Chrysler not viable as stand-alone company: York

By David Bailey

CHICAGO (Reuters) - Chrysler LLC cannot succeed as an independent company over the long term given its lack of international business and overall weak vehicle lineup, an adviser to billionaire investor Kirk Kerkorian said on Friday.

"Chrysler as a stand-alone company is not viable," Jerry York, a former Chrysler chief financial officer, said at a panel discussion held following the Chicago Auto Show.

York was responding to a question about whether he expected Chrysler's turnaround under new majority owner Cerberus Capital Management to succeed, or whether it would sell the car maker off in parts. Daimler AG (DAIGn.DE: Quote, Profile, Research, Stock Buzz) has retained 20 percent ownership in Chrysler.

Later, York said he was referring to Chrysler's ability to exist as an independent company over a 5 to 10-year period.

"When I left Chrysler in 1993, 10 percent of its sales were outside of North America," York said during the panel discussion. "When Daimler sold 80 percent to Cerberus, guess what? Ten percent of its sales were still outside North America. It's a travesty that that situation was not markedly improved during this period."

A Cerberus spokesman said it remained "extremely enthusiastic" about the investment in Chrysler and the company was already on track to exceed its multiyear restructuring and recovery plan on virtually all key metrics.

In a speech at a J.D. Power and Associates conference in San Francisco, Chrysler President Jim Press said: "Cerberus is committed to a stand-alone revival of a great American icon."

York previously served on General Motors Corp's (GM.N: Quote, Profile, Research, Stock Buzz) board and Kerkorian in the past has tried to buy Chrysler. York declined to respond to any questions about Kerkorian.