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It is a brand new world for Chrysler as Cerebrus takes control

Posted in Chrysler, General by will bee | August 4th, 2007 | Leave a Reply |

R0010673This Monday at Chrysler offices across the U.S. a day of celebration will commence. It will be the first day of the rest of their corporate lives as Cerebrus begins its days as the leader of the littlest of the Big 3 American automakers. Guarded optimism seems to be the theme for the party for Chrysler employees on Cerebrus: Day 1, but at least the future is truly in their hands.

As the $7.4 Billion deal was sealed the percentage lines of Chrysler ownership came out as such: Cerebrus: 80.1%, Daimler: 19.9%. The smaller percentage share to Daimler will leave the door open for the sharing of some components and research; as in the new diesel engine research taking place now.

Another advantage for Chrysler in maintaining a close relationship with Daimler is that it still lends some international influence to the American automaker for which 90% of their cars are sold in America. Cerebrus will be looking to increase Chryslers place on the global market in the coming year. One way in which to do that will be with new alliances with other foreign automakers. More than likely the first alliance may come from the burgeoning auto market in China.

So now all 3 of the Big 3 are on their own paths to recovery from years of poor performance financially speaking while facing their greatest threats from international competition. One piece of the recovery still to be factored in for all of the Big 3 will be the contract talks with the UAW. Without sufficient help from the UAW the Big 3 will have a mighty steep hill to climb on the global market place. As for the moment gaurded optimism remains the theme of the day for America’s Big 3.

Source[Detroit News]

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