Re: [A-List] Chrysler at the Private Equity Gates of Hell

[CeJ <jannuzi@xxxxxxxxx>]

http://www.mitsubishi-motors.com/corporate/ir/stockinfo/e/

I thought perhaps the story of MMC from late 90s on might reveal
something for the analysis of Cerberus and the new Chrysler Group. MMC
changed hands a number of times and, as far as I can tell, would
appear to be back in control of the Mitsubishi Keiretsu. Wonder just
who took whom for a ride in all that.

MMC is an interesting example for other reasons. Not only was it too
'acquired' and 'managed' by the DB gang from Germany, it was also
bought and owned by private equity and investment banks. What's more,
if you remember, it was MMC who wanted to acquire Chrysler back in the
days when everyone in the US was mispronouncing Lee Iacocca's name
(1979). Of course auto-nationalism stopped that. But MMC mostly wanted
Chrysler for its extensive dealer network and its credit division, two
things you need to set up shop in what was then and still is the
world's largest market for automobiles. MMC didn't get that, and went
on to the very sort of troubles its execs had anticipated unless they
could 'globalize' into being a player in North American automobile
manufacturing, sales, and finance. So eventually it was o.k. for the
Germans to acquire Chrysler, but not the Japanese. MMC and Chrysler
did manufacture together, and MMC really helped Hyundai and Malaysia's
Proton to make cars.

Final footnote.  I think a transmission plant that was operated as a
joint venture between MMC and Chrysler here in Fukui, Japan is closed,
but I haven't been back to Takefu to look. I think that was a joint
venture with a consortia of other investors as well, and most
manufacturing like this has gone to China now. Orion Electronics,
Audio-Technica, National Motors, have moved a lot of manufacturing to
China.

CJ