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The law of unintended consequences strikes again. There's a new twist in the soap opera that is Daimler minus Chrysler. A DaimlerChrysler without the US branch and its associated liabilities would be a significantly smaller company and a potentially much more attractive takeover target. The newsletter of the American International Automobile Dealers Association reports that some analysts feel that depending on how any separation is structured, an independent Daimler Group could find itself in the cross-hairs of hedge funds or private equity groups. Since Daimler doesn't have any individual shareholder big enough to keep them independent the way Porsche now dominates Volkswagen, a takeover might be easier. It's all just speculation for now, but it's something for Dr. Z to consider before he leaps.

[Source: The Auto Channel]

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    • 1 Second Ago
      • 8 Years Ago
      Radio commercial:
      "So get on down to your local Hyundai-Mercedes Corp. dealer."

      I like it.

      Which one would have the better JD Power figures?
      • 8 Years Ago
      Besides won't Daimler still have -

      Mercedes Trucks and Vans (Profit)
      Frieghtliner (Profit)
      Sterling Trucks (Profit)
      17.5% of EADS ( Airbus and co... also profitable)

      You get the feeling they will be fine

      • 8 Years Ago
      Daimler would be a great company for another auto company to buy.
      I couldn`t see the German government ever allowing a foriegn company buy Diamler out. National pride is alive and well in Germany. Yet they allow GM and Ford to compete in their country too.
      If your American buying a foriegn car make it European. We sell cars there too. That`s fair trade!
      • 8 Years Ago
      Whoever buys Chrysler also buys obligations to the UAW which limit opportunity for the company to earn a profit.
      So long as the UAW has a choke hold on Chrysler, the company isn't worth anything.
      • 8 Years Ago
      • 8 Years Ago
      lol, so owning an American car company is effectively a poison pill.

      BMW is now racing to insert a policy clause stating that in the event of a hostile takeover bid, immediately buy GM.
      • 8 Years Ago
      Very Unlikely. A merger in the sense of Nissan- Renault and not like current daimlerchrysler merger is a more likely scenario. Mercedes is to Germany what Coca-cola and levis is to america even what ferrari is to Italy. There is no way ever they would give it up.

      Once the demerger happen you will see a more popular daimler. The smart will probably be expanded into a proper car range (done properly this time with 100% mercedes engineering like the fortwo).

      These are just rumours just like the rumours when BMW sold Rover. They survived fine and now they are stronger then GM and ford combined. The rumours will be forgotten by next week.