DaimlerChrysler today reported an operating profit of $7.3 billion in 2006, thanks to a strong showing from the Mercedes Group and DCX’s commercial truck division. Unfortunately, the American Chrysler Group reported a loss of $1.3 billion, prompting company executives to consider the possibility of a de-merger.
According to a report by Reuters all options are on the table at DaimlerChrysler. That includes the possibility of undoing the 1998 merger of Daimler-Benz and Chrysler.
“Today the supervisory board will reach a decision on the board of management’s decision to restructure the Chrysler Group. The board of management intends to consider other, more far-reaching strategic options with partners in order to support and facilitate the program,” the company said. “No option is being excluded in the interest of arriving at the best possible solution for the Chrysler Group and DaimlerChrysler as a whole.”
German newspapers Handelsblatt and the Frankfurter Allgemeine Zeitung said DaimlerChrysler is specifically looking at a spin-off of the Chrysler Group, which consists of the Chrysler, Dodge, and Jeep brands.
The newspapers quoted an anonymous manger close to DCX as saying, “a divorce on earth will follow the marriage made in heaven,” referring to the merger that never achieved its potential.
The reports indicate CEO Dieter Zetsche has hired an investment bank to review strategic options for the group.
02/14, 10:33 AM
posted by:
PrimeGTP
The entire Chrysler group is pathetic these days, along the lines of Ford. Daimler-Benz would be perfectly within reason to dump them.
02/14, 10:59 AM
posted by:
Togo
I think GM is in a much better position, especially with their 1 star crash test rating on the buick lacrosse..
A couple points:
The mercedes car group LOST money in 2005, 666 million.
They have integrated chrysler credit with other credit arms.
This won’t fly, it is good press. They’ve been saying for months “we will leave all options open.”
DCX is where many manufacturers wish they could be (with potential economies of scale) but the german side has failed to play ball and the CEO doesn’t have the stones to toe the line.
02/14, 11:05 AM
posted by:
Brendino
So they would seriously bail because of one bad year?
I dunno. Doesn’t make sense.
02/14, 11:08 AM
posted by:
Madcapp
With those sort of numbers, it makes perfect sense to sell Chrysler to GM in order to replace Oldsmobile.
02/14, 11:15 AM
posted by:
wetstuff
D-B may see something in the tea leaves that doesn’t bode well for US based mfgrs. It seems that every sector of our economy has a hand out for support – this WHOLE ethanol thing from 50cent “tax credits” for domestic corn to 50cent/gal “duites” on imported sugar ethanol from Brazil is a great example.
.
Maybe they’re planning on the day when all we can afford are cars from China… that the Chinese will lend us the money to buy. Oh that’s right – they’re already doing that so we can afford a War.
02/14, 1:34 PM
posted by:
TomF
Outside of Jeep and the minivan franchise, what does Chrysler bring to the US automaker party that’s unique and valuable?
Suppose GM bought Chrysler to strip those two useful product lines out of the whole, then close the rest down… sort of the way Chrysler stripped Jeep out of AMC years ago, then closed the rest down.
The planet won’t stop spinning if we can no longer buy Sebrings and Calibers.
02/14, 1:37 PM
posted by:
Armen52
Wow. I guess Ford puts these guys to shame in the sticking it out department?
02/14, 2:34 PM
posted by:
Stuart
I think they should hold on to them till the end of next restructuring then analyse then whether they should or not.
02/14, 6:15 PM
posted by:
1c3d0g
Yeah, Chrysler is still in much better shape than Ford or GM, since most of their product line-up DOESN’T suck.
02/14, 8:22 PM
posted by:
mujician
What ever, did I hear someone say anything Chrysler produces is better than Ford or Chev?? What a load of crap that is. What company consistantly had tranny problems on every vehicle line for 15 years strait and did nothing about it? Sure as hell wasn’t Ford or GM. Guess I’ve got to just ignore these postings. LOL
02/15, 8:07 AM
posted by:
PrimeGTP
I for one, want this demerger to happen. I’m sick of seeing DCX do nothing but reuse old Mercedes bodies and parts.
02/15, 3:45 PM
posted by:
Vroom
Ford and Chrysler should merge and kick GM’s ass.
02/15, 4:23 PM
posted by:
Zhenya_Gatech
PrimeGTP;
bettter to use old mercedes parts, than to use new mopar parts (cough* transmissions *cough*)
02/15, 5:27 PM
posted by:
PrimeGTP
Point well made, lol.
02/16, 1:27 AM
posted by:
europerspective
Wouldn’t Daimler-Chrysler keep hold of Jeep, and just let Dodge and Chrysler go? It would only be premature to ditch the others if there were some reason to imagine that US car makers are about to see some great revival. Not sure that there is though…
02/16, 7:59 AM
posted by:
Get Real
Not: “cough*transmissions*cough.”
YELL IT OUT, SCREAM IT OUT. After years of paying $2,000-$4,000 for transmission repairs on cars/trucks with under 100K miles, most people in the USA have learned to not buy Chrysler.
Fix the product you stupid car company!!!
02/16, 8:37 AM
posted by:
Get Real
2 hospital patients joining to beatup a third patient.
Ford and Chrysler beating on GM, that is so very funny.
02/16, 9:03 AM
posted by:
Vroom
It’s not such a crazy idea if you think about it. Ford would benefit from Chrysler’s better designs and ability to bring a car to market faster. Chrysler would arguably get some better mechanicals, at least better transmissions. Chrysler could claim a hybrid (albeit on borrowed technology) with the Escape and Ford would have a minivan again with the Caravan. I honestly don’t think they could kick GM’s ass, but they would give them a run fr their money as a merged company.
02/26, 7:12 PM
posted by:
smelly
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02/26, 7:13 PM
posted by:
smelly
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02/26, 7:13 PM
posted by:
smelly
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02/26, 7:19 PM
posted by:
smelly
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04/03, 8:12 AM
posted by:
Ricardo Head
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