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To sell or not sell Chrysler
The CEO of DaimlerChrysler, Dieter Zetsche is under pressure, as it decides on the fate of their money for loss Chrysler Group. However, according to some reliable sources the automaker is open to any offer from the U.S. automakers are willing to take the reins on Chrysler.
The big question now is which company is interested enough in buying the Chrysler unit. According to a German magazine DaimlerChrysler is negotiating with General Motors, but meanwhile DMX officials would remain silent on the matter. "I can not and will not go into more details, "Zetsche said in an interview.
The mention of General Motors as a possible buyer of Chrysler has aroused various reactions. While it is true that GM remains the largest automaker in the world and producing the most popular brand of auto parts as GM defenses, but it is no secret that the number one is also facing financial difficulties and the purchase of another brand losing money can not be a good measure the automaker. But then again Chrysler has a Very Good models and so is GM. For now all we can do is wait and see the evolution.
Apart from the possible sale of Chrysler has also announced 13,000 layoffs DMX, as part of the recovery plan of the company. The job cuts affect CC to 11,000 employees in the U.S., plus 2,000 in Canada. For the U.S. only 2000 white-collar jobs, along with 9000 UAW jobs will be cut which will result the closure of an assembly plant in Newark, Del and a distribution center to participate in Ohio. The Newark plant builds large SUVs for DC. Michigan Truck plant and Missouri also will suffer the reduction of production capacity to 400,000 units.
Over the weekend pressure on Zetsche to let go of Chrysler intensifies. According to a DaimlerChrysler shareholder Henry Gebhardt, a fund manager at DWS in an interview with a German newspaper, "This should be an option should be examined again and again. "DaimlerChrysler also compared the break for the sale of Rover from BMW said that" It would be irresponsible for management Daimler to exclude this option. "DWS is from Germany and largest fund holds less than 1% of the shares of DaimlerChrysler.
To be fair to Zetsche is doing everything possible to save Chrysler and recently met with the United Auto Workers Union asking the same health care concessions the union gave General Motors and Ford Motors. Unfortunately, the union refused Chrysler saying that the German company has deep pockets to pay for health care workers. Zetsche will trying to solve with UAW but also made it clear that if the UAW refused to accept the new terms to be determined by DaimlerChrysler then no choice option to stop Chrysler.
According to some sources the problem with the Chrysler group began nine years ago after the merger of Daimler-Benz and Chrysler. middle managers in Mercedes have resisted any kind of collaboration that could tarnish the image of the luxury brand, which is not all bad, if not impede Chrysler Group to achieve the level of synergies it has promised in 1998.
Thomas LaSorda said the recovery plan outlined by DaimlerChrysler can strengthen Chrysler's market position in North America and at the same time create the basis for a new business model that is geared to global growth possible, and a shift toward more fuel-efficient models. The plan is put into action if a DC would regain profitability in 2008 and 2.5% sales tune again 2009. In 2006, Chrysler lost 1.5 billion U.S. dollars while the global DaimlerChrysler profits reached 7.3 billion U.S. dollars for the same year.
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