Daimler Chrysler 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 Daimler Chrysler . 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.
