Bankruptcy Documents Lead to Questions About Wrangler's Future

Date 2009/5/5 18:37:29 | Topic: Wrangler

Is Chrysler thinking about selling off the Jeep Wrangler? Really? Really?

According to documents from last week's bankruptcy filings, it seems that nothing is off the table:
His documents said a liquidation analysis of Chrysler "assumes that certain car lines and the plant assets supporting them will be sold as going-concern enterprises. These lines include Jeep Wrangler, Dodge Viper and Dodge Ram and Dakota truck lines."

But he delves deeply into the case of Jeep Wrangler, raising doubts about its ability to attract a buyer or survive as a stand-alone entity.

"The example of the Jeep Wrangler is instructive," Manzo writes in his affidavit. "A potential buyer would face significant additional investment costs in the range of $550 million to $1 billion.

"These additional costs include in excess of $100 million for signage to establish a dealer network, supplier-related costs exceeding $250 million and upwards of another $150 million in associated marketing costs to relaunch the car line. There are likely other significant costs that a potential buyer would have to incur in order to re-establish the brand. In addition, recent market experience reflected in the efforts to sell Saturn, Opel, Saab and Hummer brands indicates an extremely depressed market for stand-alone automotive brands."

You'll want to check out the full article from Edmunds.com.

UPDATE: 5/7/09 - Dave from AllPar is the voice of reason - he sets the record straight with this post. Thanks, Dave!


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