Wed Aug 29, 2:51 AM ET NEW YORK
(Reuters) - Chrysler LLC has proposed shedding non-core assets in contract talks with the United Auto Workers, the Wall Street Journal reported in its online edition.
The car maker has proposed shutting down or selling its Mopar unit, a maker of high-performance and specialty auto parts, and Chrysler Transport, which manages deliveries of supplies to Chrysler plants, the report said, citing people familiar with the matter. The UAW opposes the divestments, and together Mopar and Chrysler Transport employ almost 1,300 workers, the report said. The report said it was unclear whether the divestments would be part of the final agreement. A Chrysler spokesperson did not immediately return a call seeking comm

 

bastards

 

Wow at least the damn Germans didnt want to sell off an iconic peice of Chrysler...thanks Ceberus.

 

This is exactly what people were warning against with the sale to chop shop private equity group.

What puzzles me is whether or not Mopar actually makes money. It it was a money loser you could understand it, but, as with GMAC, why would you sell the parts that actually make money? Even if it was a small profit, it seems you'd want to keep Mopar.

 

everyone bitched about "the germans"...at least the germans understand performance...cerberus understands the bottom line.

well, the nice thing is that if they sell MP, it will probably be purchased by an overseas company, so we will have cheaply made, low cost parts...as opposed to the current cheaply made, high cost parts...the difference in the prices are thanks to labor costs...

 

Maybe they ought to sell some vehicles with the mopar upgrades. Have some dealers create some special edition vehicles using mopar upgrades, etc.. If all this funand classic stuff continues to go away, It makes it harder for me to decide to buy another chrysler make vehicle in the future.

 

Let's hope the Chinese stay out of it......I can see it now, all Mopar parts being recalled because they are radioactive or something.........

Dusty

 

Wrong. Most parts are already outsourced. Mostly what is left of Mopar is the packaging and distribution of the parts. Also the engineering, research and development. Lower the prices? Are you kidding? Thats why they want to outsource whats left of mopar. So that way they can charge the same price, but put it out for less. This is why a lot of the employees did not like the Cerberus deal. Next I hear on the block is our stamping operations. Pretty soon we will outsource the whole flippin company. Then it will go under due to the fact that 60% of Chrysler's sales are to their employees. The less you have, the less you sell.

 

By eliminating the division (in theory) or selling it off, the parts could then be made cheaper. in that, lies the potential for lower costs. I dont think that my intake manifold has 500 dollars worth of alloy in it, or anywhere near that. I also dont think that it has anywhere near 500 dollars worth of labor, or anywhere near it...or anywhere near a combined value of the two...

 

Yea, let's just axe Mopar, a brand recognized by anyone who knows anything abour cars.
Maybe if they'd not charge and arm and a leg for everything (and, in some cases, put out quality parts), they'd get more buyers.
Hmm... hard choice here: raises for the white collar workers or offer decent prices so people buy stuff?

And Dusty, seriously, I wouldn't be suprized if they recall something from China for that someday.