Freep: New Chrysler will not include 8 plants

The Detroit Free Press wrote that the new Chrysler will not include eight factories and machinery worth $2.3 billion to pay a portion of unsecured debt.  

The name of the company to acquire Chrysler’s “good assets” was referred to as New CarCo Acquisition LLC (“New Chrysler.”) This seems unlikely to be a permanent company.

 Ron Kolka’s statement noted, “The major assets remaining would include eight (8) manufacturing facilities, and related machinery and equipment, with a book value of $2.3 billion.” 

While no details have been released, we believe this most likely includes the Conner Avenue plant, Viper and associated machinery, Newark (DE) plant, the Plymouth Road facility, Twinsburg Stamping, foreign holdings, a variety of real estate which is unused or under-used, one of the two World Engine plants in Dundee, possibly engine plants that are to be shut down with the transition to the Pentastar V6, and possibly one of the “main” plants – Sterling Heights, one of the truck plants, Belvedere, etc. The former Outer Drive Stamping Plant (Mt. Elliott Tool and Die) may also be included.

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