Chrysler ... bought by the Russians? Say it ain't so . . .
Magna International is a finalist in the buyout bidding for Chrysler and is already making plans on restructuring the lumbering auto giant. Now comes word that a company owned by Russian billionaire Oleg Deripaska will pay $1.54 billion for 20 million shares in Magna. Deripaska is reported to have political connections with Russian President Vladimir Putin but of course that's no surprise. Seems like Presidents of lots of countries have "political connections" with billionaires.
You think you've got trouble with warranty coverage now, just wait 'till the Russians are making the decisions! Nyet may be what you may be hearing on the 800 number sooner than you think!
Okay, so let me see if I've got this right. Americans sold Chrysler to the Germans and now the Germans are ready to sell it to an outfit made up of Russians and Canadians? What gives here?
Looks like Magna apparently wants to get some partners in on its Chrysler deal to spread the risk in case things turn out bad later on. One JP Morgan analyst, Himanshu Patel, predicted that the proposed structure of the deal could allow Stronach and Deripaska to buy Chrysler through a holding company, which would allow Magna's main auto parts business to keep selling to other auto companies while Magna looks to make a profit off its partial Chrysler ownership.
Big business looks to buy big car companies so it can make big lemons that we're all stuck with. There's something rotten in Denmark.
Oh, wait a minute, they aren't in the deal . . . yet.
ABOUT THE AUTHOR
Known nationwide as a leading Lemon Law attorney, Ronald L. Burdge has represented literally thousands of consumers in "lemon" lawsuits and actively co-counsels and coaches other Consumer Law attorneys. From 2005 through 2018, attorney Ronald L. Burdge has been named as the only Lemon Law Ohio Super Lawyer by Law and Politics magazine and Thomson Reuters Corp., Professional Division. Burdge restricts his practice to Lemon Law and Consumer Law cases. The Ohio Super Lawyer results are published annually in the January issue of Cincinnati Magazine. Ronald L. Burdge was named Consumer Law Trial Lawyer of the Year 2004 by the National Association of Consumer Advocates, the nation's largest organization of consumer law private and government attorneys. "Your impact on the auto industry has been magnified many times over because of the trail you blazed for others," stated NACA's Executive Director, Will Ogburn. Burdge has represented thousands of consumers in Ohio, Kentucky and elsewhere since 1978 and is a frequent lecturer to national, state and local Bar Associations and Judicial organizations. Burdge is admitted to Ohio's state and federal courts, Kentucky's state courts, and Indiana's federal courts. Other court admissions are on a "pro hac" temporary, case by cases basis.