The Chief Executive of DaimlerChrysler Dieter Zetsche is under pressure because it decides for the fate of their money-losing Chrysler Group. But in accordance with some reliable sources the automaker is ready to accept any offer originating from US automakers which are prepared to make rein over Chrysler.
The big question now could be which company is interested enough in buying the Chrysler unit. According to a German magazine, DaimlerChrysler is negotiating with General Motors but to the meanwhile DMX officials want to keep quiet on the matter. I cannot and won't enter into any further details, Zetsche said during an interview.
The mention of General Motors as a possible buyer of Chrysler has aroused various reactions. Although it holds true that GM is still the worlds largest automaker and producer with the most popular make of auto parts like GM fenders, but it is also no secret how the numero uno is additionally facing financial difficulties and purchasing another money-losing brand might not be a good move to the automaker. But then again Chrysler has some very good models therefore does GM. For now all we could do is to wait and find out for developments.
Aside in the possible sale of Chrysler, DMX has announced 13,000 job cuts as part of the companys recovery plan. The said job cut will affect 11,000 DC employees inside US plus 2,000 in Canada. For the US alone 2000 white collar jobs in addition to 9000 UAW tasks are gonna be cut which will result for the closing of your assembly plant in Newark, Del as well as a part distribution center in Ohio. The Newark plant builds large SUVs for DC. Truck plants in Michigan and Missouri will also be destined to be affected reducing production ability to 400,000 units.
Over the weekend pressure to succeed on Zetsche to let go of Chrysler intensifies. According to one DaimlerChrysler shareholder Henry Gebhardt, DWS fund manager in a interview having a German newspaper, This needs to be an alternative that really must be examined over and over. He also compared the DaimlerChrysler breakup to BMWs sale of Rover stating that It would be irresponsible for Daimler management to exclude this approach. DWS is Germanys largest fund company and owns under 1% of shares on DaimlerChrysler.
In fairness to Zetsche he is doing all he is able to to save lots of Chrysler and recently he held meetings with all the United Auto Workers Union asking for the same medical concessions that the union gave General Motors and Ford Motors. Unfortunately the union refused Chrysler saying how the German Company has deep pockets to pay for workers healthcare. Zetsche will still try to work it out with UAW but younger crowd made it clear when the UAW will refused to simply accept the new terms that is to be set by DaimlerChrysler then he's left without any other option but permit go of Chrysler.
According with a sources the problem with Chrysler Group began nine in years past following the merging of Daimler-Benz and Chrysler. Mid-level managers at Mercedes have resisted any collaboration which could tarnish the posh brands image which can be not entirely a bad thing when it has not hinder the Chrysler Group from having this level of synergies that it has promised in 1998.
Thomas LaSorda said that this recovery plan that has been outlined by DaimlerChrysler can strengthen Chryslers position inside North American market and also at a similar time make the underpinning to get a home based business model which is aiimed at a prospective global growth and a shift to more fuel-efficient models. The plan if put into practice would help DC a regain profitability by 2008 with an approximately 2.5% sales retune by 2009. In the year 2006 Chrysler lost $1.5 billion while DaimlerChrysler overall earnings reached $7.3 billion to the same year.