Better news..
Thread Starter
|
Record Breaker
Joined: Jan 2008
Posts: 1,533
Likes: 0
From: New York
Better news..
The automotive world is abuzz with rumors and speculation regarding a possible Chrysler merger, and with good reason. It appears Cerberus, which owns 80.1% of Chrysler LLC, may be ready to wash its hands of the auto industry, and either General Motors, Nissan, or some other entity altogether could take the Pentastar off the private company's hands. Optimistic Chrysler Vice Chairman Jim Press told reporters at a recent Society of Automotive Engineers' conference that Chrysler would "be around", and that everyone should stop paying attention to wild speculation by the news media (Is he talking about us?). Press went on to say that Chrysler has adjusted the size of its business to meet the current economic realities (read: downsized) and that the negative cash flow has largely stopped. The affable vice chairman even joked that Chrysler's $11 billion in cash reserves could be a big reason that other companies are interested in shacking up with the beleaguered automaker.
Press' public words regarding a possible merger were the first from a Chrysler exec, but he sure didn't provide much in the way of details. That's not surprising, considering the sensitive nature of what could be ground-breaking negotiations for the auto industry. That means the wild speculation will continue, as the fate of thousands of workers and scores of Mopar minions hang in the balance.
[Source: The Detroit News, Photo by Bill Pugliano/Getty]
AND,
Yesterday, the Rumormill spewed out more bad news for Chrysler: the $3 billion project to design the new "Phoenix" V6 was all but dead. But vice chairman Jim Press says it isn't so.
Press told reporters that the program was moving "full speed ahead" and that prototypes are out in the wild as we speak. There is little doubt that Chrysler needs more efficient V6 engines that can compete with the competition, particularly after spending time with the Dodgeler/VW minivan.
We noted yesterday that either GM or Renault/Nissan already have modern V6 engines, and spending $3 billion to produce something that is just as good or marginally better doesn't sound like a solid plan. And while we believe Press when he says that Phoenix is still on, if a merger happens any time soon, we're guessing future owners won't be interested in investing billions in Chrysler engine programs, unless much of the $3 billion has already been paid for.
[Source: Reuters]
Press' public words regarding a possible merger were the first from a Chrysler exec, but he sure didn't provide much in the way of details. That's not surprising, considering the sensitive nature of what could be ground-breaking negotiations for the auto industry. That means the wild speculation will continue, as the fate of thousands of workers and scores of Mopar minions hang in the balance.
[Source: The Detroit News, Photo by Bill Pugliano/Getty]
AND,
Yesterday, the Rumormill spewed out more bad news for Chrysler: the $3 billion project to design the new "Phoenix" V6 was all but dead. But vice chairman Jim Press says it isn't so.
Press told reporters that the program was moving "full speed ahead" and that prototypes are out in the wild as we speak. There is little doubt that Chrysler needs more efficient V6 engines that can compete with the competition, particularly after spending time with the Dodgeler/VW minivan.
We noted yesterday that either GM or Renault/Nissan already have modern V6 engines, and spending $3 billion to produce something that is just as good or marginally better doesn't sound like a solid plan. And while we believe Press when he says that Phoenix is still on, if a merger happens any time soon, we're guessing future owners won't be interested in investing billions in Chrysler engine programs, unless much of the $3 billion has already been paid for.
[Source: Reuters]