Viper to be outsourced?

Chrysler's answer to the Chevy Corvette is facing the prospect of 'quarantine'. The Dodge Viper is a halo car for Chrysler, but, as a relatively low-volume model it's an expensive car to build for a company that has to spread the costs of its infrastructure across as much production capacity as possible.

Under the orders of owner Cerberus Capital Management, Chrysler has been embarked on cost-cutting measures for the past few months -- all with a view to surviving through the current economic hard times.

In a media release issued yesterday, the company announced that it was exploring "strategic options for the Viper business".

Bob Nardelli, Chairman and Chief Executive Officer at Chrysler LLC, said that the company had agreed to sit down with interested parties to discuss the hand-over of the Viper business.

"We have been approached by third parties who are interested in exploring future possibilities for Viper," said Nardelli.

"As the Company evaluates strategic options to maximize core operations and leverage its assets, we have agreed to listen to these parties. We will do so keeping in mind the best interests of those who have shown tremendous support for the vehicle --including employees, suppliers, dealers and a worldwide group of loyal Viper owners and enthusiasts.

"Viper is an integral part of this Company’s heritage. While this is a strategic review, our intent would be to offer strong operational and financial support during any potential transaction, in order to ensure a future for the Viper business and perpetuate the legacy of this great vehicle."

Should Chrysler flog off the business to an outside firm, the Viper's continuing production looks assured and Chrysler will continue to benefit by supplying parts for vehicle production, but it also means that Chrysler can divest the labour-intensive facility at Conner Avenue in Detroit, a plant that doesn't add to Chrysler's 'HPV rating' (more here).

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