Autoblog

Daimler CEO Dr. Dieter Zetsche offered a choice quote to his nation's leading weekly news mag, Der Spiegel, when he mentioned that the automaker would be open to developing an engine with the company's cross-town rival, BMW. Apparently, Daimler is in talks with several companies about joint projects, but as of now, nothing is set in stone.

The idea of a co-developed engine between the two German heavyweights is an interesting idea, especially if both manufactures begin to focus their efforts on some form of innovative propulsion. More turbos? New fuels? Pixie-dust power? Who knows?

[Source: Automotive News – Sub. Req.]

Looking to exit, stage left on a melodious note, Doc Zee has bid the Chrysler team a semi-farewell via email. The message was a polite "thank you," instead of the possibly more appropriate "thanks for letting us swoop in from Stuttgart, blast through your cash and let your product line languish." Dieter Zetsche and Tom LaSorda dashed off the e-mail to all Daimler and Chrysler workers this morning. The sale of the Chrysler unit to Cerberus Capital Management is wrapping up, and the executives extended thanks to employees for all the hard work they've performed over the past nine years. While they are splitting, the rhetoric in the e-mail indicates that there will be some intertwining of the two businesses going forward.

Collaboration will continue on electrical components (we hope Chrysler can teach Mercedes a thing or two about making reliable electrics), platform architectures for unitized SUVs and power units. Those collaborations were likely far underway when the schism occurred, and both companies will benefit from the cross pollination. We bet Dieter can bang out a convincing "Free BIrd" on that axe.

[Source Detroit Free Press]

DaimlerChrysler is taking some of its eggs out of the diesel BLUETEC basket and placing them on the hybrid bandwagon, according to chairman Dieter Zetsche. The automotive giant had been banking on the success of its clean diesel technology to win over the green crowd, but DCX says the market demands hybrids. And so hybrids they shall make.

At first Mercedes will offer "mild hybrids", essentially an overgrown starter motor that will supplement the gasoline (or diesel) engine to add extra power while improving fuel economy and reducing emissions. With a mild hybrid, DCX figures it can get 70 percent of the effect with 30 percent of the effort, but will eventually produce full hybrid powerplants. DaimlerChrysler plans on collaborating on its hybrid development with rivals BMW, not unlike the sharing of technology over BLUETEC, all in an effort to catch up with their mutual rival Toyota, which has harnessed hybrid power on its way to the top.

In the meantime, Mercedes plans on rolling out other tree-hugging technologies in its vehicles, including a stop/start system like that offered by BMW and PSA, and an alternator that disengages from the engine when accelerating.

[Source: Edmunds Inside Line]

Take this for what it is, a rumor about which General Motors and DaimlerChrysler have refused to comment. According to a report today in German magazine Manager Magazin, DaimlerChrysler is in talks to sell its Chrysler Group division to GM. The magazine cites sources within DaimlerChrysler as saying that talks are in full swing but at an early stage. Dieter Zietsche, CEO of DaimlerChrysler, refused to comment on the report when asked at this morning's press conference where the company's Recovery and Transformation plan, a.k.a. Project X, was announced.

So neither side is talking about whether such talks exist, which leads one to speculate that there's some truth to these rumors. GM, however, would not seem to be in a position to purchase a rival domestic automaker with numerous competing products considering that it's just beginning to emerge from its own turnaround and restructuring plan. What's more, we can't imagine the complexities GM would encounter trying to absorb Chrysler's union workforce.

We bet DaimlerChrysler and GM are talking about something, but wouldn't put money on the subject being the wholesale purchase of the Chrysler Group.

Thanks to all who tipped on this!

[Source: Yahoo.biz]

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]

Chrysler confirmed Wednesday that the controversial "Ask Dr. Z" ad campaign will continue through the end of the year. Steve Miller of Brandweek reports that the current TV and radio spots, which haven't exactly received widespread acclaim, will continue at least through September 5, after which the camapign moves into a new phase. According to a Chrysler marketing communications representative, "Dr. Z could be used to promote some of our upcoming products, like the Aspen and the Nitro."

The $100 million campaign, which also covers the Chrysler Group's "Dream Car Sweepstakes" giveaway, has been criticized for its largely unsuccessful attempt to turn one of the auto industry's most respected executives into a standup comedian and comic book character.

Meanwhile, Chrysler Group sales remain on life-support.

[Source: Brandweek]

DaimlerChrysler CEO Dieter Zetsche, a man who knows a thing or two about the problems facing the US auto industry, took the opportunity to warn European Union automakers that they may eventually endure the same structural problems their US counterparts are struggling with if action is not taken.

Europe, of course, is suffering from many of the same problems that we've been seeing here in the US-- particularly out of whack cost structures due to overwhelming labor costs and ever-increasing competition from Asia. Adding to the problems is the greater diversity within the EU market. Zetsche is calling on the automakers to focus on, well, making cars, and states that EU politicians need to do their part to clean up problems with European social-security systems.

[Source: Financial Times]