For sale: A smaller Chrysler - Page 4

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."

**Dave Lane** · 02-14-2007, 04:18 PM

Quote:

Originally Posted by Logical

Honestly this twerp is more annoying on the subject of GM than Believer was doing his evangelism. That is saying quite a bit.

Thats funny I almost thought maybe Believer is another account for Rejected but then I thought wait at least Believer can spell and string a 3rd grade sentence together so they can't be the same guy. Actually I did think Rejected could be W.

Dave

**HemiEd** · 02-14-2007, 04:23 PM

Quote:

Originally Posted by htismaqe

3) The legacy costs are 100% the result of the advent of labor unions in this country and have NOTHING AT ALL to do with Toyota..

The labor unions, that helped elevate lunch box Bob to the financial ability to own a car, are now to Toyota's advantage. Toyota does not have the liability but enjoy the asset.

Frazod · 02-14-2007, 04:27 PM

Quote:

Originally Posted by Logical

Honestly this twerp is more annoying on the subject of GM than Believer was doing his evangelism. That is saying quite a bit.

I'm starting to wonder if he isn't on Ford's payroll.

htismaqe · 02-14-2007, 04:30 PM

Quote:

Originally Posted by HemiEd

The labor unions, that helped elevate lunch box Bob to the financial ability to own a car, are now to Toyota's advantage. Toyota does not have the liability but enjoy the asset.

I don't disagree.

But those circumstances are in NO WAY Toyota's fault. Toyota didn't even EXIST when this problem began to sprout.

They're taking advantage of the system to the best of their ability. If it's so anti-competitive, why isn't our government doing anything about it? After all, this is the best administration ever according to rexcjake.

Silock · 02-14-2007, 04:36 PM

Quote:

Originally Posted by recxjake

I have to go to class, keep the millions of Americans getting ****ed by Toyota in your prayers tonight you... i dont even wanna say it.

People have been getting screwed over by GM with it's shitty, inferior products for years... no complaints then?

**HemiEd** · 02-14-2007, 04:37 PM

Quote:

Originally Posted by htismaqe

I don't disagree.

But those circumstances are in NO WAY Toyota's fault. Toyota didn't even EXIST when this problem began to sprout.

They're taking advantage of the system to the best of their ability. If it's so anti-competitive, why isn't our government doing anything about it? After all, this is the best administration ever according to rexcjake.

You are right, Toyota is only doing what we taught them during reconstruction after WWII.
This administration is too busy selling this country out to fix it IMO. We tried import quotas, they just made more brands. It scared them though, so they built factories over here. Now they are "American Made."
I honestly think the horse is out of the barn.
I just wish accurate quality information was enforced by the Government. There is a lot of funny shit that goes on at dealer/factory interface when it comes to warranty claims.

RJ · 02-14-2007, 04:41 PM

Quote:

Originally Posted by recxjake

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

That is a very telling statement.

**chefsos** · 02-14-2007, 04:46 PM

The one plant that they are closing is here in Delaware. Durangos are assembled there. I guess it's a couple thousand jobs that'll be lost so that will be pretty tough indeed.

This state is well-known for giving some big ass tax breaks to corporations(well, it's gotta be known for something), so Chrysler must be hurting because I'm sure Delaware offered 'em the moon to keep this plant open.

Pitt Gorilla · 02-14-2007, 04:50 PM

I recently purchased a Chrysler Town & Country. It's been a great car/van so far.

htismaqe · 02-14-2007, 04:52 PM

Quote:

Originally Posted by Pitt Gorilla

I recently purchased a Chrysler Town & Country. It's been a great car/van so far.

That's what I have. And I've had alot of problems with it. Luckily Chrysler's warranty service is superb and our dealership is good about it.

**HemiEd** · 02-14-2007, 04:58 PM

Quote:

Originally Posted by chefsos

The one plant that they are closing is here in Delaware. Durangos are assembled there. I guess it's a couple thousand jobs that'll be lost so that will be pretty tough indeed.

This state is well-known for giving some big ass tax breaks to corporations(well, it's gotta be known for something), so Chrysler must be hurting because I'm sure Delaware offered 'em the moon to keep this plant open.

I don't know if it is still current, but that used to mean another 10,000 support jobs from vendors.
Is Sikorsky still there in Dover?

recxjake · 02-14-2007, 05:08 PM

Quote:

Originally Posted by Pitt Gorilla

I recently purchased a Chrysler Town & Country. It's been a great car/van so far.

They make the best vans hands down.

Pitt Gorilla · 02-14-2007, 05:09 PM

Quote:

Originally Posted by htismaqe

That's what I have. And I've had alot of problems with it. Luckily Chrysler's warranty service is superb and our dealership is good about it.

Ugh, like what? (We're still in that "loving our car" stage of the honeymoon).

**morphius** · 02-14-2007, 05:17 PM

Quote:

Originally Posted by RJ

That is a very telling statement.

I have heard meme say the exact same thing...

Take that for what it is worth.

**DaneMcCloud** · 02-14-2007, 05:57 PM

Quote:

Originally Posted by HemiEd

Go to California and you won't see many American Cars period. You gotta have a Toyota, Honda or Nissan! If you are really a success you will have a Lexus, Infiniti or Beemer.

Or a Mercedes

Seriously though, the main reason why there's so many Toyota and Honda cars in California because they're reliable and get excellent gas mileage. Most people can't afford to drive a car that gets 9 miles to the gallon when gas is $2.89 per gallon. Especially when a 4 mile commute takes 45 minutes.

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, 04:46 PM	#53
chefsos Fifty eight sixty two... Join Date: Jul 2005 Location: Felton, DE Casino cash: $8257676	The one plant that they are closing is here in Delaware. Durangos are assembled there. I guess it's a couple thousand jobs that'll be lost so that will be pretty tough indeed. This state is well-known for giving some big ass tax breaks to corporations(well, it's gotta be known for something), so Chrysler must be hurting because I'm sure Delaware offered 'em the moon to keep this plant open.
Posts: 9,451

02-14-2007, 04:50 PM	#54
Pitt Gorilla Banned! Join Date: Sep 2000 Location: NOT Columbia, MO 65201 Casino cash: $-9806	I recently purchased a Chrysler Town & Country. It's been a great car/van so far. __________________ Your son is a bench warmer because of your weak genetics not because of the coach Norlin Mommsen is disgusting.
Posts: 47,358