Daimler to sell Chrysler?

[Kowalski]

All this story, reminds me of that episode from The Simpsons, when the typically Austere Germans buy Mr. Burn's Nuclear Power Plant, and then they find out the huge, fat, extremely bitter lemon they got and plead Mr. Burns to buy it back, even at a massive loss.

Any similarity with the "Merger of Equals" is no coincidence.

Now, Mercedes-Benz wants deperately to get rid of the American lemon (Chrysler, Dodge & Jeep) at any cost. It's only a matter of very short time, until Herr Zetsche decide to put the entire Chrysler group for sale on the Ebay with No Reserve!

Any Chinese bidder interested?

 

[EnI]

It's only a matter of very short time, until Herr Zetsche decide to put the entire Chrysler group for sale on the Ebay with No Reserve!

Any Chinese bidder interested?

Perhaps he should approach to Piëch. Perhaps he will be interested.

There is still some place for Chrysler, Dodge & Jeep to fi between VW, Skoda, Seat, Audi, Bentley, Bugatti, Lamboghini & Porsche.

 

[SCOTT27]

Re: Daimler-Benz Again?

This has been on topic amongst the industry rumour mill for a while now .
It seems Mercedes-Benz are now following the same route as BMW took when it decided to offload Rover simply down to shareholder pressure.

Like BMW before it Mercedes-Benz's shareholders must be demanding blood with the dramatic fall Chrysler takes each year and limited profit returns and the effect it is having on the crown jewels Mercedes-Benz .
Like BMW previous investor showdowns specifically over Rover and that pile of "f***** Crap!" you have landed us"with I magine similar material being played out at MB.

 

[Imhotep Evil]

I heard that The Economist estimated BMW lost about 7 Billion sterling pounds woth Rover. And with the sell out of LR/RR, and keeping the new MINI and Oxford, Swindon and Hams Hall they reduced that in half.

That true ENI, SCOTT ?!

I wonder about MB.

 

[EnI]

I heard that The Economist estimated BMW lost about 7 Billion sterling pounds woth Rover. And with the sell out of LR/RR, and keeping the new MINI and Oxford, Swindon and Hams Hall they reduced that in half.

That true ENI, SCOTT ?!

I wonder about MB.

Almost true.
The total costs BMW had with Rover debacle were approx 7 billion US dollars, not sterling pounds.

 

[klier]

I wonder about MB.

I believe I read $63 billion (if they decide to sell)

 

[LaArtist]

^i wonder if it will break even and into green in the long term??
if so..sell it to the first best buyer

 

[Mr. Mercedes]

I believe I read $63 billion (if they decide to sell)

It would cost MB $63 Billion? Surely the market capitalisation of DXC as a whole isn't even close to that'?

I think MB might be considering ripping apart any connection between Mercedes and Chrysler and then using Chrysler to enter some sort of strategic alliance withe GM et al. if dumping Chrysler alltogether was going to be too costly.

In the end though I hope somthing DRASTIC happens. How long can the see-saw performance of the company continue to be tolerated by shareholders.

 

[astonmartin]

I believe I read $63 billion (if they decide to sell)

According to the 3rd link
http://jurnalo.com/jurnalo/storyPage.do?story_id=17838

it says "Raab said selling off Chrysler could cost Daimler up to 26 billion euros (34 billion dollars) because the company would have to take over entitlements for the company's employees."

so its $34 Billion which is still quite a lot.

However, is it a good decision to lose $34B when the reports say the Chrysler unit is only lost $1.4B last yr?

 

[Mr. Mercedes]

According to the 3rd link
http://jurnalo.com/jurnalo/storyPage.do?story_id=17838

it says "Raab said selling off Chrysler could cost Daimler up to 26 billion euros (34 billion dollars) because the company would have to take over entitlements for the company's employees."

so its $34 Billion which is still quite a lot.

However, is it a good decision to lose $34B when the reports say the Chrysler unit is only lost $1.4B last yr?

Is this $34 billion in costs the outcome of the overall deal, after taking into consideration any earnings that would be achieved through the sale of an asset (Chrysler)? Or does it simply represent the costs alone?

 

[astonmartin]

Is this $34 billion in costs the outcome of the overall deal, after taking into consideration any earnings that would be achieved through the sale of an asset (Chrysler)? Or does it simply represent the costs alone?

that answers my question a bit. thanks

 

[Mr. Mercedes]

that answers my question a bit. thanks

lol Aston, my post was more of a question than a statement. I was hoping you would be able to answer my question.

 

[astonmartin]

Well, it made me think about that question and i realized that there is a possibility that the report might not have included the earnings that would be achieved from the sale of the unit.

To answer the question, the source did not state whether it is included or not.

 

[klier]

According to the 3rd link
http://jurnalo.com/jurnalo/storyPage.do?story_id=17838

it says "Raab said selling off Chrysler could cost Daimler up to 26 billion euros (34 billion dollars) because the company would have to take over entitlements for the company's employees."

so its $34 Billion which is still quite a lot.

However, is it a good decision to lose $34B when the reports say the Chrysler unit is only lost $1.4B last yr?

Sorry, you're right. I meant 36 rather than 63