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No.1 - Below Blue Book

Talk about an expensive ride. Monday, Daimler-Chrysler (DCX) agreed to sell about 80% of its U.S. based Chrysler unit to private equity firm Cerberus for nearly $7.5 billion - after paying $36 billion for it in 1998. Will the deal lead to a rebirth of the U.S. auto industry?

CNBC Auto Industry Reporter Phil Lebeau joins the guys for this conversation.

Phil says Cerberus is buying the company for a song, compared to what some think it could be worth. True, they are losing money right now, but they could be in the black by 2008.

Tim Strazzini agrees. He explains Cerberus is getting Chrysler without debt. That makes it a great buy.

“Does this mean bad things for the auto union,” asks Dylan.

No, I don’t think they’re looking for aggressive concession from the UAW, answer Phil. Cerberus sees a number of areas they can “fix” to make Chrysler more profitable.

Tim adds Cerberus is known for being aggressive and they will roll up their sleeves with the unions, somehow.

Dylan asks if the Chrysler deal makes any of the traders bullish on General Motors (GM) or Ford (F).

There’s nothing but silence at the desk.

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Trader disclosure: On May 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Strazzini Owns (HLT), (MER);Bolling Owns (ICE), (NMX), (XOM), Gold, Silver, Coffee, Sugar Bolling Is Short S&P Futures Bolling Is Short Nasdaq Futures