Autoblog: More Rumors of a Chrysler Sale/Bankruptcy

[GMusa]

More rumors of a Chrysler sale, bankruptcy

Posted Jun 30th 2008 3:23PM by Jeremy Korzeniewski
Filed under: Hirings/Firings/Layoffs, Chrysler, LLC., Earnings/Financials, Rumormill

Despite the fact that Chrysler shares are no longer sold on the stock market, rumors regarding the company's financial standing continue to haunt the number three domestic auto manufacturer in America. Last week, rumors regarding the negative cash flow were so rampant, a company spokesperson went out of his way to deny that the automaker was headed towards bankruptcy. Now, despite constant assurance from Chrysler that it's hitting all of its internal goals, the lack of announced future product and credit warnings from major firms such as Merrill Lynch and Fitch Ratings are causing some industry insiders to predict major changes from the automaker. Some analysts even believe that Cerberus is looking to offload or break up the company, allegations that Chrysler vehemently denies.

Because the automaker is privately held, the world will just need to sit back and wait to see how Cerberus' so-called "buy, fix and hold" strategy will work out. Despite what took place back in the '70s, Chrysler shouldn't get its hopes up for much federal assistance. It goes without saying, though, that Chrysler is going to need some major revamped products if it plans to make it in the tough U.S. market much longer.

Also Info From Leftlanenews.com at Link: http://www.leftlanenews.com/chrysler...-reserves.html

[Sal Collaziano]

Something seems fishy with the whole Chrysler deal... Cerberus wouldn't have bought it if there was a possibility it wasn't going to make money. They know what they're doing. They already know the plan. And I'm sure it hasn't changed since day one.

[johnstarnes]

My guess is that from Day One, Nardelli has been seeing $$$$$ in his newest golden parachute since he clearly does not actually care for the companies he heads up......what he did to Home Depot is numbing yet he got one third of a BILLION when he was "fired".

[F14CRAZY]

The company is done for and will probably end up [almost] taking Cerberus down with it

[mbukukanyau]

Originally Posted by F14CRAZY

The company is done for and will probably end up [almost] taking Cerberus down with it

Financial data please, to back up your assertions?

[jry]

Originally Posted by mbukukanyau

Financial data please, to back up your assertions?

I am sure that there are none. there is nothing to compelling the release of any. Some folks talk off the top of their heads and some die hard mercedes folks are absolutely sure that the company will fail, without all that great german wisdom and business acumen.
I believe Cerberus when they say that the plan is on track. They are not stupid.
I am surprised that some of the larger cars do not have the 6 speed auto, though. Pare it down to where its profitable. Then, slowly, build it back up through increased sales.
All of this bankruptcy talk is the media trying to heap on as much bad news as possible.

[wescoent]

Originally Posted by mbukukanyau

Financial data please, to back up your assertions?

I have seen Chrysler's financial data (thank you New York banking brotherhood), as well as Cerberus's. Chrysler is a tiny speck among Cerberus's holdings, and they have PLENTY of cash available to lend Chrysler to keep them going.

[A Clue]

Gotta love where all these "rumours" come from-

...a survey shows....

...a recent study....

...an analyst says....

....if history repeats itself...


The only thing true to the fact is that newspapers are doing everything they can to sell newspapers (look at their circulation numbers..heading down).

[jry]

Originally Posted by A Clue

Gotta love where all these "rumours" come from-

...a survey shows....

...a recent study....

...an analyst says....

....if history repeats itself...


The only thing true to the fact is that newspapers are doing everything they can to sell newspapers (look at their circulation numbers..heading down).

True, A Clue. It would appear that most of the press is not just anti Chrysler but anti anything American. Keith Crain was on the Frank Beckmann show in Detroit the other day and even he is repeating the diatribe that the US auto manufacturers only make gas guzzlers. Blatant lie, as we all know. At least he was off the "low quality" bandwagon. Heck, my 03 Bonneville got 30 MPG on the highway. Isn't the General saying 10 cars getting at least 30 MPG?
I am about sick of the "Toyota is so much more in tune with the US car buyer" bit.

[tom3]

Those Germans were pretty smart getting out from under Chrysler it would seem. But they did practically give it away from what I remember. Time will tell.

[FStephenMasek]

Perhaps the three-headed dog people expect to be able to buy what they want of GM after it goes broke.