Magna may be the only serious bidder for Chrysler
In spite of the non-discrete presence of Wolfgang Bernhard around Chrysler headquarters in Auburn Hills last week, a German paper seems to think that only Magna is really serious about taking over the company. Automobilwoche reports that Cerberus, of which Bernhard is part of the team, and the Blackstone Group apparently may be being brought in by DaimlerChrysler's investment bankers to provide the appearance of more interest than there really is. A go/no-go decision on a sale is likely to be made in the next few weeks.
From an operational standpoint, Magna is the bidder likely to be most interested and capable of succeeding in reviving Chrysler. They have long wanted to be more than just a supplier and they've been doing full vehicle assembly through their MagnaSteyr division, so they have the motivation. Blackstone has had some sucess in running large suppliers like American Axle and TRW so they may also be interested in more than just splitting up Chrysler and selling it off. Cerberus' intentions are less clear although the presence of Bernhard does lend credibility to their desire to rebuild the company. There is always the possibility that Daimler will decide to just hang in there keep the US based group.
[Source: Reuters]
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Reader Comments (Page 1 of 1)
Petey 7:59AM (5/07/2007)
Yay, Canada! This would be AWESOME!! ... Canada hasnt had a car company in years. What would it be called?
MagnaChrysler
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Avinash machado 8:43AM (5/07/2007)
There is always the possibility that Daimler will decide to just hang in there keep the US based group.
You know perhaps this might be the best decision after all.
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Paul Murray 10:04AM (5/07/2007)
discrete
1 : constituting a separate entity : individually distinct
2 a : consisting of distinct or unconnected elements : NONCONTINUOUS b : taking on or having a finite or countably infinite number of values
discreet
1 : having or showing discernment or good judgment in conduct and especially in speech : PRUDENT; especially : capable of preserving prudent silence
2 : UNPRETENTIOUS, MODEST
3 : UNOBTRUSIVE, UNNOTICEABLE
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Stéphane Dumas 10:57AM (5/07/2007)
I spotted on Allpar forums, the following about Magna
http://news.yahoo.com/s/nm/20070505/bs_nm/magna_chrysler_dc_1
especially the last paragraph
"....The paper wrote that insiders say Magna will probably sell Chrysler again once the restructuring is successfully concluded..."
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mr.ed 11:23AM (5/07/2007)
So, who's going to be the new Dr. Z? Geez, what a bunch of dumb shits. That guy was as scary as the burgerbarf masked character. And demeaning to a real engineer, trying to pander to sell his products. Rill 'murikins don't wanna be reminded that furriners own their companies and are sendin' their jobs and dividends across the pond.
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Rick Lyon 11:24AM (5/07/2007)
Only serious buyer? I thought that Kerkorian guy was trying to buy Chrysler and they were simply blowing him off?
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Tool 12:21PM (5/07/2007)
You know who should buy Chrysler? Warren Buffet.
Warren Buffett said Berkshire Hathaway is open to making a major $5 billion to $20 billion investment in a "huge" business.
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MH 1:30PM (5/07/2007)
I hope Daimler keeps Chrysler.
There's no telling what will happen to Chrysler if they don't.
When the storm blows all around you want to be with someone who has the money and resourses to keep the sharks at bay.
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iQuack 1:34PM (5/07/2007)
Ha,ha,ha! Warren Buffet buy Chrysler? He wouldn't touch it--he's way too smart to buy such a company.
Anybody would be better than Mercedes which has done nothing but demean itself from the Chrysler takeover.
Mercedes has been a flat failure running Chrysler.
The sooner Chrysler is in more capable hands, the better.
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Bill Connell 2:08PM (5/07/2007)
So, would their popular engine become a Magna Magnum?
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MH 5:16PM (5/07/2007)
That's just the problem.
There are no capable hands, at least no one who wants to take it over.
I'm sorry, I just don't think that Magna has the cash to pull this of in the long run.
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Barney 6:31PM (5/07/2007)
The Americans tossed the company, then the Germans are tossing it and maybe Canadians will toss it as well. This car company has been for sale most of it's life and always receiving bailouts. Even the Japanese won't take a chance on it.
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iQuack 8:38PM (5/07/2007)
Could be that more consolidation in the auto industry is needed and the Jeep brand is the only valuable asset the company has.
Well, Chrysler might have some value, but Dodge is like Pontiac and Buick in that few people are likely to care whether it continues or disappears.
Best hope for Chrysler is probably to break it apart and sell the pieces. But to whom?
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Barney 9:23PM (5/07/2007)
"..the Jeep brand is the only valuable asset the company has. "
There in lies the problem. Jeep is a speciality brand and takes very little of the market share. It is only an asset to a car company who sells enough of their own brand to make it feasible. It is a liability otherwise. Actually it is a liability if it requires profits from other brands, to keep going.
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Glenn 12:49AM (5/08/2007)
I hope too that Daimlier stays in at this point.
I still think the ideal merger would have been Honda and the old Chrysler group.
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