Canadian auto parts supplier Magna likely to win bid for ailing Chrysler
05-08-2007, 11:21 AM
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Apathy Kills
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Canadian auto parts supplier Magna likely to win bid for ailing Chrysler
Automotive News reports Magna executives have been burning the midnight oil analyzing Chrysler's strengths and weaknesses, putting together a plan for action should they win in the bidding for Chrysler.
According to a report in German magazine Automobilwoche, Magna is the only serious bidder left for the Chrysler division of DCX, and that Daimler has only continued discussions with other bidders as a purely tactical move. This seems to coincide with a report in the Automotive News this week that a sale could be completed by June to the Canadian parts supplier.
Magna executives believe that Chrysler needs to significantly reduce its dealer base, expand its relationship with Daimler, who will own a minority stake and have a management role in the new Chrysler by expanding its parts and components sharing. Magna also believes it's important to maintain Chrysler's current management including CEO Tom LaSorda.
A deal for Chrysler could be completed by June, and Magna is seen as having the upper hand. Chrysler executives have a long standing relationship with Magna, who supplies parts to the automaker. The UAW/CAW also favor the Magna deal because they believe the parts maker would keep Chrysler intact and fear private equity firms pursuing Chrysler would break the company up.
Simplifying Operations
Chrysler announced plans to simplify its vehicle option offerings by condensing options into three trim lines and simpler options packages COO Eric Ridenour told Automotive News. Dealers blame strange options orders for making it harder to move cars.
According to a report in German magazine Automobilwoche, Magna is the only serious bidder left for the Chrysler division of DCX, and that Daimler has only continued discussions with other bidders as a purely tactical move. This seems to coincide with a report in the Automotive News this week that a sale could be completed by June to the Canadian parts supplier.
Magna executives believe that Chrysler needs to significantly reduce its dealer base, expand its relationship with Daimler, who will own a minority stake and have a management role in the new Chrysler by expanding its parts and components sharing. Magna also believes it's important to maintain Chrysler's current management including CEO Tom LaSorda.
A deal for Chrysler could be completed by June, and Magna is seen as having the upper hand. Chrysler executives have a long standing relationship with Magna, who supplies parts to the automaker. The UAW/CAW also favor the Magna deal because they believe the parts maker would keep Chrysler intact and fear private equity firms pursuing Chrysler would break the company up.
Simplifying Operations
Chrysler announced plans to simplify its vehicle option offerings by condensing options into three trim lines and simpler options packages COO Eric Ridenour told Automotive News. Dealers blame strange options orders for making it harder to move cars.
Magna homepage
As a Mopar fan, it pains me to see DCX continue to struggle.
But the fact of the matter is they brought this on themselves. Better product planning and fewer rebates are what Chrysler sorely needs and I don't know if Magna has the reserves and manpower to turn the brand around.
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Last edited by TheOtherDave™; 05-08-2007 at 11:26 AM.
