Could a Chrysler-free Daimler be a takeover target?
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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Reader Comments (Page 1 of 1)
Jit 12:46PM (2/28/2007)
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.
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Frank 12:46PM (2/28/2007)
That would be karma. Daimler sells Chrysler to a Chinese firm and another Chinese firm buys a smaller Daimler. Budda would smile.
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Jit 12:46PM (2/28/2007)
when I say popular i mean stronger.
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dejal 12:54PM (2/28/2007)
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?
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Jit 12:57PM (2/28/2007)
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
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iQuack 1:14PM (2/28/2007)
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.
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rip 3:08PM (2/28/2007)
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.
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rip 3:02PM (2/28/2007)
lallalalala
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whofan 3:32PM (2/28/2007)
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!
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jlt0x 8:25AM (3/01/2007)
It would be interesting to see how a Chrysler-free DaimlerBenz would operate after a de-merger.
A roaring investors insist DaimlerBenz would prosper handsomely after shedding Chrysler and that could be true. But I bet Mercedes-Benz will focus on products that's similar to the current Chrysler Group offerings (i.e. Pacifica, 300, Durango-Aspen, Hornet, etc.). M-B ignored the Pacifica and now the market is screaming for vehicles in that category and price range. They figured they'd introduce the R-class before updating the Pacifica and it was the wrong decision. Now GM has make changes and introduced its offerings that will attract far more consumers. Pacifica is now in a negative position of playing catch-up/keep-up with the US competition.
Hopefully, DCX didn't really think the momentum of the 300 was going to carry the Chrysler Grp to the next decade. Chrysler's fame is to create well-thought out vehicles that use just about every possible nook-and-cranny (of room) to maximize storage and versitility (Stow-n-Go). DCX should be developing the next Pacifica with that in mind as well as the next Durango-Aspen, a midsize/large 4dr pickup, and a large SUV. Chrysler must add versitility to its midsize car lineup also...add AWD options.
There's lots for DCX to do with the Chrysler Group. A de-merger shows that DaimlerBenz isn't that imaginative all with a group of brands that can be taken much further.
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