Mercedes relents: Will go it alone like BMW
It seems obvious now, but the sale of Chrysler leaves Mercedes Benz in a similar position as it's cross-country rival, BMW. Back when BMW bought the ailing MG-Rover marque, the results, to say the least, were less than positive. When the dust finally settled after the sale of Rover in 2000, the automaker had dropped billions of dollars into the company with little to show for the expenditure.
According to an article in Welt am Sonntag, Daimler CEO Dieter Zetsche was quoted as saying that, "there are no acquisition targets I can recognize that could strengthen Mercedes." Obviously, Dr. Z has learned from his own company's past missteps, and will lead Mercedes into the future without the help of new brands to bolster its catalogue of cars.
In the end, the acquisition of Chrysler did little to enhance either automaker's image. Whether it was quality, engineering prowess or long-term growth, the consolidation glut of the past 10 years may have finally come to an abrupt, if not entirely predictable, end. No surprise, as bigger has often proven to be not necessarily better when it comes to the automotive industry.
[Source: Reuters]
