Tuesday, May 6, 2008

Mixed Bag for DaimlerChrysler

Dubbed as the newest World Inc. by Schrempp in 1998, the marriage of Daimler and Chrysler lasted 9 years. The US investor Cerberus laid down 5 billion and now owns 80%, whereas Daimler holds the rest; by the way, Cerberus means hell dog. Back in the late nineties, Daimler bought the US car manufacturer for € 36 billion, talk about return on investment.

From the onset, a disgruntled Chrysler shareholder Kerkorian, who never agreed with the term "merger of equals", even offered $ 4.58 billion in April of this year. Not to mention that he sued DC for $ 9 billion worth of damages in 2000.

Interestingly enough, Chrysler will still use Daimler technology, which was the only real benefit in the marriage anyway. Thanks to German engineering, Chrysler doors started closing better and concept cars, such as the Crossfire, basically a cheap version of the SLK, rolled into dealerships. Like any divorce, there's good news as well: Chrysler is supposedly happy and DaimlerChrysler profits are up.

4.5

TrackBack

TrackBack URL for this entry:
http://www.anglofritz.com/cgi-bin/mt-tb.cgi/1793

Post a comment

(If you leave a comment here, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)