BUH BYE Dr. Z!!!!!!

Kid_Again · 05-14-07, 10:44 AM

Who cares about the business, what's going to happen to all that healthcare debt that stays with Chrysler?

That's really sad.

ROCKETBLOCK · 05-14-07, 12:16 PM

Quote:

Originally Posted by Kid_Again

Who cares about the business, what's going to happen to all that healthcare debt that stays with Chrysler?

That's really sad.

Here's your answer!

FRANKFURT, Germany - German-based DaimlerChrysler said Monday it will sell almost all of money-losing Chrysler to a private equity firm for $7.4 billion, backing out of a troubled 1998 takeover aimed at creating a global automotive powerhouse.

Eighty percent of Chrysler Group, burdened by high pension and health costs and declining market share in the United States, will be sold to Cerberus Capital Management LP. Cerberus is taking a huge risk by agreeing to take on billions of dollars in pension and retiree health care costs at Chrysler.

Cerberus Chairman John Snow, a former U.S. treasury secretary, told a news conference in Germany that the New York-based private equity firm believes in Chrysler and wants to see the company recover.

82ColEd · 05-14-07, 12:35 PM

Anyone care to speculate what the "3 Headed Guard Dog at Hades Entrance" (

) will attempt ? Are they attempting to recover Dodge/Chrysler? Or just shrink it down and sell it for profit ?

Kid_Again · 05-14-07, 02:22 PM

When was the last time that money guys gave a rat's ass about the employees, let alone retirees?

Chas · 05-14-07, 03:15 PM

Didnt they purchase it for 12 billion 9 years ago? If so , It would look like a royal hosing to me.

bossvette · 05-14-07, 03:20 PM

Quote:

Originally Posted by Kid_Again

When was the last time that money guys gave a rat's ass about the employees, let alone retirees?

Thats the problem once the pencil pushers get in control they ruin a company. Its happening where I work now the company was privatively owned local and was sold about a year ago. The Local owners cared about their employees and returned a portion of the profits back to the business For the first time since I've worked there we haven't received a profit sharing bonus altho the amount of product shipped was on par with past years; they have combined three shifts into 2 and laid off skilled employees and the so called "efficiency expert" wants to lay off more skilled employees and send the repair work out.

82ColEd · 05-14-07, 04:26 PM

Quote:

Originally Posted by Chas

Didnt they purchase it for 12 billion 9 years ago? If so , It would look like a royal hosing to me.

In 1998 for $36Billion (If i read that correctly)..

But they are getting out of $19 billion of retirement liabilities. And all the losses every year..

But MB will retain 19.9% in Chrysler.

ROCKETBLOCK · 05-14-07, 05:19 PM

Quote:

Originally Posted by 82ColEd

In 1998 for $36Billion (If i read that correctly)..

But they are getting out of $19 billion of retirement liabilities. And all the losses every year..

But MB will retain 19.9% in Chrysler.

You are correct! I'm not sure (besides the employees) who is getting hosed yet!

Kid_Again · 05-15-07, 07:37 AM

yup, what i heard was that MB ex-ceo juergen schremp paid ~$37BB for Chrysler..if you read the fine print in this deal, cerebus puts the $7.4BB into the new company, Daimler-Benz gets NOTHING and it COSTS them ~$500MM to do the deal...yeah, right, the superior intellect of the germans

...seems like the conventional wisdom is that cerebus will dramatically cut retiree's health benefits as a place to start...and now i hear that the union wants to hold the chrylser pension plan...gee, doesn't that give you a warm and fuzzy feeling chrysler retirees?

just picture gittelfinger spending your medicine money on show girsl in las vegas

...vipers just became an instant classic, gotta be on the bean counter's radar screen

vett boy · 05-15-07, 08:02 AM

At the price China is paying for scrap ,I say shut it down and Scrap everything.Invest the money in China.No more healthcare,pensions ,etc.

That's good business,heartless but good business.

82ColEd · 05-15-07, 03:24 PM

Sadly, everything is about the bottom line, once the public/shares get involved. If the shares dont do x, the bean counters freak and start "shedding" weight..

As to the intellect of my fellow 'mans: I started questioning that when they bought the shop in the first place. Why would a very well to do MB buy them? But afaik, the last word isnt spoken yet. Maybe they need a dump ground for their profits, for write off.

Usually they dont loose money, smiling, if they dont have a very good reason to do so.

Kid_Again · 05-16-07, 07:15 AM

Quote:

Originally Posted by 82ColEd

Sadly, everything is about the bottom line, once the public/shares get involved. If the shares dont do x, the bean counters freak and start "shedding" weight..

As to the intellect of my fellow 'mans: I started questioning that when they bought the shop in the first place. Why would a very well to do MB buy them? But afaik, the last word isnt spoken yet. Maybe they need a dump ground for their profits, for write off.

Usually they dont loose money, smiling, if they dont have a very good reason to do so.

...well, having spent some time in germany over the last few years, i kinda got hooked on following the boardroom politics at DB, VW, Porsche, etc......what the german news was fond of saying was that DB didn't buy Chrysler, it was juergen schremp and he was dirty with all sorts of backstabbing stunts....the amazing part is that zetsche was totally against the deal and fought the boss but they kept him on, sending him to rescue the operation and finally zetsche gets his way....zetsche also played a role in upgrading quality in the MB division and that's what allows the shareholders to just look the other way with the huge loss on sale of the US assets...my own experience is that the germany, from a financial persepctive, is a very tight, closely knit society with the banks calling ALL the shots....maybe we could learn a lesson on that issue....

...my other thought is to watch what happens with the viper, i can't see it being a part of the trimmed-down business because sports cars are not mainstream...i would think the viper brand has decent equity so i wouldn't be at all surprised if that isn't bought some other investors..............

....my favorite "monkey see, monkey do" guy, rick wagoner will probably blindly follow what happens at chrysler so that he can avoid the blame (and the mental effort required to actually think)...as goes viper, so goes corvette.......any takers?

82ColEd · 05-16-07, 12:23 PM

Yeah, you're right on the money with Schrempp'y.. He was a hoarder and bought all sorts of decrepit, fixer uppers (no offense meant) and spent money that wasnt his on lavish extravaganzas.... And now, they're finally shoving it off. After loosing monies left right and center.

But maybe now that all they have to squabble about is what to call the new MB (Daimler AG? Oh no, Baden doesnt like that, Mr. Benz is from Baden, Daimler Corp. ? Benz AG ?

), maybe they can focus on making quality cars.

With that said, i am hoping that the Viper will stick around, or the LX Series (ie. the 300C, my Magnum etc).. Time will tell.

As for Wagoner: Oh pls dont even think that.

But what "part" would they shed ? Just Corvette ? Make it a seperate brand (like they are doing in Europe).

But as you said in the beginning, the "little guys" will pay the price as usual, and all the fat cats will get fatter..

BigMike5 · 05-16-07, 01:14 PM

I am really puzzled by the losses that they have suffered over the last few years. The new 300 was a huge success when it came out [I didn't like it compared to my 300M], and I know guys at the plant in Brampton that had to give up vacations, they added an extra [3rd] shift, and worked 6 days weeks in a vain effort to keep up with the orders. And they are scheduled to take on the Challenger about now, and start building that on the LX line. So with the 300 going very well, the Magnum doing ok, and the Charger showing around more and more, I cannot figure out what went wrong. Granted the PT needs a facelift, and the 300 needs a drop top, but the minivans and Dodge trucks were always a mainstay of their business too. Now granted that the new Sebring is a dull looking car, with maybe some nice upgraded whiz bang stuff under the skin, still it is a dull looking car and I would be surprised if it is not just a fleet vehicle. The Crossfire was exciting but under powered and overpriced at the outset, and the fixes with a more powerful engine goosed the price way past where it should have been. [I got a new 04 Vette for way less than I could have got a Crossfire SRT-6. ] So I guess the bottom line here is that the LX line could not pull the boat. I thought Dieter was innovative and a good CEO for the division but who knows what filters up to the top level. By the way my 300M Club will be at Indy this weekend for a meet. We have over 1000 members worldwide and by enlarge most would say the quality of the product was good compared to the old days.

Kid_Again · 05-16-07, 05:55 PM

i dunno, i'm not an industry insider but i guess i HAVE to believe that detroit loses a BUNCH of money on every car that's not sold as a light truck....geez, the losses MUST be staggering

....i HEARD scuttlebutt at the lexus dealer that toyota corp makes 10K (dead net) on every LS that they sell