Professor Elam

Private Equity Cerebus bought Chrysler.   Well sort of. Cerebus contribution will go to shore up Chrysler capital.  This is the sort of mentality you see when someone is so disgusted they just say, I want out.  Daimler let go 80% but read the link and you will see they virtually paid to get rid of it, quite a change from the $38 B they paid for it just a few years back.  We study accounting to better understand such transactions. We study managerial accounting to understand best practices and what would work, this never looked like it would from the start. I mention socionomics and popular culture because if the culture ain’t right it never will. Between odd product mix and culture, this one was never right. And as I have mentioned, Chrysler has always been the sickest of the Big Three, managing to stay afloat in good times and nearly going under in bad. So what will a private equity company do with a car company. I honestly have no idea, I would rather own a good preferred stock mutual fund frankly.  But if Chrysler can go for near nothing, this should be a wake up call to Ford and its unions, nothing is forever anymore.