Another reason DamilerChrysler needs to return to DamilerBENZ...?

Question

http://www.bloomberg.com/apps/news?pid=20601087&sid=aU9FGB1FVaLs&refer=home

No doubt about it, one of the biggest mistakes was Mercedes-Benz buying Chrysler, and trying to morph it into something Americans are not interested in. The osmosis from Detroit poisioned what was once the benchmark from the company that invented the automobile, and MBZ learned nothing from this except recently to fire the bean-counter in charge who's only vision was reporting numbers to the stockholders for the next quarter(just like Ford and GM are in trouble). Once a company goes public in America, your just an errand boy doing tricks for trickle-up economics.

Who's taking bet's that within 2 years, this marriage made in hell will be over, and each side can work their respective side of the fence.

If there taking bet's in Vegas, I'll put down a G-note that this will all go the way of the dinosaur.

Answer 1

i disagree with you because as it said in the report the main area of Chrysler's buissness is trucks and SUV this is where the problem lie same thing as ford and GM trucks and suv sales are declining because of high gas prices, so any company that relies on them is going to be loosing, its not mercedes fault. as you can see honda and toyata's sales are improving because of their gas efficient hybrid cars, so i believe that soon chrysler is going to be following them in the footsteps and making hybrid cars, once they do that (which will probably be soon)their sales should improve.

Answer 2

As we all know, the creation of DaimlerChrysler was characterized as a "merger" to the stockholders and the general public when in fact it was a friendly takeover. Nevertheless, I think it was a good business decision for both original companies and the US economy.

US vehicle manufacturing (or any manufacturing for that matter) is a massive undertaking which takes billions of continuously re engineered parts from thousands of outside vendors assembled by a workforce with distressingly high expenses. Following this miracle comes the sincere hope that an adoring public will stampede into showrooms and immediately purchase these vehicles.

According to the most recent addition of Automotive Engineering, software expense for today's vehicles is 5% - with 10% on the short-term horizon. Note that software expansion will continue regardless of what fuel, which design or how much political intrigue alters the future of transportation.

Due to the above example and an infinite number of present and future engineering, assembly and financial challenges, combining the resources of both companies',research and development, part interchangeability, consolidation of manufacturing facilities, sales markets,etc, is a really good business decision.

Incidentally, I think out going DC sales chief, Mr Eberhard, had the right idea by treating dealers in an "abrupt" manner (as quoted in the Bloomberg article). New car manufacturers need better control of new car dealers.

Answer 3

I believe that the merger/buy is the best thing to happen to Chrysler. The quality of Chrysler made vehicles is up with the best of the best. Compare problems per 100 cars in 1998 to the numbers today. Compare the stock prices of Ford, GM, and Chrysler/Benz. Which whould you buy? Finally, drive a 2007 Chrysler and check out the suspension and handeling characteristics of Chrysler cars. All of this knowledge will stay with Chrysler for years to come. What Daimler decides to do is of no consequence anymore. I believe that Chrysler will become the largest source of revenue that Daimler will ever have. I'd buy more stock!

Answer 4

"Chrysler's U.S. sales rose 2.9 percent in November,"
"DaimlerChrysler's U.S. shares rose 49 cents to $59.17 at 4:01 p.m. in New York Stock Exchange composite trading. They have gained 16 percent this year."

Answer 5

i think your wrong..sales are up for chrysler/dodge/jeep