Chrysler supposedly in talks with M&M to sell Jeep brand
India's Mahindra & Mahindra may have lost its bid for Jaguar and Land Rover, but the manufacturer of industrial and agricultural vehicles has its sights set on expansion, and that means teaming up with a larger automaker.
In order to reach the markets that matter, M&M may be looking to forge an alliance with Chrysler LLC. The Indian firm originally began selling Wranglers in its home market and might be interested in taking Jeep off Cerberus' hands. A report in the Economic Times says that "M&M is reportedly in talks with Chrysler for its iconic Jeep brand" although there's no confirmation that Chrysler is looking to offload the brand – yet.
Could Cerberus finally be looking to begin selling off parts of the Chrysler trifecta as many industry analysts have predicted? It certainly isn't out of the question considering the private equity firm's history. And where does the upcoming M&M Appalachian diesel pickup fit into this equation? The Indian automaker is adamant that it will begin selling its own diesel pickup in the U.S. next year, as well as a diesel hybrid version one year later. If this somewhat far fetched rumor of Jeep being sold to M&M turns out to be true, perhaps we'll see Jeep-branded diesel pickups in the U.S. before the decade is done.
[Source: Economic Times]
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Reader Comments (Page 1 of 5)
cowboy bob 4:46PM (2/11/2008)
Mahindra is going to be the next GM as to size, growth, success.
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Menice 4:46PM (2/11/2008)
going out on a limb here... by 2012 - chrysler will no longer be an american car company... going piece by piece.
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Nick 4:50PM (2/11/2008)
Yikes, first they cut the Viper, now this!?
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MJL 4:50PM (2/11/2008)
HERESY!!
Yeah, agreed, Menice, it's like Theseus' ship...
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mk 4:52PM (2/11/2008)
Why not just sell off ALL the parts of chrysler, at that point?
Dodge could be owned by Volkswagen Auto Group, and Chrysler by BMW, just like they split up Bentley and Rolls.
Jeep being owned by an Indian corporation... yeah. Nothing against the Indian people, or their corporations. But how about they develop their own cars, and we keep ours, and sell the cars to whomever wants to buy them.
People seem to be more interested in selling business units, than in having those business units sell product.
Does anyone else feel like these are little tiny signs of the apocalypse, or something? The gradual destruction of what the United States formerly stood for? This is just one splinter of the falling oak.
The world-upside-down news every DAY just makes me wonder if there isn't some sort of global-scope event pending. This isn't a major part of it, but it doesn't refute it either.
Jeep was borne out of AMC and Ford producing General Purpose army vehicles for WWII. Abbreviated as "G.P.", and spoken as what we know as "jeep."
So now, what once demonstrated the power and honor of the US military in the most devastating global war to date, is now being considered to be sold off to an emerging economy in southern asia.
Is nothing sacred anymore? is nothing inherently beneficial to keep as traditionally American?
Unfortunately, I think I know the answer to that, and it isn't particularly bright.
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Tourian 5:13PM (2/11/2008)
I remember reading a long time ago that Chrysler bought all of AMC (taking on Eagle too) just so they could get Jeep which was the crown jewel of all of those brands. Now it seems that its the only part of Chrysler worth anything. I can't see how Chrysler and Dodge could even exist seperately, so if it is possible they can sell Jeep, it will create a big hole in te dealer network since they have been pushing the "all brands" under one roof deal for quite a while.
Billy C. 8:03PM (2/11/2008)
MK - take a deep breath. You will be all right.
Devin 4:51PM (2/11/2008)
Cerberus is ruining Chrysler. First the reports of the death of a Viper. While I've only seen maybe 2 in person, they are still breathtaking and world class cars that create a HUGE halo around Chrysler. Now reports of selling the brand with the most history within Chrysler. What gives? there should be a backlash against Cerberus. If they do sell, I hope they lose a TON of money on every brand.
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psarhjinian 5:20PM (2/11/2008)
Mercedes already wrecked Chrysler. Cerberus us just trying to make monney selling fragments.
Toledo Guy 4:53PM (2/11/2008)
Living here in Toledo, we've had quite a number of Jeep products, have one in the garage now, and plan to replace it with a Wrangler Unlimited. But if Jeep gets sold to M&M, my current Jeep will be the last one.
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EVan 4:55PM (2/11/2008)
The United States government does a lot to protect it's core industries like agriculture, oil, and mining. It's time it stepped up and provided assistance to it's struggling and embattled automakers. I'm not talking about a bailout, but our companies are on the verge of a turnaround... a little bit of assistance would go a long way.
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sw 11:32PM (2/11/2008)
I'm not sure that I buy that argument for Chrysler specifically. They've been on the verge of a turnaround for decades without any real effort to better their products. That money would be better spent on Ford and GM because they do seem like they're fighting tooth and nail to try to exceed the quality and value that the imports currently offer.
Nick 4:57PM (2/11/2008)
Great Post MK, I could not agree more!
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MachWon 5:15PM (2/11/2008)
Isn't Jeep the only brand at Chrysler that has turned a profit recently? Or has even Jeep fallen into the red? Or am I dreaming that I read that somewhere?
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DanMan 5:06PM (2/11/2008)
Jeep helped save Chrysler's ass in the 1980s after AMC was bought by Lee Iaccoca. Why sell it now unless you plan to dismantle the company? It's the only logical conclusion.
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houdinit? 5:03PM (2/11/2008)
No chance that is going to happen Evan. Our own government is hanging the American auto industry out to dry for the sake of Big Oil.
Their response to big oil making record profits due to price manipulation? Punish the automakers by increasing CAFE, knowing that the already cash-strapped American companies can barely afford to get up to 30mpg today.
They give huge tax breaks to Hyundai, Toyota, Honda, Nissan, etc.. to make sure they build their plants here and turn around and bash the American automakers who have to close American plants because they can't afford to build in the US anymore.
Republicans, Democrats.. it doesn't matter. They all have some stake in the oil companies and they'll screw everyone over to get their lobbying money.
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GTX141 5:06PM (2/11/2008)
Hey Devin,
What good does a "halo car" do when the company is in the tank anyway.
Do people looking at Avengers and Caravans think, "Well, they make the Viper, so this thing must be good!"
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Polly Prissy Pants 6:55PM (2/11/2008)
"Do people looking at Avengers and Caravans think, "Well, they make the Viper, so this thing must be good!"
Yes, many do. American marketing driven consumerism is all about brands and portraying lifestyles. Product counts for very little. Viper is what helped give the Dodge (and by association, Chrysler) brands some degree of prestige for many people.
iorange 5:11PM (2/11/2008)
This is not going to happen. Why would Cerebus sell off Jeep who is profitable and the most desirable of the 3 brands? I see a partnership so Chrysler can enter the Indian market, that would be cool..
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Graham 5:10PM (2/11/2008)
To correct the post, Mahindra doesn't sell Wranglers, they make a few of their own variants of the Jeep CJ3B. Check out the CJ3B page to see the worldwide variants built under various license agreements.
http://www.film.queensu.ca/cJ3B/World.html
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