posted on Jan, 7 2008 @ 11:03 PM
First time on the prediction board, so hope this is not too vague.
With the current situation in credit markets, housing markets and out once formidable auto industry.......THE CHINESE ARE COMING and they are taking
names and kicking our butts.
Everyone knows about all the recent investments, but I am going to go out on a limb and predict that China will be a new player by the year end in the
US Auto Industry.
Chrysler was purchased last year by a private equity firm, Cerberus. They acquired many companies or parts of many companies in the last 2 years.
Their biggest investments have been GMAC and Chrysler, LLC. their 49% stake in GMAC has been nothing but a huge cash draw as they have a large SUB
PRIME MORTGAGE asset within that company. Bet most of you did not know that. Well, as with the rest of the industry....its hemorrhaging cash. This
on top of the disaster acquisition known as Chrylser has put them in big troubl (MY OPINION COMPLETELY). They have backed out of 3 other major
acquisitions within the last 6 months, each time having to pay break up fees exceeding $50 million. They have not been able to obtain financing and
have been very fortunate the courts did not force them to go through with the acquisitions.
My prediction....they are going to have to sell Chrysler..... Who could possibly be willing to pay a premium for a piece of crap? THE CHINESE. This
would be a coup de tat and give them a foothold in the North American auto industry. They are already supplying us with a large number of auto parts,
why not sell the cars too?
This is just my prediction...........