| The red flag signals the bid battle among | | | | officials this week to decide on the strategy |
| Chrysler Group's potential purchasers. And | | | | for the potential sale of Chrysler. |
| the challenge is for them to satisfy. In | | | | |
| order to put up a good fight, Chrysler's | | | | Cerberus is competing with Blackstone and |
| suitors have sought considerable help from | | | | Centerbridge Partners, a new private-equity |
| top executives in the auto industry. | | | | firm that include former ace auto analyst |
| | | | Stephen Girsky as its top executive. |
| Bernhard and Rewey, former top auto officials | | | | According to people familiar to the |
| in the industry, will help the Cerberus | | | | situation, other potential bidders for |
| Capital Management compete with potential | | | | Chrysler include the General Motors Corp. and |
| bidders for Chrysler. Cerberus has managed to | | | | Canadian auto supplier Magna International. |
| come up with an all-star team of former auto | | | | |
| executives spearheaded by Wolfgang Bernhard | | | | The Chrysler Group was essentially put up for |
| to boosts its efforts to purchase the ailing | | | | sale 14 February when DaimlerChrysler CEO |
| automaker. | | | | Dieter Zetsche said the German automaker was |
| | | | exploring "all options" for its American |
| "Private equity needs experienced people in | | | | unit. The unit has three brands - Chrysler, |
| the industry to help understand the | | | | Dodge and Jeep. The most problematic brand |
| challenges," noted Colin Blaydon, the | | | | among the three is Chrysler. The rest of the |
| director of the Center for Private Equity and | | | | brands are doing pretty well. |
| Entrepreneurship at the Tuck School of | | | | |
| Business at Dartmouth. | | | | Dodge and Jeep are trying different |
| | | | strategies to win over customers. As a fact, |
| With Bernhard on the steering wheel, Cerberus | | | | it entertained online adventures and films as |
| is expected to gear up for a heated battle | | | | well as other advertising strategies to boost |
| with competitor Blackstone Group which is a | | | | sales. The brands are also famous for being |
| private-equity giant. In the race to acquire | | | | flexible. Add-ons like the auto ventshade |
| Chrysler, Cerberus wanted to take advantage | | | | could be used to dress the vehicles. |
| of the best it has hence it made Bernhard the | | | | |
| adviser and tapped Robert Rewey, former Ford | | | | The sources also said that DaimlerChrysler is |
| Motor Co. executive to aid in its bid for the | | | | expecting to receive formal bids for Chrysler |
| troubled American division of DaimlerChrysler | | | | by the end of March. Teams from Cerberus and |
| AG. | | | | the Blackstone and Centerbridge group visited |
| | | | Chrysler headquarters in Auburn Hills earlier |
| According to the people familiar to the | | | | this month. Representatives from the two |
| situation, Bernhard, Chrysler's former chief | | | | companies have also met with Daimler's |
| operating officer, met with Cerberus | | | | officials in Stuttgart, Germany. |