Chrysler will never again make consistent profits – my prediction is based on reasons you mentioned. Very weak R&D in the areas of fuel efficiency, hybrids, electrics, alternate fuels etc., Excessive reliance on Trucks & Vans for profits, A history of quality problems. If Iacocca could not save them, it is hard to imagine the Home Depot guy will be their savior.
But I think what Cerberus has in mind is to pretty much liquidate US production and become an “asset lite” company. They will then brand either imports with their name tag or get their products OEM’d abroad a la Dell or HP. This is already happening with GM’s Chevy Aveo. Private equity is not dumb enough to believe that they will make money by keeping production in US. It will be interesting to see how they will wriggle out of their pension/medical obligations though.
