Planes, Guns and Automobiles

An interesting write up on the Outdoor Wire about Cerberus Financial Management which recently purchased Remington and has just now purchased Chrysler.

As Cerberus Financial Management continues its quest to become the largest privately-held corporation in the world, the firearms industry watches in wonderment. When it was announced yesterday morning that the financial giant had successfully reached a definitive agreement with Daimler-Chrysler Corporation for an eighty percent ownership of Chrysler Corporation, the company completed what could become the largest vertically integrated transportation company in this part of the world.

As the owner of an airline (Air Canada), two car rental companies (National, Alamo), GMAC Financing, Blue Bird and now Chrysler, Cerberus has integrated the entire transportation for hire process. From the automobiles to financing, ready-made fleets of users, and a presence at airports throughout North America (and beyond), Cerberus has given a textbook lesson on how to build a business – through other people’s difficulty and with other people’s money.

So what does that mean to the firearms industry? Plenty if you’ve seen their first entries into the marketplace (Remington and Bushmaster) give them everything except a handgun. From ammunition to safes, Remington/Bushmaster brings market identity from Wal-Mart to the black rifle enthusiasts who are, in fact, driving the firearms marketplace today.

The founder and head of Cerebus is Stephen Feinberg, who interestingly enough, according to the Wikipedia write-up, is a hunter.

Wikipedia has a detailed and interesting rundown of the company and its’ holdings.


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