Two Private Equity Firms Interested On Chrysler

February 14 was a sad day for Chrysler employees in the country. On that day, DaimlerChrysler Chief Executive Officer Dieter Zetsche announced that due to the poor performance of the U.S. brand, all options are open for the brand including its sale. The day also saw the workforce reduction carried out by the company as a part of its restructuring plan.

The speculations that Chrysler will be for sale is made even more plausible with the emergence of interested firms popping out and saying that they are interested in buying the U.S. arm of DaimlerChrysler AG. It can be remembered that Chrysler has already planed to cut down the number of their employees in the following months.

Aside from workforce reduction, the restructuring plan of Chrysler involves closing down of a plant and eliminating shifts on two plants. These steps, as Chrysler maintained, are necessary to address the reduced demand for their vehicles.

Recently, The Associated Press reported that there are now two firms which are most likely going to be the next owner of Chrysler. The Cerberus Capital Management LLC and a group of investors led by the Blackstone Group and Centerbridge Partners LP. These firms have expressed their intention to buy the troubled company. The American news agency reported that representatives of the group have made a visit at Chrysler’s headquarters in Auburn Hills, Michigan.

The Associated Press also spoke with a Chrysler insider who disclosed that potential bidders are now looking into Chrysler’s financial status.

Another firm that has shown interest in Chrysler is Canadian car parts manufacturer Magna International along with the largest car manufacture in the world, General Motors. Although the Canadian firm has shown interest, insiders said that the possibility of the Canadian firm buying the company has been reduced. There are also other firms that have shown interest on Chrysler although these are not as strong as the interest shown by Cerberus and Blackstone are Apollo Management LP, and the Carlyle Group. These firms have not yet made comments about their interest on the car maker.

As far as the rumored takeover of General Motors of the ailing Chrysler group, experts pointed out that it looks unlikely. While General Motors has yet to comment about the rumored interest they might have on the third U.S. car maker, speculations in the auto industry says that the world’s largest car manufacturer will not gain any advantage from the acquisition of the ailing group. On the other hand, another U.S. brand, Ford, when asked whether there is a possibility of them buying Chrysler, Ford CEO Alan Mulally flatly said that it will never happen.

On a sudden twist, DaimlerChrysler AG Chief Executive Officer Dieter Zetsche has announced that there is a possibility that Chrysler will still remain as a part of the German company. But the emergence of the two firms most interested in the purchase of Chrysler has a look similar to Nissan cornering lights which shows which way Chrysler is going in the future.

By Ryan Thomas.

Chrysler Vehicles to be Equipped with Backseat TV

Innovations in the auto industry continuously pour in year in and year out. The race among auto makers to provide their consumers with the best features has led to the development of advanced vehicle features.

Partnering with other industries, car makers are able to provide their customers with the latest in auto convenience and comfort. Chrysler is one car maker to join the force with another company so as to provide promising features for their vehicles.

The member of the Big Three recently announced that they have formed a partnership with the SIRIUS Satellite Radio to equip the 2008 model year Chrysler Group vehicles with SIRIUS’ Backseat TV™.

The Backseat TV™ is an innovative and cutting edge television technology which delivers TV signals directly to cars on or off the road. The TV service provides family TV for backseat occupants which are mostly occupied by kids. Backseat TV™ allows owners of selected Chrysler models to gain access to three family entertainment channels.

The initial lineup of TV programming that SIRIUS offer consists of Nickelodeon, Disney Channel, and Cartoon Network. These programmings are aimed for children, who more often than not, will occupy the backseat of a vehicle. Chrysler will equip select 2008 model year vehicles with the feature and the list of vehicles does include the 2008 Chrysler Town & Country, Dodge Grand Caravan, Chrysler 300, Dodge Charger, Dodge Magnum, Jeep Commander, and the Jeep Grand Cherokee.

Frank Klegon, the Executive Vice President for Product Development at Chrysler group, has this to say at the announcement of the partnership: “Chrysler Group is committed to offering innovative technologies that are right for our customers. SIRIUS Backseat TV makes its world debut in Chrysler Group's all-new 2008 minivans and marks the third SIRIUS service - - along with SIRIUS radio and SIRIUS real-time traffic -- available to Chrysler Group customers.”

For the SIRIUS Satellite Radio, Mel Karmazin, the Chief Executive Officer, has this to say: “SIRIUS is dedicated to bringing Chrysler Group customers the best in-vehicle entertainment available anywhere, whether it is through radio or video. SIRIUS Backseat TV, with its best-in-class programming from our partners -- Nickelodeon, Disney Channel and Cartoon Network -- further enhances the already exceptional driving experience for Chrysler Group customers. In SIRIUS' first venture in visual entertainment, I am pleased to have the three most original family-centered programming providers in TV. Just as we provide the Best Radio on Radio, this allows us to launch SIRIUS Backseat TV as the Best TV in the Backseat.”

This technology is just starting its career in the auto industry. With the expected success of the technology, it is just a matter of time before features such as the Backseat TV™ become standard feature for many vehicle models.

By Anthony Fontanelle.