UPDATE: Chrysler Denies Jeep Sale Talks Under Way
14 Januar 2009 - 8:32PM
Dow Jones News
By Shawn Langlois
SAN FRANCISCO (Dow Jones) - Chrysler was quick to throw water on
reports Wednesday that Jeep and other assets are on the chopping
block, sticking to CEO Bob Nardelli's insistence over the weekend
that the company is not preparing for a fire sale.
In what's shaping up to be an ongoing whirlwind of speculation
as to the eventual fate of Chrysler, Reuters reported that the
company is discussing the sale of its marquee Jeep nameplate to the
Renault-Nissan (NSANY) partnership as well as other moves like
handing over its PT Cruiser model to emerging Chinese
automakers.
Shortly thereafter, Chrysler Vice Chairman and President Tom
LaSorda refuted the reports in a press conference, telling
reporters that Jeep is not for sale nor does Chrysler have plans to
sell plants or separate any brands from the company.
But a big merger, like the one mulled between Chrysler and
General Motors Corp. (GM) late last year, is what Sen. Bob Corker,
a Tennessee Republican and vocal auto industry critic, suggested on
Tuesday would make Chrysler more viable.
Corker attended the Detroit auto show this week to meet with
representatives from the domestic automakers, which will have to
prove to the government at the end of March that the $17.4 billion
in loans extended to GM and Chrysler are being put to good use.
A merger, however, would fly in the face of what Nardelli told
reporters from the sidelines of the Detroit auto show on Sunday. He
said recent white collar layoffs and senior executive departures
are not moves aimed at making the ailing automaker more attractive
to suitors.
He also warned that Chrysler's cash supply is dwindling to a low
point in January and the company and its Cerberus Capital
Management owner is looking to get their hands on the remaining $3
billion in loans that the government agreed to last month.
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