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Daimler CEO Dieter Zetsche dishes out advice for Chrysler

Jonny Lieberman — Sun, 15 Nov 2009 08:46:00 EST

Filed under: Car Buying, Chrysler, Dodge, Jeep, Mercedes-Benz, Fiat

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.

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When will the madness end? GM's talks to buy Chrysler heat up

Damon Lavrinc — Mon, 19 Feb 2007 03:10:00 EST

Filed under: Chrysler, Daimler, GM, Hummer, Jeep

We were all ready to start this week anew, leaving behind the reports of a supposed sale of Chrysler to General Motors. But alas, that ain't going to happen.

Both the Detroit News and Automotive News came out with stories this morning making it clear that talks between the two automakers are serious and have been going on for some time.

The initial reports about GM sharing its GMT900 truck platform may or may not have been true, but according to Autonews, what's being discussed would go well beyond simply exchanging some engineering for cash.

The high-level talks have been taking place over the course of the past two months, beginning in December, with Rick Wagoner, GM's chairman sitting down with Dr. Z from DCX. The two automaker's CFOs have met on at least four separate occasions to discuss the buyout/merger/absorption, but naturally, both companies have declined to comment.

The Detroit News had some particularly interesting tidbits, including the idea that if GM were to purchase Chrysler, it would no longer exist as a company unto itself. All of Chrysler's brands and products would just become part of GM's overall organization. As an example, Jeep, one of DCX's most valuable brands, might be partnered with HUMMER as the General's off-road arm.

The risk versus reward for GM is tipped further towards disaster than success, with massive cannibalization of products, excessive debt, mismanaged product lines (within both automakers) and we haven't even gotten into the UAW and the catastrophic amount of layoffs that ~~could~~ would take place.

Since we can't encapsulate every morsel of information here, we'd encourage you to read through the Detroit News piece and, if you have a subscription, check out the Automotive News article on the same topic.

[Sources: Detroit News, Automotive News - Sub. Req.]

When will the madness end? GM's talks to buy Chrysler heat up originally appeared on Autoblog on Mon, 19 Feb 2007 03:10:00 EST. Please see our terms for use of feeds.

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Don't let the door hitcha? - Investors call for spin-off of Chrysler

Dan Roth — Wed, 29 Nov 2006 08:35:00 EST

Filed under: Etc., Daimler, Earnings/Financials

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]

Don't let the door hitcha? - Investors call for spin-off of Chrysler originally appeared on Autoblog on Wed, 29 Nov 2006 08:35:00 EST. Please see our terms for use of feeds.

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Chrysler dealers don't want '07s

Damon Lavrinc — Mon, 25 Sep 2006 10:36:00 EST

Filed under: Car Buying, Plants/Manufacturing, Chrysler, Daimler, Dodge, Jeep

Chrysler, and all the brands contained within, is not experiencing the typical surge in dealer orders for model year 2007 vehicles that's typical for this time of year. Dealers, unable to unload the 2006 models already on their lots, are all about supporting their company, but not at the expense of their bottom line.

As dealers throughout the country are finding it increasingly difficult to move the vehicles they already have, Chrysler's CEO Tom LaSorda and the infamous Dr. Z admitted that they didn't foresee the slow down in sales of their most popular models (read: 300C) and subsequently didn't make the appropriate cuts in production. Additionally, Chrysler still has a glut of 2006 models that it hoped would find its way to dealers before the 2007 models began production.

The nation's Chrysler, Dodge, and Jeep dealers are understandably irritated and the combination of too much product and high interest rates don't bode well for the future.

[Source: Automotive News - sub. required]

Chrysler dealers don't want '07s originally appeared on Autoblog on Mon, 25 Sep 2006 10:36:00 EST. Please see our terms for use of feeds.

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