For Sale: Chrysler group

[116Benz]

The 203 C Class we got here were from East London, except for the SportCoupe and the AMG models.

[Brian Crump]

I have heard from a number of people (mechanics) that the brakes on this model are a problem,

Hummm......which model?
Regards,
BC

[CraigS]

There is an M class in Brisbane currently that went to MB for service - one week after the warranty expired. I have heard from a number of people (mechanics) that the brakes on this model are a problem,

BC

[/quote]

[Brian Crump]

Gotcha CraigS.
My question stands.
Which model?
Not which Class 
Regards,
BC

[116Benz]

the later ones with BAS I would guess...

[nathan]

116 Benz,
yep, they made all those ones at the SDP plant in Graz...i refuse to call it the magna plant - it shall forever be SDP just like it will always be DB ag!

RHD aussie c classes come from south africa i thought?

when i went to stuttgart factory 4 years ago, they took us through production of 203 sports coupes (203 sports couple, amusing title!)...it was almost all robots...when i went a few months back, they took us on the 221 S class line, fewer robots and more people power seen...my wife pointed out to me it looked far better than having people rather than robots put the cars together when you pay a premium for a brand supposedly based on quality

[Brian Crump]

the later ones with BAS I would guess...

BAS was included on MLs in 1999 along with ESP. That is, two years into the cycle and matched the fitting of BAS across the range.
Regards,
BC

[Grant V]

Shit! I was hoping to by some shares before the sale was announced, as I'm sure Daimler shares will now rocket.

Pity the poor independent dealership that has been forced to take on Chrysler branding, tooling, service and parts - all for nothing. Expensive mistake for everyone....

[116Benz]

116 Benz,
yep, they made all those ones at the SDP plant in Graz...i refuse to call it the magna plant - it shall forever be SDP just like it will always be DB ag!

RHD aussie c classes come from south africa i thought?

when i went to stuttgart factory 4 years ago, they took us through production of 203 sports coupes (203 sports couple, amusing title!)...it was almost all robots...when i went a few months back, they took us on the 221 S class line, fewer robots and more people power seen...my wife pointed out to me it looked far better than having people rather than robots put the cars together when you pay a premium for a brand supposedly based on quality

Yes, calling it the magna plant bring back horrible thoughts of rattling chains, porus blocks and exploding boxes...Intersting though, that DC bought into Mitsubishi..then promptly sold it, same with Hyundai...makes you wonder if DC was having a case of buyers remorse and wished they had kept the recipt.

[OzBenzHead]

Pity the poor independent dealership that has been forced to take on Chrysler branding, tooling, service and parts - all for nothing. Expensive mistake for everyone....

My local stealership has been the local M-B dealer as long as we've had one (15 years?) as well as vendor of Chrysler Corp products since the '50s; Simca - the '50s; Humber / Hillman in the '60s (so including those ghastly Chrysler-Hillman Arrows, Hunters, and IMPS!; once Volvo, now Mazda, Mitsubishi, and some of those horrid third-world wheelie-bin things whose names I forget.   

[CraigS]

Sorry, yes, ML 2002 model I believe.

Gotcha CraigS.
My question stands.
Which model?
Not which Class 
Regards,
BC

[gregdeklerk]

Australia is also going to get RHD 204 C Classes from South Africa later this year when they are lauched.

[michaeld]

What I wanted to know was how ANYONE from Daimler Benz could have thought buying Chrysler was a good thing

I don't care about Chrysler 'polluting' Mercedes-Benz but I could never see the business sense...

Mforcer asks an interesting question.  I recall a lot of fanfare over the purchase, and the business world seemed to think that Mercedes had gotten a steal of a bargain (no one's thinking that NOW, mind you!).  Here's an article that discusses the merger (http://www.iht.com/articles/1998/05/08/daimler.t_0.php).  My own guess is that if it wasn't for the insanity of Chrysler's employee unions, the merger might have gone well.

Daimler-Benz Takes Over Chrysler as VW Acquires Rolls-Royce: Fast Lane for German Firms
By John Schmid International Herald Tribune
Friday, May 8, 1998


German automakers moved boldly Thursday to extend their global influence as Daimler-Benz AG said it would acquire Chrysler Corp., and as Volkswagen AG won a come-from-behind bidding contest to buy Rolls-Royce Motor Cars Ltd., the luxury British carmaker.
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The deal to create DaimlerChrysler, as the company will be called, is the biggest industrial takeover ever and the largest acquisition of a U.S. company by a foreign buyer.
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"On the road to World Inc.," Germany's Sueddeutsche Zeitung wrote.
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The trans-Atlantic deal, signed late Wednesday in London, is a $92 billion share swap and does not involve a buyout, executives said.

An exuberant Juergen Schrempp, chairman of Daimler and the man who initiated negotiations with Chrysler in January, said, "This is an historic agreement that will change the face of the auto industry." He added: "We will have the size, profitability and reach to take on anyone."
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The transactions represent an ambitious push by both German carmakers to expand rapidly across borders and into new market segments. Daimler, which has been humbled in its recent efforts to launch subcompact models, effectively adds a full range of mass-market cars and minivans to its portfolio while VW continues a determined drive for upscale customers. (Page 13)
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Taken together, analysts said, the two acquisitions reflect the powerful reemergence of the German auto industry after a searing recession earlier in the decade. Germany's automakers have been adding jobs, sales and capacity this year and posted record profits.
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Although Chrysler's chairman, Robert Eaton, appearing with Mr. Schrempp on the neutral corporate territory of London, said the alliance was a "merger of equals," it was clear that the German partner will dominate the new company, to be called DaimlerChrysler AG, with $130 billion in annual revenue.
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Mr. Schrempp, 52, will become the sole chairman of the merged company following an initial three-year interim period when he will share the top job with Mr. Eaton to help integrate the two companies and their cultures, reducing Mr. Eaton, 58, to a transitional figure. Daimler, Germany's largest industrial group, will account for 57 percent of the company's equity base, which is valued at $92 billion
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In its proposed purchase of Rolls-Royce, VW relied on its deep pockets to outbid rival German carmaker Bayerische Motoren Werke AG — or BMW — for Rolls-Royce. After Rolls-Royce's parent company Vickers PLC only two weeks ago declared BMW the winner of the bidding war, VW raised its bid to £430 million ($713.2 million), well above the £340 million offered by BMW. The deal must be approved by shareholders, who meet in early June.
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Daimler and Chrysler both expect to add new jobs and capacity on both sides of the Atlantic because of the demand they expect as the combination opens new geographic markets for each. Both promised to avoid plant closures and layoffs. "We expect to grow employment in Europe and the U.S. quite substantially," Mr. Eaton said.
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Borrowing from another German newspaper headline, Mr. Schrempp called the combination a "match made in heaven." The two companies have minimal geographic or product overlap, meaning that Daimler can use Chrysler's presence across North America to increase sales of its luxury cars without stealing Chrysler's traditional mass-market customers. Chrysler can exploit Daimler's European network to multiply foreign sales of its cars without treading on Daimler's turf.
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With the takeover, Daimler pulls ahead of VW in the drive to expand into all segments of the motor vehicle market. VW's top-of-the line luxury models are still on the drawing boards and it still wants to buy a line of heavy trucks. The merged German-U.S. company, meanwhile, covers every segment from subcompacts such as Chrysler's Neon model to Daimler's S-class limousine, once called a "cathedral on wheels."
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"Both companies have product ranges with world class brands that complement each other perfectly," Mr. Eaton said.
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Daimler makes Mercedes-Benz luxury sedans, while Chrysler presides over the Dodge, Plymouth and Jeep brands. Its Jeeps and minivans are market leaders in some of the fastest-growing segments of the auto market.
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Mercedes-Benz and Chrysler will remain distinct brands, even within the combined company, Mr. Schrempp said. "We believe very strongly that a brand is the most important thing a company owns and I can assure you we will do nothing but to improve those brands and yes, they will clearly be separate brands forever," he said.
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Countering speculation that Daimler will divest its aerospace operations to focus on cars, Mr. Schrempp vowed that the company is keeping its aircraft, defense, helicopter and train units.
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DaimlerChrysler will exist under German laws of incorporation as an Aktiengesellschaft or AG, although it will maintain two "operational" headquarters, in Stuttgart as well as in Chrysler's head office in Auburn Hills, Michigan.
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Shares in both companies rallied strongly for the second consecutive day as investors endorsed Mr. Schrempp's declaration that the "two companies are a perfect fit."
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Daimler-Benz shares closed in Frankfurt at 205.10 DM ($116.20), up 12.20 DM, while Chrysler closed at $53.0625 in New York, up $4.25
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VW's announcement came after the close of trading on the Frankfurt Stock Exchange.
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The new "Chraimler" company, as the daily Frankfurter Allgemeine Zeitung dubbed it, will produce over 4 million cars and trucks annually, trailing only General Motors Corp., Ford Motor Co., Toyota Motor Corp. and VW in vehicle output.
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The trans-Atlantic alliance will offer a full range from rugged off-road vehicles to luxury limousines.
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Ranked by revenue, earnings and market capitalization, DaimlerChrysler climbs to the world's No. 3 carmaker.
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Both companies emphasized that in technical terms, their accord is a merger and took pains to avoid the notion of a takeover. Under the terms of the stock swap, however, Daimler shareholders hold the better cards.
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They can trade their shares for stock in the new company at a 1-to-1 ratio, but Chrysler shareholders will receive only about a half share — 0.547 of a DaimlerChrysler share — for each Chrysler share they hold.
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In once-staid corporate Germany, Mr. Schrempp's acquisition is certain to mark Daimler as a leader of change. The fresh winds of decentralized American-style management will accelerate the cultural revolution that Mr. Schrempp has launched.
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Chrysler already has begun to prod change at Daimler, analysts said. Mr. Eaton said the new company will cater to its shareholders by "returning surplus cash" to shareholders.
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Shareholders can count on far more generous payouts in the future than Daimler's shareholders are accustomed to.
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With savings from joint purchasing, shared research and exchange of components and technologies, the combined Daimler-Chrysler expects benefits of $1.4 billion next year. Mr. Schrempp called it a conservative figure.
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Over the next few years, savings will more than double to about $3 billion, the executives said.

[Grant V]

I have been told, and I am open to correction here, that the merger was initiated by Jurgen Schremp, against a lot of opposition. I understand that Chrysler was virtually bankrupt, but it seems that the only person who benefitted from the merger, and financially very well indeed, was Jurgen Schremp himself.

[OzBenzHead]

Schrempp was an expansionist size queen; he bought up every company he could, meanwhile ignoring the base product of safe, quality M-B cars.  A century to make the world's most enviable car-maker reputation, one Schrempp decade to blow it.