Published: August 27, 2008 01:55 pm            

Chrysler mulls selling Viper line

Chrysler LLC indicated this morning that its Dodge Viper sports car line could be sold as the company continues to spin off non-core assets.

The Auburn Hills automaker, a year into private ownership, announced in a statement that it is preparing to explore “strategic options for the Dodge Viper business.”

"We have been approached by third parties who are interested in exploring future possibilities for Viper," Bob Nardelli, Chrysler CEO, said in a statement. "As the company evaluates strategic options to maximize core operations and leverage its assets, we have agreed to listen to these parties.”

The automaker stressed in the statement that the review is “unique to the Viper specialty vehicle” and emphasized that Chrysler “has not set a definitive timetable for completion of the review of its strategic options, no final decision has been made with regard to the Viper business, and there can be no assurance that any transaction will take place as a result of this process.”

Chrysler has hired financial advisory Lazard Ltd. to help in the process.

The Viper is hand built at the Conner Avenue Assembly Plant in Detroit.

The first sign of trouble for Viper came about a year ago when the UAW negotiated a new four-year labor contract with Chrysler and the Viper plant was left out of a plant closing and sale moratorium.

The UAW told members at the time that the “Dodge Viper continues through the product life cycle. No future product identified. … Company plans to close facility during term of agreement.”

According to Chrysler, 115 employees work at the Conner Avenue plant.

The Viper was introduced as a concept car during the Detroit auto show in 1989; it came out as a production vehicle in model year 1992.

So far this year, Chrysler has sold 682 Dodge Vipers, according to Autodata.

Since Chrysler was acquired by Cerberus Capital Management, the automaker has undergone dramatic changes as it has been remade into the first privately held major U.S. automaker in more than 50 years.

Chrysler has eliminated four products, including the Dodge Magnum and Chrysler Pacifica.

Earlier this month, Tom LaSorda, a Chrysler president and vice chairman, said the automaker had identified more than $1 billion in non-core assets that could be sold to help generate cash and that about $500 million of those assets had already been sold. Those sold assets are believed to include a California design studio and Brazil engine plant, which were sold off earlier this year.

In his statement, Nardelli said Chrysler will move forward with review of the Viper “keeping in mind the best interests of those who have shown tremendous support for the vehicle - including employees, suppliers, dealers and a worldwide group of loyal Viper owners and enthusiasts. Viper is an integral part of this Company's heritage.”

Nardelli added: “While this is a strategic review, our intent would be to offer strong operational and financial support during any potential transaction, in order to ensure a future for the Viper business and perpetuate the legacy of this great vehicle."

        

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