It depends on how the company is managed by Cerberus. If they go retro,
allowing the engineers to make ALL the decisions, Chrysler will prosper in
the marketplace, for intelligent buyers will see their virtues. On the
other hand, if we get more of the same, with the bean counters dictating
what finds its way to the sales lot, Chrysler will be history in five
I love to watch TCM movies. Just look at those cars of the 30's. They
were great. Maybe not as good as today's cars from the mechanical
standpoint, but their form fit their function just right. In recent years,
the designers of the Prowler recognized that essential element. Too bad,
they did not scale up the Prowler to sedan size and whittle its price down
to compete with standard cars like the Buick. It would have been a
Their take (and they have a good history) is Cerberus is expected to offer
the UAW a take-it-or-leave-it offer this Summer, and if they don't take it,
they'll start parting out the company immediately. No such thing as three
year and five year timelines. Chyrsler dealers are apparently already
lining up to become "Brilliance" dealers, the Chinese car company that will
begin importing shortly.
This is an extreme simplification of things.
The head honchos of the UAW have their own accountants who can read a
balance sheet. They aren't dumb. This so called "take it or leave it"
was negotiated between Cerberus and the UAW before Chrysler was
purchased. Proof that the UAW and Cerberus came to an agreement is
that Cerberus went ahead with the purchase - they never would have done
so if the UAW hadn't struck a deal.
The problem now is in selling this agreement to the UAW membership. So
what the apparent tack is going to be, is that both the head honchos at the
UAW and Cerberus have worked out a propaganda campaign to convince
the membership that it's big bad Cerberus who is pushing things around and
that this take it or leave it agreement is the only option.
Of course there is. Once the UAW accepts the contract this summer, you
be daft if you think that Cerberus is going to sit back and run the company
forever. Not at all, instead, they will be very concerned with getting the
profitable - but if for some reason they fail, they will have no choice but
it off and break up the company.
And here we go with the Yugo all over again....
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