its own brand profile rather than trying to fix up the badly damaged reputation of Chrysler.

Previous to GM taking the lead in the bid for Chrysler, Renault-Nissan was also showing interest in acquiring parts of Chrysler. Nissan already produces the new Dodge Trazo for Chrysler, and a potential merger between Renault-Nissan and Chrysler could be back on the cards following GM's withdrawal.

Yesterday Chrysler CEO Bob Nardelli mentioned that he would continue to work on returning the carmaker to profitability, while seeking partnerships at the same time. "As an independent company we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid our return to profitability."

Hyundai officially denies interest in Chrysler LLC

Despite Reuters reports of Hyundai's interest in Chrysler and specifically the Jeep brand, Hyundai has gone on record denying it. We've grown accustomed to automakers giving the arbitrary "no comment" response when the rumormill swirls with corporate takeover talk, but Hyundai has flat-out denied any interest at all. Almost in the same sentence, though, officials from the Korean automaker state that the company is interested in constructing new plants overseas, so we wonder if there's any fire behind the smokescreen, possibly outside the United States. Perhaps not.

There still remains the chance that Chrysler's automotive operations will be parted out and sold to the highest bidder, regardless of who that party may be. At the very least, Cerberus could decide to sell manufacturing plants to various automakers like Hyundai or the Nissan/Renault alliance, whose offer for 20% of the ailing American automaker may not seem so bad after all.

-> I would think Chrysler should have a shirt like this too:

^ Woe is they.

-> But hey! There is still hope:

Dodge Trazo C1 1.8 sedan

 

[Omnis]

Isn't that a nissan?

 

[Philly]

I always though it was a Renault.

 

[YSSMAN]

Isn't that a nissan?

That'd be a Tiida/Versa, yes indeed. No word on if they're doing a re-styling for us up here, but Nissan will in turn be selling a re-done Dodge Ram at your local dealer later next year.

Too bad on Hyundai too. Seems like GM is getting all the attention these days...

 

[Tornado]

That'd be a Tiida/Versa, yes indeed. No word on if they're doing a re-styling for us up here, but Nissan will in turn be selling a re-done Dodge Ram at your local dealer later next year.

Wow, Dodge got shafted in that deal.


Why doesn't Mitsubishi object to that deal, anyways?

 

[Philly]

Yes they did. They gave a top pickup to Nissan for Nissan to upgrade their already decently selling one and in return are getting the third worst (IMO, something like that) compact to replace the worst one.

I see many, many more Titans than Versas anyway.

 

[YSSMAN]

The Versa isn't a bad car, it just isn't a very good car either. The new 1.6L model has me thinking it would be a good value at $12,000 (loaded), but the one I drove (a 1.8S) lacked a lot of the stuff that I had heard about.

...As for the TitanicRam, who knows. The Titan was a decent truck to begin with, I don't know why Nissan wouldn't just continue to tinker with it...

 

[YSSMAN]

Here We Go Again!!!

* Linky * Linky * Linky *

What you need to know:

- Fiat wants into North America
- Chrysler wants into Europe, South America
- Chrysler NEEDS small car engines, platforms

The big time deal for me is that this is the way we can get the 500, and this is the way we can get Alfa Romeo a bit more easily. Nevertheless, I have no idea what Chrysler would plan to do with Fiat-powered Calibers based on Nissan Sentras.

Still. Throw the 500 onto the Polo v Fiesta match up going on in my head? We've got a problem.

 

[exigeracer]

And now in ink:

Jan. 20 (Bloomberg) -- Fiat SpA, Italy’s largest carmaker, agreed to take a 35 percent stake in Chrysler LLC to gain a foothold in the world’s biggest auto market and give the U.S. company access to its small-car technology.

Turin-based Fiat and Cerberus Capital Management LP, the controlling shareholder in Auburn Hills, Michigan-based Chrysler, the third-largest U.S. automaker, signed a non- binding agreement, they said in a statement today.

An alliance won’t relieve Chrysler of the need for $4 billion in loans received from the U.S. Treasury, which must approve the deal. Fiat, which said it won’t make a cash payment and isn’t committing to future funding, will provide platforms to manufacture fuel-efficient and small cars to be produced by Chrysler. The pair will share distribution networks, allowing the Italian company to return to the U.S. with its main Fiat and Alfa Romeo brands for the first time since 1995.

“We’ll have to see how much Fiat will need to invest, but this would allow them to enter the U.S. market as a protagonist in a forthcoming recovery with its expertise in small cars, and that’s a great opportunity.” said Davide Manenti, head of research at Nuovi Investimenti Sim SpA in Biella, Italy.

Fiat rose as much as 6 percent to 4.75 euros in Milan trading and was priced at 4.68 euros as of 2:44 p.m. The stock has declined 1.7 percent this year, valuing the company at 5.6 billion euros ($7.3 billion). Ifil SpA, the Agnelli-family holding company that controls Fiat, traded up 5.3 percent.

The planned alliance is consistent with the terms and conditions of the U.S. Treasury’s bailout of Chrysler and restructuring efforts agreed as part of the refinancing must still take place, the statement said.

Higher Stake

The partnership with Fiat should be complete by April and will help Chrysler meet its goal of becoming viable, Chief Executive Officer Robert Nardelli said in a letter to workers. The Italian company’s vice chairman, John Elkann, told reporters in Milan that it might raise the stake in Chrysler at a later date and could still make deals with other carmakers.

Fiat pulled Alfa from the U.S. 14 years ago and hasn’t sold its namesake brand there since 1983, restricting the company’s offerings to luxury models from Ferrari and Maserati.

Fiat CEO Sergio Marchionne ended four years of losses in 2005 after adding models and scaling back spending by sharing components among cars and through partnerships with competitors. The biggest slump in Italy’s car market since 1993 is forcing him to consider cutting financial goals for the first time since returning the company to profit.

Wave of Mergers

Marchionne said on Dec. 6 that Fiat’s auto business is too small to survive without a partner, predicting a wave of mergers in the industry. Fiat is already exploring joint platforms with Bayerische Motoren Werke AG, the biggest maker of luxury cars, and Chrysler President Tom LaSorda said in August he’d been approached by Fiat about building vehicles in North America.

Chrysler, the U.S. automaker most dependent on domestic sales, suffered a 30 percent plunge in deliveries in its home market last year and has said it burned through at least $6.5 billion in the second half. The company only avoided a possible collapse this month with the loans it received in December.

“This certainly gives Chrysler a boost, but it doesn’t solve the problem,” said Kim Rodriguez, leader of Grant Thornton LLP’s automotive-restructuring practice. “I think the answer here is that they had to do something in order to move to the next stage of government support to get cash.”

Too Many Dealers

Chrysler still has too many dealerships and more manufacturing capacity than it needs, with Fiat likely to take up about 10 percent of that capacity at best, Rodriguez said. She said the companies are an excellent fit with nearly no overlap in product or geography.

Daimler AG, which owns 19.9 percent of Chrysler, welcomes “every initiative that enables Chrysler to stabilize its business,” spokesman Thomas Froehlich said today before the announcement. Stuttgart, Germany-based Daimler still aims to sell its Chrysler stake, he said.

Chrysler is working on a restructuring plan to cut its debt level by two-thirds and amend labor agreements to lower costs under the terms of the loans from the U.S. bank-bailout program. It must present a progress report on Feb. 17 and a full plan by March 31 or its government loan could be recalled.

Survival Chance

A partnership with Fiat “improves” Chrysler’s survival chances, Edward Altman, a New York University finance professor, said yesterday in a Bloomberg Television interview. He predicted Dec. 23 that Chrysler wouldn’t exist in six months.

Each automaker could save $3 billion a year, the Wall Street Journal reported, citing people familiar with the talks.

Chrysler, which depends on North America for more than 90 percent of global sales, has been seeking partners to share small-car technology and expand in markets such as Russia and China. Fiat operates in both countries and across Europe. Fiat also has a lineup of small vehicles, something Chrysler lacks.

Automotive News reported that Fiat may use Chrysler’s North American production and distribution network to introduce the Alfa Romeo brand and Fiat 500 minicar in the U.S.

Daimler sold 80.1 percent of Chrysler to New York-based Cerberus in August 2007, unwinding a tie-up that didn’t deliver the expected profits. Cerberus acquired Chrysler for a $7.4 billion investment, about a fifth of what Daimler paid in 1998.

Chrysler, in a plan submitted to the U.S. Congress in December, said alliances and partnerships were a crucial part of the company’s plans for viability. The company has product partnerships with Volkswagen AG and Nissan Motor Co.

http://www.bloomberg.com/apps/news?pid=20601087&sid=akfxuTp0g1G0&refer=home

 

[YSSMAN]

I was surprised it came about that quickly. Obviously Fiat wants to get into the North American market if they partnered up that quick. Not that I fault them, but if I can get a 500 that much sooner... You can bet I'll give one a good lookover when they arrive.

 

[exigeracer]

Question is, will they fork over the 4 billion? Will they be excluded from any bailout efforts? Fiat isn't really the richest company in the world either, this could be a tricky deal.

 

[YSSMAN]

It sounds like Fiat is paying in to Chrysler to gain ownership, but what that does for the company as a whole, I have no idea. Apparently they need to re-submit their plan for restructuring, or at least it is implied, and my guess is that having Fiat helping with that, Chrysler can come back around with something good for once.

Thought:

Is it weird if I like the buyer more than that of which it is buying? Its like welcoming your invaders...