I find it hard to believe that a company as sharp as Cerberus will not make a profit on the Challenger. Its world-wide companies generate over $100 billion in annual revenues. (Did you know that it also holds ownership in GM)?

It acquired Chrysler because it saw it as an undervalued company that could have long-term success and value creation.

Just think of some of the cost saving moves that Cerberus has taken:

*The Challenger is being built at Brampton with flex manufacturing.
*The Challenger uses existing Charger parts (e.g., frame and interior).
*The Challenger uses existing engines.
*Minimal advertising.
*Executive shake-up. (Jim Press hired from Toyota).
*Signed 3-year contract with CAW.
*Trimed down the corporation.
*Reduced dealer inventories.
*Established bold and different direction than Daimler.
*Eliminated most employee overtime.
*etc.

Most importantly, in regard to the Challenger, they launched it with the least expensive manufacturing startup in Chrysler's history. The car went from drawing board to showroom in 21 months and it cost just $151 million to set up the factory to build it. That’s the least the automaker has ever spent to launch a single vehicle.