Nerves are frazzled in Stuttgart over the troubles facing Chrysler. Let's not forget that Daimler still has a skin in the Chrysler game, and while everyone natters and frets about whether or not Fiat will prove to be the Savior Of Auburn Hills, execs are also thinking about the worst-case scenario in the halls of Daimler.
For over a decade, ownership of Chrysler has been bouncing back and forth over the Atlantic like an Airbus jet. Since its founding in 1925, it was independently owned and operated right out of Detroit, then Daimler bought controlling interest in 1998, only to sell it to U.S.-based Cerberus Capital Management. Now Fiat is poised to assume a 35% stake in the company. So the question is, who holds controlling interest? Well in short, nobody does. Daimler holds nearly 20%, Fiat's taking over 35%, le
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.
Last week, DaimlerChrysler Canada announced a series of incentives for new car buyers and leasers, including an employee price discount and a deal with Petro-Canada for 20 cents off per liter of gas for one year (of "average driving"). So, instead of making higher-mileage vehicles, DaimlerChrysler is giving buyers a little relief at the pump for 12 months. After that, buyers are on their own. Eligible vehicles = all 2006 models, all 2007 models (except Dodge Caliber, Jeep Compass, Jeep Patriot,
The last couple of days, we've all been inundated with news of Chrysler's sale to Cerberus, and that's what we lead Podcast #66 with. As much as it makes analysts and pundits foam at the mouth, news about the sale is a pretty dry affair. We'll be keeping an eye on how things go with the newly independent Chrysler, though.
The C-class is the entry-level Benz in the North American market. As such, every nouveau riche new graduate seemingly goes out and treats themselves to a slice of flashy bourgeois pie. That can be alarming for the Euro-car fan, as you risk being lumped into that precocious category along with Johnny Overachiever from down the block. There's no denying that the Stuttgart Swabians build nice vehicles, and we've certainly considered parking one in our driveway. We wouldn't want to deny ourselves th
Got eight tons of stuff to haul? Sterling Truck Corporation is taking a shot at it with its new Bullet-class 4/5 truck. The new mid-range worker looks to be based off the Dodge Ram chassis cab that recently debuted. Sterling is part of Freightliner, which is part of DCX, and if you look through the smoke in the teaser pic, it's pretty clear you're looking at a Ram-derived vehicle. Powering the Bullet will be the Mercedes diesels familiar to Sterling customers, driving either the rear wheels, or
Hyundai and Chrysler already share their 2.4 liter "world engine" (along with Mitsubishi), and they may share much more in the future. Rumors are trickling in from all quarters about potential suitors for Chrysler, should DCX decide to cut loose its American vessel, and Hyundai is the latest one to grab headlines. The main value in purchasing Chrysler, which is suffering from crippling pension and healthcare costs, geriatric factories and indifferent product, is the dealer network.
Back when my whip was a Volvo 740, I ventilated my taillights, too. Actually, it was more like drilling drain holes, but once all the trapped water escaped, you can bet that the compromised seal allowed plenty of air to flow through the lamp. Mercedes has applied intelligent thought to using the taillight as a hidden aerodynamic diffuser on the new C-Class, resulting in a slick Cd of .27. Instead of marring the design with some kind of tacky, nasty lip spoiler on the trunklid, the aerodynamic wu
There have been rumblings of late in the halls of Stuttgart that the boys in Auburn Hills are an albatross around the neck of DCX. Dieter Zetsche and company are reportedly in it for the long haul and fighting the good fight for Chrysler, but investors cite thin patience while waiting for a profit. Rumors of potential suitors waiting in the wings abound, but it seems that the real problem would be salability due to large pension commitments. Some have gone as far as speculating that even if Chry
Following many other companies, DaimlerChrysler has issued its first corporate-wide sustainability report. The new report, dubbed "360 Degrees", replaces and combines two previous separate reports on the environment and corporate social responsibility that have been generated for some time. The format of the new report is based on the Global Reporting Initiative guidelines for companies to use in their reports on sustainability.
On Tuesday a new joint Hybrid Development Center officially opened in Troy, MI. General Motors, DaimlerChrysler, and BMW have contributed more than 500 engineers, technicians and other support staff to the facility that will work on developing the dual mode hybrid system that they are all planning to use in upcoming vehicles. More than 150 of the staff will be coming from Europe. GM has already announced plans to use the new system in the new GMT900 SUVs and also on an updated version of the Sat
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