<![CDATA[Jalopnik: chrysler sale]]> http://tags.jalopnik.com/assets/base/img/thumbs140x140/jalopnik.com.png <![CDATA[Jalopnik: chrysler sale]]> http://jalopnik.com/tag/chryslersale http://jalopnik.com/tag/chryslersale <![CDATA[Chrysler Discloses $515 Million First-Quarter Loss]]> Chrysler LLC revealed a $515 million first-quarter 2008 loss, despite the fact that the privately held firm isn't required to discuss earnings. So what gives? Ex-lover Daimler spilled the beans Thursday, stating that its 20% stake in Chrysler lost about $105 million in value. The Detroit News did some quick math, multiplying Daimler's loss by five, and a Chrysler spokesperson eventually confirmed that the number was in the half-a-billon dollar neighborhood.

Jalopnik Snap Judgment: A little more math, based on the fact that Chrysler really has nothing besides the Ram truck coming out this year, tells us Chrysler is on track for a $2-billion-plus loss for the year, breaking their previous record of $1.6 billion. As Rebecca Lindland, auto analyst at Global Insight, said, "From a product perspective, you can't point to a light at the end of the tunnel." Ouch. So Chrysler's survival will depend upon how deep owner Halliburton Cerberus Capital Management's pockets are. Or how quick they can sell it off. [Detroit News]

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<![CDATA[Merrill Lynch "Car Wars" Report Claims Cerberus Readying Chrysler For Chop Shop]]> The new Dodge Challenger is hitting showrooms. The 2009 Dodge Ram launch is scheduled for fall. But it's the sounds of silence after that when it comes to product. What's going on? One influential industry study, the Merrill Lynch "Car Wars" report (yes, that's it's real name), states Chrysler's lack of new product may be a deliberate effort on the part of owners Cerberus Capital Management to thin the herd in advance of a breakup and subsequent sale. In an excerpt that again proves financial analysts are paid by character count, the report says,

"Chrysler's product pipeline severely lags the industry on a number of key metrics, which is an ominous sign for its market share. We believe that this is an active decision by new owners to rationalize the product portfolio in advance of a breakup/sale."
Cerberus, of course, is denying any such plans, stating that, "We have a model that is buy, fix and hold." Uh-huh. Didn't Gordon Gecko say that too?

The argument that Chrysler is entering a product drought in advance of a sale also doesn't sit well with some industry watchers. Although the company doesn't have any major product reveals scheduled for the next year, they have one of the youngest vehicle lineups currently on the market. Others claim that Chrysler is reducing product in a long-term effort to become more competitive with a smaller fleet, and at the same time force weaker dealers out of business by depriving them of products during the current industry downturn. Such a move would allow Chrysler to pare down its dealer body without expensive — and potentially litigious — buyouts and consolidations.

Whatever happens, we do tend to agree with at least one Cerberus statement: "You can't judge an investment like this after just one year." Only question — does Cerberus believe that? [Freep, Photo Credit: blog.vehiclevoice.com]

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