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OT:"Could Cerebus be modern version of Billy Durant's Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Sun, 20 May 2007 12:29:49 Members do not see ads below this line. - Help Keep This Site Online - Signup |
"Could Cerebus be modern version of Billy Durant's business model?"
This was the headline on the front page of the business section in today's paper, and it matches my thoughts of the past week exactly. For those who were not heavily schooled in the history of the american automotive industry, Billy Durant was the man who built General Motors.
Alfred P Sloan was the management genius who figured out how to properly manage the unwieldy assemblege of companies that was cobbled together by Durant, a previously small time hustler and schemer from Flint, MI. The old GM Building, located in the New Center Area of Detroit, had the letter "D" carved into the cap stones of each parapet. These letters were put there by Billy Durant in homage to himself and do not signify Detroit as the automotive capital of the world (at that time).
Cerebus is the private equity firm that purchased Chrysler last week from Daimler. They purchased 51% of GMAC from GM last year. They own three automotive suppliers - acoustics and thermal supplies, automotive glass, and automotive interiors. They are trying hard to purchase Tower Automotive from bankruptcy, a maker of automotive frames and other stampings. They are also knee deep into a deal to purchase all or part of Delphi, the assemblage of small automotive component manufacturers that GM jetisoned into a separate company because GM lost Alfred Sloan's vision of how to properly manage a fully vertically integrated automotive manaufacturing company.
Much like GM is sometimes called a pension fund and insurance provider who is masquerading as an automotive manufacturer, it almost sounds as if Cerebus could now be called an automotive company who happens to dabble in private equity funding.
posted by 68.42.11...
_______________________________________ Saabs owned: 2008 9-5 Aero Sedan, sold at 227K miles 2006 9-3SC 2.0T - Wife's daily driver 2000 Viggen Convertible - Sold May, 2022 1964 Quantum IV Formula Car - Retirement project 2000 9-5lpt Sedan, sold at 318K miles
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