Can Kirkorian Save Chrysler?

I’m fascinated by the guy-he is almost 90, and still making deals. anyway, Mercedes -benz have concluded that they have to dump Chrysler-their fiancial people see chrysler as a loser for years. But, having paid 36 billion, I doubt they will let it go for what Kirkorian wants to pay (5 billion ?). So the question is: can tracinda actually run Chrysler? i suspect that tracinda 9if they buy the company0 will start by abrogating all of the UA union contracts-will the union stand for this? Otherwise, how can Chrysler survive?
Or is this the end-Kirkorian plans to cut Chrysler up; maybe sell the JEEP division to GM, and shut the rest down?
Walter Chrysler must be spinning in his grave-but i don’t see Chrysler surviving as a full-line car mfg.
What do you think? :confused:

I wouldn’t rule that out so fast. The whole affair has been all over the news here - just from the opposite perspective, of course - and the price estimates seem to vary a lot. It’s true that there are rumors of higher prices, but I think it’s telling that analysts were relieved that Daimler will probably achieve a positive price after all.

Here in Canada all I hear about is Magna International’s offer for the company. The quoted price is usually $5 billion. I hadn’t even heard of Tracinda’s offer. Which one is more likely to be accepted?

My understanding is that the Daimler-Chrysler merger was based on a merging of shares rather than a cash takeover - these figures suggest that.

Although it is a quoted company, I see it as highly unlikely that Kerkorian or anyone else could snap up all the shares. The only ‘sale’ that I can see would be a cash sale for the USA assets - in which case ‘Chrysler’ would be dropped from the name and Daimler would not necessarily be out of pocket. The German shareholders would land up owning Daimler, just as they used to, and any cash would be used to buy back USA etc held shares in the ‘new Daimler’.

To be honest, from what I remember of the figures, Daimler could well sell the USA assets for $1 - just as BMW sold Rover for £10 and slung in non-repayable loans to keep it going long enough for them to get out of the firing range before it went belly up.

Realistically they would probably prefer to get rid of the USA shareholding and listing.

It will be interesting seeing how they do it.

doesn’t matter what Daimler paid for Chrysler, the only thing is what Chrysler is “worth” to a buyer. And that looks like about 10 cents on the dollar for what Daimler paid.

I think Magna has a better bid and synergies.

Interestingly enough, I’m told by colleagues that cover Ford, Chrysler and GM, that Detroit has started referring to them as the “American Three” instead of the “Big Three” these days.

Living in the Detroit area, I can attest that “Big Three” is the only reference on the local news.

Kirkorian has been responsible for several big merger/takeovers, but has he “saved” any of those companies? :dubious:

I think what Kerkorian plans to do is: buy Chrysler for a lowball price; then establish a new company, and issue stock (with TRACINDA Corp. owning a conrtrolling interest). then: break all of the UAW contracts, and offer a new contract to the workers (which they will have to accpet). Then, get the company profitable.
For a 90-year old man, pretty impressive! But the question is: can it be done while he is still around?

That sounds something like what Iacocca did while saving Chrysler from going belly up in the early 80s.

When standing on the assembly line, instead of rousing the troops with a stirring speech to inspire the workers to greatness, he simply said something along thi lines:
“We either make production today, or I’m filing for bankruptcy”

A stark take-it-or-leave-it message, which can be used today.

Did anybody else read the title and see “Kervorkian”?

I did. And somehow it seems so much more appropriate.

I’m just seconding that I’ve only ever heard of them as “the big three”. I’ve never heard of them being called “the american three”. That sounds weird to me.

I hope Kerkorian gets Chrysler. If he does and also manages to dump the UAW, that’d go a long way towards helping their issues.*

  • Along with, y’know, developing high quality reliable, great gas mileage, good fit and finish** cars for a change (and I say this as a Chrysler fan).

** [sub]Fit and finish has always been one of Chrysler’s weak spots, IMO.[/sub]

I thought I saw a 12 story tank of CO2 in Auburn Hills today… :wink:

We are freaking sweating bullets at my job over this deal. Why do you ask? Well our local branch is the TPA for DaimlerChrysler’s worker’s comp, FMLA and disability claims. Chrysler is our only client. We just opened in June. We are moving into a cushy new office on Monday. We do not need to lose our only client. :mad: :frowning:

Who says saving them is what he wants to do? Maybe he just wants to make a killing.