What do we think will happen to MP?

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dartley

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Now that Chrysler is officially up for sale, what are your thoughts as to what will happen to the differing pieces ... such as the Mopar Performance program?
 
If the program has been viable (profitable) It would be stupid to kill it. After all investers want profits.

Chuck
 
You guys with the negative view kill me,LOL. If something is making somebody money they are going to say, "no thanks, I,m not interested in making any money anymore"

OK. LOL

If it is making money but the new owners do not want it as a product line I see them selling it to an aftermarket company. If it is making money it has value on the open market.


Chuck
 
Hopefully someone with some marketing sense will take over it. MP makes some good stuff but noone knows a damn thing about them until they are discontinued. Then the pricing really needs some help on some of the stuff too.....why pay $$$$$$ for a part that will perform up to the same level as a quality aftermarket part. The only guys willing to do that are the guys racing in stock classes and that isn't near the amount of people as that aren't running in thoseclasses.
 
I know one thing is for sure..if the purchasing organization comes in and cuts the engines i like, models i like, make the current vehicles run and look like their vehicles, and cut support to the teams involved in the NHRA and Nascar, i will not purchase any products new from them at all. I don't think Chrysler/Dodge loyalists will be too pleased with the new parent if they do eliminate the aspects and products -we- like. Unless they don't care and want to just eliminate a stiff American competitor and get the old customers to focus on their products. This is the part that worries me. I have heard Nissan is one of the companies involved in this. It COULD be beneficial to have theor resources, but i never want to see a Ram that looks like a Titan or has the same motor. Now if they used the Hemi in their Titan, then i could live with that, as long as the Ram is still around. Bottomline, i feel that it would be retarded on their behalf (whoever it may be and if there is a buyer) to cut out the successful aspects of Chrysler than are making big bucks, such as the Ram, 300, and of course, the Hemi. All and all, if they take my Hemi away and eradicate the racing units, im out for sure! I will not stand for it.
 
My personal take is that Jeep will end up at GM; MP will go away; Dodge will go away; Chrysler will go away; the manuf facilities will be split up; and the aftermarket will buy all the leftover parts, engines, et al. Just my take.

I've read that Nissan/Renault might be interested, but I don't think they will offer enough $. I can't see anyone else interested enough, except maybe a Chinese or Korean co.
 
MOPARJ, you make some good points but I will add that because of the loses that the big three have been seeing I would not be a bit surprised to see them scale back their racing sponsorship programs in an effort to save costs. These guys need to get back to making profits. If the company does well the employees will do well, like have a job and receive a pay check. It is much more important for a company to support it's employees and customers than it is to support race sponsorship money, which is not a profitable venture.

I would not like to see it, but if the company doesn't do something to become profitable we are going to lose it all. I would rather lose one thing as opposed to loosing it all.


Chuck
 
I tend to agree with Chuck. If the performance division is a money maker, that would be part of what the new owners would have purchased. Unless for some other economic reason, such as selling that division off for more money to another buyer, I can't see why they wouldn't keep it going. Of course this opinion is based on the performance division being a money maker, which I have no idea if it is or isn't. Mike
 
Its all speculation anyway, nobody knows what will happen if they are sold, even the people who work there. If a company like Toyota buys them, then they have their own aftermarket parts division, as do all other manufacturers, most are better than Mopar, so it might be an improvement. Its dumb to speculate, because its all just guessing. And besides, the aftermarket makes better stuff than Mopar anyway.
 
You've got to remember the only thing making money are the Dodge trucks and the Jeep line.....if anyone buys it that's what they are going after and they will dump the rest. The trucks and the jeeps are the only thing profitable that DC makes right now.
 
Chuck, i got a little excited...but you are right. I would be suprised to see some cuts..and thats ok, i just dont want to see a total pullout of Nascar or NHRA. They need to atleast keep the Ram, Durango, 300, Hemi, the profit makers. They should keep the Viper, because of its performance heritage. IDK, we shall see. I guess i just dont want to see someone come in and totally destroy it all, leaving no vestages of Ol' Chrysler behind. If im 22, im sure some of the other Mopar maniacs must feel worse.

-Justin
 
The question was asked and I based my answer on if it was a viable division. I based my answer on if it were me buying the company what would I do, both on keeping the the profitable divisions and scaling back/changing or killing the non-profitable divisions. Before I started my own businesses I was a general manager for the largest and second largest corporation in the U.S. in it's industry, of course not at the same time. So I have been on the inside of "big" business to see what's the method to the madness. The largest one was a publicly traded company so I know how share holders think.

I would bet that alot of MP's products are made by aftermarket contractors and not themselves. This is almost required now-a-days to stay competitive on pricing. If it were me, first order of business is cut the fat, expand the profitable divisions and put more happier people back to work. A happy employee will be more dedicated and produce a better product which is good for the consumer. Toyota and Honda didn't get to where they are on accident. Granted those two didn't do it on their own, the big three and their past and present business practices helped. Nothing like helping the competition to be successful.

The new owners are going to have to re-write a few chapters in the book and there will be some sacrifices that have to be made but in the long run when or if the company becomes profitable again the other things can be added back. It is just simple economics, you can't spend what you don't have... well unless your the government, but that is a differnt story.

Chuck
 
Last week in the globe and mail I read that Magna International has offered 4.6 billion for the Chrysler group. I think some where in that article it mentioned that Apr 4 there was going to be announcement of some kind. Here is a quote I found on line from the globe and mail.

"Chrysler accounts for about 16 per cent of Magna's annual $24.2-billion (U.S.) in sales.

Magna runs a paint shop for Chrysler at one of the car company's plants in Toledo, Ohio, and builds parts for virtually every vehicle Chrysler makes. "

Maybe it makes sence for Magna to take this direction.
Here is the link, from last week.
http://www.theglobeandmail.com/servlet/story/RTGAM.20070324.wxrmagna24/BNStory/Business
 
"The largest one was a publicly traded company so I know how share holders think."

Boize ... I did not think any human alive could ever figure them out ;oP
 
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