DCX Considering Chrysler Group Sale?

[Variance]

DCX Considering Chrysler Group Sale?

DaimlerChrysler reported third quarter earnings today of $686 million in net profit, but its Chrysler Group division dragged down that profit margin by posting a loss of $1.47 billion, a figure that completely erased the gain of $1.24 billion made by Mercedes-Benz. During a presentation today, DaimlerChrysler CFO Bodo Uebber didn't rule out the possibility that the Chrysler Group could be sold off. While far from saying the division has a For Sale on its windshield, Uebber told reporters, "We don't exclude anything here... We will do our analysis. Second, we will talk about measures. And third, we will draw our conclusions."

Read "Is the Chrysler Group for sale?" @ Autoblog

[carman21]

I just thought of an interesting idea. I know this is too early and a little crazy but, I'll say it anyway.

It does not makes sense for Chrysler & Dodge to be essentilly the same price for each brand. Dodge doesn't even sell true compact cars anymore. The Stratus and Sebring are jokes and their replacements are Jokes too. Just wait for GM to roll out the Zetas, then the 300 and Charger will become jokes too.

Three companies could benefit from this.

Ford could trade Volvo, Jaguar, and Land Rover to Mercedes for Jeep & rights to use Chrysler's new Minivan Platform.

Nissan could buy out Dodge and then kill it and the union contracts to use excess compacity for Nissans and Infinitis.

Hyundai could then buy Chrysler from Nissan and buy rights to Dodge's next Pick-up platform. As a result Hyundai kills or sells off Kia. Hyundai uses Kia's new Factory to build Chryslers union-free.

In others words, Chrysler group should be broken up into the peices that other more competent companies could use to expand their interests. Ford is not exactly the best automaker but, dumping losers like Volvo, Jaguar, and Land Rover for Jeep and Cash in a truly Bold Move. Mercedes is better equiped to save Volvo, Jaguar, and Land Rover than Ford. Jaguar could be used as a buffer against Lexus.

So, what happened?

Ford got Jeep, good Minivans, and Cash.

Nissan got factories.

Hyundai got Chrysler, better Minivans and Pick-ups/SUVs.

Mercedes got Jaguar, Volvo, and Land Rover and its pride back.

Well, we will have to see if Mercedes even sells of Chrysler group.

[Member55]

Dodge name is worth more than it's factories.

[Intrepidation]

I just thought of an interesting idea. I know this is too early and a little crazy but, I'll say it anyway.

It does not makes sense for Chrysler & Dodge to be essentilly the same price for each brand. Dodge doesn't even sell true compact cars anymore. The Stratus and Sebring are jokes and their replacements are Jokes too. Just wait for GM to roll out the Zetas, then the 300 and Charger will become jokes too.

Three companies could benefit from this.

Ford could trade Volvo, Jaguar, and Land Rover to Mercedes for Jeep & rights to use Chrysler's new Minivan Platform. 

Nissan could buy out Dodge and then kill it and the union contracts to use excess compacity for Nissans and Infinitis.

Hyundai could then buy Chrysler from Nissan and buy rights to Dodge's next Pick-up platform. As a result Hyundai kills or sells off Kia. Hyundai uses Kia's new Factory to build Chryslers union-free.

In others words, Chrysler group should be broken up into the peices that other more competent companies could use to expand their interests. Ford is not exactly the best automaker but, dumping losers like Volvo, Jaguar, and Land Rover for Jeep and Cash in a truly Bold Move. Mercedes is better equiped to save Volvo, Jaguar, and Land Rover than Ford. Jaguar could be used as a buffer against Lexus. 

So, what happened?

Ford got Jeep, good Minivans, and Cash.

Nissan got factories.

Hyundai got Chrysler, better Minivans and Pick-ups/SUVs.

Mercedes got Jaguar, Volvo, and Land Rover and its pride back.

Well, we will have to see if Mercedes even sells of Chrysler group.

209052[/snapback]

I'm sorry, but that's just stupid.

While I agree that Dodge and Chrysler are too close together as far as price goes, they certainly shouldn't be broken off and given to the highest bidder. And while not all of their vehicles are great, many are far from junk. The Ram is not junk, it's a fine piece of machinery that is supierior to the pre-07 GTM-900 trucks. Sure it's not as good as the new ones now, but it's older so what do you expect? Plus it's still a good truck. The minivan are still the segment leaders asa far as market share and the most innovative (Stow `n Go), and will be redesigned soon. The Caliber is still a compact and is a good car, even wth a plastic interior, plus there's going to be a subcompact at some point soon. The Sebring sedan may be a joke, but the Avnenger looks much better, and the Sebring coupe may be the saving grace of the car. And if it weren't for the LX's...you probably wouldn't be getting your precious Zetas as GM would see no reason to build an RWD platform and would continue to shove V8s in old FWD platforms.

Yeah Chrysler has made some stupid mistakes and bad designs lately, but so has the king of all bad designs and mistakes, GM. You want a joke? How about the current Malibu? The Aztek? The crummy engines in the Equinox, the badge job G5 (no more badge jobs my ass), the SSR (while I like it, it's just as much of a failure as the Prowler was), the Ion when it first came out, and all of the Saturns up to this point for that matter, and all of GM's minivans. The list could go on I'm sure, but that's sufficient.

On another note, I wonder why DCX doesn't push Chrysler further upmarket. Sure it would end up competing with Mercedes, but the profits go to the same place, and they'd probably attract different customers anyway. Plus they'd get higher profits by being able to charge more.

[Variance]

On another note, I wonder why DCX doesn't push Chrysler further upmarket. Sure it would end up competing with Mercedes, but the profits go to the same place, and they'd probably attract different customers anyway. Plus they'd get higher profits by being able to charge more.

209199[/snapback]

Because unless they're wearing SRT badges (and maybe even then) you're going to hear lots of: "I ain't paying that much for a Chrysler!"

[Intrepidation]

Because unless they're wearing SRT badges (and maybe even then) you're going to hear lots of: "I ain't paying that much for a Chrysler!"

209223[/snapback]

Yeah but if they really were premium and the interiors reflected that they'd also be like "Wow...that's a Chrysler interior?!"

[FAPTurbo]

Yeah but if they really were premium and the interiors reflected that they'd also be like "Wow...that's a Chrysler interior?!"

209224[/snapback]

Even then, Chrysler doesn't really compare to say, Cadillac, BMW, Mercedes in my mind. I've always tended to equate Chrysler's with Buicks...

The Imperial brand was the "prestige" brand.

[MyerShift]

Good Lord.

Everytime Chrysler stumbles, this comes up. What is up with that?

God, the Germans (and Bob Eaton) should have left well enough alone.

I have a feeling that Chrysler wouldn't be in so much trouble as it's in now if they were still independent. Chrylser is able to use it's innovation and uniqueness to create hits in the market place. The LH cars, the LX cars, the minivans (and thus, the K-Cars)

And regarding pricing, Chryslers would sell even at premium prices as long as the product was truly excellent and deserving of said price. Besides, even if Chrysler were pushed further upmarket, they could still be below Mercedes-Benz in most cases. Chrysler COULD compete fine with Cadillac, and the others. It takes time.

And, let's look at Hyundai itself. People are willing to pay a premium for the Azera. There may not be an especially high number of takers, but the project wouldn't have been given the green light on such a "high end" (flagship model) if profitability wasn't pretty much guaranteed.

Edited November 7, 2006 by MyerShift

[AxelTheRed]

I don't think Daimler-Benz should sell the Chrysler Group. If they want to get rid of it, I say maybe they should undo the merger. However that could even happen...

I disagree with breaking apart Chrysler and selling it off to the highest bidder too. I don't know if its just me, but I'd rather see three whole American auto companies than two...and have foreign companies own and market Chrysler's brands.

I hate seeing American automakers get killed in their own country's market like this, and if the Chysler Group were to all of a sudden be broken apart and sold off...well, I doubt it would be a good thing for everyone and everything involved with domestic automakers.

If Chrysler wants to do better though, I agree that it needs to move some Chrysler vehicles upmarket...that or reintroduce Imperial or DeSoto to fill in its need for a true luxury brand.

[Intrepidation]

They could start with the Firepower. That was a great looking concept with a gorgeous interior.

I dunno if the Imperial is the right car for the job...I'm not too fond of the looks.

[Flybrian]

Imperial as a nameplate would certainly help reestablish Chrysler's luxury presence, but only if done right. I think everyone is sick of the tepid Chrysler Imperials, current LX-based concept included. No one wants a Rolls knockoff.

[Variance]

The reports/rumors mount:

http://www.detnews.com/apps/pbcs.dll/artic.../610310361/1148

[Intrepidation]

Imperial as a nameplate would certainly help reestablish Chrysler's luxury presence, but only if done right. I think everyone is sick of the tepid Chrysler Imperials, current LX-based concept included. No one wants a Rolls knockoff.

210766[/snapback]

I'll agree to that.

[Mr.Krinkle]

rest assured, daimler will continue to suck whatevers left of chrystlers blood line to supplement its own life force before deciding to sell it off. parasites.

at least the gm board recognized it would only be a host before it got ravaged.

[ZL-1]

Underperforming assets need to be turned around, sold or shut down. Simple. No, let's see what conclusions DCX arrives at.

Maybe they can sell Chrysler/Dodge/Jeep to Renault/Nissan

[xdre]

Underperforming assets need to be turned around, sold or shut down. Simple.

OK, so when is DCX going to pull the plug on their Smart car division? :AH-HA_wink:

[MyerShift]

I agree that the best thing for Chrysler would be to just undo the "merger".

Unfortunately, I fear for the Jeep brand. I do believe I've read that Jeep is the only reason Daimler-Benz was interested in Chrysler Corporation at all.

[Intrepidation]

You know, if Daimler actually made Chrysler use good materials in their interiors and maybe helped them update their V6's and transmissions more quickly then Chryslers/Dodges/Jeeps would certainly sell better. Anyway this is stupid. Chrysler Group starts stumbling and now everyone's talking sell-off? Especially as a bunch of new and key products are just arriving or around the corner. Give me a break.

Edited November 2, 2006 by Dodgefan

[MyerShift]

Exactly.

But, you know what I have noticed, and have read about?

Before the takeover, Chrysler was improving the quality of interior materials. The most obvious is between the first and second generation LH cars. Now, these new Chrysler products seem worse than their predecessors. More hard, hollow, nasty plastic than before, even if the fits are better.

The updated V6's are still at least a product generation away, and they are a "joint" effort between Daimler and Chrysler, but I'm pretty sure it will go mostly one way... We are German, we know how do to this the best and only way, here you go, tweak it a little. It's so cute that you Americans think you can build world class cars...and I doubt that DaimlerChrysler AG would be so hasty as to sell off Chrysler after these new engine families are introduced if only because Daimler will want to keep the technology and design "in the family" and to "itself".

[GMman]

I remember the day I heard about the "merger". The first words out of my mouth were, "it won't be a merger. That is a buyout". A year or so later, Eaton and them acted like they couldn't believe they'd been taken over by the germans. I wanted to throw up in that guys face. What a jerk off. He knew exactly what he was doing and he got filthy ass rich as a result.

I've always thought it was a real shame Chrysler was "owned" by a foreign company. Chrysler was a great AMERICAN company with a rich heritage. If Daimler would get out of the picture, I think Chrysler would do very well. They sure did before Daimler came onto the scene...

[MyerShift]

Amen to that!