05-23-2007, 11:44 AM
I've spent some time studying the deal and moreover the trend towards private equity. The more private will have a positive effect on the operating speed of the business. They will become more nimble, and they need to. And I like the deal and I'm looking forward to a more progressive Chrysler.
The only two problems I see are these:
1. Private equity firms generally load up companies with debt, as has already been done to Chrysler (or at least agreed to by a number of major banks). This makes everything more risky.
2. The leadership at Chrysler, specifically Bob Lutz is quoted as saying the solution to the problems at Chrysler is "products, products, and more products!!" It's not, and that statement could be the 800-lb monkey in the room.
The only two problems I see are these:
1. Private equity firms generally load up companies with debt, as has already been done to Chrysler (or at least agreed to by a number of major banks). This makes everything more risky.
2. The leadership at Chrysler, specifically Bob Lutz is quoted as saying the solution to the problems at Chrysler is "products, products, and more products!!" It's not, and that statement could be the 800-lb monkey in the room.
--
Aaron
"Early to bed and early to rise probably indicates unskilled labor." - John Ciardi
Aaron
"Early to bed and early to rise probably indicates unskilled labor." - John Ciardi