Autoblog

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]

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.

On a more amusing note, we marvel at the confidence GM has in its new Malibu. The suggested sales tactic is to put the new Malibu beside a Camry in Chevy showrooms and guide the customer through how the Malibu is better. Of course, it's mainly a sales stunt - as the only way to tell anything about a car is by driving it. We wonder if Malibus will start popping up in Toyota stores - it'd improve the scenery compared to all the Joe Camel-looking cars, that's for sure. Perhaps the most momentous item we cover this week is Autoblog's first purchased spy shots, capturing the new Honda Accord in the wild. On the spy shot tip, our discussion moves on to the Saab 9-3 and we eventually end up talking about cellphone shots of the Blue Devil. Betwixt the Saab and hot 'Vette, we briefly ponder why German companies are filling their trophy cases with engine awards. German Engineering, ja. We finish up with a simple request - that Motor Trend, Automobile and their sibling buff books be well treated by their new stewards, which devolves into a confessional about who bought a back issue on eBay that featured one of their favorite cars. It's a 36 minute affair this week, enjoy!


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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 the pleasure just to avoid being lumped in with a group of lecherous climbers, either. Lorinser has given the C-class a once-over and made it possible for true car-guys to have their Mercedes pleasure while standing apart from the schmuck brigade.

We love the look of the cosmetic upgrades. The turbine-style wheels look like impellers from a turbocharger with a wacky pituitary gland, and we wonder if they can slice, dice and julienne at speed. We're not normally fans of unnecessary extra ventilation, but the revised front quarter panels have gained a nice pair of extractors. We do find the "gills" in the lower rocker covers sorta strange, and they don't appear to have any purpose other than serving as a visual element. The front airdam has also received some tasteful attention, and Lorinser offers performance upgrades to back up the high-powered looks. Unlike some of the entry-level MBZ crowd, we'd rather the car be the high-powered one in a zoot suit.


[Source: World Car Fans]

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 optionally, both axles. Regular and quad-cab configurations are available for hauling your entire crew, as well. This would make a nice command post for Autobloggers as we criss-cross the country to bring you the latest news. Look for the debut at the NTEA show on March 6th.

press release after the jump

[Source: Sterling]

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.

Hyundai is making an aggressive effort in the US. The oldest thing in their fleet is the Tiburon (though it is newly-facelifted), and quality is way up. Hyundai and Kia vehicles represent good value for the money, and the instant sales organization they'd gain from a potential purchase of Chrysler would give Hyundai a further toe-hold. We're not sure how the brand change might play in Peoria, but we very seriously doubt that the rest of the Chrysler brand would be discarded just to acquire the sales organization.

There's a lot of value in Auburn Hills besides sales mooks. The Caravan and Voyager vans have been redone and are back in the game, and the LX cars still carry cachet, if not sales volume. Were the arranged marriage to occur, there would be some redundant products - such as the aforementioned vans. We're not sure how that would shake out. We bet that it costs Chrysler more to build a car than Hyundai spends, but we'd hope that the better car would win out in the corporate joust. A Sonata wearing a Chrysler badge (with some restyling, of course) wouldn't be such a terrible thing, would it?

Thanks to tipster Avinash!

[Source: timesonline]

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 wunderkinds at MBZ have applied some clever trickery to keep the arse of their newest kostspieliges auto looking slick.

A lip spoiler changes the airflow behind the vehicle by interrupting the smooth flow coming over the top of the car. That interruption reduces lift. The problem with a spoiler, is that they require a specific shape to attain their spoiling effect, dictating styling direction. The C-Class engineers have taken an alternate route to addressing the vortices out back. The taillights act as diffusers, pulling air from underneath the vehicle and venting it out of slits in the lamps. The high pressure air under the car now has somewhere to go, which reduces lift. An elegant alternate solution that achieves the same result as the old spoiler. The air coming out of the taillight lenses also affects airflow along the sides of the car for the better, keeping turbulence behind the new C-Class down. We can't say how close you'll have to ride your bicycle to this thing to get sucked along by the bubble, or how badly it'll mess up your hair when it passes by, what with all that air blowing all over the place, but it sounds like a clever trick.

[Source: worldcarfans]

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 Chrysler were to be put on the block, nobody would buy them. Of course, some of this situation seems to have been brought on by feeble cross-pollination, far below what was bandied about at the time of the 1998 merger. Sure, Chrysler got the old E Class platform to go play with, and the first-gen SLK is holding up the Crossfire, but there hasn't been any technology transfer from the smaller Mercedes vehicles to help DCX build a small car that's killer, or from their world-class truck division. One wonders if Chrysler's actually in the worst shape of the big three, but hiding it well. Are we in for a replay of the early '80s?

[Source: Reuters via Automotive News - Sub. Required]

The dust has settled on the mergerama between Renault/Nissan and GM (plus a few other rumored alliances), and for the time being the CEO of the Franco-Japanese automaker, Carlos Ghosn, has called it quits.

Currently, it's all about timing and right now Nissan has bigger things on the horizon. Impending product launches, in the form of the new Sentra, Altima and Maxima are dominating the Nissan side of things, while Infiniti is focused on the launch of the new G35 sedan and coupe, a new crossover called the Rogue and the all-conquering Skyline.

During his address to the Detroit Economic Club, Ghosn also revealed that he is keeping close tabs on how the Big Two-Point-Five are going to be dealing with legacy costs in the U.S. This is of particular concern to Nissan's North American operations, as the automaker will be facing similar situations within the next decade.

[Source: Automotive News]

After more than three decades of dutiful employment at Mercedes Benz, Paul Halata, current CEO of U.S. operations, will begin an early retirement starting September 1st of this year.

The man tapped to take the reigns of sales, service and marketing here in the States is current Australia/Pacific CEO, Ernst Lieb. Lieb, who began at M.B. in 1985, is credited with escalated sales in Canada while holding that country's top management position. His focus extended beyond Mercedes to include, Jeep, Dodge and other Daimler-Chrysler brands.

Halata (pictured) had recently signed a new contract extending his tenure through 2009. No reason was given for his early departure.

[Source: Automotive News]

DaimlerChrysler's popular LX-platform vehicles, the 300, Dodge Magnum and Dodge Charger are being recalled over brake issues. The automaker announced Friday that it will be sending notices to some 45,000 owners about a possible brake fluid leak that has resulted in at least nine engine fires. Vehicles affected are all 2006 models using the 2.7-liter V6 engine.

In addition, DCX also announced that it is recalling almost 7,000 six-speed Jeep Wranglers due to clutch problems. According to the automaker, the hydraulic clutch's master cylinder rod can fracture, inhibiting normal  shifting.

[Source: Associated Press via Los Angeles Times]