BizJournals Portfolio
Aug 27 2008 3:49pm EDT

Vroom for Doubt

When the Viper made its first appearance at the Detroit auto show in 1989, it electrified the automotive world: Chrysler, on the door of a bankruptcy just a decade prior, showed that it could still powerfully flex its motoring muscles.

Detroit automakers are now down to skin and bone. It takes some 110 workers to produce 11 Dodge Vipers a day. While sales of the V-10-powered muscle car have doubled this year, to 682, from last year, such a specialty line is a luxury for a company trying to wring as much profit and conserve as much cash as possible.

Bob Nardelli, the chief executive of Chrysler, said today that strategic options for the Viper, which starts at about $90,000, were now being considered.

"We have been approached by third parties who are interested in exploring future possibilities for Viper, " he said, without identifying who they might be.

Other automakers are unloading models that are not central to the business. Ford Motor sold Jaguar and Land Rover to Tata Motors of India earlier this year, while General Motors has put Hummer on the block. The Viper's cachet is certain to attract interest.

"My bet will be they will definitely be able to unload it,'' for a price of ``maybe $100 million,'' James Gillette, an automotive consultant at CSM Worldwide told Bloomberg News.

While there had been rumors that Chrysler might shut down the Viper, gear heads were still astonished at the news.

"We're honestly a little stunned that Chrysler would consider such a drastic action, though if it means the Viper won't be sacrificed at the altar of economic woes, we're all for it," AutoBlog says. "On the other hand, how does one separate Dodge from the Viper?"

Jalopnik offered a contrarian take, saying that the luster of the Viper has already started to fade:

"All any potential buyer would receive would be a soon-to-be-outdated car, a brand with an image problem and the need to jump-start development on a replacement."


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