Cerberus Looks to Build Chrysler Brand - Not Selling Jeep
Date 2007/7/13 10:57:20 | Topic: Miscellaneous
|The chairman of Cerberus, former United States Secretary of the Treasury John Snow, recently spoke at an event in Detroit and discussed the Cerberus plan for Chrysler Group.|
In short, they have no plans for an "exit strategy", the talk seemed to focus on the fact that Cerberus "fixes" companies, then holds on to them.
Mr. Snow made a specific point to mention that they will not be selling off the Jeep brand.
From The Oakland press:
Snow also said Cerberus' acquisition of Chrysler will be good for Chrysler and for metro Detroit.
Cerberus founder Stephen Feinberg believes in American manufacturing, Snow emphasized, adding the purchase will create a "new environment," which will give the company more freedom.
"I think the current Chrysler employ- ees have an opportunity in this new environment. I really do think this new environment is one that can open up the potential (of) Chrysler and let the Chrysler (management) focus on the day-to-day business rather than continually looking over their shoulder at what some analyst is writing about," he said.
"In this new environment, quarterly reports don't matter," Snow said. "You don't have the problem of missing the market's estimates of what your quarterly earnings are going to do."
"What you get to do is run the business. That's what (Chrysler Chief Executive) Tom LaSorda and his team want to do, and I think that's a plus for the employees."