Chrysler: 10-year investment

[rickaren]

Chrysler: 10-year investment

Thursday, Aug. 21 2008

Cerberus Capital Management LP, the owner of Chrysler LLC, says it sees the
automaker as a 10-year investment.

With all of Chrysler's problems, the industry has been rife with speculation
about whether Cerberus would decide it had made an ill-timed bet and sell the company.

But top Chrysler executives say they are determined to fix the company, and
Cerberus executives say they will get the chance.

Their plan hinges on a wave of new offerings beginning in 2010, and a mix of
cars better suited to the times, to help spur another comeback for a company with a long history of them.

Cerberus executives say they have a decade-long horizon for making their $7.4 billion investment pay off.

"Our market share is not really relevant this early in the game," said Timothy
F. Price, a managing partner at Cerberus. "Our objective is to make money here on a 10-year investment."

Price also said Cerberus had no plans to sell any of Chrysler's brands.

Since Cerberus acquired Chrysler one year ago, the automaker has been a
cost-cutting machine. As part of the cost-cutting measures, it will lay off
about 2,400 people in Fenton when it eliminates a shift at the pickup assembly plant next month and shutters the adjacent minivan plant in October.

LINK:STLtoday - Chrysler: 10-year investment