The Auto Writer

Chrysler is presenting five dream cars at the 2009 NAIAS. Like the pictured Imperial concept, don't expect even one model to go into production -- Chrysler as we know it won't see 2010.

You have to admire Cerberus Capital Management, LP, the private equity company that owns a significant chunk of GMAC and is the controlling party for Chrysler LLC. This past fall Cerberus made it known that it wasn’t going to be throwing good money after bad with Chrysler while also managing to secure loans for the automaker and getting the federal government to elevate GMAC to bank holding company status.

For a company who makes plenty of money via private equity, Cerberus certainly knows how to dine at the public trough.

Serious automotive analysts give Chrysler a slim to none chance that they’ll still be in business by the end of this year. That hasn’t stopped Chrysler from putting on its game face at the 2009 NAIAS by showing off five concept electric cars, two of which they say will be put into production in 2010. Trouble is, even with the Obama administration likely to shower billions more on the US auto industry, no one sees Chrysler able to weather the storm as is.

Rumors continue to swirl that Chrysler will be dissolved, by being sold off piecemeal to a number of different buyers. This week the rumor mill has said that Magna International, the one time suitor for Chrysler — who lost out to Cerberus in 2007 — is interested in acquiring at least one production plant from Chrysler. The Canadian company is reportedly interested in the Dodge Caliber which might make for an interesting electric car platform as Magna works with Ford on that project.

Renault-Nissan (or is it Nissan-Renault?) is taking a look at Jeep, a brand that Renault once owned back in the 1980s when Jeep was part of the American Motors Corporation (AMC). The old Chrysler Corporation acquired AMC during the late 1980s, dumping just about everything else in a bid to acquire Jeep. The short-lived Eagle brand died a few years later, a brand expansion that Chrysler certainly didn’t need to pursue at that time.

The PT Cruiser, whose life cycle officially ends this summer, may be sold off separately as well. While Magna has been mentioned as interested in that particular model, a pair of Chinese companies are reportedly looking at buying the factory tooling to make the PT Cruiser. Imagine this: twenty years from now you’re on a business trip to Beijing and you see a fleet of PT Cruisers skirting around the city. A scary thought now, isn’t it?

Magna does have some history with Chrysler having purchased the tooling for the Chrysler Sebring last year in a bid to build that car in Russia. Maybe they’ll also purchase the Dodge Viper as Chrysler has said that its iconic sportscar brand is for sale.

Though Chrysler LLC is denying that the company will be sold off, Chrysler President Tom LaSorda says that the automaker is interested in selling off the tooling for the PT Cruiser. Minimally, selling off unneeded assets certainly makes sense, but will that move also include full brands including Dodge and Chrysler?

While all of the denials are coming down from Chrysler’s Auburn Hills headquarters, the good money is on some sort of deals being struck over the next few months. Chrysler is slated to receive an additional loan of three billion dollars on Friday, but strings will be attached and Chrysler will have to prove by March 31st that they can make a go of it.

It’ll be interesting to see how all of this shakes out with the potential of the first modern day Canadian automaker emerging, with Renault possibly reacquainting itself with Jeep and China being the winner of the PT Cruiser and perhaps some other models which might live on in a market half way around the world.

Crazy industry, eh?