• Oct 24th 2008 at 4:59PM
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So, just what is a 19.9% stake in America's third largest automaker worth? Um, nothing. So says Daimler, which owns exactly that amount. The German company claims that, for accounting purposes at least, there is absolutely no value in its part-ownership of Chrysler. Just about a year ago, Daimler estimated that its share of Chrysler was worth some $1.17 billion. The remaining 80.1% was sold to Cerberus Capital Management last August for $7.4 billion.
According to Chrysler, Daimler's idea of its stake in the company is a totally different animal than its own. The two companies use different accounting techniques to arrive at earnings figures and net worth, and the privately-held American automaker doesn't release its internal figures. As we've covered, Daimler is currently in talks with Cerberus to rid itself of any attachment to its former partner by selling its remaining shares of Chrysler to the American company, which it would need if it were to make any sort of deal with General Motors, Renault or any other automaker for that matter. So, just how much is Chrysler worth as a whole? We could soon find out.

[Source: The Detroit News]

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    • 1 Second Ago
      • 6 Years Ago
      I have a nickle here with Chrysler's percent written all over it. I'll take it off your hands for a nickle, how's that, Z?

      Actually, I may be better off with the nickle...
        • 6 Years Ago
        18B? They lowered that when they dropped retiree life insurance & cut much of that healthcare "liability"

        Enjoy your golden years...
        • 6 Years Ago
        Actually, I'm sure you would be far better off keeping your nickel. In 2007, Chrysler had an $18B liability to for retiree pension and health care obligations.
      • 6 Years Ago
      I would apply Dr. Z's evaluation to GM and Ford as well.

      Don't have the numbers to back my opinion up since all three domestic makers are hiding their catastrophic debt so well.
      • 6 Years Ago
      Funny coming from one of the guys who made Chrysler worth nothing. Dr. Z. is a barely functional idiot and probably should be working at McD's instead of running a car company.
        • 6 Years Ago
        And may I ask where you got your doctorate?

        Your hate for the man should at least have some reasoning behind it. He probably did more to save Chrysler than you did.
        • 6 Years Ago
        Alright, I'll give you some reasons why he's an idiot.

        Before Daimler/Chrysler

        1. Chrysler = Profitable
        2. Higher Initial Quality Ratings than Mercedes (Yeah I know hard to believe) based on defects per car.
        3. Higher Profit per Car than any other domestic offering.

        During Daimler/Chrysler Debacle.
        1. Profits from Chrysler spent saving sinking Benz, neglect Chrysler
        2. No real development $ spent on chrysler
        3. Quality went down, finally below Benz, Yippeee!
        4. Marketing Campaign sold "German" Engineering for Chrysler cars. "Don't Insult Us!"
        5. People wised up to nonsense and stopped buying based on all of above.

        Daimler Ran away from a sinking ship and lost Millions (Smart Move Dr. Z!) Shouldn't have bought them in the first place.

        OK, maybe he's not an idiot, but he makes stupid decisions.
      • 6 Years Ago
      It's not exactly a secret that GAAP is a complete joke in relation to accounting methods used elsewhere. Yet another reason why US economy is so damn fake. Everything is LIFO!
      • 6 Years Ago
      What happens when you make poor quality cars and trucks, make current designs that no one cares about (the 300C & Challenger are the exception), do not adjust to the changes of the consumer market and continue this pattern over and over again for decades? You get the disaster called Chrysler. Mismanagement and arrogance have led them to where they are now. I pity all those workers and their families who lost their jobs.
      • 6 Years Ago
      Well its your life.

      Joke at American industry joke at your future.

      Keep right on buying foreign products that are actually worse than American products.

        • 6 Years Ago
        Good for you, greg. I agree with you that some of the latest American cars are pretty darn good. I can't wait for the new Ford Fiesta and possibly Mondeo (Taurus). The look of the new Lincoln sedan is better looking than Lexus and I like the new Ford Edge as well.
        • 6 Years Ago
        @AZZO45b: Actually, greg did boycott Chrysler. After all, he owns a Toyota.

        greg @ Oct 17th 2008 3:01PM wrote: "I own a toyota and now that I see american econ is not doing so well I am going to start buying american again."
        • 6 Years Ago
        The last American product I purchased (1999 Grand Cherokee) was a POS. The replacement SUV's (2003 Honda CRV, 2008 Toyota Rav4) are far better.

        Now they are different vehicles but the quality along with fit and finish is amazing.

        I could care less about Chrysler and their products after purchasing one in the past.

        Bye Bye Chrysler/Jeep/Dodge, Hello Honda, Acura, Toyota, Lexus.
        • 6 Years Ago
        Greg: I'm quite happy with American industry... American Honda in Marysville Ohio have been building very good stuff. My neighbors seem to like their American built Camry too.

        Please, spare us the Buy 'Merican nonsense. Many of my neighbors just bought ultra cheap Chrysler cars made in Canada & Mexico... what do you say to them?

        Chrysler was German owned for 10 years... did you boycott them during that time? Just askin'
      • 6 Years Ago
      Dieter *&$^%, %#&$@, F*#&ing, Zetsche.

      'nuff said.
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