There's speculation over on Clusterstock that PE giant Cerberus might just throw in the towel and give Chrysler away.
Given that Chrysler equity is worth exactly zero -- seriously, that's what Daimler values its 19.9% stake at -- Cerberus isn't being generous in its offer to contribute equity, nor is it clear what concessions the various stakeholders would want to make in exchange for that equity. The bottom line here is that despite the $4 billion its getting from the government, it still is headed straight towards bankruptcy. Unlike GM, which believes it can restructure and turn things around, Chrysler didn't even opt for typical corporate puffery.
I'm sure that buying Chrysler seemed like a good idea at the time. One commenter on Clusterstock asks what their original plan was. Really, what modelling did they do that led them to believe that they could get into the US Auto industry and make out like bandits?
It probably looked something like this:
1) Acquire Chrysler
2) ????
3) PROFIT!
Ooops!
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1 comment:
Cerberus - mythical three-headed hound of Hades. Three heads - no brains.
As my old friend Wes once said, (use a strong Georgian or western Ukraine accent here please) "Strong like bull. Smart like chicken."
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