Jason Bleazard wrote:
> They have some interesting thoughts over at Allpar if you haven't read
> them yet.
> http://www.allpar.com/weblogs/2007/01/24/dr-zs-plan-for-chrysler/
> http://www.allpar.com/weblogs/2007/02/14/likely-buyers-for-chrysler/
>
I read those, but really couldn't see any reasons that any of them would
work. People think it's solely a sales and market share issue, but It's
not. The issue at hand is the legacy costs such as pensions, health
care and stuff like that. Let's face it, when you have tons of money
pouring out to fund pensions, you have less money too spend on R&D,
marketing, and stuff to create a product people want.
I firmly believe that the union contracts, which were drafted in a
closed-market era with only 3 major companies, are now killing the
companies now in this global market. With Japan, Euroland, Korea, and
soon China, now in the US, the old "Big 3" rules just don't apply.
Dr. Z is just doing his job. He has this money draining 300lb gorilla
on his back, and all the Euroland investors screaming to do something
about it. Unlike GM that had the cash to buyout union contracts, Dr. Z
is doing all he can... dump Chrysler like a cheatin ex.
So the question is, who will take this unwanted soul? I can't foresee
ANY car company except maybe China (And theres no way in hell our
government would let that go through). Chrysler really has too many
liabilities for another automaker to acquire... especially when the
whole industry is in troubled waters. I would bet money someone like
Kirk Kerkorian, Warren Buffett, Eddie Lampert (guy who bought K-Mart and
Sears), or anyone with about 9 billion to play with, to buy it and take
it private. Taking it private would save a lot of cash by not having to
pay out stock dividends, and that money can be used to fund their
liabilities. Also they probably would have to shut down all of their US
plants and move down to Mexico to save on labor costs.
Yes it's not pretty, but thats about the only way I can see Chrysler
staying alive.
Gary Hedlin
98 Dakota Sport 3.9
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