For sale: A smaller Chrysler - Page 3

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."

htismaqe · 02-14-2007, 03:34 PM

Quote:

Originally Posted by recxjake

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.

1) I read it.

2) The "mod" shot is becoming the calling card du jour for someone who has to find a backdoor out of an argument because they can't think of anything better to say.

recxjake · 02-14-2007, 03:35 PM

Quote:

Originally Posted by htismaqe

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.

I'm just stating my views on topics... I don't care if people agree with me or not.

There are pro GM people, pro Republican people all over this board that agree with me.

Skyy God · 02-14-2007, 03:35 PM

Quote:

Originally Posted by recxjake

It's to bad... I'd like GM to pick them up....
Combine Jeep and Hummer...
Create a Corvette division... Corvette, Viper, Camaro and Challenger... wow... American Muscle at its best
GM stopped making minivans... who makes the best minivans... Chrysler
Use the Dealer network to fill in weak GM areas
Take the good products and keep them going.
Take the extra production into GM plants to keep them at full productivity and close all other plants.
It will keep GM as the world's biggerst automaker

And from today at 11:57 a.m.

Quote:

Originally Posted by recxjake

well ya got me on the to/too, but the genius really was a typo!

So you're telling me someone who can't master the to/too distinction is going to law school?

Oh, and biggerest?

recxjake · 02-14-2007, 03:37 PM

Quote:

Originally Posted by htismaqe

1) I read it.

2) The "mod" shot is becoming the calling card du jour for someone who has to find a backdoor out of an argument because they can't think of anything better to say.

It says that Toyota has anywhere from 1,000 to 4,000 dollar advantage just because the Jap's are ****ing the U.S. over with their YEN. Do you think it's funny that 70,000 Americans are now out of work because of this. How do you expect companies to compete when there is such an imbalance? This is just the YEN.... then add the healthcare costs, legacy costs... this is ****ing terrible man, and you just think toyota is the best thing since sliced bread.

htismaqe · 02-14-2007, 03:37 PM

Quote:

Originally Posted by recxjake

I'm just stating my views on topics... I don't care if people agree with me or not.

There are pro GM people, pro Republican people all over this board that agree with me.

You just said that you don't care if they agree with you and then you try to justify your posts with the idea that many people agree with you.

Make up your mind.

recxjake · 02-14-2007, 03:38 PM

Quote:

Originally Posted by Pittsie

And from today at 11:57 a.m.

So you're telling me someone who can't master the to/too distinction is going to law school?

Oh, and biggerest?

I'm sorry I make mistakes typing.... I don't consider Chiefsplant an area where I need to practice my grammar..... and yes I am going to law school.

recxjake · 02-14-2007, 03:41 PM

Quote:

Originally Posted by htismaqe

You just said that you don't care if they agree with you and then you try to justify your posts with the idea that many people agree with you.

Make up your mind.

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.

Skyy God · 02-14-2007, 03:42 PM

Quote:

Originally Posted by recxjake

I'm sorry I make mistakes typing.... I don't consider Chiefsplant an area where I need to practice my grammer..... and yes I am going to law school.

Accredited?

htismaqe · 02-14-2007, 03:43 PM

Quote:

Originally Posted by recxjake

It says that Toyota has anywhere from 1,000 to 4,000 dollar advantage just because the Jap's are ****ing the U.S. over with their YEN. Do you think it's funny that 70,000 Americans are now out of work because of this. How do you expect companies to compete when there is such an imbalance? This is just the YEN.... then add the healthcare costs, legacy costs... this is ****ing terrible man, and you just think toyota is the best thing since sliced bread.

1) Toyota has NOTHING to do with Japanese currency or exchange rates. If the Japanese GOVERNMENT is screwing us over with the YEN, it's up to our government to fix it, not Toyota.

2) 70,000 Americans are out of work because US auto-makers, and US corporations in general, don't run business strategically. Focus is on short-term return to shareholders, resulting in inefficient processes and poorly-conceived business plans.

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.

4) You've obviously NEVER read one word of any response I've ever made in any one of your threads. I own a Toyota AND A CHRYSLER. My Toyota is a dependable, inexpensive, and environmentally sound investment. But I refuse to be categorized as being somehow less American just because I own a Japanese car.

htismaqe · 02-14-2007, 03:44 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.

Exactly the type of elitist bullshit I'm talking about.

**morphius** · 02-14-2007, 03:55 PM

Quote:

Originally Posted by recxjake

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

Because they have sucked for a long time, hell, they were already bought by Daimler, that was even before Toyota took the lead. I'm mean hell, they tried to pass off the Dodge Daytona as a sports car.

But I guess I need to blame Toyota for the big three ineptness...

Logical · 02-14-2007, 04:01 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

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

Halfcan · 02-14-2007, 04:03 PM

That really sucks for the workers-I hope they land on their feet.

**morphius** · 02-14-2007, 04:05 PM

Quote:

Originally Posted by htismaqe

1) Toyota has NOTHING to do with Japanese currency or exchange rates. If the Japanese GOVERNMENT is screwing us over with the YEN, it's up to our government to fix it, not Toyota.

2) 70,000 Americans are out of work because US auto-makers, and US corporations in general, don't run business strategically. Focus is on short-term return to shareholders, resulting in inefficient processes and poorly-conceived business plans.

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.

4) You've obviously NEVER read one word of any response I've ever made in any one of your threads. I own a Toyota AND A CHRYSLER. My Toyota is a dependable, inexpensive, and environmentally sound investment. But I refuse to be categorized as being somehow less American just because I own a Japanese car.

Stopping showing up with your facts, GM ROCKS!!!

**Dave Lane** · 02-14-2007, 04:13 PM

Quote:

Originally Posted by recxjake

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.

Boy I'd guess thats 2. Maybe if you can get to three insults to the mods including the cursing they'd give you a six month ban....

Dave

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, 04:03 PM	#43
Halfcan In Search of a Life Join Date: Aug 2005 Casino cash: $7327995	That really sucks for the workers-I hope they land on their feet.
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