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THURSDAY, NOVEMBER 26, 2009
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 ANALYSIS 
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Viper Might Be Luxury Chrysler Can Do Without

Automaker needs to raise $1B, and hot rod looks odd model out

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(Newser) – Despite a $1.1 billion operating profit in the first half of the year, Chrysler is hemorrhaging money. In a bid to raise another billion, the company is looking to sell off its iconic Dodge Viper line, BusinessWeek reports. The Viper has sold a mere 594 cars since January, and has become a specialty product removed from the rest of Chrysler's line, experts say.

Selling the Viper would not hurt Chrysler's business much, but nor will it be an effective cost-cutting measure, according to analysts. Rather, the sale is only good for a quick cash grab, and the company could yet opt to hold on in some fashion, most likely by selling the technology to a sports-car specialist, who would continue to manufacture Vipers for Dodge.

"Viper became an icon of its own," one analyst said. "Then it has to justify itself on a product and marketing basis."   (AP Photo)
"Viper has a small, loyal buyer base. But like its Motown brethren, Chrysler appears incapable of supporting a niche product," one analyst says.   (AP Photo)
 Dodge Viper owned by actress Pamela Anderson. The former
Dodge Viper owned by actress Pamela Anderson. The former "Baywatch" babe is selling her prized Dodge Viper and donating the proceeds to People for the Ethical Treatment of Animals.   (AP Photo)
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"Maybe being in the limited-edition sports car business is a luxury they can't afford. If it raises $400 million, that's half a car program." - John Casesa, principal of consulting firm Casesa Shapiro Group

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