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If I had the Money I would Buy Chrysler March 6, 2007

Posted by K.C. in Auto's, brand, Manufacturing, Merger.
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Recently at the Geneva Motor Show, DaimlerChrysler chief executive, Dieter Zetsche discussed speculations about dumping Chrysler. While he did not give too many details, he did discus how if Daimler were to sell Chrysler, they would sell the company as whole and not break up its brands. Chrysler has a highly integrated production system that allows it to manufacture different brands of automobiles using similar platforms and parts. Therefore, if Daimler were to sell Chrysler, they would not sell its brands individually as many Chrysler badge cars use the same chassis as Jeep and Dodge vehicles.

Chrysler Group is very integrated,” – Dieter Zetsche

In addition, many new Chrysler vehicles use Mercedes parts and pieces, which may create a problem for the brand if Daimler does decide to sell them. The Chrysler Crossfire uses almost 70% of its parts from Mercedes vehicles and if Daimler were to drop them, Chrysler would need to find another manufacturing source.

In the past few years, DaimlerChrysler has tried to differentiate the Chrysler brands and focus on establishing its three brands as unique brands. Ford on the other hand is facing issues with brand differentiation because many of its Ford badge models look almost identical to its Mercury and
Lincoln brand models. In my opinion, I think Chrysler remains an attractive automotive unit because they have been able to produce cars that have appealed more than many other American brands. Even with a loss of $1.5 billion last year, Chrysler has been able to increase its global sales 15 percent outside of North America this past year.

 

Industry analysts argue that private equity investors would be the most likely buyer of the brand and if this does occur, Chrysler may be forced to drastically reduce its operations.

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Comments»

1. Bertan - March 6, 2007

I was shocked to hear about Chrysler.. I just did a little research and found contradictory news so I’m confused; “DaimlerChrysler management and myself are totally confident in the success of Chrysler’s plan to return to profit by reducing its workforce and production capacity,” Zetsche said. I wonder what’ll happen..

By the way I grew up in Geneva and the Autoshow is absolutely amazing. I wish I could have made it..

2. Jordi - April 10, 2007

Contradictory news swirling around a company after a floundering merger? Not a surprise. the political coalitions within Daimler Chrylser may be using the media as part of an internal struggle about what stratgey to pursue.

3. Jordi - April 10, 2007

What would you do with it?

Kiron, such a tease! How can you put that title and not deliver? Is that your dream job?


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