Fiat Chrysler Automobiles: Sales, Marketing, and Financial News
02-16-2007, 04:04 PM
#241
Senior Moderator
I think it would be stupid on GM's part...they are just getting outta a mess, why do they want to inherit more...? 
If they really wanted to buy a car company for sale, I think Aston Martin would've been a much better idea...?
If they really wanted to buy a car company for sale, I think Aston Martin would've been a much better idea...?
02-16-2007, 06:09 PM
#242
Drifting
Of the Big American motor companies, Chrysler has some of the most innovative and stylish products while GM has some of the worst, IMHO. It would be a total disaster if Chrysler becomes part of GM...
02-16-2007, 06:16 PM
#243
Senior Moderator
I think it would be more likely that one of the japanese companies would step in.... Nissan Jeep... sounds good to me 
It would be funny if some one bought Chrysler, and canned everything except for the Jeep name (like Chrysler did when it bought out AMC).
It would be funny if some one bought Chrysler, and canned everything except for the Jeep name (like Chrysler did when it bought out AMC).
02-16-2007, 06:37 PM
#244
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There is nothing to gain from a GM standpoint, hummer is jeep, Buick is going after Chrysler, the dodge brand pretty much sucks imo but Chevy would cover that area. Gm would gain the best selling minivan and the Chrysler group would gain a vehicle platform for every other segment GM has covered, nice deal.
02-18-2007, 10:55 AM
#246
I feel the need...
Not gonna happen. GM has too many brands to manage already and they certainly don't need more manufacturing capacity, dealer networks and unfunded pension/healthcare liabilities.
That being said, nothing shocks me anymore. Like two drunks trying to hold each other up.
That being said, nothing shocks me anymore. Like two drunks trying to hold each other up.
02-18-2007, 11:09 AM
#247
how handsome I am
Originally Posted by Fibonacci
Not gonna happen. GM has too many brands to manage already and they certainly don't need more manufacturing capacity, dealer networks and unfunded pension/healthcare liabilities.
That being said, nothing shocks me anymore. Like two drunks trying to hold each other up.
That being said, nothing shocks me anymore. Like two drunks trying to hold each other up.
02-19-2007, 01:22 PM
#248
Senior Moderator
Originally Posted by ostrich
Of the Big American motor companies, Chrysler has some of the most innovative and stylish products .
Yea they dont
Besides a Viper, I can' think of one Chrysler product I'd want.
02-19-2007, 01:55 PM
#251
Senior Moderator
http://www.leftlanenews.com/2007/02/...ot-interested/
DCX to launch $13 billion auction of Chrysler; Hyundai not interested
DCX to launch $13 billion auction of Chrysler; Hyundai not interested
U.S. investment bank JPMorgan is making final preparations before starting an auction of the Chrysler Group on behalf of DaimlerChrysler, according to a report by the U.K.'s Times. The news follows a shocking report from last week suggesting General Motors might be considering buying Chrysler.
02-19-2007, 02:09 PM
#252
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Originally Posted by dom
http://www.leftlanenews.com/2007/02/...ot-interested/
DCX to launch $13 billion auction of Chrysler; Hyundai not interested
DCX to launch $13 billion auction of Chrysler; Hyundai not interested
Last edited by alphason'sac; 02-19-2007 at 02:12 PM.
02-19-2007, 02:13 PM
#253
99 TL, 06 E350
Originally Posted by dom
http://www.leftlanenews.com/2007/02/...ot-interested/
DCX to launch $13 billion auction of Chrysler; Hyundai not interested
DCX to launch $13 billion auction of Chrysler; Hyundai not interested
LOL...why would Hyundai de-value themselves by buying Chrysler?
and $13 billion doesn't seem to be alot for a global company. and regarding layoffs, its the sign of the times. ALot of companies are laying off.
Last edited by Black Tire; 02-19-2007 at 02:15 PM.
02-20-2007, 04:59 PM
#254
2G TLX-S
If GM were to buy up Chrysler, the only things I can think of are more layoffs, more factory closures, and more overlapping in vehicle and truck lines.
03-12-2007, 10:19 AM
#255
Chrysler workers vote to accept pay cuts
Would cost about $5,000 each per year if automaker puts $700 million into plant
http://www.thestar.com/Business/article/190742
Would cost about $5,000 each per year if automaker puts $700 million into plant
March 12, 2007
Tony Van Alphen
Business Reporter
Worried workers at the DaimlerChrysler Canada assembly plant in Brampton have overtuned an earlier decision and accepted potential concessions that could cost them about $5,000 each annually.
The reversal yesterday, at a packed membership meeting of Canadian Auto Workers Local 1285, came after the company signalled it would look elsewhere to make major investments in view of union rejection of the same concession package less than three weeks ago.
Workers voted overwhelmingly to accept the package of workplace changes including elimination of premium pay if the company invests $700 million for a fifth model at the plant.
Union leaders sought the vote when the Chrysler said it would not only transfer the model and investment to another plant but expand that operation's ability to make the same vehicles as the Brampton facility.
"It was definitely a hard decision for the membership to make," said Ardis Snow, the local's plant chairman. "But I think they looked at the company's response to the `no' vote and felt it was a real threat to their long-term future."
Workers voted 1,420 to 399, or 78 per cent, in favour of the package that would mean loss of a pay premium for 48 minutes a shift. They have received the premium despite not working the time since the plant moved from two to three shifts a few years ago.
The premium can range between $115 and $150 a week in gross pay depending on job classification, or an average of about $5,000 annually. Other changes include the contracting out of 44 janitorial jobs and the reorganization of work duties around team concepts.
The package is part of a "shelf agreement" that will only apply if DaimlerChrysler decides to build the fifth model in Brampton. The company's parent DaimlerChrysler Group will decide soon where to invest about $700 million in "Project X."
Industry insiders expect it will build the high-end, low-volume Imperial sedan in the summer of 2009 on the same platform as four other models in Brampton.
The membership's reversal followed a lively 90-minute meeting where several angry workers clashed with union leaders about not respecting the original decision.
"No is no," said one member.
One worker reminded union leaders that the process played loose with the CAW's constitutional rules regarding second votes. Another said the agreement conflicted with the CAW's own policies against concessions or reopening of contracts.
Workers surprised leaders of Local 1285 and the national union by rejecting the package on Feb. 19 in a vote inside the plant. It followed an off-site meeting the previous day that attracted only about 500 workers. The plant employs 3,400.
Local union president Vince Bailey said other members who did not attend received conflicting and inaccurate information from the meeting before voting.
At yesterday's meeting, Bob Chernecki, assistant to national president Buzz Hargrove, also said circumstances had changed during the last week. Frank Ewasyshyn, senior VP of manufacturing for the Chrysler Group, indicated the company respected the union's Feb. 19 decision but would "redirect our investment to an undisclosed U.S. facility including retooling this facility for L/X platforms."
The Brampton plant currently assembles the Chrysler 300 sedan, Dodge Magnum wagon and Charger sports car on the L/X platform. It will add the Dodge Challenger muscle sports car in the summer of 2008.
Chernecki said demand for the existing three models is declining and the plant needs more products to keep its third shift and more than 900 jobs. Losing the shift will reduce efficiencies and weaken the plant in attracting future investments, he said.
He added that if DaimlerChrysler spends elsewhere, it will allow the company to play two plants against each other in the fight for investment. "This is about protecting you and your future," Chernecki said.
Ken Lewenza, chairman of the CAW's master bargaining committee at DaimlerChrysler, said if the company decides to make the investment in Brampton, it will give the union more power in 2008 bargaining.
"We work off our strengths," he said, "The only strength we have going forward is that (Brampton) investment and product."
Before yesterday's vote, worker Maurice Kenny cautioned, "If we give them a resounding `yes,' it will be their boots to the throat in 2008 (contract talks)."
Hargrove missed the meeting because his St. Lucia flight was cancelled.
Tony Van Alphen
Business Reporter
Worried workers at the DaimlerChrysler Canada assembly plant in Brampton have overtuned an earlier decision and accepted potential concessions that could cost them about $5,000 each annually.
The reversal yesterday, at a packed membership meeting of Canadian Auto Workers Local 1285, came after the company signalled it would look elsewhere to make major investments in view of union rejection of the same concession package less than three weeks ago.
Workers voted overwhelmingly to accept the package of workplace changes including elimination of premium pay if the company invests $700 million for a fifth model at the plant.
Union leaders sought the vote when the Chrysler said it would not only transfer the model and investment to another plant but expand that operation's ability to make the same vehicles as the Brampton facility.
"It was definitely a hard decision for the membership to make," said Ardis Snow, the local's plant chairman. "But I think they looked at the company's response to the `no' vote and felt it was a real threat to their long-term future."
Workers voted 1,420 to 399, or 78 per cent, in favour of the package that would mean loss of a pay premium for 48 minutes a shift. They have received the premium despite not working the time since the plant moved from two to three shifts a few years ago.
The premium can range between $115 and $150 a week in gross pay depending on job classification, or an average of about $5,000 annually. Other changes include the contracting out of 44 janitorial jobs and the reorganization of work duties around team concepts.
The package is part of a "shelf agreement" that will only apply if DaimlerChrysler decides to build the fifth model in Brampton. The company's parent DaimlerChrysler Group will decide soon where to invest about $700 million in "Project X."
Industry insiders expect it will build the high-end, low-volume Imperial sedan in the summer of 2009 on the same platform as four other models in Brampton.
The membership's reversal followed a lively 90-minute meeting where several angry workers clashed with union leaders about not respecting the original decision.
"No is no," said one member.
One worker reminded union leaders that the process played loose with the CAW's constitutional rules regarding second votes. Another said the agreement conflicted with the CAW's own policies against concessions or reopening of contracts.
Workers surprised leaders of Local 1285 and the national union by rejecting the package on Feb. 19 in a vote inside the plant. It followed an off-site meeting the previous day that attracted only about 500 workers. The plant employs 3,400.
Local union president Vince Bailey said other members who did not attend received conflicting and inaccurate information from the meeting before voting.
At yesterday's meeting, Bob Chernecki, assistant to national president Buzz Hargrove, also said circumstances had changed during the last week. Frank Ewasyshyn, senior VP of manufacturing for the Chrysler Group, indicated the company respected the union's Feb. 19 decision but would "redirect our investment to an undisclosed U.S. facility including retooling this facility for L/X platforms."
The Brampton plant currently assembles the Chrysler 300 sedan, Dodge Magnum wagon and Charger sports car on the L/X platform. It will add the Dodge Challenger muscle sports car in the summer of 2008.
Chernecki said demand for the existing three models is declining and the plant needs more products to keep its third shift and more than 900 jobs. Losing the shift will reduce efficiencies and weaken the plant in attracting future investments, he said.
He added that if DaimlerChrysler spends elsewhere, it will allow the company to play two plants against each other in the fight for investment. "This is about protecting you and your future," Chernecki said.
Ken Lewenza, chairman of the CAW's master bargaining committee at DaimlerChrysler, said if the company decides to make the investment in Brampton, it will give the union more power in 2008 bargaining.
"We work off our strengths," he said, "The only strength we have going forward is that (Brampton) investment and product."
Before yesterday's vote, worker Maurice Kenny cautioned, "If we give them a resounding `yes,' it will be their boots to the throat in 2008 (contract talks)."
Hargrove missed the meeting because his St. Lucia flight was cancelled.
03-12-2007, 11:28 AM
#257
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Originally Posted by Black Tire
pay cuts won't make for better cars
03-12-2007, 11:34 AM
#258
Senior Moderator
Originally Posted by aesir11
What's wrong with Chrysler cars? I personally think they have the best looking American car lineup.
03-13-2007, 10:36 AM
#259
Race Director
I wonder if Magna had a hand in this - what with their possible bid to buy Chrysler from DCX.
http://www.msnbc.msn.com/id/17590757/
http://www.msnbc.msn.com/id/17590757/
Last edited by biker; 03-13-2007 at 10:39 AM.
03-14-2007, 10:44 PM
#260
Calls Increase To Drop "Chrysler" From DaimlerChrysler
http://www.edmunds.com/insideline/do...ticleId=119980
Date posted: 03-14-2007
STUTTGART, Germany — Some of DaimlerChrysler AG's German shareholders have proposed that the company name be changed back to Daimler-Benz AG — the corporate name before the 1998 merger with Chrysler Corporation. Investors say they are tired of unflattering nicknames, such as "Daimler-Crisis," "Doting Daimler" and "Crime-ler," especially as the Chrysler Group is being shopped to private equity firms.
Two investors are calling for a shareholder vote on the matter at the April 4 annual meeting, saying that "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." The DCX supervisory and management boards oppose the proposal for the name change.
The Chrysler name comes from company founder and American automobile pioneer Walter P. Chrysler. When his car debuted in 1924, the Chrysler name was so unknown that ads had to explain how to pronounce it. But, notes Chrysler historian Barry Dressel in the spring 2000 issue of Forward: The American Heritage of DaimlerChrysler magazine, "within four years, Chrysler was Time's second Man of the Year [Charles Lindbergh was the first], and New York's most elegant skyscraper bore his name." At the time of the merger in 1998, Chrysler was touted as a heroic figure. A bust of the auto pioneer was shipped to Stuttgart to join those of Gottlieb Daimler and Karl Benz in the company's executive offices.
But all of that goodwill seems to have changed as bidders line up for the automaker. Private equity firms appear to have the edge in the bidding for Chrysler Group because they have indicated a willingness to shell out about $5 billion, which is $1 billion more than Canadian parts maker Magna International, another potential buyer.
What this means to you: A venerable American automotive name is under siege as the Germans hasten to unload the Chrysler Group.
STUTTGART, Germany — Some of DaimlerChrysler AG's German shareholders have proposed that the company name be changed back to Daimler-Benz AG — the corporate name before the 1998 merger with Chrysler Corporation. Investors say they are tired of unflattering nicknames, such as "Daimler-Crisis," "Doting Daimler" and "Crime-ler," especially as the Chrysler Group is being shopped to private equity firms.
Two investors are calling for a shareholder vote on the matter at the April 4 annual meeting, saying that "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." The DCX supervisory and management boards oppose the proposal for the name change.
The Chrysler name comes from company founder and American automobile pioneer Walter P. Chrysler. When his car debuted in 1924, the Chrysler name was so unknown that ads had to explain how to pronounce it. But, notes Chrysler historian Barry Dressel in the spring 2000 issue of Forward: The American Heritage of DaimlerChrysler magazine, "within four years, Chrysler was Time's second Man of the Year [Charles Lindbergh was the first], and New York's most elegant skyscraper bore his name." At the time of the merger in 1998, Chrysler was touted as a heroic figure. A bust of the auto pioneer was shipped to Stuttgart to join those of Gottlieb Daimler and Karl Benz in the company's executive offices.
But all of that goodwill seems to have changed as bidders line up for the automaker. Private equity firms appear to have the edge in the bidding for Chrysler Group because they have indicated a willingness to shell out about $5 billion, which is $1 billion more than Canadian parts maker Magna International, another potential buyer.
What this means to you: A venerable American automotive name is under siege as the Germans hasten to unload the Chrysler Group.
03-15-2007, 08:57 AM
#262
Senior Moderator
Originally Posted by SpeedyV6
Did Kaiser own Willys?
I probably should have said Willys-Overland/Kaiser/AMC/Jeep
http://en.wikipedia.org/wiki/Willys-Overland
There's even a Duesenberg ("It's a doozy") connection...
There used to be alot of movement, buyouts and selling of auto companies in the "old days"...
03-15-2007, 09:11 AM
#264
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I like how everyone is bagging on Chrysler but Benz is rated worst reliability by Consumer Reports. I can actually understand why too with the number of friends I have that own just out of warranty Benzes. I had a friend that just had to have his computer replaced. It took a month before he could drive the ML again. On top of that it was a $2000 repair. Another friend had a strut replaced at $600. However I do have a friend that has a 99 C class with 120k miles on it and has had next to no problems. Crazy world.
03-23-2007, 02:24 PM
#265
Senior Moderator
http://www.leftlanenews.com/canadian...-chrysler.html
Canadian firm considers acquiring Chrysler
300c.jpg
Canadian auto parts supplier Magna International and a private-equity partner have offered to buy the Chrysler Group from DaimlerChrysler for $4.7 billion, according to a report by KeyBanc Capital Markets analyst Brett Hoselton.
Hoselton said the bid is low, but given Chrysler's questionable valuation, investors should take it serious. And they have — shares of DaimlerChrysler hit a 52-week high today on the speculation.
Most analysts value Chrysler between nothing and $13 billion. Some observers feel the company has no value, because its liabilities outweigh its assets. Others feel it could be worth at least a third of the $36 billion Daimler-Benz paid in 1998 to the right buyer.
Even if Magna's offer is overlooked for the company as a whole, it could be offered a minority stake in Chrysler. Magna "also sees it as an opportunity to purchase an inexpensive stake in the automaker should other bidders retreat."
Recent rumors suggest General Motors might also be interested in buying Chrysler. Chrysler could add as much as $9 billion in value to GM due to products and "operating efficiencies including reduced research and development and advertising costs per vehicle," Jon Rogers, an analyst at Citigroup.
DaimlerChrysler's stock surge today makes it clear investors are anxious to dump the struggling Chrysler Group. A recent proposal made by two major shareholders calls for DaimlerChrysler to consider a name change — possibly back to Daimler-Benz — in an effort to disassociate it from the "failure" of the Chrysler Group.
300c.jpg
Canadian auto parts supplier Magna International and a private-equity partner have offered to buy the Chrysler Group from DaimlerChrysler for $4.7 billion, according to a report by KeyBanc Capital Markets analyst Brett Hoselton.
Hoselton said the bid is low, but given Chrysler's questionable valuation, investors should take it serious. And they have — shares of DaimlerChrysler hit a 52-week high today on the speculation.
Most analysts value Chrysler between nothing and $13 billion. Some observers feel the company has no value, because its liabilities outweigh its assets. Others feel it could be worth at least a third of the $36 billion Daimler-Benz paid in 1998 to the right buyer.
Even if Magna's offer is overlooked for the company as a whole, it could be offered a minority stake in Chrysler. Magna "also sees it as an opportunity to purchase an inexpensive stake in the automaker should other bidders retreat."
Recent rumors suggest General Motors might also be interested in buying Chrysler. Chrysler could add as much as $9 billion in value to GM due to products and "operating efficiencies including reduced research and development and advertising costs per vehicle," Jon Rogers, an analyst at Citigroup.
DaimlerChrysler's stock surge today makes it clear investors are anxious to dump the struggling Chrysler Group. A recent proposal made by two major shareholders calls for DaimlerChrysler to consider a name change — possibly back to Daimler-Benz — in an effort to disassociate it from the "failure" of the Chrysler Group.
03-26-2007, 10:49 AM
#266
Senior Moderator
Report: GM offered next to nothing to buy Chrysler
From Leftlanenews...
General Motors offered DaimlerChrysler no cash in its bid to acquire the struggling Chrysler Group from the German-American automaker, according to a new report citing people familiar with the proposal. GM did offer Daimler a small stake in GM stock, but also asked that the Germans pay it to take Chrysler off their hands.
According to a story published by the Detroit News today, General Motors offered to pay Daimler nothing for Chrysler, Dodge, and Jeep, and actually wanted more than $1 billion to help defray Chrysler's health care costs.
GM said it would give Daimler a stake of less than 10 percent in GM stock. Assuming GM offered an eight percent stake, that would equate to roughly $1.44 billion in stock. Considering GM wants Daimler to pay it more than a billion dollars, GM would be paying Daimler next to nothing ($200-$500 million) for Chrysler.
The details of this offer make a proposal by Canadian auto parts supplier Magna sound more reasonable. As previously reported, the company has offered $4.7 billion to buy the Chrysler Group. Analysts value Chrysler anywhere between nothing and $13 billion. While Magna's offer is viewed as low, it is considerably more generous than the one presented by GM.
Daimler-Benz paid $36 billion in 1998 to acquire Chrysler.
According to a story published by the Detroit News today, General Motors offered to pay Daimler nothing for Chrysler, Dodge, and Jeep, and actually wanted more than $1 billion to help defray Chrysler's health care costs.
GM said it would give Daimler a stake of less than 10 percent in GM stock. Assuming GM offered an eight percent stake, that would equate to roughly $1.44 billion in stock. Considering GM wants Daimler to pay it more than a billion dollars, GM would be paying Daimler next to nothing ($200-$500 million) for Chrysler.
The details of this offer make a proposal by Canadian auto parts supplier Magna sound more reasonable. As previously reported, the company has offered $4.7 billion to buy the Chrysler Group. Analysts value Chrysler anywhere between nothing and $13 billion. While Magna's offer is viewed as low, it is considerably more generous than the one presented by GM.
Daimler-Benz paid $36 billion in 1998 to acquire Chrysler.
03-26-2007, 10:49 AM
#267
Senior Moderator
^ Awesome, so, I can make a bid...! $5!
03-26-2007, 10:55 AM
#268
Senior Moderator
Originally Posted by Yumchah
^ Awesome, so, I can make a bid...! $5!
Thats too much.
Seriously though, even 4.5 bill sounds way too low. Their product lineup is not that bad. Better off than Ford IMO.
04-04-2007, 05:43 PM
#271
_____ like a rabbit
Chrysler for sale
DaimlerChrysler Chair Confirms Sale Talks
BERLIN -- Confirming weeks of conjecture and rumor, DaimlerChrysler AG's chairman said Wednesday that it has been in talks with people about the sale of its struggling Chrysler unit.
"In this context, I can confirm that we are talking with some of the potential partners who have shown a clear interest," chairman Dieter Zetsche said before the company's annual shareholder meeting.
He did not name any of the companies that have been in talks.
Zetsche stunned the automotive world on Feb. 14 when he said that continued losses and fierce competition in the United States meant that the German-American automaker was considering all options for its Chrysler unit, including a possible sale.
Zetsche did not say whether any decision to sell Chrysler had been made or if the company was any closer to a solution.
"It is also true that we need to keep all options open, and that I cannot disclose any details, because we need to have the maximum scope for maneuver," he said in a copy of his remarks to shareholders released ahead of the meeting.
The company's management requires "the greatest possible flexibility so that we can identify and then professionally implement the best solution," Zetsche added.
Zetsche's announcement in February came after the U.S. unit's $1.5 billion loss in 2006.
The company also said it would cut 13,000 jobs and reduce production capacity by 400,000 units as part of a "recovery and transformation plan", aimed at bringing Chrysler back into profitability by 2008.
No clear front-runner has yet emerged to buy Chrysler, but Canadian auto-parts supplier Magna International Inc. reportedly has submitted a bid to buy the business for as much as $4.7 billion.
Major private equity firms Blackstone Group and Cerberus Capital Management LLP also are rumored to be in the hunt.
At least some of the company's more than 1 million shareholders have been pushing for a divorce - in both style and substance.
Shareholders Ekkehard Wenger and Leonhard Knoll put forward a motion calling for the company to revert back to its original name, Daimler-Benz AG.
They argued in their motion that to "maintain 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."
BERLIN -- Confirming weeks of conjecture and rumor, DaimlerChrysler AG's chairman said Wednesday that it has been in talks with people about the sale of its struggling Chrysler unit.
"In this context, I can confirm that we are talking with some of the potential partners who have shown a clear interest," chairman Dieter Zetsche said before the company's annual shareholder meeting.
He did not name any of the companies that have been in talks.
Zetsche stunned the automotive world on Feb. 14 when he said that continued losses and fierce competition in the United States meant that the German-American automaker was considering all options for its Chrysler unit, including a possible sale.
Zetsche did not say whether any decision to sell Chrysler had been made or if the company was any closer to a solution.
"It is also true that we need to keep all options open, and that I cannot disclose any details, because we need to have the maximum scope for maneuver," he said in a copy of his remarks to shareholders released ahead of the meeting.
The company's management requires "the greatest possible flexibility so that we can identify and then professionally implement the best solution," Zetsche added.
Zetsche's announcement in February came after the U.S. unit's $1.5 billion loss in 2006.
The company also said it would cut 13,000 jobs and reduce production capacity by 400,000 units as part of a "recovery and transformation plan", aimed at bringing Chrysler back into profitability by 2008.
No clear front-runner has yet emerged to buy Chrysler, but Canadian auto-parts supplier Magna International Inc. reportedly has submitted a bid to buy the business for as much as $4.7 billion.
Major private equity firms Blackstone Group and Cerberus Capital Management LLP also are rumored to be in the hunt.
At least some of the company's more than 1 million shareholders have been pushing for a divorce - in both style and substance.
Shareholders Ekkehard Wenger and Leonhard Knoll put forward a motion calling for the company to revert back to its original name, Daimler-Benz AG.
They argued in their motion that to "maintain 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."
04-05-2007, 12:52 PM
#272
The sizzle in the Steak
Kerkorian Makes $4.5B Offer for Chrysler
DETROIT (AP) - Billionaire investor Kirk Kerkorian's Tracinda Corp. on Thursday made a $4.5 billion cash offer for DaimlerChrysler AG's troubled U.S.-based Chrysler unit.
Tracinda in a statement said it wants "to build and strengthen" the troubled automaker and "will offer the UAW and Chrysler management the opportunity to participate as equity partners in the transaction."
Tracinda in a statement said it wants "to build and strengthen" the troubled automaker and "will offer the UAW and Chrysler management the opportunity to participate as equity partners in the transaction."
04-05-2007, 12:54 PM
#273
The sizzle in the Steak
More buyers for Chrysler
Kerkorian bids $4.5 billion for Chrysler
Billionaire's investment vehicle makes a cash offer for troubled Chrysler Group;
Billionaire's investment vehicle makes a cash offer for troubled Chrysler Group;
NEW YORK (Reuters) -- Billionaire investor Kirk Kerkorian's Tracinda Group said Thursday it offered to acquire the Chrysler Group of DaimlerChrysler for $4.5 billion in cash.
Shares of DaimlerChrysler (up $2.26 to $83.33, Charts) jumped nearly 3 percent in Thursday afternoon trading, and shares of rival General Motors (up $0.50 to $31.53, Charts) rallied as well.
Billionaire investor Kirk Kerkorian is bidding to buy the troubled automaker Chrysler from its German parent.
Tracinda said it will offer the United Auto Workers union and Chrysler management the opportunity to participate as equity partners in the deal.
DaimlerChrysler acknowledged for the first time on Wednesday it was talking with prospective buyers about the Chrysler unit, but would not commit itself to selling the U.S. automaker.
Sources close to the situation have told Reuters that private equity groups Cerberus Capital Management and Blackstone Group, as well Canadian car parts maker Magna International, are the leading contenders to buy Chrysler.
Kerkorian had previously purchased a 9.9 percent stake in GM in an attempt to influence management, but later backed down, selling his shares.
Shares of DaimlerChrysler (up $2.26 to $83.33, Charts) jumped nearly 3 percent in Thursday afternoon trading, and shares of rival General Motors (up $0.50 to $31.53, Charts) rallied as well.
Billionaire investor Kirk Kerkorian is bidding to buy the troubled automaker Chrysler from its German parent.
Tracinda said it will offer the United Auto Workers union and Chrysler management the opportunity to participate as equity partners in the deal.
DaimlerChrysler acknowledged for the first time on Wednesday it was talking with prospective buyers about the Chrysler unit, but would not commit itself to selling the U.S. automaker.
Sources close to the situation have told Reuters that private equity groups Cerberus Capital Management and Blackstone Group, as well Canadian car parts maker Magna International, are the leading contenders to buy Chrysler.
Kerkorian had previously purchased a 9.9 percent stake in GM in an attempt to influence management, but later backed down, selling his shares.
must be nice...
04-06-2007, 01:01 AM
#276
Excerpts from Tracinda Corp. adviser Jerome York’s letter to DaimlerChrysler AG Chairman Dieter Zetsche on the equity firm’s $4.5 billion cash offer for the U.S.-based Chrysler unit:
Dear Dr. Zetsche:
I had the chance to meet you briefly at Gary Valade’s retirement party in early 2004, and enjoyed our chat at the time, on Toyota pricing as I recall. Of course the several hundred in attendance at that event were in high spirits, as the impact of Chrysler’s early 2000’s turn around plan was beginning to exhibit remarkable results.
But of course this was three years ago, when gasoline prices were still below $2.00 per gallon in the US, and before three more years of rampant healthcare inflation had taken place.
... The right (meaning exceptionally patient) private ownership can do things that are difficult for both public companies and the wrong (meaning not so patient) private ownership, specifically:
1. Take a very long term approach to solving Chrysler’s problems without worrying about “EPS results” for the initial five, six or seven year period it will likely take to build Chrysler into a robust and lasting, stand-alone entity.
2. Offer a substantial portion of equity in the company to the UAW as part of finding a solution to ever-rising healthcare costs, which not only are unaffordable by corporations, but over time will likely prove to be unaffordable by governmental entities as well. ...
The returns will not come quickly. Investors that feel the need to show “mark to market” results in their funds in relatively short time frames (just a few years) will not be willing to invest as necessary over an unusually lengthy period of time to achieve the necessary end results.
Long term, patient investing has been Tracinda’s approach. ... Tracinda has been the controlling shareholder of MGM Mirage (originally MGM Grand) for twenty years - having built it into a public company with a market capitalization of nearly $21 billion today.
That is what we believe all the Chrysler constituencies need. Not a “quick fix,” that may show good results three or so years from now, only to have the company possibly slip into another crisis situation. But a lasting fix that builds on the fundamental requirements in the automotive industry of product newness and quality, and in the process provides returns not only to the investors, but to the employees as well through their ownership stake. ...
Sincerely,
Jerome B. York
Dear Dr. Zetsche:
I had the chance to meet you briefly at Gary Valade’s retirement party in early 2004, and enjoyed our chat at the time, on Toyota pricing as I recall. Of course the several hundred in attendance at that event were in high spirits, as the impact of Chrysler’s early 2000’s turn around plan was beginning to exhibit remarkable results.
But of course this was three years ago, when gasoline prices were still below $2.00 per gallon in the US, and before three more years of rampant healthcare inflation had taken place.
... The right (meaning exceptionally patient) private ownership can do things that are difficult for both public companies and the wrong (meaning not so patient) private ownership, specifically:
1. Take a very long term approach to solving Chrysler’s problems without worrying about “EPS results” for the initial five, six or seven year period it will likely take to build Chrysler into a robust and lasting, stand-alone entity.
2. Offer a substantial portion of equity in the company to the UAW as part of finding a solution to ever-rising healthcare costs, which not only are unaffordable by corporations, but over time will likely prove to be unaffordable by governmental entities as well. ...
The returns will not come quickly. Investors that feel the need to show “mark to market” results in their funds in relatively short time frames (just a few years) will not be willing to invest as necessary over an unusually lengthy period of time to achieve the necessary end results.
Long term, patient investing has been Tracinda’s approach. ... Tracinda has been the controlling shareholder of MGM Mirage (originally MGM Grand) for twenty years - having built it into a public company with a market capitalization of nearly $21 billion today.
That is what we believe all the Chrysler constituencies need. Not a “quick fix,” that may show good results three or so years from now, only to have the company possibly slip into another crisis situation. But a lasting fix that builds on the fundamental requirements in the automotive industry of product newness and quality, and in the process provides returns not only to the investors, but to the employees as well through their ownership stake. ...
Sincerely,
Jerome B. York
04-06-2007, 06:48 AM
#277
Race Director
That patience Mr. York is talking about will only last so long - pouring a lot of money down some rat hole for 5,6,7 years to realize that things are not turning around takes a lot of guts. I guess this means the RWD line up for Chrysler will no longer be some MB hand me down. 
05-14-2007, 07:22 AM
#278
Suzuka Master
"Chrysler bought by Cerberus for $7.4B"
Private equity firm to buy 80 percent stake in U.S. automaker. Debt free at first, the company will assume billions in retiree health care costs down the line.
NEW YORK (CNNMoney.com) -- DaimlerChrysler moved to undo the most expensive and one of the least successful mergers in auto industry history Monday as it agreed to sell its money-losing Chrysler unit for only a fraction of what it paid nine years ago.
DaimlerChrysler (Charts) announced it will sell an 80 percent stake in its U.S. brand for $7.4 billion to Cerberus Capital Management, a private equity investment firm. The private equity sector has become a major force in acquisition of publicly owned companies in recent years, often buying troubled operations at a bargain price.
We are aware that Chrysler faces significant challenges, but we are confident that they can and will be overcome," said a statement from John Snow, the chairman of Cerberus and the U.S. Treasury Secretary from 2003 to 2006. "A private investment firm like Cerberus will provide management with the opportunity to focus on their long-term plans rather than the pressures of short-term earnings expectations."
This is not Cerberus' first entry into the troubled U.S. auto industry. Last year it bought a 51 percent stake in GMAC, the finance unit of General Motors (Charts, Fortune 500), and it is in negotiations to become a major investor in Delphi (Charts, Fortune 500), the world's No. 1 auto parts maker which has been in bankruptcy since October 2005.
The German automaker then known as Daimler-Benz paid $37 billion for the U.S. automaker in 1998, but it soon found itself weighed down by uncompetitive labor costs and losing sales to nimbler Japanese rivals.
Toyota Motor (Charts) passed DaimlerChrysler in U.S. sales for the first time 2006, as GM, Ford Motor (Charts, Fortune 500) and Chrysler all lost money on their North American operations and announced plans to close plants and make deep cuts in staff.
On Feb. 14, as DaimlerChrysler announced it would look at all options for Chrysler, including a possible sale, at the same time it announced plans to cut 13,000 jobs as it closes an assembly line in Delaware and a parts center in Cleveland, while it elimates shifts at other plants. That same day the company announced that Chrysler losses reached $1.5 billion in 2006, even as DaimlerChrysler made $7.3 billion in the period.
Chrysler attracted interest from a number of other private equity firms, as well as Canadian auto parts marker Magna International (Charts). In addition, financier Kirk Kerkorian, who had been the largest shareholder in Chrysler when it was sold to Daimler-Benz, offered $4.5 billion for Chrysler, proposing to share ownership of the company with its unions and management. But that bid never appeared to be taken seriously by DaimlerChrysler.
Still over the last three months pressure from German shareholders to dump the unit mounted in the face of the prospect for future losses in North America. At the company's annual shareholder meeting in April, major institutional shareholders pushed for a sale.
"We're confident that we've found the solution that will create the greatest overall value -- both for Daimler and Chrysler," said a statement from DaimlerChrysler Chairman Dieter Zetsche. "With this transaction, we have created the right conditions for a new start for Chrysler and Daimler."
The United Auto Workers union, which had previously stated opposition to the sale of Chrysler to a private equity firm, issued a statement Monday backing the deal.
UAW President Ron Gettelfinger said the union leadership "concluded that the transaction with Cerberus is in the best interest of our membership, the Chrysler Group and Daimler. We are satisfied now that the decision has been made so that our membership and management can focus on designing, engineering and manufacturing the finest quality products for the future success of the Chrysler Group."
The newly independent automaker, to be known as Chrysler Holding will begin debt free, as its former German parent, now to be known as Daimler, assumes its debt. Daimler will also retain a 20 percent stake in Chrysler Holding.
But the U.S. automaker, which is projected to lose money until at least 2009, will take with it responsibility for billions in health care coverage promised to union employees, retirees and their families, costs than are adding thousands of dollars to each automobile made in North America.
http://money.cnn.com/2007/05/14/news...ion=2007051406
NEW YORK (CNNMoney.com) -- DaimlerChrysler moved to undo the most expensive and one of the least successful mergers in auto industry history Monday as it agreed to sell its money-losing Chrysler unit for only a fraction of what it paid nine years ago.
DaimlerChrysler (Charts) announced it will sell an 80 percent stake in its U.S. brand for $7.4 billion to Cerberus Capital Management, a private equity investment firm. The private equity sector has become a major force in acquisition of publicly owned companies in recent years, often buying troubled operations at a bargain price.
We are aware that Chrysler faces significant challenges, but we are confident that they can and will be overcome," said a statement from John Snow, the chairman of Cerberus and the U.S. Treasury Secretary from 2003 to 2006. "A private investment firm like Cerberus will provide management with the opportunity to focus on their long-term plans rather than the pressures of short-term earnings expectations."
This is not Cerberus' first entry into the troubled U.S. auto industry. Last year it bought a 51 percent stake in GMAC, the finance unit of General Motors (Charts, Fortune 500), and it is in negotiations to become a major investor in Delphi (Charts, Fortune 500), the world's No. 1 auto parts maker which has been in bankruptcy since October 2005.
The German automaker then known as Daimler-Benz paid $37 billion for the U.S. automaker in 1998, but it soon found itself weighed down by uncompetitive labor costs and losing sales to nimbler Japanese rivals.
Toyota Motor (Charts) passed DaimlerChrysler in U.S. sales for the first time 2006, as GM, Ford Motor (Charts, Fortune 500) and Chrysler all lost money on their North American operations and announced plans to close plants and make deep cuts in staff.
On Feb. 14, as DaimlerChrysler announced it would look at all options for Chrysler, including a possible sale, at the same time it announced plans to cut 13,000 jobs as it closes an assembly line in Delaware and a parts center in Cleveland, while it elimates shifts at other plants. That same day the company announced that Chrysler losses reached $1.5 billion in 2006, even as DaimlerChrysler made $7.3 billion in the period.
Chrysler attracted interest from a number of other private equity firms, as well as Canadian auto parts marker Magna International (Charts). In addition, financier Kirk Kerkorian, who had been the largest shareholder in Chrysler when it was sold to Daimler-Benz, offered $4.5 billion for Chrysler, proposing to share ownership of the company with its unions and management. But that bid never appeared to be taken seriously by DaimlerChrysler.
Still over the last three months pressure from German shareholders to dump the unit mounted in the face of the prospect for future losses in North America. At the company's annual shareholder meeting in April, major institutional shareholders pushed for a sale.
"We're confident that we've found the solution that will create the greatest overall value -- both for Daimler and Chrysler," said a statement from DaimlerChrysler Chairman Dieter Zetsche. "With this transaction, we have created the right conditions for a new start for Chrysler and Daimler."
The United Auto Workers union, which had previously stated opposition to the sale of Chrysler to a private equity firm, issued a statement Monday backing the deal.
UAW President Ron Gettelfinger said the union leadership "concluded that the transaction with Cerberus is in the best interest of our membership, the Chrysler Group and Daimler. We are satisfied now that the decision has been made so that our membership and management can focus on designing, engineering and manufacturing the finest quality products for the future success of the Chrysler Group."
The newly independent automaker, to be known as Chrysler Holding will begin debt free, as its former German parent, now to be known as Daimler, assumes its debt. Daimler will also retain a 20 percent stake in Chrysler Holding.
But the U.S. automaker, which is projected to lose money until at least 2009, will take with it responsibility for billions in health care coverage promised to union employees, retirees and their families, costs than are adding thousands of dollars to each automobile made in North America.
http://money.cnn.com/2007/05/14/news...ion=2007051406
