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Kerkorian offers to buy Chrysler

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Old Apr 8, 2007 | 08:28 AM
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Kerkorian offers to buy Chrysler

http://www.leftlanenews.com/billiona...ler-group.html

http://www.autoblog.com/2007/04/08/c...-partner-with/

As expected, his public jump into the foray has flushed more details out from other bidders. Magna International, the parts supplier, had apparently registered a bid of $4.7 billion, and according to UAW President Ron Gettelfinger the other bidders have already approached the UAW about equity partnership. The UAW has not yet talked to Tracinda, and he made no comment about whether the union even wants to be an equity partner. With respect to all of the bidders, it is unclear how much the union would be expected to give up in wages and health care in return for just how many board seats and just much equity ownership. With new labor contract negotiations coming up, the UAW has quite a number of possible outcomes to consider.
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Old Apr 9, 2007 | 05:45 PM
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I read that. I have to say as an SRT8 owner that the LX cars are tremendous. Very high quality in terms of build and design. My SRT8 is rattle free and tight as a drum. Only issue has been heavy brake dust from the Brembos and a minor shift hesitation on the 1-2 at WOT. Both were resolved with TSB's.

I think they have some great product, and some kind of "iffy" i.e. the Caliber, and some model overlap.

If Kerkorian buys them, I hope he does not break them up and sell them off. Whatever the case, I'm glad Daimler will be out of the picture.
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Old Apr 10, 2007 | 12:24 AM
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Originally Posted by exgto
If Kerkorian buys them, I hope he does not break them up and sell them off.
That may, in fact, be exactly what he does. He has no genuine interest in the auto industry, only making piles of money.

His involvement with GM and Nissan demonstrated little savvy, frankly.

Originally Posted by exgto
Whatever the case, I'm glad Daimler will be out of the picture.
I supsect the feeling is mutual, if there's any accuracy to the comments coming from the Daimler side of the sharehold equation.
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Old Apr 10, 2007 | 07:49 AM
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Originally Posted by Hollywood_North GT
That may, in fact, be exactly what he does. He has no genuine interest in the auto industry, only making piles of money.
I agree, and I am not entirely certain this would be a bad thing. Simply fixing Chrysler and Dodge would be a tough task in it's own right. Jeep could still realistically be seperated from the rest of the Chrysler group since all of their most important products ride on Jeep-specific platforms. IMO this is significant since, while Jeep may well prove to be the easiest of the bunch to 'fix', throwing another brand into the mix just makes the mountain that much tougher to climb.

Over the course of a few years a new owner could transition the brand over to their own powertrain lineup just as Ford did with Land Rover. Until this occured the Chrsyler Group would benefit from Jeep's new owner purchasing driveline components bringing in much needed revenue.
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Old Apr 10, 2007 | 12:20 PM
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Jeep's real easy to fix: kill everything except the Wrangler models. The compass sucks, the Commander sucked and died, the Patriot's pretty poor, and the new Liberty is bloody ugly. But the Wrangler and Wrangler Unlimited are almost guaranted sales. After the brand's stablized, you can try re-building the higher-end models if you want, or pair it with an upmarket SUV brand like LR.
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Old Apr 10, 2007 | 12:49 PM
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Originally Posted by Moosetang
Jeep's real easy to fix: kill everything except the Wrangler models. The compass sucks, the Commander sucked and died, the Patriot's pretty poor, and the new Liberty is bloody ugly. But the Wrangler and Wrangler Unlimited are almost guaranted sales. After the brand's stablized, you can try re-building the higher-end models if you want, or pair it with an upmarket SUV brand like LR.
I've noticed your previous posts addressing why you would like Ford to buy Jeep. Actually, I agree. Partially because the Jeep brand is an American icon that could prove extremely valuable and partially because Ford is the only remaining major manufacturer to have built the vehicle that started it all back in WWII. Heritage counts, and for more than Henry Ford wanted to admit.

What I would like to see at Jeep is for the Compass, Patriot, and Commander to go on the chopping block with the Liberty and Grand Cherokee becoming the sole, mainsteam suv's yet again, for the near future anyway. And while were at it lets give the Liberty back it's proper name and call it a Cherokee.

It also seems to me that, with the Wrangler having grown so much in price and stature over the years, room has developed for a smaller, less expensive 'CJ' to slot in below that model. In fact the same seems a natural to wear the Compass badge, a well thought out model name which is currently wasted on the urban-tough wannabe Jeep is currently pawning off. Offer this in two and four door variants just like it's big brother and the lineup is nicely rounded out but for the possibility of a true, three row suv to slot above the Grand Cherokee, but that could wait IMO.

And while I don't like the idea of Jeep and Land Rover sharing a chassis. The massive component sharing that could take place between Ford, land Rover, and Jeep is difficult to ignore. Ford could create a corporate owned firm dedicated to developing parts soley for off road vehicles, create an American and a European division of the same, and a situation would be created where all three brands could share components without dilluting any of them.

Imagine the possibilities. This 'company' could engineer and build transfer cases, differentials, axles, etc fully enjoying the conomies of scale a large volume of applications brings. This could even make other, less common 4wd components possible allowing all three brand to offer things not previously practical, like portal axles.

I have no trouble imagining a new Defender, Wrangler, and revived Bronco (reminiscent of the original of course) all co-existing under the Ford corporate umbrella and benefiting from shared 4wd componentry, while each remains on it's own unique platform, possibly even employing bespoke versions of the same basic equipment lending each a unique flavor.
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Old Apr 10, 2007 | 01:39 PM
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Excellent idea. Ford could in essennce create a whole subsidiary team devoted to engineering real off-road capable SUVs and components for enthusiats. In doing so they gain sales, brand recognition/reputation, and take a bite out of developement costs.

****, J, we need to convince Mullaly to hire us as Consultants. Between this plan and moving Ford's HD diesels to CAT branding, I think we're pretty good brand developers
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Old Apr 10, 2007 | 01:50 PM
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excellent idea. KILL ALL THE BEANCOUNTERS



__________________________________________________-


http://www.autoblog.com/2007/04/10/a...ing-nightmare/
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Old Apr 10, 2007 | 03:36 PM
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Originally Posted by Moosetang
Excellent idea. Ford could in essennce create a whole subsidiary team devoted to engineering real off-road capable SUVs and components for enthusiats. In doing so they gain sales, brand recognition/reputation, and take a bite out of developement costs.

****, J, we need to convince Mullaly to hire us as Consultants. Between this plan and moving Ford's HD diesels to CAT branding, I think we're pretty good brand developers
LOL. Maybe Bill will see this and appoint us as co 'product-czars' in charge.
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Old Apr 10, 2007 | 05:37 PM
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I still think Kerkorian is gonna gut Chrysler like a fish.

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Old Apr 11, 2007 | 01:48 PM
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Bad news for Kerkorian

http://www.autoblog.com/2007/04/11/d...kerkorian-bid/

Is DaimlerChrysler deliberately snubbing Kirk Kerkorian? Word has it the company is sending one of its top executives to New York to meet with potential buyers, but Kirk isn't on the list. Kerkorian, as you may know, has already made a $4.5 billion offer for Chrysler.
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Old Apr 11, 2007 | 02:53 PM
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Guess they figured out his true intent, too.
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Old Apr 12, 2007 | 10:33 AM
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If cutting Chrysler up was truly his agenda, I'm glad he got snubbed. IMO, gutting Chrysler is an outright offense.

They have picked up market share in recent years, not lost it. They have some good models, chassis, engines. They are competitive, and are not afraid to introduce something bold or innovative. Not to mention they employ a significant number of Americans.

If a new owner can initiate some further model changes that can help them be let dependant on truck and SUV sales, they'll be just fine. THe LX's were a good step in that direction, but they need a homerun in the small and midsize car market segment. They also have too much model overlap. I mean an Aspen, Durango, Grand Cherokee, Commander. C'mon guys.

They suffer from the same problems GM and Ford suffer form, but since Daimler raided their finances, they're going to turn their back on them when truck and SUV sales tank and profits are down. Daimler can go screw themselves IMO.
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