Mercedes to Sell Chrysler (probably)

[magracer]

According to Bloomberg, Diamler president might be under pressure from stock holders to sell unprofitable Chrysler. Yet another merger that fails to deliver.

The piece I like the most is this: "Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products,'' they say in a motion for the meeting. ``This is all the more true as unflattering nicknames such as Doting Daimler, Daimler-Crisis or even Crime-ler have long been in circulation.''

But also this: "We've said right from the very beginning that two very different car manufacturers like Mercedes and Chrysler don't fit together,'' said Juergen Graesslin, head of the Critical Shareholders of DaimlerChrysler Association that voted against the takeover at a special shareholders meeting in 1998. "Premium and mass market are incompatible.''

Linky for those interested:

http://www.bloomberg.com/apps/news?p...m64&refer=home

[Ferrer]

Not really unexpected or surprising.

[nota]

a de-merger of non-equals

[drakkie]

Old news..

They might see a big problem though, because noone in the industry is really in a strong position for take-overs. Apart from that who wants a brand with outdated models, making big losses positioned mainly in a shrinking domestic market...

Curious to see what happens...

[NSXType-R]

Any idea who they're selling to?

[fisetdavid26]

Any idea who they're selling to?

I heard rumours that GM wanted to buy Chrysler. But it's only rumours.

[NSXType-R]

Wow. Great move.

[bmwpower]

that'll really help, further increase the same re-branded cars in America. Then everyone's happy..especially the consumer who gets stiffed with the same weak car. I think Americans are lossing because they are losing every realiability test on the face of the earth, and ppl want a car that'll be less of a headache in the future..

[magracer]

Old news..

They might see a big problem though, because noone in the industry is really in a strong position for take-overs. Apart from that who wants a brand with outdated models, making big losses positioned mainly in a shrinking domestic market...

Curious to see what happens...

Any idea who they're selling to?

In the third paragraph of the link:

"Blackstone Group LP and Centerbridge Capital Partners LLC plan to bid for Chrysler, people familiar with the talks said on March 30"

Blackstone is one of the largest venture capital fund in the world, masterminds of huge takeovers and with more than enough available resources to complete such a transaction. I think GM has enough problems right now to buy into more.

[ScionDriver]

Other than the 300 what if any model is making Chrysler money? None I suppose. The PT Cruiser's styling is outdated, the Sebring is ugly and IMO never been a great car to begin with, the T&C is just boring and I am pretty sure the minivan movement is dead, The Alpine just seemed like a bad idea to me, the Pacifica never caught on...its goes on and on.

This can only be good for all parties I suppose.

[Matra et Alpine]

The latest figures show the US car industry continues it's decline with the big three ALL down on sales whilst Toyota is UP nearly 12%.
So not a good time to try to off-load them but may still work out cheaper than trying to stop it hemorrhaging cash

[NSXType-R]

Other than the 300 what if any model is making Chrysler money? None I suppose. The PT Cruiser's styling is outdated, the Sebring is ugly and IMO never been a great car to begin with, the T&C is just boring and I am pretty sure the minivan movement is dead, The Alpine just seemed like a bad idea to me, the Pacifica never caught on...its goes on and on.

This can only be good for all parties I suppose.

How about fleet sales to police departments and rentals for the Charger and the Magnum?

[Fleet 500]

I think Americans are lossing because they are losing every realiability test on the face of the earth, and ppl want a car that'll be less of a headache in the future..

Several models of some European makes (BMW, Mercedes, Porsche, Audi, Jaguar) have been very problematic.
If American cars are "losing every reliability test on the face of the earth" (source?), I shudder to think of how the cars I mentioned above are doing!

[nota]

In the third paragraph of the link:

"Blackstone Group LP and Centerbridge Capital Partners LLC plan to bid for Chrysler, people familiar with the talks said on March 30"

Blackstone is one of the largest venture capital fund in the world, masterminds of huge takeovers and with more than enough available resources to complete such a transaction. I think GM has enough problems right now to buy into more.

I dunno much about the business world but don't these 'venture capital' outfits generally have a reputation for underfunding the long-term while downsizing/layoffs/asset stripping in the short-term, to temporarily tart up the prospects of their inevitable on-sell?

Chryco has weathered many a financial crisis in its long history, but after a brief stopover in Germany you have to wonder where Walter P's ghost might ultimately find itself

China?

[The_Canuck]

A Canadian company looks like the forerunner in the bidding...
http://www6.autonet.ca/News/story.cf...044735-ap.html