Selling a name

I’ve recently come to the realization that the automotive world may have more in common with the sports world than I previously thought — I’m not talking about racing.
I’m talking about isolating one name and selling it off.
Professional sports teams do it all the time. Fans be damned, team owners want the money so they sell beloved players. The team remains intact with the exception of that one player.
Chrysler LLC is thinking about doing the same. In late August, Chrysler LLC announced that it was considering selling it’s high performance sports car, Viper, to interested third parties. Chrysler LLC even brought in a financial consultant, Lazzard Limited, to advise the sale.
According to an article on www.caranddriver.com, Chrysler doesn’t have a specific time it wants Viper sold by.
Some domestic companies, Roush and Saleen, have expressed an interest in buying Viper. But reports indicate people shouldn’t be surprised if a foreign company picks it up.
Viper is the halo car of Dodge. Let’s face it, Viper is the halo car for Chrysler LLC. A halo car is a high-performance, high-power car that companies make to prove to enthusiasts they have what it takes to be stylish and fast. Companies like Porsche, Lamborghini and Ferrari don’t need halo cars, but Ford, GM and Chrysler do.
Unfortunately, halo cars aren’t known for their tremendous sales.
USA Today reported that last year Dodge only sold 435 Vipers. The Detroit News reported that sales are up this year, with 682 Vipers sold as of July.
Those numbers shouldn’t be all the surprising. The Viper is available in two models. The roadster starts at $85,545 and the coupe starts at $86,295, according to the Dodge website. But honestly, if you’re buying a Viper, who is going to buy it stock? Add some fun features and your Viper is easily over $100,000.
Unfortunately, the high cost and low numbers don’t balance out in a way that is really beneficial to Chrysler, or its parent Cerberus — a private equity investment company with its hands in numerous industries. Cerberus is in the business of making money. It’s not particularly concerned with the fact that Viper has become one of Chrysler’s iconic halo cars — not to mention proof that the U.S. can compete in high performance vehicles.
Different estimates for the worth of the Viper name have been reported from different sources. David Healy, an auto analyst at Burnham Securities, told The Detroit News “that Viper could sell for maybe $50 million — likely ‘as a hobby for an Indian car manufacturer.’” But Kevin Tynan, an analyst at Argus Research, told USA Today that he thinks Viper could go for $140 million to $150 million. Does anyone else think the $90 million to $100 million difference in the estimates is a bit much? I almost wish Chrysler would hurry up and sell so I could see the final price.
In addition to selling off entire brands, like Ford selling Land Rover and Jaguar, many automotive companies have been seriously cutting back on the models produced — cutting out the low-selling high-performing cars — and closing factories. General Motors is planning on closing the factory where Hummers are made. Chrysler has plans to close the factory where Vipers are produced, the Corner Avenue Assembly Plant in Detroit, at the end of 2011, making that the last model year for Vipers.
It sounds like if someone else doesn’t pick up Viper, it’s at risk of going extinct. It will have been around for just under 20 years.