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Yet Another Cerberus Theory

Captplaid
Cerberus owns Remington, Marlin, NEF, H&R, BushMaster, DPMS, Cobb...

Now Cerberus is in it for the money. I don't think they intend on controlling and limiting supply. It wouldn't srprise me if a couple of these companies have more potential capacity to build than they have sales.

I don't give in to conspiracy theories where Cerberus is looking to reduce America's capabilities to produce firearms. Cerberus is in it for the money, not reducing the number of manufacturers. Their intent isn't to do a favor to Ruger, FN, and S&W by limiting the total supply.

Producing the same quantity under the different names could be an option. Consolidate. Shut a few factories down. Let the Remington 700's be made at the Marlin factories, could be an option. It is the classic model of these buy-out firms.

I also see Cerberus is a big defense contractor. While Steve Feinberg, the main dog, is a game hunter, Cerberus has several contacts in Congress and contracts with the Department of Defence.

Maybe Cerberus desire is to buy these underperforming companies, take advantage of a large manufacturing capability to porduce more AR's and flood the world market with economically priced AR's. Maybe they recognize a strong world demand. Heck look at the price of the 5.56 bullet. The price of this commodity is up for a reason.

Demand is up. Demand is led by the US govenrment. The US govenment is not going to buy from foriegn suppliers. Cerberus cannot outsource to China. The US government is not going to buy AR rifles made in China. This takes skilled AMERICAN craftmans and the sportman firearm industry has a surplus of craftsman.
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Comments

9 comments

Date Votes
  • ElMuertoMonkey
    What I hope is that Cerberus does us all a favor and promotes R&D as well as consolidation. Consolidation wouldn't necessarily be a bad thing, but I'm not going to buy a cheaper AR just because it's cheaper.

    After all, there's only so many AR's and 1911's I can own before I have a hankering for something different.
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  • bpost
    Cerebus also owns Chrysler and Tower Automotive. As a company they seek underperforming companies and turn them around into profitability.
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  • Captplaid
    Yes, but what do they see in all these American firearm manufacturers? Mere consolidation and economics of size? Remington and Bushmaster I can understand, but Marlin DPMS and Cobb?

    My guess is the domestic civilian market isn't what they are looking at. My guess is they are about to go after the defense market.

    I found it interesting that everthing says Remington is buying Marlin. It wasn't "BUshmaster is buying Remington", but Cerberus.Maybe it's just skematics or PR.

    I wonder if Remington is actually making the R-15 or Bushmaster. We all presumed Bushmaster is making it for Remington. If Remingotn is actually making it, then I am even more suspicious that Cerberus is creating a DoD contractor.
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  • iceracerx
    quote:Originally posted by bpost1958
    Cerebus also owns Chrysler and Tower Automotive. As a company they seek underperforming companies and turn them around into profitability.


    Yet their plan for Chrysler seem to be to let all the "in-house" R&D people go while farming out the work to India (and we all know what a rich auto history India has).

    I'm not sure what the brass understands, but it appears that they sure don't understand the auto companies / business.
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  • Captplaid
    quote:Originally posted by iceracerx
    quote:Originally posted by bpost1958
    Cerebus also owns Chrysler and Tower Automotive. As a company they seek underperforming companies and turn them around into profitability.


    Yet their plan for Chrysler seem to be to let all the "in-house" R&D people go while farming out the work to India (and we all know what a rich auto history India has).

    I'm not sure what the brass understands, but it appears that they sure don't understand the auto companies / business.


    Did Mercedes?
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  • iceracerx
    M-B understood (stands?) THEIR market, but I agree with you that they appeared out of their league when it came to Chrysler sales and products.

    The big hoot around Headquarters is.... Chrysler now has SEVEN SUVs on the market... and Cerberus is trying to figure out how that happened... can anyone say Deiter?
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  • He Dog
    While I don't believe that Cerberus intends to cripple the gun supply by eliminating these companies or scaling back production, Cerberus does have a fairly poor track record for proper management. I would more fear loss of companies due to incompetent management. It appears they have more money than brains.
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  • Captplaid
    quote:Originally posted by He Dog
    While I don't believe that Cerberus intends to cripple the gun supply by eliminating these companies or scaling back production, Cerberus does have a fairly poor track record for proper management. I would more fear loss of companies due to incompetent management. It appears they have more money than brains.


    Can't totally argue with that one. They were clueless with Anchor Glass Container Corp. They failed to hedge their natural gas. Figured sales contracts with natural gas prices remaining low and loss their shirt when the price took off. BUT Cerberus poured millions in upgrading the company. They didn't screw up production. They just failed to properly understand hedging to limit risk.

    I don't think Cerberus screwed up Anchors plants or production. They poured millions in the plants and increased production without cutting the labor force to the bare minimium. KKR did those moves with Anchors competition.

    As far as India goes, they are doing OK in the steel industry.
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  • iluvguns
    Read somewhere yesterday Cerberus is going to try and cut a bunch of Chrysler dealerships, and is planning on cutting many models.
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