Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-18
ChrysIer-RombIer?

In the next 48 hours in an
executive suite in Miami Beach,
Fla. two men are slated to meet
and on the decisions they will
begin to make will directly rest
the jobs of $4,000 employees, the
financial fortunes of $4,000 stock
holders and. indirectly, the pros
perity of thousands more.
One will be George Romney,
head of American Motors Corp.
the company which was formed
in 1854 out of the merger of
Nash-Kelvinator and Hudson
Motors. and which is fighting
for survival in the automobile
field.
The other will be Louis E.
Wolfson, the Florida financier
who heads a $235 million indus
trial empire and who has enough
AM stock to become its control
ling owner.
Mr.. Wolfson is moving actively
into ANS affairs. He is con-
WINGED that unless the company
is overhauled soon. it is heading
Tor bankruptcy. He also is con-
Vlnced that if bold steps are
taken, AM can be turned from a
loser in the automobile field into
winner in the appliance and
other fields.
AS for Mr.. Romney, he is in
creaSlngly aware that if he can't
improve ANS situation in 1857.
ne and his management may not
last beyond this year.
This is the first crucial meeting
at which both men will start to
lay down the chips.
What could be a program that
would revive American Motors.
protect the jobs of its employees,
the investments of its stockhold-
erS. the funds of its creditors?
/ Here is one bold plan which is
being weighed with utmost seri-
business by sources on the inside
OF this picture.
Cd Chrysler would buy all
the automobile assets of AM and
by SO doing get hold of ANS
most promising car. the small
Rambler.
W For these assets, AM would
be paid in Chrysler stock. Let's
Just mention a figure of 500
million.
80 American Motors would
sell this stock to the public at
an appropriate time. or if it
Kept the stock for a while. rigid
provisions would be made to pre-
vent AM from becoming Chrys-
ler's dominant stakeholder.
"a American Motors then
would be able to take full ad-
vantage of its valuable tax
GREATS tax loss carry forward
and this would permit the re-
organized company to preserve
lts earnings. Its tax credits
amount to $685. million of which
So million expire in 1857 and
$50 million in 1858.
90 American Motors there
after would concentrate on build
ing a profitable and diversified
enterprise based on its appliance
division.
What would be the result of
this high-level maneuvering?
Chrysler would get a headstart
IN the small car field. and with
It's resources and know-how. it
could make a fortune on a small
car. really challenge General
Motors leadership. While Ford
also could buy ANS auto assets
Chrysler is by far the more
logical buyer. 1t already has
spent many, many millions re-
searching the small car field. Its
engineering vice president. James
c. Zeder, is a specialist in the
small car field and a most
reliable report is that Mr.. Zeder
has been taking a hard look al
the Rambler setup. Actually
Chrysler would be in the small
car field now if it could have
obtained the cash. But Cnrysler
doesn't have, and in today's
market it couldn't raise, the $3.50
million-plus which it's estimated
it would need to start fresh with
a small car.
American Motors would be left