After teasing fans with a modern interpretation of the classic Type 2 micro-bus a few years ago, Volkswagen decided it wasn't an economically viable project. It ultimately decided to strike a deal with DaimlerChrysler to use the Caravan/Town and Country minivan platform as the basis for a VW van. Unfortunately for VW, the minivan market is shrinking as they finally get their own unit to market.
The Chrysler Group
According to Brett Hoselton, an analyst at KeyBanc Capital Markets, Canadian supplier Magna International Inc. together with an unnamed private equity group has already made a bid for the Chrysler Group in the neighborhood of $4.6 to $4.7 billion. Sound a little low for a company the size of the Chrysler Group? It is, because Magna is only going for about 20 to 25% of the company in the hopes it will be able to buy a chunk when other bidders "retreat".
DaimlerChrysler reported third quarter earnings today of $686 million in net profit, but its Chrysler Group division dragged down that profit margin by posting a loss of $1.47 billion, a figure that completely erased the gain of $1.24 billion made by Mercedes-Benz. During a presentation today, DaimlerChrysler CFO Bodo Uebber didn't rule out the possibility that the Chrysler Group could be sold off. While far from saying the division has a For Sale on its windshield, Uebber told reporters, "We do
DaimlerChrysler has just released its numbers for the second quarter of 2006, and overall it was a good quarter for the company as a whole. DCX saw its operating profit in the second quarter rise 11 percent to $2.37 billion USD. The profits were made on the backs of the Mercedes Car Group, which saw its operating profit skyrocket from just $15.3 million a year ago to $1.03 billion in 2Q 2006. DCX's Truck Group and Financial Services also increased their operating profit.