Why all the negative feelings toward Dr. Z? He's the man that saved
Chrysler from the Eaton-Holden fiasco and put Chrysler back on its feet.
It's not his fault his successors stumbled and undid all his hard work. He
had no idea they would build more cars and trucks that the market could bear
(repeating Holden's mistake), and could not predict rising gas prices would
destroy truck sales. Like it or not, the problems at Chrysler in 1999-2000
and again in 2006-2007 are the result of Americen decisions, not German.
Given Chrysler's present problems, many a CEO would have just closed the
doors and sold eveything off. Although sale price is quaoted at $7.4
billion, Daimler AG will see only $1.35 billion of that. $5 billion goes
into the coffers of Chrysler's auto making business and $1.05 billion into
Chrysler Fianancial. Daimler AG assumes all debts and gets to pay out $878
million in debt payments. As well, Daimler is lending $400 million to the
new Chrysler. So, in the end Daimler loses every nickle they paid for
Chrysler in the merger less than ten years ago. And Cerberus gets to deal
with Chrysler's $15 billion in pension and health liabilities.
Expect the new owners to slash jobs and wages. Also expect production of
some low production vehicles to be shifted to Asia or South America where
wages and other labour costs are lower.
Biggest question is what role will ex-DaimlerChrysler exec Wolfgang Bernhard
play in the new Chrysler company? He had a large hand in preparing the
Cerberus bid.
And once the deal is consumated, for the first time since the formation of
the Maxwell-Chrysler Motor Corporation in 1924 (predecessor to the Chrysler
Corporation, formed June 6, 1925), the name "Chrysler" will not be seen on
the stockmarkets of the world. Daimler AG (formerly DaimlerChrysler AG)
will own 19.9% of the new Chrysler Holdings LLC, a privately held company,
while the Cerberus Capital Management LP will own the other 80.1%.
Bill
Vancouver, BC
----- Original Message -----
From: "eastern sierra Adj Services" <esierraadj@xxxxxxxxx>
To: <L-FORWARDLOOK@xxxxxxxxxxxxx>
Sent: Monday, May 14, 2007 9:01 AM
Subject: [FWDLK] CHRYSLER: an American company
> I hope that someone doesn't fail to look out for the personal safety of
> Herr Dr. Z-whatisname
> & remind him not to let the door hit him in the ass, on his way OUT!
>
> Neil Vedder
>
> *************************************************************
>
> To unsubscribe or set your subscription options, please go to
> http://lists.psu.edu/cgi-bin/wa?SUBED1=l-forwardlook&A=1
*************************************************************
To unsubscribe or set your subscription options, please go to
http://lists.psu.edu/cgi-bin/wa?SUBED1=l-forwardlook&A=1
|
|
Back to the Home of the Forward Look Network