• Oct 25th 2006 at 2:14PM
  • 26
DaimlerChrysler reported third quarter earnings today of $686 million in net profit, but its Chrysler Group division dragged down that profit margin by posting a loss of $1.47 billion, a figure that completely erased the gain of $1.24 billion made by Mercedes-Benz. During a presentation today, DaimlerChrysler CFO Bodo Uebber didn't rule out the possibility that the Chrysler Group could be sold off. While far from saying the division has a For Sale on its windshield, Uebber told reporters, "We don't exclude anything here... We will do our analysis. Second, we will talk about measures. And third, we will draw our conclusions."
DCX predicts the Chrysler Group will finish 2006 about $1.2 billion in the red. As we reported earlier, the automaker has put together a task force comprised of executives from all its divisions to study the Chrysler Group's business plan and help the division cut an average of $1,000 from the cost of each vehicle it produces. No doubt the conclusions of this internal study will be used to make recommendations for or against keeping the Chrysler Group in the fold.

We seriously doubt that this proposition is being seriously considered by DCX. For one, the Chrysler Group has been profitable for DCX in the past and likely will be again once it nails down a decent health care deal with the UAW, pads its lineup with more small car offerings and less SUVs, and gets the Challenger out into the public's hands. There are other unprofitable brands under the DCX umbrella, like SMART for instance, that would logically be ahead of the Chrysler Group in line for sale. Still, Uebber should've known the fire storm of speculation that would start if even the prospect of selling the Chrysler Group was even mentioned in passing.

[Source: Automotive News]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 8 Years Ago
      ahahaha, "we seriously doubt this is seriously gonna happen but we'll report on it anyways."

      Nissan Ford and GM have a better chance of forming a partnership than this happening lmao.

      What 12 consecutive profitable quarters and now they are for sale after 2 crappy ones. Lord knows Mercedes Benz has not had their issues in the lat few years lol.

      Chrysler left themselves wide open overproducing earlier in the year, not having mid sized cars to sell, and having so many new vehicles being launched late. Compounding this their current showdown over healthcare costs and they are in a spot.. for now.

      I'm not sure if any of the velcro shoe wearing set heard that the new merecdes SUV, which at least they say shares DNA with the Grand Cherokee just won the SUV of the year award from motor trend. This type of sharing of engineering has been something that was said to be growing.

      I'm not sure if any of the window lickers have heard about their plans to share parts between platforms for "cheaper by the dozen" savings of which mercedes would benefit the most.

      Maybe I'm the only one who was Chrysler group is rolling out new vehicles to europe with some success.

      Flushing the Chrysler group is 100% counter intuitive to where they have been moving. If they were dumb enough to do it, then so be it.. lol.
      • 8 Years Ago
      The actual truth that most people seem to forget is that when the merger of Mercedes and Chrysler happened, Mercedes actually had worse reliability numbers than did Chrysler. Regardless of what a lot of you wannabe car gurus on this website have to say both companies benefited from the merger. We just automatically assume Chrysler was the beneficiary because Mercedes has a better reputation.

      If you look at numbers as far as problems per 100 vehicles, Chrysler/Dodge/Jeep are actually right in line with Toyota and Honda, and have made giant strides in recent years. In my opinion innovation is more alive at Chrysler/Ford/GM than it has been at just about any other car manufacturer in years. If you call what Honda and Toyota have been releasing lately innovation then you need to look up the definition of that word in a dictionary. Chrysler is the INNOVATOR of just about everything you have in your car today... Try not to forget that.
      • 8 Years Ago
      this would be a good opportunity for the chinese govt to get into the us auto business. move production back to china and distribute in the usa. reduce prices 40% and dominate the american market. american consumer get a better made product at a huge discount. china gets jobs. everyone wins.
      • 8 Years Ago
      #4 Good idea.

      Folks, are you surpriced by this? I mean what the heck is Serbing or Interpid or Concord, they are 1--plain, 2-not even close to competing with Camry Corolla, Accord Civic---group---these poor cars are made to compete with these heavyweights, and obviously they can't. Chrysler better speed up its Challenger and redo its Durango/Aspen.
      • 8 Years Ago
      I own 1997 Dodge Caravan with 185 000 miles and still going strong...Original 3.3 V6 and transmission
      My sisters 2000 Odyssey with 90 000 miles is on 3rd transmission
      • 8 Years Ago
      this loss will certain hurt MB. there quality has been lacking and has surpassed Range Rover recently. although i still consider MB a great brand, but its association with its american partners has certainly hurt its reputation in my oppinion.

      honestly it doesnt appear that MB association with chrysler has help chrysler either with their 3rd quarter losses.

      Chrysler does have a few vehicles that are selling well, for example, the magnum. but why still offer the Crossfire when it takes dealers between 250 - 300 days to move just 1?
      • 8 Years Ago
      Daimler-Benz should just let the Chrysler Group go. It'd be better off as its own company again. I'd hate to see ANOTHER foreign manufacturer have rights to produce Chryslers, Dodges and Jeeps. I say if CG wants to do better, it should reintroduce its old Imperial brand for the luxury market (I'd say Chrysler is more on the line of Mercury and Buick), Plymouth for its need for entry-level and compact cars and wean itself off trucks and SUVs.
      • 8 Years Ago
      It is 9 years and what has Mercedes done with Chrysler?
      All it has done is given chrysler two old platforms in C class and E class from mid 1990s to base cars on (crossfire, 300C, charger, pacifica, and so on...)
      There has been a serious lack of innovation at chrysler. You think they could make a minivan as good as the Odyssey but they cant. What shame. We have the same freakin caravan since 1995. Losers
      • 8 Years Ago
      i dont get it,, from past 3 years when Chrysler Group was making money in billions and mercedes was losing in billions, nobody talked about selling Chrysler but now after 1 bad quarter after 3 years everybody's talking about selling them.....I THINK THE REASON THEY LOST MONEY IN THIS QUARTER BECAUSE THEY LAUNCHED AND INVESTED TOO MUCH MONEY IN THE PRODUCTS........6 OR 7 I THINK COMING OUT IN LAST 4 MONTHS IN THIS YEAR.....AND THATS A LOT.....
      • 8 Years Ago
      Odd to be predicting the sale of Chrysler with so many new models being introduced it this time or soon: Sebring, Avenger, Compass, Nitro, Aspen, Patriot, etc.

      Would make more sense if Chrysler's latest car/SUV lines were failing--it's too early to establish that.
      • 8 Years Ago
      #23--"Well no, considering the fact that nobody could have predicted that a hurricane would decimate New Orleans, which in turn would drive record breaking prices of oil, which in turn caused people to turn to sub-compacts."

      Good point but what about this

      1-Clinton wants USA to join Kyoto
      2-September 11--most of them were saudies--USA imports more than 50% of its oil from ME
      2.1 palestinian jihad
      3-War in Afghanista
      4-PRE war in Iraq---about a year and a half
      5-War in Iraq itself
      6-Finaly Katrina

      Dude one has to be #1 either a complete moron or have lastname Ford, Wagoner or Z...whatever his name is not to see that gas would go up.

      Yet another war in ME---SPONSORED BY IRAN.

      here's one more for you Iran is going nuclear, Hugo Chavez, Harper in Canada did not win with that big of a MAJORITY, Liberal will block any further exploration in there. Mexico said few months back that it's oil fields do not have as many reserves as thought before.

      So if gas will suddenly go up again what will your exuce be than? Ohhh no one knew that Ahmadinejad is a nut case and Ford and GM do nothing to hedge their business from high gas prices?

      • 8 Years Ago
      Yes, I'm now one step closer to re-launching AMC!!
    • Load More Comments
    Share This Photo X