For sale: A smaller Chrysler - Page 2

recxjake · 02-14-2007, 02:25 PM

For sale: A smaller Chrysler

DaimlerChrysler to cut 13,000 jobs, close plants, eyes possible sale of troubled North American automaker.
By Chris Isidore, CNNMoney.com senior writer
February 14 2007: 2:36 PM EST

NEW YORK (CNNMoney.com) -- Chrysler Group will be cutting about 13,000 workers over the next three years and the company's German parent, DaimlerChrysler, may be cutting Chrysler itself as it weighs a sale or spin-off the unit - a move that could cast the nine-year old merger that formed the global automaker as a failure.

A German publication, Manager Magazin, reported that DaimlerChrysler Chairman Dieter Zetsche had met with General Motors Chairman Rick Wagoner about a possible sale of Chrysler to the No. 1 U.S. automaker, which has itself been struggling, cutting jobs and closing plants.

Zetsche and other company executives would not comment specifically on that report, other than to say the company was looking at various options for its troubled American unit.

"Please understand we can not provide you with any more details at this point in time," Zetsche said at a news conference at Chrysler's Auburn Hills, Mich., headquarters.

But he seemed far more open to the idea of a sale of Chrysler than he had been in the past. When questioned whether the company's statement meant it is looking a sale of the unit, he responded "this means all options are on the table."

Shares of DaimlerChrysler (Charts) jumped nearly 8 percent in afternoon trading in New York, after closing up 4.6 percent in Frankfurt on the possible sale of Chrysler, the jobs cuts and generally positive 2006 results for the parent company despite mounting losses at Chrysler. (More on jobs cuts) (More on earnings)

The announcements seemed to confirm that the 1998 purchase by DaimlerChrysler has provided little lift to the Chrysler Group brands - Chrysler, Dodge and Jeep. Chrysler Group has seen its sales tumble nearly 19 percent since the merger was completed in 1999, to only 12.9 percent of U.S. sales - putting Chrysler in fourth place in the U.S. market last year. The North American automaker, prior to the latest announcements, had eliminated a third of its jobs, closed 16 plants and facilities and dropped one of its brands - Plymouth, since the merger.

But the merger and all the previous cost-cutting moves could not reverse the long slide in sales that dropped DaimlerChrysler from its traditional No. 3 spot in the U.S. market last year to No. 4 behind Toyota Motor (Charts).

General Motors, which is struggling with its own losses, plant closings and turnaround plans, had no comment on the report out of Germany. Dave Cole, chairman of the Center for Automotive Research, said he would be shocked to see GM and Chrysler get together, although he said they could expand some areas of cooperation, such as an alliance on hybrid vehicles.

"I think the chance of any chance of a GM tie would be absolutely minimal," Cole sale. "If you were GM, would you really want another company that is going through its own turnaround?"

And Cole said that the financially successful global automakers such as Toyota or Honda (Charts) are not likely to buy Chrysler, given the success they're already seeing in North America. But he wouldn't rule out other buyers.

"The challenge is who would be a buyer," said Cole of a possible sale of Chrysler. "Maybe a Chinese company that really wants entrance into U.S. market or Renault-Nissan (Charts) would see it fit with its strategy. But it's tough."

Carlos Ghosn, CEO of both Renault and Nissan, has expressed a desire to have a North American automaker join the alliance between his two companies. His talks with GM about doing so failed last summer, though.

Kevin Tynan, auto analyst at Argus Research, said he believes Chrysler will end up being sold due to pressure from DaimlerChrysler's shareholders, but he thinks a sale to a private equity group is more likely than combination with another automaker. He said the unit could go for as little as $14 billion to $20 billion.

"There's value to those brands," he said. "I think relative to Ford (Charts), there's less dead weight. Nine years later, it's probably the right thing to do. I think there's a feeling in Germany that it's time to cut bait."

recxjake · 02-14-2007, 03:16 PM

Toyota fears U.S. backlash over gains

It cites political, social risks

February 13, 2007

BY JOE GUY COLLIER and JUSTIN HYDE

FREE PRESS BUSINESS WRITERS

Toyota Motor Corp. is bracing for possible political and consumer backlash caused by its rapid U.S. growth, according to an internal report obtained by the Free Press.

Toyota executives have publicly downplayed the importance of predictions that the Japan-based company will pass General Motors Corp. this year as the world's largest automaker. But the Toyota report says the company could face criticism because its U.S. sales are increasing while Detroit's automakers are losing sales and shuttering plants.

"With recent market-share gains and sales continuing to increase, we are becoming the de facto leader of the industry -- that brings risks and responsibilities," according to a presentation by Seiichi (Sean) Sudo, president of Toyota Engineering & Manufacturing in North America. "Our competitors are jealous of our success."

Detroit's congressional allies of GM, Ford Motor Co. and DaimlerChrysler AG's Chrysler Group say it's not jealousy. They say Japanese automakers are exploiting an artificially weak yen to make their products more affordable.

U.S. Rep. Sander Levin, D-Royal Oak, said he is considering legislation aimed at pressuring Japan and other countries to stop manipulating their currencies to boost exports.

Japanese automakers "are importing the more expensive cars to the U.S., and getting the benefit of the yen imbalance," Levin said. Japan has "a clear-cut set of policies, and we don't have any."

In the briefing to other Toyota managers, Sudo cited political and social risks. The report, left unsecured on computers at the company's Georgetown, Ky., complex, said Toyota could come under fire for:

• Selling vehicles to U.S. customers with high proportions of foreign-made parts. Less than half of all content of Toyota vehicles sold in the United States is made in the United States or Canada.

• Not including enough minority-owned businesses in its supplier base. The Rev. Jesse Jackson, leader of the Rainbow PUSH activist group, has asked Toyota to improve diversity efforts.

• Leaving a vacuum in U.S. communities as GM, Ford, Chrysler and their suppliers shed plants and workers.

"A Democratic Congress, particularly those members with districts hit by Big 3 and supplier plant closings, may call for further oversight of the industry and Japanese companies in particular," the presentation said.

Michigan Dems threaten to act

Toyota's concerns are not far off the mark. With a new Democratic majority in Congress, Michigan's Democratic lawmakers have pledged to press harder on trade and other issues where Detroit automakers say Japanese companies have an unfair advantage.

Last week, two Democratic House members from Michigan -- Levin and Rep. John Dingell of Dearborn -- sent a letter to Treasury Secretary Henry Paulson, urging him to press Japan over the value of the yen during a meeting of world economic powers.

Dingell, Levin and two other congressmen said that a weak yen had helped Japanese automakers increase their exports to the United States by more than 30% in 2006. Detroit automakers and their congressional allies say the yen bestows up to a $4,000-per-vehicle benefit for Japanese automakers.

The Harbour-Felax Group, a Royal Oak automotive consulting firm, estimated the yen benefit at $1,054 per vehicle in a study it released last fall.

"It is a little-understood fact that Toyota's exports to the United States are almost as great as the number of vehicles produced in the United States by Toyota," the lawmakers wrote. "We are certain that the weak yen is also boosting Japanese exports in other economic sectors and is having a significant impact on many U.S. producers."

Toyota's public image and ability to operate with few barriers in the United States are significant because this is the world's biggest market and a source of huge and profitable growth for Toyota. Its U.S. sales rose 12.5% last year, and it is expected to have $13 billion in profit this fiscal year.

Toyota passed Ford and the Chrysler Group in global vehicle sales and could pass GM thanks, in large part, to its ability to beat Detroit on its home turf. The Camry has been the best-selling car in the United States in nine of the past 10 years. Toyota's U.S. market share has doubled since 1996.

Toyota as a scapegoat?

Toyota would not comment about Sudo's presentation except to say it was a 5-year planning document that looks at challenges the company faces. The Free Press reported last week the report also contained information about Toyota's plans to hold down increases in U.S. labor costs and its worries about maintaining quality.

"Toyota will continue to focus on further enhancing productivity, quality and safety, and this was the essence of the planning document," spokesman Daniel Sieger said.

Toyota officials have said the possibility that their company would pass GM as the world's largest automaker is irrelevant to them and to consumers. Sudo's presentation, though, shows that Toyota sees a possible downside, especially in light of U.S. automakers' financial difficulties.

"Toyota will be a 'scapegoat,' " one slide says.

"Society expects that we will make the same economic and social contribution as the companies we replace," the accompanying text says. "And we need to position ourselves to respond to corporate image attacks."

Toyota has been putting millions of dollars into efforts aimed at promoting its benefits to American society. In Washington, subway stops frequented by policy makers are plastered with ads extolling Toyota's U.S. employment figures.

Next weekend, Toyota will hit the track in Daytona Beach, Fla., for the start of the NASCAR Nextel Cup season, the first entry by a Japanese automaker in the nation's most popular racing series. In the past year, Toyota also has run TV ads and put up billboards touting its economic impact on the United States.

'Beat but don't drub'

Toyota executives are acutely aware of their position in the United States, said Matthew May, author of "The Elegant Solution: Toyota's Formula for Mastering Innovation."

Toyota has a culture that stresses both competition and humility, said May, who spent eight years as a senior adviser and instructor for the University of Toyota, the company's Torrance, Calif.-based corporate college developed to teach the Toyota Way principles.

Toyota has ambitious goals, he said.

"At the same time, you have to balance that with the mother ship who is saying, 'Beat them but don't drub them,' " May said. " 'You don't need to spike the ball in the end zone' is really the message."

Toyota has one major factor in its favor as it tries to prevent backlash. The U.S. sales growth also has fueled a rapidly growing manufacturing base that hits more states and congressional districts each year.

Toyota has 13 U.S. plants, from West Virginia to California. Its first was a joint venture with GM in 1984 in California. Now states are lining up for what is expected to be several more in the next 10 years.

Last month at the auto show in Detroit, Bob Lutz, GM's head of global product development, said: "It is my considered opinion that Toyota has more clout in Washington than GM."

htismaqe · 02-14-2007, 03:21 PM

Enough already. You're getting back to posting any propaganda you can find to make GM look better.

Get over it already.

recxjake · 02-14-2007, 03:23 PM

Quote:

Originally Posted by htismaqe

Enough already. You're getting back to posting any propaganda you can find to make GM look better.

Get over it already.

**** off, you can't be a hawk fan, hawk fan's aren't little bundle of sticksgets like you

htismaqe · 02-14-2007, 03:24 PM

Quote:

Originally Posted by recxjake

**** off, you can't be a hawk fan, hawk fan's aren't little bundle of sticksgets like you

Nothing like taking your credibility and flushing it down a public toilet...

**Dave Lane** · 02-14-2007, 03:25 PM

Is this a bannable offense or just one to revoke thread creation privileges?

Not sure

Dave

htismaqe · 02-14-2007, 03:25 PM

Quote:

Originally Posted by Dave Lane

Is this a bannable offense or just one to revoke thread creation privileges?

Not sure

Dave

I'm sure I can just wait for the complaints to pile up again.

**morphius** · 02-14-2007, 03:26 PM

One, that post has NOTHING to do with this thread, if you are going to post this stuff at least stick with the thread.

Two, it is good to see that Toyota is building more plants in the US, it is good to see that someone is making up for all the of GM and Ford layoffs...

htismaqe · 02-14-2007, 03:26 PM

Quote:

Originally Posted by morphius

One, that post has NOTHING to do with this thread, if you are going to post this stuff at least stick with the thread.

Two, it is good to see that Toyota is building more plants in the US, it is good to see that someone is making up for all the of GM and Ford layoffs...

Toyota is a Jap company. They SUCK! GM RULES!!!

recxjake · 02-14-2007, 03:27 PM

Quote:

Originally Posted by htismaqe

Nothing like taking your credibility and flushing it down a public toilet...

lol, my credibility on a message board?? Wow, I'm hurt.

recxjake · 02-14-2007, 03:27 PM

Quote:

Originally Posted by morphius

One, that post has NOTHING to do with this thread, if you are going to post this stuff at least stick with the thread.

Two, it is good to see that Toyota is building more plants in the US, it is good to see that someone is making up for all the of GM and Ford layoffs...

Are you ****ing stupid? Why is Chrysler for sale? Toyota.

htismaqe · 02-14-2007, 03:27 PM

Quote:

Originally Posted by recxjake

lol, my credibility on a message board?? Wow, I'm hurt.

So you admit that you're just here to talk shit and you don't care if anybody takes your opinions seriously?

That outta do wonders for you over in the DC forum.

htismaqe · 02-14-2007, 03:29 PM

Quote:

Originally Posted by recxjake

Are you ****ing stupid? Why is Chrysler for sale? Toyota.

Toyota is killing the American auto-maker, even the ones owned by German companies!

recxjake · 02-14-2007, 03:29 PM

Quote:

Originally Posted by htismaqe

So you admit that you're just here to talk shit and you don't care if anybody takes your opinions seriously?

That outta do wonders for you over in the DC forum.

People's political opinions should not change due to what chiefsplanet.com posters have to say.

recxjake · 02-14-2007, 03:31 PM

Quote:

Originally Posted by htismaqe

Toyota is killing the American auto-maker, even the ones owned by German companies!

Exactly... and did you read the article???? It explains it all.... but you have to flex your big scary mod muscles before you even read it.

htismaqe · 02-14-2007, 03:32 PM

Quote:

Originally Posted by recxjake

People's political opinions should not change due to what chiefsplanet.com posters have to say.

Interesting.

If that's the case, then you keep posting this stuff here to be annoying. After all, people's opinions aren't gonna change, that's what you said.

You basically just told everybody here that you're a TROLL. Nice work.

02-14-2007, 02:25 PM
recxjake MVP Join Date: Oct 2005 Casino cash: $10004900	For sale: A smaller Chrysler For sale: A smaller Chrysler DaimlerChrysler to cut 13,000 jobs, close plants, eyes possible sale of troubled North American automaker. By Chris Isidore, CNNMoney.com senior writer February 14 2007: 2:36 PM EST NEW YORK (CNNMoney.com) -- Chrysler Group will be cutting about 13,000 workers over the next three years and the company's German parent, DaimlerChrysler, may be cutting Chrysler itself as it weighs a sale or spin-off the unit - a move that could cast the nine-year old merger that formed the global automaker as a failure. A German publication, Manager Magazin, reported that DaimlerChrysler Chairman Dieter Zetsche had met with General Motors Chairman Rick Wagoner about a possible sale of Chrysler to the No. 1 U.S. automaker, which has itself been struggling, cutting jobs and closing plants. Zetsche and other company executives would not comment specifically on that report, other than to say the company was looking at various options for its troubled American unit. "Please understand we can not provide you with any more details at this point in time," Zetsche said at a news conference at Chrysler's Auburn Hills, Mich., headquarters. But he seemed far more open to the idea of a sale of Chrysler than he had been in the past. When questioned whether the company's statement meant it is looking a sale of the unit, he responded "this means all options are on the table." Shares of DaimlerChrysler (Charts) jumped nearly 8 percent in afternoon trading in New York, after closing up 4.6 percent in Frankfurt on the possible sale of Chrysler, the jobs cuts and generally positive 2006 results for the parent company despite mounting losses at Chrysler. (More on jobs cuts) (More on earnings) The announcements seemed to confirm that the 1998 purchase by DaimlerChrysler has provided little lift to the Chrysler Group brands - Chrysler, Dodge and Jeep. Chrysler Group has seen its sales tumble nearly 19 percent since the merger was completed in 1999, to only 12.9 percent of U.S. sales - putting Chrysler in fourth place in the U.S. market last year. The North American automaker, prior to the latest announcements, had eliminated a third of its jobs, closed 16 plants and facilities and dropped one of its brands - Plymouth, since the merger. But the merger and all the previous cost-cutting moves could not reverse the long slide in sales that dropped DaimlerChrysler from its traditional No. 3 spot in the U.S. market last year to No. 4 behind Toyota Motor (Charts). General Motors, which is struggling with its own losses, plant closings and turnaround plans, had no comment on the report out of Germany. Dave Cole, chairman of the Center for Automotive Research, said he would be shocked to see GM and Chrysler get together, although he said they could expand some areas of cooperation, such as an alliance on hybrid vehicles. "I think the chance of any chance of a GM tie would be absolutely minimal," Cole sale. "If you were GM, would you really want another company that is going through its own turnaround?" And Cole said that the financially successful global automakers such as Toyota or Honda (Charts) are not likely to buy Chrysler, given the success they're already seeing in North America. But he wouldn't rule out other buyers. "The challenge is who would be a buyer," said Cole of a possible sale of Chrysler. "Maybe a Chinese company that really wants entrance into U.S. market or Renault-Nissan (Charts) would see it fit with its strategy. But it's tough." Carlos Ghosn, CEO of both Renault and Nissan, has expressed a desire to have a North American automaker join the alliance between his two companies. His talks with GM about doing so failed last summer, though. Kevin Tynan, auto analyst at Argus Research, said he believes Chrysler will end up being sold due to pressure from DaimlerChrysler's shareholders, but he thinks a sale to a private equity group is more likely than combination with another automaker. He said the unit could go for as little as $14 billion to $20 billion. "There's value to those brands," he said. "I think relative to Ford (Charts), there's less dead weight. Nine years later, it's probably the right thing to do. I think there's a feeling in Germany that it's time to cut bait."
Posts: 5,133

02-14-2007, 03:16 PM	#16
recxjake MVP Join Date: Oct 2005 Casino cash: $10004900	Toyota fears U.S. backlash over gains It cites political, social risks February 13, 2007 BY JOE GUY COLLIER and JUSTIN HYDE FREE PRESS BUSINESS WRITERS Toyota Motor Corp. is bracing for possible political and consumer backlash caused by its rapid U.S. growth, according to an internal report obtained by the Free Press. Toyota executives have publicly downplayed the importance of predictions that the Japan-based company will pass General Motors Corp. this year as the world's largest automaker. But the Toyota report says the company could face criticism because its U.S. sales are increasing while Detroit's automakers are losing sales and shuttering plants. "With recent market-share gains and sales continuing to increase, we are becoming the de facto leader of the industry -- that brings risks and responsibilities," according to a presentation by Seiichi (Sean) Sudo, president of Toyota Engineering & Manufacturing in North America. "Our competitors are jealous of our success." Detroit's congressional allies of GM, Ford Motor Co. and DaimlerChrysler AG's Chrysler Group say it's not jealousy. They say Japanese automakers are exploiting an artificially weak yen to make their products more affordable. U.S. Rep. Sander Levin, D-Royal Oak, said he is considering legislation aimed at pressuring Japan and other countries to stop manipulating their currencies to boost exports. Japanese automakers "are importing the more expensive cars to the U.S., and getting the benefit of the yen imbalance," Levin said. Japan has "a clear-cut set of policies, and we don't have any." In the briefing to other Toyota managers, Sudo cited political and social risks. The report, left unsecured on computers at the company's Georgetown, Ky., complex, said Toyota could come under fire for: • Selling vehicles to U.S. customers with high proportions of foreign-made parts. Less than half of all content of Toyota vehicles sold in the United States is made in the United States or Canada. • Not including enough minority-owned businesses in its supplier base. The Rev. Jesse Jackson, leader of the Rainbow PUSH activist group, has asked Toyota to improve diversity efforts. • Leaving a vacuum in U.S. communities as GM, Ford, Chrysler and their suppliers shed plants and workers. "A Democratic Congress, particularly those members with districts hit by Big 3 and supplier plant closings, may call for further oversight of the industry and Japanese companies in particular," the presentation said. Michigan Dems threaten to act Toyota's concerns are not far off the mark. With a new Democratic majority in Congress, Michigan's Democratic lawmakers have pledged to press harder on trade and other issues where Detroit automakers say Japanese companies have an unfair advantage. Last week, two Democratic House members from Michigan -- Levin and Rep. John Dingell of Dearborn -- sent a letter to Treasury Secretary Henry Paulson, urging him to press Japan over the value of the yen during a meeting of world economic powers. Dingell, Levin and two other congressmen said that a weak yen had helped Japanese automakers increase their exports to the United States by more than 30% in 2006. Detroit automakers and their congressional allies say the yen bestows up to a $4,000-per-vehicle benefit for Japanese automakers. The Harbour-Felax Group, a Royal Oak automotive consulting firm, estimated the yen benefit at $1,054 per vehicle in a study it released last fall. "It is a little-understood fact that Toyota's exports to the United States are almost as great as the number of vehicles produced in the United States by Toyota," the lawmakers wrote. "We are certain that the weak yen is also boosting Japanese exports in other economic sectors and is having a significant impact on many U.S. producers." Toyota's public image and ability to operate with few barriers in the United States are significant because this is the world's biggest market and a source of huge and profitable growth for Toyota. Its U.S. sales rose 12.5% last year, and it is expected to have $13 billion in profit this fiscal year. Toyota passed Ford and the Chrysler Group in global vehicle sales and could pass GM thanks, in large part, to its ability to beat Detroit on its home turf. The Camry has been the best-selling car in the United States in nine of the past 10 years. Toyota's U.S. market share has doubled since 1996. Toyota as a scapegoat? Toyota would not comment about Sudo's presentation except to say it was a 5-year planning document that looks at challenges the company faces. The Free Press reported last week the report also contained information about Toyota's plans to hold down increases in U.S. labor costs and its worries about maintaining quality. "Toyota will continue to focus on further enhancing productivity, quality and safety, and this was the essence of the planning document," spokesman Daniel Sieger said. Toyota officials have said the possibility that their company would pass GM as the world's largest automaker is irrelevant to them and to consumers. Sudo's presentation, though, shows that Toyota sees a possible downside, especially in light of U.S. automakers' financial difficulties. "Toyota will be a 'scapegoat,' " one slide says. "Society expects that we will make the same economic and social contribution as the companies we replace," the accompanying text says. "And we need to position ourselves to respond to corporate image attacks." Toyota has been putting millions of dollars into efforts aimed at promoting its benefits to American society. In Washington, subway stops frequented by policy makers are plastered with ads extolling Toyota's U.S. employment figures. Next weekend, Toyota will hit the track in Daytona Beach, Fla., for the start of the NASCAR Nextel Cup season, the first entry by a Japanese automaker in the nation's most popular racing series. In the past year, Toyota also has run TV ads and put up billboards touting its economic impact on the United States. 'Beat but don't drub' Toyota executives are acutely aware of their position in the United States, said Matthew May, author of "The Elegant Solution: Toyota's Formula for Mastering Innovation." Toyota has a culture that stresses both competition and humility, said May, who spent eight years as a senior adviser and instructor for the University of Toyota, the company's Torrance, Calif.-based corporate college developed to teach the Toyota Way principles. Toyota has ambitious goals, he said. "At the same time, you have to balance that with the mother ship who is saying, 'Beat them but don't drub them,' " May said. " 'You don't need to spike the ball in the end zone' is really the message." Toyota has one major factor in its favor as it tries to prevent backlash. The U.S. sales growth also has fueled a rapidly growing manufacturing base that hits more states and congressional districts each year. Toyota has 13 U.S. plants, from West Virginia to California. Its first was a joint venture with GM in 1984 in California. Now states are lining up for what is expected to be several more in the next 10 years. Last month at the auto show in Detroit, Bob Lutz, GM's head of global product development, said: "It is my considered opinion that Toyota has more clout in Washington than GM."
Posts: 5,133

02-14-2007, 03:21 PM	#17
htismaqe 'Tis my eye! Join Date: Aug 2000 Location: Chiefsplanet Casino cash: $8179900	Enough already. You're getting back to posting any propaganda you can find to make GM look better. Get over it already.
Posts: 104,293

02-14-2007, 03:25 PM	#20
Dave Lane Space Cadet and Aczabel Join Date: Aug 2000 Location: Kanab, UT, USA Casino cash: $9333275 VARSITY	Is this a bannable offense or just one to revoke thread creation privileges? Not sure Dave __________________ Thanks, Trump for the civics lesson. We are learning so much about RICO, espionage, sedition, impeachment, the 25th Amendment, order of succession, nepotism, separation of powers, 1st Amendment, obstruction of justice, the emoluments clause, conflicts of interest, collusion, sanctions, oligarchs, money laundering and so much more.
Posts: 40,584

02-14-2007, 03:26 PM	#22
morphius World's finest morphius Join Date: Aug 2000 Casino cash: $5795027	One, that post has NOTHING to do with this thread, if you are going to post this stuff at least stick with the thread. Two, it is good to see that Toyota is building more plants in the US, it is good to see that someone is making up for all the of GM and Ford layoffs...
Posts: 26,022

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