Cerberus Capital Management may sell some of Chrysler's non-automotive units, according to Bloomberg. The units in question are Mopar, Chrysler's famous service and parts producer, and Chrysler Transport, which manages deliveries to the automaker's plants.
Cerberus assumed 80% ownership of Chrysler from DaimlerChrysler (NYSE: DAI) on August 3. Cerberus is now engaged in contract talks with the United Auto Workers as it looks for ways to cut costs. The union is reportedly opposed to the sales for fear of job losses; the units employ roughly 1,300 unionized workers. Chrysler's four-year contract with the UAW expires on September 14.
Analysts are saying that the sale of the units would allow Cerberus to focus on Chrysler's core business of making cars and trucks, and help raise much-needed cash. But Mopar is hardly a peripheral unit. Chrysler has been using the term to refer to its parts since the 1920s, and Mopar has long been virtually synonymous with the automaker. This is especially true when it comes to high performance cars, including the famous muscle cars of the 1960s and 1970s -- the Barracuda, the Super Bee, the Road Runner -- that Chrysler is trying to revive. So you have to wonder if this is a good move in the long run. Let's hope that Chrysler doesn't lose what makes it unique and desirable to car lovers as it works to return to profitability.
Reader Comments (Page 1 of 1)
8-30-2007 @ 5:12AM
Dude said...
Keep the MOPAR and Dump the others selling them off then Contract the services will reduce the Interia Chrysler has picked up. All the auto makers are bloated with big executive payrolls and not accountability for those big pay checks.
The top execs should get pay that reflects the companies profitability more profit bigger pay
not the Uber paychecks they are now getting, while they short changhe workers pensions to puff up the bottom line for bigger bonus's.
8-31-2007 @ 7:05AM
justpicky said...
CERBERUS , THEY'RE TAKING AWAY JOBS , BELIEVE ME , I KNOW .....THEY BROUGHT OUT TOWER AUTOMOTIVE COMPANY AND GUESS WHAT THOUSANDS OF PEOPLE ARE OUT OF A JOB BECAUSE OF THEM , THEY'RE HOGGING ALL THE COMPANIES UP , TRYING TO BUY THEM ALL OUT ....
WHY TAKE AWAY OTHER JOBS , AND WHERE ARE THESE PEOPLE GOING TO GET A JOB ..... IT'S NOT AS EASY AS YOU THINK TO GET A JOB ,,,,,I DON'T CARE WHAT ANYONE SAYS ....IT'S HARD. CERBERUS CEO'S SHOULD DO WITHOUT BONUSES AND PAYCHECK AND SEE HOW LONG THEY LIVE THAT FANCY LIFE .....I DON'T FEEL SORRY FOR THEM AT ALL ....THEY ( CERBERUS / CEOS ARE ALL GETTING A REPUTATION IN A BAD WAY ) .