Chrysler LLC, seeing that life as it knows it is slipping by, has been looking for a suitor over the past few months, preferably another automaker to take over its ailing operation. Owned by Cerberus Capital Management, L.P., of equity management fame, the country?s third largest automaker just can?t seem to find a suitable partner. And, it isn?t as if they haven?t been trying.

In September, Chrysler began formal talks with General Motors ? one that Cerberus hoped would result in GM acquiring Chrysler while Cerberus gained the remaining shares of GMAC, the financing company jointly owned by GM and Cerberus. Those talks were stopped last week when it became apparent that GM?s own dire status had worsened significantly.

In the middle of negotiating with GM, Chrysler sent out feelers to the Nissan-Renault partnership to see if there was any interest on the part of President and CEO Carlos Ghosn to acquire a stake in Chrysler, perhaps even the separate purchase of Jeep. Though Chrysler and Nissan had inked several strategic partnership deals throughout 2008, Ghosn turned down Chrysler?s proposition, choosing to continue with business as planned.

Most recently, rumors of a Hyundai take over surfaced fueling talk that the world?s fifth largest automaker would make a bid for Chrysler. Already a significant shareholder of Kia and the fastest growing automaker in the world, a Chrysler conquest would have made Hyundai the third largest automaker, immediately behind Toyota and General Motors.

But, Chrysler has learned that finding an automaker is one thing, but having them interested in you is entirely something different. Yesterday, Hyundai laid all rumors to rest by stating emphatically that they had their hands full expanding their own operation. Thus, the rapidly growing automaker from Seoul has decided to stay the course and let Chrysler fend for itself.

At this point in the game deliverance for Chrysler will probably come in the form of a government bail out, even beyond the loan money already promised by the federal government.

Two international companies are currently squabbling over their respective shares in Chrysler, LLC the third largest and least healthy of America’s big automakers. Cerberus Capital Management, LP ? a private equity company ? and Daimler AG ? the German automaker who produces Mercedes-Benz, Maybach and Smart vehicles ? each have a stake in Chrysler with Cerberus wanting to buy out Daimler’s remaining 19.9% share before, presumably, finding a buyer for the troubled automaker.

But, the best laid plans of mice and men are often fraught with obstacles with Chrysler LLC being no exception. In fact, judging by competing press releases issued in November 2008, the two companies are far apart in determining a valuation for Daimler’s share in Chrysler, a sticking point which could affect the long term survival of the automaker.

Before we look at the current battle over Chrysler, a history lesson of sorts needs to be taught, one that will shed some light on the current acrimonious relationship between Daimler and Cerberus. In 1998, Daimler-Benz purchased the Chrysler Corporation for $37 billion and immediately renamed itself DaimlerChrysler.

Initially, the German giant said that the deal was a merger of equals, but it soon became apparent that Daimler’s Stuttgart headquarters would run the combined entity, pushing the Auburn Hills management team to the side. American employees, dealers, and others with a vested interest in the new concern became upset, realizing that their influence in Chrysler was suddenly greatly diminished. On the German side of the house, shareholders complained as they soon realized that Daimler was neglecting Mercedes in a bid to shore up its American operation.

Over time, the relationship between the German and American divisions worsened with DaimlerChrysler finally deciding to sell off Chrysler in 2007 to Cerberus. For just $7.2 billion, Cerberus gained a controlling 80.1% stake in Chrysler with the newly minted Daimler AG holding on to the remaining shares. Historians are rightly calling the Daimler acquisition of Chrysler one of the worst business moves of all time, as the German automaker lost about thirty billion dollars in the sale alone.

Going forward to today, the wrangling between Cerberus and Daimler involves several issues including charges by Cerberus that Daimler ?intentionally and materially? misled Cerberus, breaching its contract by not disclosing Chrysler’s leasing and financing practices prior to the sale.

“Daimler has, unfortunately, refused to recognize the gravity of the claims relating to its deliberate conduct that resulted in the impairment of Chrysler’s business and added to and multiplied the adverse effects of the current automotive and macro economic environment,” Cerberus said. “We are disappointed that Daimler has refused to negotiate in good faith in the face of the plain facts of which they are well aware.” Daimler responded by saying that the Cerberus claims were absurd and completely without substance.

An underlying issue in the battle over Chrysler LLC could be Daimler writing down its share in the automaker to zero in the third quarter of 2008. Essentially, Daimler considers its portion of Chrysler LLC to be worthless, a slap at Cerberus who not only paid billions for the automaker, but inherited Chrysler’s employee benefit liabilities as well.

The news about a possible Chrysler-Fiat partnership broker earlier in the week, but was quickly followed up with a formal announcement from Chrysler LLC that the two car companies have forged an alliance which will benefit each automaker.

Called a ?global strategic alliance? by the companies, the deal will allow Chrysler to obtain small car Fiat platforms and use them to build their own fleet of vehicles for the North American market. In addition, Chrysler would gain access to Fiat’s global market, a move which could help the company expand beyond its domestic base.

For Fiat, the cost of the deal is virtually nothing as no funds are being exchanged. Instead, Fiat will gain a 35% equity interest in Chrysler, a move which will also permit the Italian automaker to begin selling cars stateside again. Currently, Fiat’s wholly owned subsidiary, Ferrari, is the only brand with a presence in North America, while the deal could allow Fiat to sell Alfa Romeo, Maserati and Lancia models in the US and Canada. In addition, Fiat could sell its own Fiat brand in the two countries, but likely will not in a bid to allow Chrysler to do that work for them.

“This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved,” the CEO of Fiat Group, Sergio Marchionne said.

“A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing,” said Bob Nardelli, Chairman and CEO of Chrysler LLC. “This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan. The partnership would also provide a return on investment for the American taxpayer by securing the long- term viability of Chrysler brands in the marketplace , sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs.”

Because Chrysler is the recipient of US Treasury funds to help keep its operation afloat, the deal will have to pass regulatory approval before it can be finalized. That move is likely to happen, and quickly, as the federal government has been insisting that Chrysler seek out some sort of arrangement to keep the company afloat.

With the Fiat deal, Chrysler could quickly transform its product line, producing a number of small, fuel efficient cars that would help the company compete with other automakers on its home turf and abroad.

Investors that are planning to purchase Chrysler are advised to become a marketing savvy and to prepare $7 billion as payment. It is true that the Chrysler deal looks better on paper due to the bargain that the buyer is getting.

The price tag of the Chrysler Group range from $5 billion to $7 billion which is rather far from the $36 billion valuation of the original merger—and just like what most analysts observed with the present price that DCX is selling Chrysler it is more of trying to pay its buyer so that it can once and for all get rid of its loss-making American arm without considering making a profit.

The new owner would also have to market its way out of one of the great automaker inventory gluts of all time comprising of surplus of steel that pushed Chrysler to the brink last year. Plus there are also other issues that new buyer would have to deal with like branding and positioning issues.

Chrysler—American arm of Daimler and manufacturer of top-of-the-line Jeep rims — has not been able to clearly define and differentiate its brand trio something that experts question at last week?s New York Auto Show. They said that Chrysler has failed to do this. Vic Doolan, non-executive chairman of consultant Courland Automotive Practice said that the carmaker was overlapping Dodge, Chrysler, and Jeep models that instead of them competing with other brands ended up competing with each other instead. Doolan also recommends for the automaker to build its global presence to reach fats-growing emerging markets such as China.

John Morel, director-product and market planning at American Suzuki Motors Corp. has also given Chrysler some advice. He said that before spending a great deal on marketing Chrysler needs to differentiate its brands since the company has too many similar products such as Dodge Durango and Chrysler Aspen.

Mr. Morel has observed that Chrysler has stretched its Jeep brand too far saying that the Commander is already hurting the sales of the Grand Cherokee while the Jeep Compass is competing with the Dodge Caliber which is not good.

Auto consultant Gordon Wangers has also given his own observation saying that Jeep?s crown jewel, the Grand Cherokee is being ignored by Chrysler. He also pointed out that the Dodge Ram needs also to be redone so it can effectively compete again as a key player in the full-size-pickup segment. The last time that the model has gotten a makeover was in the year 2001. And at present it is considered to be the oldest in Detroit.

Last week at DaimlerChrysler?s annual meeting, Chairman Dieter Zetsche has confirmed the company?s worst-kept secret: the automaker is in discussion with undisclosed parties to sell Chrysler.

From the time that Chairman Zetsche has announced that Chrysler is for sale reports on its possible buyers have been flooding the net and just recently the number of contenders have lowered down to two New York financial outfits namely the Blackstone Group and the private-equity firm Cerberus Capital Management, and the Canadian auto supplier Magna International Corporation. And just last week Kirk Kerkorian has also offered a $4.5 billion bid for Chrysler.

The Chrysler Group announced that its Five Star(R) dealers achieved a new May record of 11,243 Certified Pre-owned Vehicles (CPOV) making an increase of 10.6 percent as compared to the May 2006 sales of 10,164 vehicles.

As compared with April 2007 sales, the May sales got an 8.4 percent increase. So far, from January up to May this year, sales reached 53,829 units which is a 6.5 percent increase over year-to-date sales in 2006.

Leading the group is the Chrysler brand with a 5 percent sales increase from May last year, making sales of 3,948 units. Four thousand five hundred ninety seven (4,597) units were sold by Dodge that leads to an 11 percent increase. The Jeep(R) brand made a whopping increase of 21 percent selling 2,698 units.

Peter Grady, the Director of the DaimlerChrysler Motors Remarketing, said that ahead of consistently setting new sales records for Chrysler, Jeep and Dodge CPO vehicles, their participating dealers are influencing the CPOV program as an effective marketing tool for driving hike traffic. As a result, the CPOV program is helping their participating Five Star dealers to improve both their new and used vehicle customer base.

In the automotive industry, the Chrysler Group offers one of the most expansive Certified Pre- Owned Vehicle programs. An automobile must be a 2002 through 2007 model pre-owned vehicle with less than 65,000 miles and pass a stringent 125- point inspection for it to be certified under the Chrysler Group’s used-vehicle program. The CPO vehicles of the Chrysler are supported by an eight- year/80,000-mile power train with limited 24-hour warranty, 365-day full roadside assistance with a $35 per day rental car allowance and a three-month or 3,000- mile Maximum Care warranty. All of them also have Carfax Vehicle History Report as well as buyback guarantee.

These vehicles are marketed as “Brand Spankin’ Used(R)” and are sold only through Chrysler, Jeep and Dodge dealerships that have acquired the car maker’s Five Star certification ? it is an expansive validation of the facilities of the dealership, processes of operation, training accreditation of the salesperson and technician as well as customer satisfaction survey ratings. More or less, there are almost 2,100 Chrysler Group dealerships in the United States that are certified Five Star dealers.

About Chrysler

Chrysler is officially known as DaimlerChrysler Motors Company LLC. It is an American car maker that has independently been producing vehicles since 1925. The company plus it subsidiaries are part of the DaimlerChrysler AG which is mainly headquartered in Germany. Their being part of the German car company was due to the rigorous deal in 1998 that was known as the “Merger of Equals” with Daimler-Benz. Before the company was acquired in 1998, Chrysler Corporation had market transactions under the “C” symbol on the NYSE.

Nowadays, the U.S. operations are generally referred to as the Chrysler Group. Chrysler cars are also popularly known as Mopar ? the name of the group?s part operation.

DaimlerChrysler AG made an announcement on May 14, 2007 that 80.1% of Chrysler Group will be sold to Cerberus Capital Management, L.P., an American equity firm. Chrysler will take on the name Chrysler Holding LLC once the transaction is completed.

The Chrysler group is also a maker of auto parts under different marques like the Plymouth oxygen sensor.

Chrysler, the world known American car manufacturer, has just launched its 2.99 gas promotion program in the United States. With this move, the company has started some very intense fighting between the supporters and the opponents of this idea.

The prices for oil have risen significantly over the past few years, putting much pressure on the economy and the people?s budgets. If the gas prices continue to revolve around the $3.60/gallon mark, people having large, thirsty V-8 cars will pay very much for their fuel.

To combat the rising of gas prices, Chrysler has launched its $2.99 gas guarantee program. In short, people that buy a car built by the Chrysler Corporation in a given period will only pay $2.99 per gallon at any gas station and the company will support the difference between $2.99 and the actual gas price.

While other American car manufacturers have stated that they would not initiate such a program, a Japanese carmaker, Suzuki, has just launched a similar promotion: for the cars bought between May 1st and June 30th, Suzuki will offer its promotion called ?Free Gas for the Summer? and they expect this campaign to boost their sales.

The supporters of Chrysler?s promotion state that Chrysler?s promotion is very tempting, especially if you consider the gas prices are likely to go up in the nest years, there are some things you should know before getting enthusiastic. Not only this, but they also say that other car manufacturers have followed Chrysler?s example.

However, there are people that are against Chrysler?s promotion and they have shown that you benefit more from a traditional cash back rebate promotion than from Chrysler?s program. If you have observed the car market for a while, you are familiar with the cash back rebates car manufacturers offer their clients.

Chrysler has changed this promotion with its new $2.99 gas guarantee program. The question is if this offer has more benefits for the client than a cash back rebate.

There is no secret that Chrysler is facing significant sales problems. They have been producing large vehicles and heavy duty trucks for many years now, but today?s car market has changed and they are somewhat behind their competition.

While Americans are demanding more, smaller, and medium sized cars with better fuel consumption, Chrysler is still offering large V-8 cars. Some of their cars have the lowest mileage numbers in their segments and while the carmakers are announcing an increase in sales, Chrysler is still announcing lower figures. For example, Sebring, Chrysler?s medium sedan, has yet to reach high selling numbers and it offers 30mpg on the highway.

When it comes to Chrysler?s $2.99 promotion, car market specialists have taken a car belonging to the Chrysler Group: Dodge Durango, a classic SUV. It has a 5.7-liter V-8 engine and given its declared mileage of 18mpg on the highway, by benefitting from Chrysler?s promotion you only save around $420 per year.

This is far less then the usual $2.000 cash back rebates other carmakers are offering for their vehicles. Not to say that other important players on this market are offering more economic vehicles with standard cash back rebates, assuring you will pay less for gas after you have bought the car. Chrysler, on the other hand, is offering gas thirsty cars with a promotion that only saves you a few hundred dollars per year.

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Chrysler LLC has been battered by high fuel prices this year, seeing sales plunge by 25% compared to 2007. This drop off isn’t unique to Chrysler as the entire automotive industry is suffering, but for a company who relies on the North American marketplace for about 90% of its business, the downturn has been especially difficult to swallow.

Despite the ongoing bad news, Chrysler says that they have a number of cars in the pipeline that will help the automaker update its fleet and regain its position once the economy rebounds as expected by early 2010. Leading the way is its two largest cars ? the Chrysler 300 and Dodge Charger ? vehicles that will play an important role in Chrysler’s long term success.

Though the market for big cars is way down, Chrysler expects that it will soon recover, perhaps just in time as it rolls out the next generation of the 300 and Charger in 2010. At first glance, not a whole lot will be different about the cars as the automaker is loathe to tamper styling success. Instead, vast improvements to interior quality, improved suspension, and a more economical powertrain combination will set these cars apart.

Chrysler won’t be relying on just two cars to fuel its rebound, planning as many as nine new or improved models to make their debut before the end of 2010. In addition to the Chrysler 300 and Dodge Charger, other models expected include:

A compact car built by Nissan for Chrysler. Reportedly, the Dodge Hornet concept ? a Scion-like vehicle ? will appear in early 2010, built by Nissan at its Mexican plant. Electric cars ? one, two, three. Recently, Chrysler showed off three pre-production electric models, two of which are based on existing platforms: the Jeep Wrangler and the Dodge Caravan. The third model ? a Dodge sports car ? is a collaboration with Lotus and is likely to be the first of the three to make it to production. Similar to the Tesla Roadster, the Dodge EV will have an all-electric range of 150 to 200 miles and undercut the Roadster’s $98,000 price tag. Hybrid cars ? Chrysler was late to the hybrid game, having just recently launched hybrid versions of its large SUVs, the Chrysler Aspen and Dodge Durango. But, Chrysler plans to aggressively catch up and should have a hybridized version of its popular Dodge Ram pickup truck ready by 2010. Other hybrid models are being explored including for their popular minivans. Nissan again ? If you don’t see a pattern yet, you soon will. Chrysler is once again tapping Nissan to build a car for it, this time a midsize model at one of Nissan’s Tennessee plants. This hook up will allow Chrysler to save money on product planning while allowing Nissan to maximize plant capacity.

Beyond 2010, Chrysler’s fortunes may rely on additional business partnerships, perhaps signaling that the company will become the third leg on the Renault-Nissan stool. Long term, the automaker will need to rely on outside partnerships to ensure its success, a move that can be achieved by expanding current business relationships.

The Chrysler Group has recently announced that the all-new 2008 Chrysler Town & Country as well as the Dodge Grand Caravan minivans both introduced at the North American International Auto Show in Detroit are going to be produced at the DaimlerChrysler’s Windsor Ontario Assembly Plant and St. Louis South Assembly Plant in Fenton, Mo.

The main objective of the Chrysler Group is to produce several vehicles under same roof and in the process save millions of investment dollars while hastening the availability of the vehicles to the market equipped with the same high quality Chrysler parts that meets the quality levels set by the automaker.

According to Frank Ewasyshyn, Executive Vice President, Manufacturing, Chrysler Group, “These are very important products for the Chrysler Group as we remain committed to the minivan market and maintain our leadership position. Our focus on flexible manufacturing and new investments, adding state-of-the art technology to plant operations, will help us ensure we can meet those demands and build almost anything, anywhere, with improving speed and quality.”

Visiting DaimlerChrysler’s Windsor and St. Louis Assembly Plants

The Windsor Assembly plant is presently housing the production for Dodge Grand Caravan and Chrysler Town & Country minivans with the Stow ‘n Go® seating and storage system, together with the Chrysler Pacifica, has enough resources to accommodate the production of two different vehicle platforms. The Chrysler Group has invested $508 million to its Windsor Assembly to provide it with a state-of-the art paint facility which is capable of accommodating the dimensions of at least eleven different body styles. The Windsor Assembly plant is scheduled to operate on the first quarter of 2007. This plant was built in 1928 and at present considered to be one of Chrysler’s largest assembly plants with 4.01 million square feet. The plant is currently employing 4800 people.

The St. Louis South Assembly Plant is another big plant of Chrysler. The automaker invested $1 billion for this plant. Chrysler Town & Country, Dodge Grand Caravan minivans (south), and Dodge Ram (1500 and 2500) Standard and Quad Cab Pickup (North) are the vehicles produced in this plant. The St. Louis Plant was constructed in 1959 and has a total area of 2.64 million square feet and the third assembly plant of Chrysler that implements a fully robotic body shop. This gives the St Louis plant the capability of manufacturing multiple types of vehicles on one line. Chrysler’s St. Louis Assembly plant has 3,200 employees presently. Chrysler Group is expecting to make the 2008 Dodge Grand Caravan and Chrysler Town & Country available to US market in the fall of 2007.

One of the biggest American car makers that have lasted in the industry is, unquestionably, Chrysler. Since the company started its operations during the early years of the 1920s, it has succeeded in providing commercially successful vehicles that sold with ease in a number of markets all over because of impressive features as well as excellent performance?two qualities that have always been typically associated with Chrysler cars. It is for this reason why Chrysler Auto Parts have always been in high demand for people who are quite particular when it comes to the quality of the cars they drive.

One of the many parts that ensure Chrysler cars stay as well-ran as the first day they rolled off the factory are Chrysler Mufflers. If one’s Chrysler car is running smoothly–without irritating noises coming from the engine or from the location of the tailpipe?it is most likely equipped with Chrysler Mufflers. All Chrysler Auto Parts have been engineered to deliver ideal performance. Thus, Chrysler Auto parts the likes of Chrysler catalytic converters were also built in a fashion similar to that of Chrysler Mufflers?guided by rigorous, exacting standards. This is precisely the reason why Chrysler Auto Parts are well-built as well as tough, allowing Chrysler car owners to drive without trouble.

During its glory years in the car industry, Chrysler company?through its consistent production of exceptionally well-constructed cars?was well and truly able to contribute a great measure of technological advancements in the industry. These innovative technologies as well as discoveries proved helpful then and are still helpful these days. One example of this is Chrysler’s development of gas turbine engines. Chrysler also worked on a number of hybrid vehicles such as the Chrysler Aspen as well as the Dodge Durango hybrid that employed the HEMI engines.