The German business daily Handelsblatt reported today that DaimlerChrysler may keep the Jeep brand if it eventually sells the Chrysler Group. The reason is that Jeeps fit well the Mercedes-Benz brand and offers unique product that Daimler couldn't offer on its own. If true, that would mean interested parties would be bidding on the Chrysler and Dodge brands alone. Of course, a few Jeep vehicles like the Compass share their platforms with other Chrysler Group models like the Dodge Caliber, so those links would likely still remain for some time after a potential sale. Considering that the only two companies who appear to have expressed any interest in purchasing the Chrysler Group are General Motors and Magna, taking Jeep off the table would likely make the deal even less attractive than many analysts claim it to be. Jeep sold about 595,000 units in 2006 and sales were up 14% in January and down 5% in February.
Thanks for the tip, JuanTan!
[Source: Yahoo]
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Reader Comments (Page 1 of 2)
GhostDoggy @ Mar 1st 2007 6:44PM
Merger of equals? More like acquisition and liquidation.
Bob R. @ Mar 1st 2007 6:45PM
Chrysler won't be worth much at all without the Jeep brand.
3cubedminus3squared @ Mar 1st 2007 6:58PM
Hmm. When the new password system came into play, my name no longer read as JuanTan. Oh well, not like it really matters.
But yeah like no.2 said, Chrysler just isn't complete without Jeep.
Howard Kerr @ Mar 1st 2007 7:02PM
My lack of imagination is showing again:
While I agree that Jeep has a "somewhat" unique product that "might" make a good fit with M-B's current offerings....why?
Just a week or two ago an article here at AutoBlog said that, what was it? 40% or 60% of M-B products are now sold with AWD. I thought that number sounded high, until I remembered all the SUVs and crossovers now being sold by Mercedes. The only thing that Jeep gives to M-B...in my mind, is cheap Four Wheel Drive. The kind of cheap that doesn't bother you when you use it to tow. (I've never seen anyone tow anything with a new(ish) M-B of any kind.
I do agree with another poster, who would want Chrysler WITHOUT Jeep? They are just another okay car company....much like Ford U.S. would be, without trucks and SUVs.
david @ Mar 1st 2007 7:10PM
i just put my checkbook away.
whofan @ Mar 1st 2007 7:33PM
It will be a sad day to see chrysler`s demise. With out Jeep I can`t see Chryslers future being too good.
I blame Kirk Kerkoren, (however you spell it)if it weren`t for his bid for a hostile takeover of Chrysler, That got the ball rolling for Chrysler`s sale. They may have done alright on their own.
Thank god GM shook this leach off them.
Accordsforall @ Mar 1st 2007 7:45PM
Hmmm
I cant for the life of me.. see Jeep.. next to Mercedes.
Forget a post.. just the concept.. Jeep.. against a M-B. An S class in black with leather n w/e for 100k.. against some.. Rubicon, and a road going... el cheapo Compass. Who was smoking what.. to get to that idea?
Frank @ Mar 1st 2007 8:01PM
Th only thing I can surmise other than Jeeps reputation is that Mercedes wants Jeep for their technology. They will never admit it, but there is a lot of Jeep under the skin of the new M class.
There is a great speculative article on ALLpar about what is really going on in Stugart. check it out.
http://www.allpar.com/weblogs/2007/02/27/could-there-be-light-at-the-end-of-chryslers-tunnel/
doglet @ Mar 1st 2007 8:12PM
"I cant for the life of me.. see Jeep.. next to Mercedes."
thats the whole point, its a market that MB cannot serve. the jeep brand is valuable BECAUSE it is so different
iQuack @ Mar 1st 2007 9:02PM
Jeep is a valuable name--maybe Chrysler and Dodge are, too. But what are these names worth?
The Jeep is unique, but any truck or SUV company could put the Jeep badge on a decent product--Jeep's current hardware isn't so special.
Chrysler and Dodge vehicles are currently little more than curious mish-mashes of domestic parts mixed with old Mercedes underpinnings in the Chrysler 300/Dodge Charger, and Mitsubishi platforms and engines in the Dodge Caliber, clumsy-looking Sebring sedan, and upcoming Dodge Avenger.
Seems to me none of this stuff is worth much if UAW baggage is included. Without the union in the picture, familiar brands could be a way for a Chinese company to enter the U.S. market quickly.
tikirob @ Mar 1st 2007 9:10PM
I agree Jeep has been diluted and the technology has been spread around. It might not be a bad thing if they could stick it back into a niche.
Rob
http://www.autoshortlist.com
Frank @ Mar 1st 2007 10:02PM
Actually the 300C/Charger is about 20% old E-class.
The Caliber etc. is based off the Mitsu Lancer platform (that's a bad thing?) but the engine is a co developemnt effort between Chrysler, Hyundai, and Mitsubishi. Each maker will get to put their own head on the engine but the block and crank were developed together.
Barney @ Mar 1st 2007 10:28PM
I agree with Rob (#11 comment) but it also appears Jeep drivetrain is provided by whomever owns the name. At one point, you had to know the exact date the vehicle was made to get the right part. Engines specifically, were from every other manufacturer and so were the transmissions. About the only thing of value appears to be the name and grill.
Cheezedog @ Mar 1st 2007 11:27PM
That might be a great thing for GM then... Lord Knows the last they need is anouther 4X4 company when they can bairly move there Hummers...
Doc Lucas @ Mar 1st 2007 11:58PM
BMW sold the Rover car brand for 6 Million pounds in 2006. Six years prior, they sold Land Rover for 1.8 Billion pounds. Without adjusting for inflation, Land Rover sold for 300x more than it's parent company.
Without Jeep, you have to drop at least one zero off the asking price for Chrysler. I realize this is an unfair comparison, Rover was stripped down to the frame before it was sold.
Bob R. @ Mar 2nd 2007 8:04AM
If GM were to buy Chrysler, would they have access to the AMC brand?
Tarditi @ Mar 2nd 2007 8:04AM
Similar to what #8 said, there is also a lot of Diamler influence on the latest gen Jeeps.
The new Grand Cherokee Limited looks more at home on a M/B lot (the laredo interior is very cut rate compared to the limited, however) than in the Jeep Lineup, and the new wrangler is way too high tech for the hardcore Jeep crowd, but quite fetching for those that wanted the ruggedness of a wrangler without the sacrifices required in ride and comfort equipment.
jim @ Mar 2nd 2007 9:40AM
This makes sense for Jeep and MB, but not for the rest of Chrysler. Jeep gets assistance in reaching the markets outside of North America as well as access to technical resources to augment their own.
For MB Jeep is a storied brand through out the world but sold only in corners of it. Land Rover, Toyota, Nissan and others sell thousands of 4x4 utility vehicles through out Africa, the Middle East and Asia that are used as daily drivers and work vehicles. DCX sees little or none of this business, excepting Unimog which is a different beast.
As for the rest of Chrysler; GM and Magna's offers might be so paltry that offers from private investment companies who would liquidate Chrysler and are as attractive.
jim @ Mar 2nd 2007 9:40AM
This makes sense for Jeep and MB, but not for the rest of Chrysler. Jeep gets assistance in reaching the markets outside of North America as well as access to technical resources to augment their own.
For MB Jeep is a storied brand through out the world but sold only in corners of it. Land Rover, Toyota, Nissan and others sell thousands of 4x4 utility vehicles through out Africa, the Middle East and Asia that are used as daily drivers and work vehicles. DCX sees little or none of this business, excepting Unimog which is a different beast.
As for the rest of Chrysler; GM and Magna's offers might be so paltry that offers from private investment companies who would liquidate Chrysler and are as attractive.
Galley @ Mar 2nd 2007 9:42AM
Jeep is one of the world's most recognized trademarks.