I trade Chrysler Bonds for Citigroup and without the merger (acquisition)
Chrysler had a very good chance of going bankrupt. Their R&D costs were
through the moon and by 1998 they were the least efficient major automaker.
In other words it cost them more to develop and build a car than anyone
else. The were not sure if they would have enough money to develop and build
the next line of vehicles. Daimler saw this weakness and thought they could
get a good deal on a company that needed some minor tweaking. When they took
over the situation was worse than they thought.
----- Original Message -----
From: <Tubamirbls@aol.com>
To: <dakota-truck@dakota-truck.net>
Sent: Sunday, September 21, 2003 11:04 AM
Subject: Re: DML: Chrysler's Future
>
> "-----wonder what they (Daimler) did wrong---(in their acquisition of
> Chrysler.")
>
> There are plenty of theories in the biz media and have been almost from
the
> onset. One can't overlook the most obvious and that is the human element.
> Chrysler came out of the late 80's and went thru the 90's until the
acquisition
> in strong Detroit contention. They had vehicles that much of the public
liked,
> wanted and bought and gave GM and Ford a real run for their money in many
> important areas. Internal matters were also the envy of GM and Ford
regarding
> plant efficiency and others. But almost coincidental to the German
acquisition
> many of Chrysler's top executives, the shakers and movers who brought all
this
> about, jumped ship, others quit soon as they got a taste of how Daimler
was
> determined to run things. The company was left with big shoes unfilled
and
> continues to this day with that sad situation.
>
> Some observers comment that had the acquisition never taken place Chrysler
> might now be in bankruptcy. I'm not so certain. Had the winning
management
> team remained in place and continued to attract, as they did previously,
some of
> the best of the up and coming newcomers, they may well have continued to
be
> better off than either GM or Ford, notwithstanding the recession. What is
so
> regrettable about this is the new cars and trucks that might be on the
street at
> this time that will never be built.
>
> Paul Sahlin
>
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