Auto Manifesto

May 28, 2009

No Takers On Dodge Viper Operation

Automotive News reports Chrysler has no buyers lined up for the Dodge Viper operation, tooling, and plant at the asking price of $10m. Certainly the economic situation is not helping but there is no doubt that Chrysler spent many times that amount to develop the operation and brand over the past 20 years.

Maybe the cost structure is too high and the break-even point is too high? Perhaps the uncertainty around the survivability of suppliers (especially Chrysler itself) for any would-be buyer is insurmountable. The issue of service and distribution would still be unanswered but there are a number of dealerships losing their franchises with idle facilities...

It would be a big risk, but don't be surprised if someone swoops in and buys the operation for a song, perhaps building a few hundred a year for export markets as well.

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