Chrysler to spin off/shutter MOPAR division?

[Flybrian]

Chrysler considering dropping Mopar, Chrysler Transport

Link to Original Article @ LeftLaneNews

In an effort to get Chrysler's financial situation on the right track, the automaker has proposed dropping non-core assets in recent United Auto Worker contract talks. Chrysler has proposed shutting down or selling its high-performance parts division, Mopar, as well as Chrysler Transport, the division responsible for managing deliveries of supplies to Chrysler plants.

According to Automotive News, the UAW opposes the divestments as Mopar and Chrysler Transport employ about 1,300 workers. It remains unclear if the divestments will remain as part of the final agreement.

[Sixty8panther]

Ouch!

[PurdueGuy]

Interesting... seems foolish for long-term strategy, but this holding company doesn't seem interested in long-term strategy. They wanna make their billions & ditch it.

[grandmarquis]

Do I hear a bell tolling for Chrysler? I hope not...

Edited August 29, 2007 by grandmarquis

[Dragon]

shuttering/selling MOPAR I can kinda understand as its not absolutely required to make cars, but last I checked, they still need to move parts, so doing away with the transport division doesn't make a ton of sense. Unless they want to pay into some other trucking companies profit margin

[cletus8269]

"oh noooo! we suck again"

either yota has infiltrated cerberus or somebody is a looks-good-on-paper-lets-do-it man

[Newbiewar]

shuttering/selling MOPAR I can kinda understand as its not absolutely required to make cars, but last I checked, they still need to move parts, so doing away with the transport division doesn't make a ton of sense. Unless they want to pay into some other trucking companies profit margin

well... it might be cheaper for them to higher outsiders to do the work and sell the assets... this would probably generate a several million in trucks trailors, more cash flow not worrying about their health coverage, insurance for vehicles... let someone else worry about it... agreed long term... perhaps this less worth while... but if its no car company or, no parts transporation... i say, cut the fat... keep it lean...

[BrewSwillis]

It's a deceptively worded article.

THEY ARE NOT SELLING MOPAR!!

Here's what the article really implies:

At issue is the future of Chrysler Transport, which trucks parts and supplies to the automaker’s plants, and a Mopar parts packaging and warehouse with 1,300 employees in Center Line. The official spoke on condition of anonymity because the negotiations are ongoing.

Chrysler said in a restructuring plan announced in February that it was exploring the sale of support operations, including transportation services. The Mopar unit makes parts for Chrysler, Dodge and Jeep vehicles. The company already announced it is closing a Mopar warehouse in Cleveland by the end of this year.

Chrysler spokeswoman Michelle Tinson said she couldn’t comment on negotiations with the UAW.

http://www.freep.com/apps/pbcs.dll/article...1/70828053/1014

They are not selling the brand "Mopar". They want to sell (outsource) some warehouses and packaging operations......and they also want to outsource transportation like GM and Ford have done. I couldn't believe that Chrysler had kept their own transportation division this long. Why not get independent truckers to bid the lowest on routes to save them a bunch of money and reduce employment (health care)? I personally don't like to see Chrysler employment reduced.....but at least Americans will still be doing the driving.

Edited August 29, 2007 by BrewSwillis

[bepperb]

This doesn't surprise anyone who has a clue. GM has outsourced supply transportation to UPS quite successfully for some time. Why wouldn't Chrysler do the same. Why pay an inefficient supply chain when you can pay similar union wages to someone who knows what they are doing.

So far as selling Mopar... what else can they do to raise cash. If they don't do something soon there won't be any vehicles to make performance parts for.

[haypops]

Whether this is a good idea or not, don't blame Ceribrus. Chrysler has been entertaining bids from various logistics companies for quite some time. Mopar is profitable and thus is sell-able. Historically speaking Chrysler took a similar route in the 80's during the bankruptcy scare. They sold off lots of Mopar's real estate for a cash infusion and then leased the properties back from the new owners.

[K.C.]

I dunno about this move. It seems like they will be losing alot of revenue.

[CMG]

I'll believe it AFTER I see it.

:AH-HA_wink:

The automotive rumor mills are crazy at times.

[BrewSwillis]

Don't forget, it's Union talks season!

[Newbiewar]

Don't forget, it's Union talks season!

lol season... but its so true... we get the world to kill...

if we dont get less wages and health care, we'll continue to harbor osama...

and.. we'll light the moon on fire...

perhaps we'll break of another portion of the business to send them to chapter 11 school...

but if you reduce our costs on the employees.. we'll continue to make cars, and never interurrpt anyone elses lifes...

[grandmarquis]

It's a deceptively worded article.

THEY ARE NOT SELLING MOPAR!!

Here's what the article really implies:

They are not selling the brand "Mopar". They want to sell (outsource) some warehouses and packaging operations......and they also want to outsource transportation like GM and Ford have done. I couldn't believe that Chrysler had kept their own transportation division this long. Why not get independent truckers to bid the lowest on routes to save them a bunch of money and reduce employment (health care)? I personally don't like to see Chrysler employment reduced.....but at least Americans will still be doing the driving.

Duh, brain fart on my part. Had never occured to me that Chrysler handled their own parts distribution from dock to dealer. Stupid. At least here in this area Ford uses Holingsworth Logistics and I can't say I have any problems with my parts deliveries. If only the clowns at my facing PDC were as good...

[Sixty8panther]

Christ with the amount of re-built FWD transmissions Mopar has to

manufacture & ship every year to replace all the blown ones in

their Minivans, FWD cars and Rams they should be making a killing.

[CMG]

Christ with the amount of re-built FWD transmissions Mopar has to

manufacture & ship every year to replace all the blown ones in

their Minivans, FWD cars and Rams they should be making a killing.

Post a link to some numbers for us.

I mean.....

this isn't just some cheap insult or anything, is it?

LOL!

[CMG]

JERRY!

JERRY!

JERRY!

[ZL-1]

So far as selling Mopar... what else can they do to raise cash. If they don't do something soon there won't be any vehicles to make performance parts for.

Didn't someone post that Daimler was supposed to assume at least some liabilities? I don't know how the deal was structured and I didn't see Chrysler's accounts, but if those liabilities are partially removed, Chrysler might be able to generate some positive cash flow... That's the only way I'd see Cerberus taking over: Chrysler being fairly 'cleaned up' and able to generate enough cash to pay off whatever debt the acquisition vehicle has raised for the acquisition... Daimler would make an immediate cash inflow, and not spend the money it would cost them to restructure Chrysler. I am just speculating though... I don't know if it is urgent to raise cash at the new Chrysler LLC, or if this sale is mere optimization.

[daves87rs]

Post a link to some numbers for us.

I mean.....

this isn't just some cheap insult or anything, is it?

LOL!

I wish I could say he was.

I can go to the local dealership and count the number of cars and trucks waiting for a new trans...somtimes more than you can count on your hands....

[CMG]

It's not a "sale", just a proposal.

GM and Ford gave up their own transporting years ago, did they not? It only makes sense, even if done many years after the others abandoned their respective transport ships....

I think they are probably trying to get out of under the union's thumbs a bit.

[CMG]

I wish I could say he was.

I can go to the local dealership and count the number of cars and trucks waiting for a new trans...somtimes more than you can count on your hands....

I know, I'm waiting for a look at my 2006 Chevy Express- the tranny seems like it is slipping... is there a TSB on them, any idea?

[CMG]

Hey Daves87rs... any way to see if these TSBs also apply to my truck? The TSBs are for a "2004" Chevrolet van, mine is a 2006.

TSB Bulletin #:00702

Description: SLIP CONDITION IN 2ND, 3RD OR 4TH DAMAGED 2-4 BAND 3-4 CLUTCH ON THE 4L60E/4L65E AUTOMATIC TRANSMISSION. *TT *MJ

TSB Bulletin #:050730013

Description: 4L60-E/4L65-E AUTOMATIC TRANSMISSION SECOND GEAR START, LACK/LOSS OF POWER WHEN ACCELERATING FROM A STOP. *TT

TSB Bulletin #:01432

Description: AUTOMATIC TRANSMISSION POOR ACCELERATION, PERFORMANCE. *TT

TSB Bulletin #:01599

Description: 4L60E, 4L65E FORWARD AND LOW REVERSE WAVED STEEL CLUTCH PLATE APPEARANCE CHANGE. *TT

TSB Bulletin #:01654

Description: SQUAWK OR GRUNT NOISE THAT OCCURS ON THE 2-3 UPSHIFT ON VEHICLES WITH 4L60E - M30, 4L60E M32 TRANSMISSION. *TT

TSB Bulletin #:010730038B

Description: THE SERVICE ENGINE SOON LAMP IS ILLUMINATED, NO 3RD AND 4TH GEAR, THE TRANSMISSION DOES NOT SHIFT CORRECTLY, THE TRANSMISSION FEELS LIKE IT SHIFTS TO NEUTRAL OR A LOSS OF DRIVE OCCURS. *TT

TSB Bulletin #:3002

Description: 4L60E/4L65E INTERMITTENT NEUTRAL CONDITION WHILE ACCELERATING FROM A STOP OR WHILE DRIVING. *TT 1999-2006 GM CARS, LIGHT DUTY TRUCKS AND UTILITIES. *TT

These are for a 2004, mine is a 2006. There are other tranny TSBs for the 2004, but none that apply to me.

Can I just give a dealership my VIN number and see if any of these have any significance?