Chryslerus was the lead story on yesterday’s NBC Nightly News. The into by CNBC’s Phil LeBeau was an accurate representation of private equity, in which he said that most PE firms are aggressive with their investments, and sometimes break up companies. But then NBC played this brief and bewildering comment from Casaba Csere, editor-in-chief of Car & Driver:
“You worry about a private equity group coming in, because this is not a simple business. The amount of money you need to invest in the car business is enormous, the lead time is long.”
My wife then turned to me and remarked sarcastically: “Yeah, because private equity only invests in the simple companies.” If my wife – a woman who proudly pays little attention to what I cover — could immediately spot the absurdity of Csere’s statement, why couldn’t some editor at NBC?