Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Daimler CEO Dieter Zetsche dishes out advice for Chrysler]]>http://www.autoblog.com/2009/11/15/daimler-ceo-dieter-zetsche-dishes-out-advice-for-chrysler/http://www.autoblog.com/2009/11/15/daimler-ceo-dieter-zetsche-dishes-out-advice-for-chrysler/http://www.autoblog.com/2009/11/15/daimler-ceo-dieter-zetsche-dishes-out-advice-for-chrysler/#commentsFiled under: , , , , ,


It's said that certain cultures don't handle the concept of irony well. You know, irony - where the intended answer is the opposite of the actual answer. Case in point: Back when cab forward cars were all the rage and the once mighty Plymouth brand was put out to pasture, Chrysler looked as if it had a fighting chance at remaining solidly within the Big 3. The Dodge Ram was a gauntlet thrown, the V10 Viper had sports car fans atwitter and the Dodge Intrepid really was a smart, good looking car.

Chrysler, meet Daimler, your new "equal." And by equal we mean Daimler gets the all the profits and you get cast off, last-generation Mercedes platforms on which to underpin your new cars. In the case of the 300C/Charger/Magnum, this particular strategy worked, for a couple of years at least. In the case of the Crossfire, not even a little bit. And then under Daimler's watch - and specifically under the eyes of Dieter Zetsche, a.k.a. Dr. Z - Chrysler was piledriven through the mat. Have you driven a Dodge Journey lately?

Here's the irony - Dr. Z is handing out unsolicited advice to Fiat's Sergio Marchionne vis-a-vis Chrysler - and we just can't help but laugh. Zetsche claims, "I continue to be emotional about this company and am crossing my fingers for the very best future." And while we're 51% sure he's being sincere, where was that emotion when he green lit the Jeep Compass? Or the Chrysler Sebring? Or the Dodge Caliber? All cars that led directly to the bankruptcy of Chrysler. We could go on, but you get the idea. Our advice to Sergio? Do the opposite of whatever Zetsche is telling you.

[Source: USA Today | Source photo by TORSTEN SILZ/AFP/Getty Images]

Daimler CEO Dieter Zetsche dishes out advice for Chrysler originally appeared on Autoblog on Sun, 15 Nov 2009 08:46:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChryslerDaimlerDaimlerChryslerDieter ZetscheDieterZetscheDodgeDr. ZDr.ZFiatJeepsergio marchionneSergioMarchionneSun, 15 Nov 2009 08:46:00 EST<![CDATA[2011 Jeep Grand Cherokee launch threatened by parts dispute?]]>http://www.autoblog.com/2009/10/04/jeep-grand-cherokee-launch-threatened-by-parts-dispute/http://www.autoblog.com/2009/10/04/jeep-grand-cherokee-launch-threatened-by-parts-dispute/http://www.autoblog.com/2009/10/04/jeep-grand-cherokee-launch-threatened-by-parts-dispute/#commentsFiled under: ,

2011 Jeep Grand Cherokee - Click above for high res image gallery

Chrysler and Daimler have been divorced for nearly three years, but the two automakers are still very much entwined when it comes to product. The Chrysler 300, Dodge Charger, and Dodge Challenger use a platform and several components sourced from Daimler. Chrysler's short-term product plans include more Daimler DNA in the the Mercedes-Benz M-Class architecture that forms the basis for the new Jeep Grand Cherokee and Dodge Durango underpinnings.

Unfortunately for the Pentastar, Daimler doesn't seem to want to play parts pimp for its former underling, as it is shorting the company of vital components required to continue operations. In August, Chrysler filed suit against Daimler because the German automaker was withholding parts like torque converters and steering columns. That suit has reportedly been settled, but now Chrysler alleges that the 2011 Jeep Grand Cherokee launch is now in jeopardy. As such, Chrysler has filed a second suit to force Daimler to provide rear axles and other components in a timely fashion, stating that the company needs the parts to build new Grand Cherokee models for testing in advance of the vehicle's May launch.

Daimler spokesman Han Tjan reportedly told The Detroit News that his company feels the situation could be handled outside the courts, but Chrysler doesn't seem inclined to agree. It appears Chrysler is trying to hedge its bets by filing suit, as company spokesman Michael Palese told the News that the company needs the parts in the next 20 days and the company wants Daimler to finalize the contract to supply the parts. Palese added, "Chrysler has too much at stake to take a chance. These are important vehicle programs at a critical point in their launch cycle. We can't afford any delays."

This parts battle is part of a larger war (so to speak) between Daimler and Chrysler over diesel engines. Daimler wants $80 million from Chrysler to cover expenses the former incurred when Chrysler didn't purchase as many diesel engines as expected from Daimler to service the overseas market. Daimler wants the $80 million as a make-good for the lost volume. Chrysler says its recent bankruptcy shields it in this particular conflict, saying that the process resolved any lingering contract disputes, and that its new master, Fiat, isn't on the hook for the money. Ultimately, it boils down to this: Auburn Hills wants the courts to rule that all past contracts are still in effect -- ensuring a parts supply flow from Daimler for the affected new vehicle programs -- and that the Detroit automaker doesn't owe the Germans any money. If things don't go Chrysler's way, it looks as if life could get really ugly for Fiat's new ward.


Gallery: 2011 Jeep Grand Cherokee


[Source: Detroit News]

2011 Jeep Grand Cherokee launch threatened by parts dispute? originally appeared on Autoblog on Sun, 04 Oct 2009 11:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler 300Chrysler300daimlerdaimler chryslerDaimlerChryslerdodge challengerdodge chargerdodge durangoDodgeChallengerDodgeChargerDodgeDurangogrand cherokeeGrandCherokeeparts disputePartsDisputeSun, 04 Oct 2009 11:28:00 EST<![CDATA[REPORT: If Chrysler goes down, it could cost Daimler $1 billion]]>http://www.autoblog.com/2009/04/10/report-if-chrysler-goes-down-it-could-cost-daimler-1-billion/http://www.autoblog.com/2009/04/10/report-if-chrysler-goes-down-it-could-cost-daimler-1-billion/http://www.autoblog.com/2009/04/10/report-if-chrysler-goes-down-it-could-cost-daimler-1-billion/#commentsFiled under: , ,



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.

According to the Detroit Bureau, Bodo Uebber, Daimler's Chrysler guy, reported recently that concerned shareholders are rightfully nervous, as Daimler could be stuck with a $1 billion liability if Chrysler ist kaput. Unfunded pensions and potential claims from suppliers could result in very bad things for Daimler. Cerberus and the German automaker are also duking it out over whether Chrysler's health was honestly disclosed at the time of the deal, tying up any developments with the remaining 19.9 percent of Chrysler that Daimler still owns. Both Uebber and Dieter Zetsche, Daimler's CEO, are actively trying to unload the company's stake in Chrysler to Cerberus, but predictably, that conversation isn't going anywhere at the moment.

[Source: The Detroit Bureau | Image: Bill Pugliano/Getty]

REPORT: If Chrysler goes down, it could cost Daimler $1 billion originally appeared on Autoblog on Fri, 10 Apr 2009 11:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuscerberus chryslerCerberusChryslerchrysler daimlerchrysler llcChryslerDaimlerChryslerLlcdaimlerdaimler agdaimler cerberusdaimler chryslerdaimler-chryslerDaimlerAgDaimlerCerberusdaimlerchryslerFri, 10 Apr 2009 11:29:00 EST<![CDATA[BREAKING: Volvo design chief Steve Mattin leaves company]]>http://www.autoblog.com/2009/03/27/breaking-volvo-design-chief-steve-mattin-leaves-company/http://www.autoblog.com/2009/03/27/breaking-volvo-design-chief-steve-mattin-leaves-company/http://www.autoblog.com/2009/03/27/breaking-volvo-design-chief-steve-mattin-leaves-company/#commentsFiled under: ,

Steve Mattin, Volvo DesignDetails are scarce at the moment, but we have learned that Volvo's award-winning design director, Steve Mattin, has left the company. While no further details are immediately available (why he left, where he is headed, possible successors, etc.), Dan Johnston, Volvo's East Coast PR manager confirmed the news to us after placing a call to his counterparts in Sweden this afternoon.

U.K.-born Mattin has been Volvo's design director since May of 2005 and was instrumental in creating designs like the C30, XC60, and most recently, the S60 Concept from Detroit. Mattin joined the Swedish automaker after coming over from (then) DaimlerChrysler, where he was employed for 17 years. Mattin left DCX as the company's senior design manager after having a hand in vehicles as wide-ranging as the SL, SLK, SLR, R-Class, M-Class, and the Maybach line.

We will probably have to wait until Monday for further details, but sit tight - Volvo's already winding road may have just gotten a bit bumpier.





Gallery: Detroit 2009: Volvo S60 Concept

BREAKING: Volvo design chief Steve Mattin leaves company originally appeared on Autoblog on Fri, 27 Mar 2009 16:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Auto DesignAutoDesignbreakingCar DesignCarDesignDaimlerChryslerSteve MattinSteveMattinVolvoFri, 27 Mar 2009 16:28:00 EST<![CDATA[Who's the Boss? Daimler still wants to offload remaining stake in Chrysler]]>http://www.autoblog.com/2009/01/21/whos-the-boss-daimler-still-wants-to-offload-remaining-stake-i/http://www.autoblog.com/2009/01/21/whos-the-boss-daimler-still-wants-to-offload-remaining-stake-i/http://www.autoblog.com/2009/01/21/whos-the-boss-daimler-still-wants-to-offload-remaining-stake-i/#commentsFiled under: , ,

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%, leaving Cerberus with 45% - the lion's share, but short of controlling interest.

But while the majority of Chrysler's shares may be back in Europe, Daimler isn't interested in holding onto its stake. Daimler and Cerberus had been talking about transferring ownership of the remaining 20% for a while already, but with America's financial institutions in shambles, who knows if the capital management company can even manage to find the capital to buy the rest of the company. In the meantime, it looks like Chrysler's at the whim of European automakers... yet again.

[Source: Reuters]

Who's the Boss? Daimler still wants to offload remaining stake in Chrysler originally appeared on Autoblog on Wed, 21 Jan 2009 07:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuscerberus fiatCerberusFiatchryslerchrysler fiatChryslerFiatdaimlerdaimler cerberusdaimler chryslerdaimler fiatdaimler shares chryslerDaimlerCerberusdaimlerchryslerDaimlerFiatDaimlerSharesChryslerfiatfiat chryslerFiatChryslerWed, 21 Jan 2009 07:58:00 EST<![CDATA[What's Chrysler worth to Daimler? Zip, Zero, Nada, Donut]]>http://www.autoblog.com/2008/10/24/whats-daimlers-stake-in-chrylser-worth-zip-nada-donut/http://www.autoblog.com/2008/10/24/whats-daimlers-stake-in-chrylser-worth-zip-nada-donut/http://www.autoblog.com/2008/10/24/whats-daimlers-stake-in-chrylser-worth-zip-nada-donut/#commentsFiled under: , ,

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]

What's Chrysler worth to Daimler? Zip, Zero, Nada, Donut originally appeared on Autoblog on Fri, 24 Oct 2008 16:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuscerberus capital managementCerberusCapitalManagementchrysler llcchrysler valuechrysler worthChryslerLlcChryslerValueChryslerWorthdaimlerdaimler agdaimler chryslerDaimlerAgDaimlerChryslerFri, 24 Oct 2008 16:59:00 EST<![CDATA[Hyundai exec talks engine sharing with Mercedes-Benz]]>http://www.autoblog.com/2008/05/09/hyundai-exec-talks-engine-sharing-with-mercedes-benz/http://www.autoblog.com/2008/05/09/hyundai-exec-talks-engine-sharing-with-mercedes-benz/http://www.autoblog.com/2008/05/09/hyundai-exec-talks-engine-sharing-with-mercedes-benz/#commentsHyundai, now a world-class engine manufacturer, may lend engine technology to Mercedes-Benz for a future four-cylinder powerplant. It was just a few short years ago that DaimlerChrysler, Mitsubishi, and Hyundai banded together in the Global Engine Manufacturing Alliance (GEMA) to build the so-called World Engine (pictured at right). The GEMA engine, with displacements ranging from 1.8-liters up to 2.4-liters, is found under the hood of more than a handful of Chrysler, Dodge, Jeep, Mitsubishi, and Hyundai products.

While word isn't official, Dr. Hyun-Soon Lee, President of the R&D and Corporate Product Planning and Strategy Divisions of Hyundai-Kia Motors, told Automobile Magazine that he had been approached by Dr. Dieter Zetsche, Chairman of Daimler AG, at the Beijing Auto Show about partnering on a four-cylinder powerplant. Dr. Lee didn't disclose the rest of the conversation, but he did add, "I am not sure we want to share our technology." With the hot Genesis Coupe and luxurious Genesis Sedan ready to roll, and distinguished Mercedes-Benz knocking on the front door, it appears Hyundai's hard work is paying off.

[Source: Automobile Magazine]

Hyundai exec talks engine sharing with Mercedes-Benz originally appeared on Autoblog on Fri, 09 May 2008 15:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Daimler AGDaimlerAgDaimlerChryslerdr. dieter zetscheDr. Hyun-Soon LeeDr.DieterZetscheDr.Hyun-soonLeeengineGEMAGlobal Engine Manufacturing AllianceGlobalEngineManufacturingAlliancehyundaihyundai genesis coupehyundaigenesisHyundaiGenesisCoupeMercedes-BenzFri, 09 May 2008 15:33:00 EST<![CDATA[NHTSA releases '06 CAFE fines, Daimler(Chrysler) takes cake]]>http://www.autoblog.com/2007/12/31/nhtsa-releases-06-cafe-fines-daimler-chrysler-takes-cake/http://www.autoblog.com/2007/12/31/nhtsa-releases-06-cafe-fines-daimler-chrysler-takes-cake/http://www.autoblog.com/2007/12/31/nhtsa-releases-06-cafe-fines-daimler-chrysler-takes-cake/#commentsFiled under: , ,

The automaker formerly known as DaimlerChrysler isn't finished making headlines yet. The NHTSA, which levies fines for manufacturers not meeting CAFE standards, has issued its largest penalty to any automaker, ever, by giving DaimlerChrysler a bill for $30,357.635.50.

The fine is for the carmaker's entire fleet, which includes Mercedes models produced here and overseas. According to the NHTSA, "The penalty for failing to meet CAFE standards recently increased from $5.00 to $5.50 per tenth of a mile per gallon for each tenth under the target value times the total volume of those vehicles manufactured for a given model year."

To be fair, it's only the biggest by a (relatively) small margin, seeing that BMW paid $27,985,925.00 in 2001 -- especially if you consider the drop in the dollar in that time. If you're wondering where part of that European car premium goes -- after it goes into the treasury -- CAFE fines seem to be something Europeans specialize in. Of the more than half a billion dollars in civil CAFE fines, not a cent has been contributed by domestic or Asian automakers. Yet.

[Source: NHTSA via The Truth About Cars]

NHTSA releases '06 CAFE fines, Daimler(Chrysler) takes cake originally appeared on Autoblog on Mon, 31 Dec 2007 08:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cafecafe finecafe penaltyCafeFineCafePenaltydaimlerchryslernhtsaMon, 31 Dec 2007 08:33:00 EST<![CDATA[Mercedes-Benz Cars is born today]]>http://www.autoblog.com/2007/10/04/mercedes-benz-cars-is-born-today/http://www.autoblog.com/2007/10/04/mercedes-benz-cars-is-born-today/http://www.autoblog.com/2007/10/04/mercedes-benz-cars-is-born-today/#commentsFiled under:

The last remnants of the merger between Daimler and Chrysler that occurred seven years ago has finally been put out to pasture with the announcement today of a new name for the German automaker. Shareholders voted today on the new name 'Daimler AG', but to keep a connection with co-founder Carl Friedrich Benz, the Mercedes Car Group will be renamed 'Mercedes-Benz Cars.'

If all this is getting a little confusing, just remember that Daimler is responsible for the Mercedes-Benz luxury division as well as the trucking and van businesses, while Mercedes is in charge of the luxury car unit as well as the Smart and Maybach brands.

There was never any doubt that the new company would be called Daimler, but nobody was sure what would happen to the Benz name. Other places it will appear in is the new commercial van division, which becomes Mercedes-Benz Vans, as well as the banking group that's now labeled Mercedes-Benz Bank.

[Source: Automotive News - sub. req'd]

Mercedes-Benz Cars is born today originally appeared on Autoblog on Thu, 04 Oct 2007 12:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>DaimlerChryslerThu, 04 Oct 2007 12:29:00 EST<![CDATA[BREAKING: California judge throws out lawsuit against automakers]]>http://www.autoblog.com/2007/09/17/breaking-california-judge-throws-out-lawsuit-against-automakers/http://www.autoblog.com/2007/09/17/breaking-california-judge-throws-out-lawsuit-against-automakers/http://www.autoblog.com/2007/09/17/breaking-california-judge-throws-out-lawsuit-against-automakers/#commentsFiled under:



You might recall about this time last year, California State Attorney General Bill Lockyer filed a lawsuit in Northern California's U.S. District Court asserting that automakers selling vehicles in the Golden State were liable for the hundreds of millions of dollars of damages its products cause. That lawsuit, which named GM, Ford, Toyota, DaimlerChrysler, Honda and Nissan as the defendants, was thrown out today by a federal judge.

Martin Jenkins, the U.S. District Judge presiding on the case, said that it was impossible to assess how much responsibility automakers had in contributing to the damage caused by global warming in California. Furthermore, he went on to say that lawmakers - not judges - should be the ones responsible for determining if automakers should be held accountable.

[Source: Automotive News - Sub. Req.]

BREAKING: California judge throws out lawsuit against automakers originally appeared on Autoblog on Mon, 17 Sep 2007 20:14:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>automakerscaliforniacalifornia lawsuitCaliforniaLawsuitchryslerdaimlerchryslerfordgeneral motorsGeneralMotorsgmhondalawsuitnissantoyotaMon, 17 Sep 2007 20:14:00 EST<![CDATA[Court removes wind from automakers' sales in Vermont emissions fight]]>http://www.autoblog.com/2007/09/13/us-court-removes-wind-from-automakers-sales-in-vermont-emissions/http://www.autoblog.com/2007/09/13/us-court-removes-wind-from-automakers-sales-in-vermont-emissions/http://www.autoblog.com/2007/09/13/us-court-removes-wind-from-automakers-sales-in-vermont-emissions/#commentsFiled under: , , ,

General Motors and the former DaimlerChrysler have been handed a disappointment in a Boston district court. At issue was Vermont's adoption of California's carbon dioxide standard, which requires cars and light trucks to reduce their emissions of the greenhouse gas by 30 percent. GM and DCX brought suit against the state of Vermont, claiming that Federal law was being usurped by states demanding their own emissions standards. Furthermore, the automakers say they couldn't meet the standard, and will have to pull out of Vermont as a result.

Judge William Sessions didn't buy the argument of GM and DaimlerChrysler, and instead upheld the Vermont law. While the standards are tighter than the Federal regulations, Sessions was not convinced that they pre-empt the nationwide requirements. It does appear like a thorny States Rights question, and if more states than the current dozen or so adopt California emissions guidelines, it will continue to cause consternation. It does make the federal regs look useless when states are passing requirements that are more rigorous. It also creates extra cost for automakers, as they've either got to make all of their cars compliant, or sell "Federal" and "California" versions of the same car. The decision will be appealed by the automakers, and we expect this issue to have legs - this is not the last we'll hear of this debate.

[Source: Automotive News - sub req.]

Court removes wind from automakers' sales in Vermont emissions fight originally appeared on Autoblog on Thu, 13 Sep 2007 01:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>courtdaimlerchryslerdieselemissionsgeneral motorsGeneralMotorsvermontThu, 13 Sep 2007 01:02:00 EST<![CDATA[Daimler deals with Ford to get its name back]]>http://www.autoblog.com/2007/08/22/daimler-deals-with-ford-to-get-its-name-back/http://www.autoblog.com/2007/08/22/daimler-deals-with-ford-to-get-its-name-back/http://www.autoblog.com/2007/08/22/daimler-deals-with-ford-to-get-its-name-back/#commentsFiled under: , ,



The history of Daimler Motor Corp. is very interesting and full of twists and turns. You can read about it here, but the part we're most interested in today starts in 1960. That's when Jaguar obtained the rights to use the Daimler name, and they have continued to use it on top-of-the-line Jaguars in every country but the U.S. since then. The latest Daimler model was the Super 8 introduced in 2005, pictured above.

So here we are in 2007 when DaimlerChrysler no longer wants to be associated with its American half, but Ford owns the rights to the Daimler name. AutomotiveNews (sub. req.) reports the two companies have worked out a deal that will allow both Ford and DaimlerChrysler to use the name Daimler, adding one more twist in the brand's history. No word yet on how much money exchanged hands during the deal, but Automotive News says it was struck before Cerberus agreed to buy Chrysler.

Stay tuned for the next exciting development on "As Daimler Turns," which just might some vocal Germans unhappy about the automaker not using Benz in its name.

[Source: Automotive News - sub. req'd]

Daimler deals with Ford to get its name back originally appeared on Autoblog on Wed, 22 Aug 2007 17:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Daimler JaguarDaimler Super 8DaimlerChryslerDaimlerChrysler FordDaimlerchryslerFordDaimlerJaguarDaimlerSuper8Ford DaimlerFordDaimlerJaguarWed, 22 Aug 2007 17:32:00 EST<![CDATA[Done deal: Cerberus takes control of Chrysler today]]>http://www.autoblog.com/2007/08/03/done-deal-cerberus-takes-control-of-chrysler-today/http://www.autoblog.com/2007/08/03/done-deal-cerberus-takes-control-of-chrysler-today/http://www.autoblog.com/2007/08/03/done-deal-cerberus-takes-control-of-chrysler-today/#commentsFiled under: ,

August 3, 2007. Today is the day that Cerberus Capital Management LP takes an 80.1% controlling stake in Chrysler, leaving DaimlerChrysler a minority 19.9% share. The "merger of equals" that took place back in 1998 has officially ended, and Chrysler is now a privately-held company with a wide open future. Much ado was made about the difficulty in financing the deal and Chrysler's turnaround effort, but it appears the original amount of $12 billion has been secured. Around $10 billion will come from investment banks, while Cerberus will throw in $500 million and DaimlerChrysler $1.5 billion. That combination of cash shows that the soon-to-be-former DaimlerChrysler still has a vested interest in seeing Chrysler succeed. Speaking of soon-to-be, DaimlerChrysler will be christened with a new name sans any mention of Chrysler on October 4th during a shareholders meetings. The newly minted Chrysler Corp., meanwhile, is planning a big party for this Monday, August 6th, at its Auburn Hills, MI headquarters. Automotive News reports a 15-story banner that reads "Get Read" was installed there yesterday.

Check out the full press release from DCX after the jump.

[Source: DaimlerChrysler]

Continue reading Done deal: Cerberus takes control of Chrysler today

Done deal: Cerberus takes control of Chrysler today originally appeared on Autoblog on Fri, 03 Aug 2007 12:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuschryslerdaimlerchryslerFri, 03 Aug 2007 12:58:00 EST<![CDATA[Wolfgang Bernhard to become chairman of Chrysler Group]]>http://www.autoblog.com/2007/07/26/wolfgang-bernhard-to-become-chairman-of-chrysler-group/http://www.autoblog.com/2007/07/26/wolfgang-bernhard-to-become-chairman-of-chrysler-group/http://www.autoblog.com/2007/07/26/wolfgang-bernhard-to-become-chairman-of-chrysler-group/#commentsFiled under: , ,



According to a German magazine referenced by Automotive News, Wolfgang Bernhard is expected to be announced as the Chrysler Group's chairman-in-waiting, pending DaimlerChrysler's sale of the automaker to Cerberus Capital Management. Currently Bernhard is an acting advisor, a consultant if you will, for Cerberus, and spends his days at Chrysler's Auburn Hills headquarters, presumably gathering info for Cerberus on what aspects of the business need the German exec's magic touch the most. When the sale happens and Bernhard officially moves in, the speculation is that current CEO Tom LaSorda will remain in his position and likely report to Bernhard.

Bernhard was formerly VW's brand chief, and before that he worked for Chrysler immediately following the "merger of equals" that resulted in DaimlerChrysler. Other former Chrysler execs are also advising Cerberus at the moment according to Automotive News, including the company's well respected former design chief Tom Gale. Hopefully the news of Bernhard's official return, when it comes, will portend the return of other key Chrysler execs that can aid the company's turnaround efforts.

[Source: Automotive News - sub. req'd]

Wolfgang Bernhard to become chairman of Chrysler Group originally appeared on Autoblog on Thu, 26 Jul 2007 12:38:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bernhardcerberuscerberus capital managementCerberusCapitalManagementchairmanchryslerchrysler groupChryslerGroupdaimlerchryslerexpire-images:2008-7-25tom galetom lasordaTomGaleTomLasordawolfgangwolfgang bernhardWolfgangBernhardThu, 26 Jul 2007 12:38:00 EST<![CDATA[Cerberus snag digesting Chrysler?]]>http://www.autoblog.com/2007/07/12/cerberus-snag-digesting-chrysler/http://www.autoblog.com/2007/07/12/cerberus-snag-digesting-chrysler/http://www.autoblog.com/2007/07/12/cerberus-snag-digesting-chrysler/#commentsFiled under: ,

The euro has reached a record high against the dollar, and that is partly to blame for rumors of Cerberus' difficulty in getting the money to pay for Chrysler. Cerberus is paying DaimlerChrysler $7.4 billion for 80.1% of Chrysler Group, but it is trying to borrow $20 billion. With interest rates on the rise, Cerberus wants to get money while terms are at their best. Yet with the market enduring a soft spot, Chrysler's below-investment-grade credit ratings, its 2-year prognosis of more red ink and the dollar declining, skittish investors are concerned that Cerberus might not be able to get the job done. Cerberus Chairman John Snow, however, said he expects the deal to close this quarter as planned.

[Source: Bloomberg]

Cerberus snag digesting Chrysler? originally appeared on Autoblog on Thu, 12 Jul 2007 18:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitionscerberuschryslerdaimlerchryslermergersThu, 12 Jul 2007 18:05:00 EST<![CDATA[Daimler and Chrysler subsidiaries to remain close]]>http://www.autoblog.com/2007/07/04/daimler-and-chrysler-subsidiaries-to-remain-close/http://www.autoblog.com/2007/07/04/daimler-and-chrysler-subsidiaries-to-remain-close/http://www.autoblog.com/2007/07/04/daimler-and-chrysler-subsidiaries-to-remain-close/#commentsFiled under: , , ,

The majority of Chrysler has just been sold to a private equity firm, but that doesn't mean the two divisions - Mercedes and Chrysler - won't continue working closely with each other. Foreign subsidiaries such as those in Australia will continue working almost as one company according to Chrysler Group Australia managing director Gerry Jenkins, who also revealed that the two sides, though split, will be utilizing "a lot of back-end synergies."

These will be mostly related to the administration side of the car business, such as accounting and IT departments. Under the deal, the Daimler side of the business will loan out its services to the Chrysler team, however, both companies would operate under the same roof in the city of Melbourne.

The parent company of Mercedes-Benz, which is expected to be renamed Daimler AG, still owns a twenty percent stake in Chrysler to allow a sharing of technology between the two sides. Jenkins also said there'll be some ongoing projects in regards to engineering and component sharing, so there's still a vested interest on Mercedes' side to see Chrysler succeed.

[Source: GoAuto]

Daimler and Chrysler subsidiaries to remain close originally appeared on Autoblog on Wed, 04 Jul 2007 18:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>DaimlerChryslerMercedes ChryslerMercedesChryslerWed, 04 Jul 2007 18:55:00 EST<![CDATA[Chrysler planning 'debut' party to hype its return to American roots]]>http://www.autoblog.com/2007/07/03/chrysler-planning-debut-party-to-hype-its-return-to-american-r/http://www.autoblog.com/2007/07/03/chrysler-planning-debut-party-to-hype-its-return-to-american-r/http://www.autoblog.com/2007/07/03/chrysler-planning-debut-party-to-hype-its-return-to-american-r/#commentsFiled under: , ,



Playing the role of the wild and free divorcee, Chrysler is sending out 3,700 party kits and invitation to its dealers to mark the automaker's return to all-American greatness. The celebration will run in conjunction with a new ad campaign (TV, print, etc.) that touts the brand's rebirth, along with a new logo and some form of rewards that will attract new buyers.

No dates have been set, but expect the balloons to drop sometime between July 25th and Aug 10th, when DCX sells off the automaker to Cerberus Capital Management, and the company is renamed Chrysler Corp.

[Source: Detroit News]

Chrysler planning 'debut' party to hype its return to American roots originally appeared on Autoblog on Tue, 03 Jul 2007 09:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuschryslerdaimlerchryslerdcxTue, 03 Jul 2007 09:31:00 EST<![CDATA[It's a go: Federal regulators clear Cerberus' purchase of Chrysler]]>http://www.autoblog.com/2007/06/19/its-a-go-federal-regulators-clear-cerberus-purchase-of-chrysl/http://www.autoblog.com/2007/06/19/its-a-go-federal-regulators-clear-cerberus-purchase-of-chrysl/http://www.autoblog.com/2007/06/19/its-a-go-federal-regulators-clear-cerberus-purchase-of-chrysl/#commentsFiled under: , ,

Without even waiting for the usual 30-day review period to end, US Government antitrust regulators have officially cleared the purchase of Chrysler by Cerberus Capital Management. While the sale won't officially close until Q3, this means that it won't face any regulatory hurdles or conditions. It's good news for Cerberus, and all are waiting to see if it's good news for Chrysler. However, in light of Cerberus' interest in Jaguar and Land Rover, for Cerberus it could just mean one down and two to go.

[Source: Detroit News]

It's a go: Federal regulators clear Cerberus' purchase of Chrysler originally appeared on Autoblog on Tue, 19 Jun 2007 16:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuschrylserdaimlerchryslerTue, 19 Jun 2007 16:02:00 EST<![CDATA[UAW head says Chrysler needs concessions from union]]>http://www.autoblog.com/2007/06/19/uaw-head-says-chrysler-needs-concessions-from-union/http://www.autoblog.com/2007/06/19/uaw-head-says-chrysler-needs-concessions-from-union/http://www.autoblog.com/2007/06/19/uaw-head-says-chrysler-needs-concessions-from-union/#commentsFiled under: ,

Two years ago, the UAW gave some health care concessions to struggling GM and Ford in an effort to help the Detroit giants save billions of dollars and stay afloat. At the time, Chrysler was relatively well-off and so the union rejected a similar package for them. UAW President Ron Gettelfinger says that it's time to make up for that omission. Since 2005, the Chrysler Group went from a profit of $1.8 billion, to a loss of $618 million last year, and on to a $1.98 billion loss so far this year. Gettelfinger said a review of Chrysler's finances shows there's a problem that needs to be addressed, so talks are ongoing.

More after the jump.

[Source: Detroit Free Press]

Continue reading UAW head says Chrysler needs concessions from union

UAW head says Chrysler needs concessions from union originally appeared on Autoblog on Tue, 19 Jun 2007 13:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CerberusChrysler GroupChryslerGroupDaimlerChryslerhealthcare costsHealthcareCostsRon GettelfingerRonGettelfingerUAWTue, 19 Jun 2007 13:29:00 EST<![CDATA[Jurgen Schrempp could make $134 million from the sale of Chrysler]]>http://www.autoblog.com/2007/06/05/jurgen-schrempp-could-make-134-million-from-the-sale-of-chrysle/http://www.autoblog.com/2007/06/05/jurgen-schrempp-could-make-134-million-from-the-sale-of-chrysle/http://www.autoblog.com/2007/06/05/jurgen-schrempp-could-make-134-million-from-the-sale-of-chrysle/#commentsFiled under: , ,



Jurgen Schrempp was a visionary. He didn't pull off his vision of massive synergies and massive profits for DaimlerChrysler. He did, though, manage to conjure and pull off the vision of massive profits for himself. In spite of a $36 billion dollar "merger" that turned almost immediately into a 9-year shouting match and a $29 billion dollar loss (give or take) for Daimler, Schrempp might walk away with $134 million for his... troubles. Why? Two words: stock options.

Schrempp left the DaimlerChrysler building in 2005, but took with him one million stock options that might be worth something if someone ever turned DaimlerChrysler around. While Schrempp put in a great deal of effort and really did believe in what he was doing, it would be hard for him not to make money off the options he was given, based on the fact that he had halved the market value of the company by the time he left in 2005. As long as the company doesn't go under, that is. A month ago, when the sale of the company was announced, DCX shares were at about 64 euros on the German index, the DAX, and rising. That was roughly a 90% increase in value since Schrempp's departure. It is speculated that the stock will get to 100 euros. If it does, that's a $100 million euro payday. Even if he took the going rate, he still rakes in about 68 million euros. Not bad for a vision that didn't pan out.

[Source: Detroit News]

Jurgen Schrempp could make $134 million from the sale of Chrysler originally appeared on Autoblog on Tue, 05 Jun 2007 16:24:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerdaimlerchryslerexpire-images:2008-6-4jurgenjurgen schremppJurgenSchremppsaleschremppTue, 05 Jun 2007 16:24:00 EST