Friday, February 23, 2007

The Carlyle Chrysler?

Und so, Dieter wants to dispose of Chrysler. Who will buy?

One very interesting possibility is the Carlyle Group (in which George HW Bush is an investor,) according to news stories.

Carlyle did the right thing with Rexnord when they purchased it from a 'smash/grab/bleed' prior owner, returning the Company to profitability, investing capital where required, and "shaping it up" in general.

The good news/bad news: Carlyle is not an "auto nut" bunch, which means that 'mystique' is not their thing. This will make the usual bunch of auto-writers cry and wail. On the other hand, Carlyle DOES manage well; if anyone can resolve Chrysler's problems, these guys will.

HT: RedState


Billiam said...

Won't happen as long as the UAW is involved. Unless they get rid of the Union, ALL U.S. auto makers will soon sink.

Anonymous said...

The current CEO at Rexnord was and is a big part of the "'smash/grab/bleed' prior owner'" (i.e. Invensys). Carlyle caught one big upward market trend and sold when the selling got good. Private equity investors are not "feel good" business partners. Did they invest? Yes. As long as the return is expected to bring twice (or more) the "market" return. It's all about expected returns, and not a whole lot more. They have to feel that Chrysler can be returned to profit again, and then can be sold to someone else for additional profit.