Viper & Wrangler may be axed in Chrysler bankruptcy.
May 5, 2009 | 08:35 PM
#1
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Viper & Wrangler may be axed in Chrysler bankruptcy.
Doom and gloom are written in the sections of the bankruptcy filing documents that deal with Chrysler's Viper and Jeep Wrangler brands. These documents refer to two Chrysler entities, one called OldCo and the other is the New Chrysler. OldCo assets would not be affected by the recently-announced Fiat/ Chrysler tie up and would ultimately be closed down by 2010.
These OldCo assets, including eight manufacturing plants and their machinery, have a book value of US$2.3 billion. One of them is the Conner plant in Detroit which has 115 employees who build the Viper products there.
Chrysler told Inside Line "Chrysler LLC is evaluating strategic alternatives for the Viper business including the potential sale of the Viper nameplate" and that there are interested parties to the sale. The Viper would be sold as a standalone title and/or with its associated plant and tooling resources.
But the worst deal seems to have been dealt to the Jeep Wrangler which is singled out in the papers specifically. Statements filed as part of the thousands of documents dealing with the bankruptcy say that a potential buyer for the Jeep Wrangler "would face significant additional investment costs in the range of $550 million to $1 billion... There are likely other significant costs that a potential buyer would have to incur in order to re-establish the brand."
They also make a point to mention how attempts to sell Opel, Saturn, SAAB and HUMMER have failed because of a current unwillingness by potential buyers to invest in standalone motor brands.
Source: Edmund's Insideline, via Worldcarfans.com
Sad to see 'em both go, if that's how it turns out.
These OldCo assets, including eight manufacturing plants and their machinery, have a book value of US$2.3 billion. One of them is the Conner plant in Detroit which has 115 employees who build the Viper products there.
Chrysler told Inside Line "Chrysler LLC is evaluating strategic alternatives for the Viper business including the potential sale of the Viper nameplate" and that there are interested parties to the sale. The Viper would be sold as a standalone title and/or with its associated plant and tooling resources.
But the worst deal seems to have been dealt to the Jeep Wrangler which is singled out in the papers specifically. Statements filed as part of the thousands of documents dealing with the bankruptcy say that a potential buyer for the Jeep Wrangler "would face significant additional investment costs in the range of $550 million to $1 billion... There are likely other significant costs that a potential buyer would have to incur in order to re-establish the brand."
They also make a point to mention how attempts to sell Opel, Saturn, SAAB and HUMMER have failed because of a current unwillingness by potential buyers to invest in standalone motor brands.
Source: Edmund's Insideline, via Worldcarfans.com
Sad to see 'em both go, if that's how it turns out.
May 5, 2009 | 08:56 PM
#2
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Posts: 2,595
From: ATL
Given the future economic and environmental climate (pun intended 
), I think that the Viper brand may be done for; the Wrangler brand, however, is synonymous with Jeep and has legitimate potential to continue, despite the expense which a buyer would be forced to undertake.
), I think that the Viper brand may be done for; the Wrangler brand, however, is synonymous with Jeep and has legitimate potential to continue, despite the expense which a buyer would be forced to undertake. 
May 5, 2009 | 11:19 PM
#5
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Given the future economic and environmental climate (pun intended ), I think that the Viper brand may be done for; the Wrangler brand, however, is synonymous with Jeep and has legitimate potential to continue, despite the expense which a buyer would be forced to undertake.
), I think that the Viper brand may be done for; the Wrangler brand, however, is synonymous with Jeep and has legitimate potential to continue, despite the expense which a buyer would be forced to undertake.
May 6, 2009 | 01:21 AM
#7
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From: Minnesota
I'd never, ever want to own a Jeep but I'd actually miss the Wrangler.
May 6, 2009 | 10:44 AM
#8
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Joined: Jan 2008
Posts: 3,264
Mine gets better than that with a supercharger.
The Viper is about the only interesting car Chrysler has made in a decade. It's not being axed due to profitability, it's being axed because it's a halo car that suggests an image the powers that be don't like. Idiots, every last one of them.
The Viper is about the only interesting car Chrysler has made in a decade. It's not being axed due to profitability, it's being axed because it's a halo car that suggests an image the powers that be don't like. Idiots, every last one of them.
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