Chrysler planning to cut Dodge Viper loose

DETROIT -- Chrysler Is Putting Its Dodge Viper Sports Car Business Up for Sale in the Latest Move by a U.S. Automaker to Shed a Niche Product.

The No. 3 U.S.-based car company said wednesday that it had been approached by potential buyers for the Viper Unit, which Chrysler wants to sell as part of its strategy of focusing on a smaller number of core products. Analysts said the division could fetch up to $100 million. Potential buyers include East Asian and Indian automakers that have been looking to get instant entree into global markets by buying established brands. Indian automaker Tata, for instance, bought the Land Rover and Jaguar brands from Ford this year. General Motors' Hummer brand is also for sale. All three of the Detroit automakers are losing money as they try to meet shifting consumer demand for more fuel-efficient vehicles.

With the Viper, introduced in 1992, the intention is to generate buzz, not big sales. Although the speedster has maintained a loyal following since its introduction, its halo might be slipping. "I'm not sure how many people go into a Dodge showroom and buy a Caliber after they 'ooh' and 'aah' over a Viper," Said David Healy, an analyst at Burnham Securities. "I'm not sure it's as much of a traffic builder as it might have been when it was new."

Vipers are hand-built at a plant in Detroit and have a starting sticker of about $82,000. Sales fell 70 percent last year to 435 cars. Since Chrysler was acquired by Cerberus Capital Management last year, the automaker has undergone dramatic changes as it has been remade into the only privately held major U.S. automaker.