Chrysler puts its Dodge Viper brand up for sale
DETROIT -- Chrysler is looking at selling its Dodge Viper business after some third parties approached the company looking to take on the low-volume, high-performance sports car brand.
A sale of the Viper would allow Chrysler to focus more on its key products and less on what the auto industry calls "halo" cars — models that are stylish and fast and show enthusiasts that the carmaker has what it takes to make a high-powered vehicle.
The Viper, driven by celebrities such as Hulk Hogan and NASCAR driver Kurt Busch, has had total sales of about 25,000 from its introduction in 1992 though March this year. In 2007, Dodge sold just 435 of the $88,000-plus two-seaters that are powered by a 600-horsepower V-10 engine.
Chrysler says it would offer financial and operational support during an ownership handoff, "in order to ensure a future for the Viper business and perpetuate the legacy of this great vehicle," said Chrysler CEO Bob Nardelli.
"Viper is an integral part of this company's heritage," he said.
In the past few years, the Big Three automakers have shed non-core businesses to focus on their basic, high-volume brands. General Motors sold off controlling interest in financial arm GMAC, divested stakes in Isuzu and Fiat and has said it is looking for a buyer for its Hummer brand.
When GM hit a rough financial patch in 2004, rumors swirled that it was looking to sell off Corvette, but the sports car remains in the GM portfolio.
Ford sold its Jaguar and Land Rover operations this spring to Indian conglomerate Tata Sons for a net price of about $1.5 billion and earlier sold Aston Martin for just shy of $1 billion.
Viper won't bring in nearly as much as Aston Martin, says Kevin Tynan, an analyst at Argus Research. He estimates it could go for $140 million to $150 million.
Selling Viper could be a sign that Chrysler is in trouble, he says. "It's a shame to see it go, and it probably could be interpreted as a sign of desperation, only because it's not a whole lot … coming from that kind of sale."
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