• Mar 30, 2007
Late yesterday, insiders privy to the ongoing talks within DaimlerChrysler to sell off its less profitable American half have leaked that the number of groups vying for control of the ailing automaker have been narrowed down to three.

Cerberus Capital Management, a New York-based private equity firm, is one of the top contenders and has recently established itself as a force to be reckoned with within the U.S. auto industry. Between the recent purchase of a 51-percent stake in GMAC, acquiring the assets of Tower Automotive and making a serious play for Delphi Corp., the addition of Chrysler to its ever-expanding portfolio would give the firm even more clout than it has received thus far.

The Blackstone Group, headed by CEO Stephen Schwarzman, recently named the "King of Wall Street" by Fortune magazine, is another serious player. With over 100 companies in its stable and voicing support of Tom LaSorda, Chrysler's CEO, the firm intends to merely supervise the board, rather than oust sitting members, if a buyout was to take place.

Magna seems to be the most unlikely candidate, as Chrysler's liabilities far outweigh what the Canadian company may be able to manage.

Although there have been no formal bids or announcements, sources have indicated that private talks with one of these groups will begin sooner, rather than later, most likely sometime next week.

[Source: Detroit News]


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    • 1 Second Ago
  • 10 Comments
      • 7 Years Ago
      10. Just like ton's of camry's,accord's around here are mostly rental's,My car was just stolen so I just got a crappy accord rental complete junk!!! and the rental car sale's lot is full of camry's,yaris,civic and accord.I've driven them and aint nothing special about any of 'em.I wish I did get a new avenger or sebring cause my last sebring rental drove and handled way better than the accord!!

      Posted at 4:23PM on Mar 30th 2007 by c
      um yea ,looks like somebody missed snack time ,dude get back to your senses
      • 7 Years Ago
      Magna still IMO is the best choice as they actually have real expertise (they didn't just buy their way into the game) in the automotive industry and they are already a close partner with Chrysler.

      Of Course Tom LaSorda supports the group that promises not to oust him or his fellow execs but, maybe they need to go so I'm crossing Blackstone off my list of groups to cheer for.

      Cerberus has a cool sounding name, but they just bought their way into the automotive game and I have little faith that they'd do anything more then slash and hack Chrysler to bits for profit. I don't want to see Chrysler end up sharing The Rover Group's fate.

      So GM has been cut out of consideration already? Or were they ever really interested to begin with?
      • 7 Years Ago
      Three equity firms? If this is the best that Chrysler can do, then you can get out your butter and jam. It's toast.
      • 7 Years Ago
      10. Just like ton's of camry's,accord's around here are mostly rental's,My car was just stolen so I just got a crappy accord rental complete junk!!! and the rental car sale's lot is full of camry's,yaris,civic and accord.I've driven them and aint nothing special about any of 'em.I wish I did get a new avenger or sebring cause my last sebring rental drove and handled way better than the accord!!

      ----------------------

      Right! And pigs have wings and I'm the Easter Bunny.
      • 7 Years Ago
      @Richard: Magna isn't an equity firm but it is reportedly partnering with one in its bid. The Canadian supplier depends on Chrysler for 24% of is revenue and has expertise in building and even designing complete vehicles thanks to its outsourcing operations in Austria.

      Still, I'm rather hoping Magna will not increase its bid because it may be biting off more than it can chew. It might make more sense to invest the money in the already-planned expansion into tomorrow's growth markets: India and Russia.
      • 7 Years Ago
      Just like ton's of camry's,accord's around here are mostly rental's,My car was just stolen so I just got a crappy accord rental complete junk!!! and the rental car sale's lot is full of camry's,yaris,civic and accord.I've driven them and aint nothing special about any of 'em.I wish I did get a new avenger or sebring cause my last sebring rental drove and handled way better than the accord!!
      • 7 Years Ago
      Okay, you guys must be Genesis fans - I've seen 2 references to Genesis this week.
      • 7 Years Ago
      anyhow, who ever takes the reigns, needs to trim the line up of too many 'like' vehicles they have and then FOCUS on 1 thing at a time.
      • 7 Years Ago
      "Then there's the SRT4. King DaDa of the FWD pocket rocket set"

      KING?? that cheap POS. they stopped making that thank god.
      that was only king to the under 20 crowd whos mom would buy them a car.
      • 7 Years Ago
      I don't know why anyone would buy a new Chrysler car unless it could be purchased very cheaply. The company is "in play" and who knows what components will be in Chrysler cars in a few years?

      One of the reasons people chose one car over another is the perception of the company that builds the car. Why buy a car when you don't know who it's parent will be in the near future?

      There's nothing special about Chrysler cars anyway except poor rear visibility in the Sebring and Avenger. Almost every one of these cars I see around here is a rental, so expect good deals on used ones when they're dumped into an unwelcome used car market.

      If you want one of these clunkers, buy it from Thrifty Car Rental in 18 months--and hold out for a loooooooooow price!