Chrysler's Future

If you have read any newspaper or watched any television news program, you must know about the speculation around Chrysler and the multiple suitors considering to swallow up or join the automaker. At one end, you have General Motors considering absorbing the entire automaker in a possible ownership swap of GMAC. The interesting factor in the deal is that Cerebus, which owns 80% of Chrysler, owns 51% of GMAC at the moment. At the other end, you have Renault-Nissan looking at bringing Chrysler into their alliance. The GM proposal must be the most shocking, as it suggests the possibliity of GM eliminating and redundancies with Chrysler and keeping valuable assets such as the Jeep brand. The Renault offer, on the other hand, is quite predictable. Renault actually partnered with AMC with the 1980s, although the partnership was ultimately not a success. It appears though that the French automaker is searching for an American partner once again. On top of that, Nissan has future plans for product sharing with Chrysler, including a compact Nissan car and the Dodge Ram pickup. Whatever ends up being the outcome, let us hope it is the best plan to ensure the health of the automakers, protect jobs, and preserve the history of these mighty industry titans.

Robert Cudini