Bite of the Viper

Bitten By The Viper

Chrysler CEO Bob Nardelli has potentially opened a proverbial Hornet’s Nest by saying that there were no serious interested parties for the Dodge Viper and inaccurately stating the offers for Viper.  In Washington on June 4th it came out that a Michigan-based investor group had offered $35 million for the Viper car line.  However, Chrysler reported in their bankruptcy filing that the best offer that came along was $5.5 million.

This Looks Like A Major Error

His statement may be valid, although at this time it is has become public that the higher offer was made.  This mis-communication may be an honest error on the part of Mr. Nardelli.  Unfortunately for Chrysler and Mr. Nardelli, Washington, D.C. Congressmen and Senators will likely take this topic and turn it into a media show that will not be good for Chrysler.

Chrysler Smoke In Washington

For now the smoke is rising on this matter and it has been said that where there is smoke there is fire.

The Real Money

Viper value is a “drop in the bucket” of money associated with Chrysler.  This money is almost totally negligible when keeping Chrysler alive.  Although, if there is an error in reporting the information then everything that Chrysler brings forward will be suspect.  That outcome would certainly make future negotiations between Chrysler and the Government much more challenging.