For the sum of 7.4 Billion....DC are selling off 80% of Chrysler, just heard it on the news...Could it be true? Back to the days of Daimler Benz?.
It is true and it seems they have made a fat loss too. I also want to know what they are going to call the company now?
I've heard Daimler AG....but its going to be a vote, 1 vote here for Daimler Benz AG...I miss the good old days of engineering v's marketing.
I've done a bit more investigating, seems the new owner will be Cerberus, one of the top executives is Wolfgang Bernhard. Back in 2004, Bernhard, was next in line to take over the CEO position of Mercedes division from Jurgen Hubbert, it was Bernhard that opposed the rescue package of Mitsubishi also. Instead he was sacked and went to work for Volkswagen. This is shaping up to be a very interesting show. Incidentally, Cerberus was chosen over all other bids, I suppose the fact that Dieter Zetsche and Bernhard have been friends, since the DC days didnt sway the deal....
I just wonder how long it will be before Kirk Kerkorian issues another writ ! This time for selling it too cheaply - same reason as last time - albeit that they were buying Chrysler then (not to mention the fact that he missed out on buying it this time around).
What I heard in the news, Kirk has said he was bidding (Tracinda US 4.5bn), but was shunned. I think its the GM shares that he bought in retaliation that didnt help his case (a guess LOL).
This Cerberus group sound interesting, they bought the bulk of GMAC (finance arm) from GM and plan to tie it into Chrysler Finance, I hope it doesnt do a Rover...
if Benz sells chrysler this will be a huge image boost. Some one told me the other day that all Mercedes were built in America using American engines and all that rubbish. The only M-B's built in America are the SUV's Right? with the execption of the g-wagen
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...
Quote from: 500eguy on 14 May 2007, 03:27 PMThe only M-B's built in America are the SUV's Right? with the execption of the g-wagen
I was under the impression (right or wrong) that some C-Class were built in Alabama, too. Please correct me if I'm wrong.
Good riddance to the merger!
Well now that DC has tried world-domination by quantity and failed, I hope it will get back to world domination by quality.
I did an MB driver training day at Eastern Creek and when it was over the instructors compared the braking of the M class against that of a Jeep on the skid pan. One stopped and the other went for a long wet slide despit having ABS etc. Guess which was which....
I don't think the instructors were supposed to do that but, heck, why not?
I asked one instructor just how an E class could handle the extremes of handling so he suggested we go to 120kph, apply full brakes and turn the wheel all the way to the right at the same time. OK we did. It simply stopped and turned 90degrees to the right. ABS, ESP etc and one driver that had to be scraped out of the seat with a putty knife... yeah, me. It shows that qaulity can work though. Now, I want to try that with the Lotus... ;D
Regards,
BC
ML, GL and R class...i think these are the US products only.
C classes to my knowledge arent built in the US
thankfully, the G wagens are built in graz, austria - at 28 day by hand! i went to this plant earlier in the year...they also build some saabs, the BM X3 and even chrylsers there (PT, 300 and xfire)...
they would ideally go back to daimler benz ag...man, imagine how much the stationery costs will be when they change the name!
Referring to Michel's post -the profit will lie in providing credit not in selling cars. Cerberus is known for very high rates of interest to help bail out troubled businesses. It will be only a matter of time before you can buy a Chrsyler on no deposit, 20 years to pay and 20+% interest (in the small print of course...)
The joy of owning a 116 is paying cash for it!!!
Regards,
BC
Quote from: nathan on 14 May 2007, 11:13 PM
ML, GL and R class...i think these are the US products only.
C classes to my knowledge arent built in the US
thankfully, the G wagens are built in graz, austria - at 28 day by hand! i went to this plant earlier in the year...they also build some saabs, the BM X3 and even chrylsers there (PT, 300 and xfire)...
they would ideally go back to daimler benz ag...man, imagine how much the stationery costs will be when they change the name!
The Magna Steyr factory?
We used to get the 270CDi M Class from there, dont know about the current model tho, back in the 80's it was Steyr Daimler Puch.
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, and this particular M class is no exception, however because of a number of other problems, the repair cost has been quoted in excess of $22,000 ! The owner, assuming they has made a mistake, said "don't you mean $2,200" to which they replied "No". DC Australia do not want to know about it !
Quote from: Brian Crump on 14 May 2007, 11:00 PM
compared the braking of the M class against that of a Jeep on the skid pan. One stopped and the other went for a long wet slide despit having ABS etc. Guess which was which....
BC
Quote from: OzBenzHead on 14 May 2007, 07:35 PM
Quote from: 500eguy on 14 May 2007, 03:27 PMThe only M-B's built in America are the SUV's Right? with the execption of the g-wagen
I was under the impression (right or wrong) that some C-Class were built in Alabama, too. Please correct me if I'm wrong.
Good riddance to the merger!
Some C-class cars were assembled on the vacant production lines at the MB plant in Juis de Fora, Minas Gerais, Brazil. That plant had been built to supply the A-class, although it was not a runaway success due to its high price and spartanness. Amazingly, the C-classes were imported in parts assembled here exported to Europe and North America then re-imported by Brazilian 'stealerships' at "imported car" prices - about 60% more than national produced ones! One small detail the cars carried the manufacturers plaque as 'Made in Germany' which they were 'made' there but 'assembled' here.
The 203 C Class we got here were from East London, except for the SportCoupe and the AMG models.
QuoteI have heard from a number of people (mechanics) that the brakes on this model are a problem,
Hummm......which model?
Regards,
BC
Quote from: CraigS on 15 May 2007, 05:13 AM
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]
Gotcha CraigS.
My question stands.
Which model?
Not which Class ;D
Regards,
BC
the later ones with BAS I would guess...
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
Quotethe 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
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....
Quote from: nathan on 15 May 2007, 06:39 AM
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.
Quote from: Grant V on 15 May 2007, 07:20 AMPity 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. ::)
Sorry, yes, ML 2002 model I believe.
Quote from: Brian Crump on 15 May 2007, 06:26 AM
Gotcha CraigS.
My question stands.
Which model?
Not which Class ;D
Regards,
BC
Australia is also going to get RHD 204 C Classes from South Africa later this year when they are lauched.
Quote from: Mforcer on 14 May 2007, 06:42 PM
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.
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.
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. ::)
I think that in a takeover the only ones who benefit are those who get the 'golden handshake' as for the employees, Do you think the presidents/directors could really give a toss?!
It's funny how the 'never-can-do-wrong' corporate Wunderkinder of 90's Germany are now frowned upon, and seen as egoistic mistakes: Schrempp, Pischetsrieder....
The logic of a merger was good at the time, as there seems to be a minimum size in the car business to stay competitive and both Chrysler and Mercedes were simply not big enough. Note that Chrysler is sold for a reported X billions of Dollars, but it cost Mercedes $670 million in cash outflow to achieve the sale!!!
The best story of mergers was when DaimlerChrysler was going to buy Rolls Royce. RR were wanting them to do the deal, as they were pretty much in the same line of business (high class luxury cars). DC even went to the trouble of building a prototype based on a W140 chassis of a new RR. Thing is the bid was a bit short of the mark, Vickers plc were wanting DC to be new owner right or wrong, coaxing more money out of them was the problem. Hence the bidding war between the big 3 (Volkswagen, BMW and DC). BMW eventually told them that if they lost, there would be no more supplies of equipment (engines, electrics etc). What BMW didn't realise was that, they were being nasty to the wrong ppl. The bidding war came to an end when VW walked off with Bentley at a cheaper price. It was reported that you could tell who was visiting RR on any particular day, as there was always either BMW 7's, S-Class or Audi A8's in the carpark on german rego. Because DC lost out, they had to play the game another way...hence the Maybach.
Another great one was BMW's english patient, the ugly divorce of Rover....
QuoteBMW eventually told them that if they lost, there would be no more supplies of equipment (engines, electrics etc).
Who was BMW supplying with engines/electrics?
Regards,
BC
BMW was supplying RR with engines and electronics (air con units, facia displays), right back to the Silver Seraph, and the 1st Arnage's had BMW V8's, along with various electronic stuff
QuoteBMW was supplying RR with engines and electronics (air con units, facia displays), right back to the Silver Seraph, and the 1st Arnage's had BMW V8's, along with various electronic stuff
After the sale by Vickers....but not before....
Regards,
BC
http://news.bbc.co.uk/2/hi/business/122582.stm
It states in the article that they shelved plans to revive Bugatti, that didnt quite pan out that way.