Chrysler Considers Selling Viper

Chrysler confirmed on Wednesday, February 4th, that it has received three offers for its Viper sports car operation, as reported by the English Motor Authority news agency. However, according to the company’s vice-president Jim Press, any decision regarding the deal will be made only after the end of February, when Chrysler will submit its restructuring plan to the U.S. Treasury, to justify the financial aid of $5.5 billion already received from the Troubled Asset Relief Program (TARP).

The company needs to increase cash liquidity, especially in this sensitive period, with declining sales and its commitment to submit a long-term consistent plan to the federal government. So Viper shows up as the only operation that could be sold quickly, and at the same time Chrysler would rid itself of a small and expensive manufacturing operation.

Chrysler’s chairman Bob Nardelli confirmed earlier that Viper has attracted interest from companies inside and outside the United States. Rumors have been circulating on the market, speculating that tuning companies such as Roush and Saleen would be interested in acquiring Viper, as the low-volume manual production process fits well with the business models they are currently engaged in; Viper production currently utilizes 110 employees. 

According to automotive analyst Dave Cole, the Viper operation is relatively inexpensive and, being that it is seen as a brand of its own despite being sold under the Dodge franchise, could help to raise the image of some emerging foreign companies, particularly in India, China or Russia, as a prestige brand could bring more confidence to consumers considering their other products.

If the sale really occurs, it would mark the end of a 17-year run. In March, Dodge will have produced and sold a total of 25,000 Vipers, therefore to commemorate, the company is preparing to launch the latest Viper SRT10 ACR.