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Anatomy of an Epic Fail: Chrysler and Cerberus

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  • Anatomy of an Epic Fail: Chrysler and Cerberus

    http://www.bangshift.com/blog/Anatom...-Cerberus.html

  • #2
    Re: Anatomy of an Epic Fail: Chrysler and Cerberus

    Its funny how these highly educated "Wall St. boys" thought they could pull this off... and us boys on plant floor knew they were doomed to failure from the get go. They had no idea what they were getting into, or how much damage that Daimler had inflicted on Chrysler.

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    • #3
      Re: Anatomy of an Epic Fail: Chrysler and Cerberus

      It definitely sounds like Daimler should get a lot more of the blame than Cerberus - it would have taken the dogs a lot of effort to fix the state they'd bought Chrysler in. The only way in hindsight I could see them having pulled things off would be if they'd immediately gone on a crash course to develop the next compact car and kept it an in-house effort rather than sharing platforms with Mitsubishi. And that would have been very expensive to pull off right.

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      • #4
        Re: Anatomy of an Epic Fail: Chrysler and Cerberus

        Originally posted by LXbuilder
        ... and us boys on plant floor knew they were doomed to failure from the get go. They had no idea what they were getting into, or how much damage that Daimler had inflicted on Chrysler.
        I'd be curious to hear more of your take on that sometime. The whole Daimler-to-Cerberus thing (Cerberus Who?) had me wondering, "what just happened?".
        ...

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        • #5
          Re: Anatomy of an Epic Fail: Chrysler and Cerberus

          gun sales are doing well
          cerebus owns remington arms

          daimler vampired chrysler and showed them not to be the company of legend
          [but us mechanics knew that anyway ]

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          • #6
            Re: Anatomy of an Epic Fail: Chrysler and Cerberus

            If he says he should have shelled out more money to help Chrysler, he could face the ire of investors who have already suffered heavy losses on his gambit. If he says he should have simply dumped Chrysler?s auto arm, while clinging to its more promising finance unit, he could be accused of caring more about his wallet than he did about Chrysler?s workers and the automaker?s role in the economy.
            In a free economy, companies have to do what is best for them in order to survive. A small business owner knows that his business can't just dish out all kinds of freebies for the employees and customers and expect to survive. Sure, the rich owners of these companies might get richer, but that is not nearly as bad as those companies collapsing. Had these companies downsized a long time ago the pain of doing so now would not be nearly as severe.

            These big companies have long been run by the employees who understandably do not want to lose their jobs, but who fail to see the bigger picture. No one wants to be the sacrificial lamb, obviously. However, companies must learn when to do what it takes to survive.

            Anything less is socialism, which takes away the very motivation to work hard which is necessary to support prosperity.
            The official Bangshift garage door guru. Just about anything can be built using garage door parts, trust me.

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            • #7
              Re: Anatomy of an Epic Fail: Chrysler and Cerberus

              I'm trying to remember here, but didn't Daimler buy Chrysler for something like $60 billion, and sell to Cerberus for around $7 billion? Right there it shows that Chrysler was in pretty bad shape, and maybe it looked like a deal to pick up.

              I think the lesson here is: Don't buy a company in rough shape right before the economy takes a dump.

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              • #8
                Re: Anatomy of an Epic Fail: Chrysler and Cerberus

                Is it just me or does this guy look like Dean Wormer? :o

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                • #9
                  Re: Anatomy of an Epic Fail: Chrysler and Cerberus

                  Just to not let the opposing view get noticed, I'll put my 2 cents in about how Daimler is NOT the primary reason for problems at Chrysler. They CONTRIBUTED but they were not the root cause. There were a bunch of issues - many of which were front and center inside Chrysler. There are people (some in this thread) who make all kinds of accusations about what happened. This will probably stir the pot again, but just because some people personally feel that way doesn't make them right.

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                  • #10
                    Re: Anatomy of an Epic Fail: Chrysler and Cerberus

                    Cerberus never did want to be in the car business. They wanted to shed Chrysler's automotive operations (witness their numerous attempts) while making profit from the financial business. Note they did not sell that part -- they turned it into a TARP-eligible "bank" and continue to receive taxpayer dollars because of it. Why do you think they went gently into that good night during the bankruptcy?

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