Mercedes, Not US, To Bail Out Chrysler

In a huge surprise, Chrysler has decided to decline US government help and instead accept help from Mercedes, which still owns 20% of Chrysler. Under the plan, Chrysler will introduce competitive platforms starting in June

2009, with a total of three new platforms available by December 2009.

The V6 versions of the Chrysler 300 and Dodge Charger will be replaced by front drive models with better fuel mileage and more interior room. The Hemi powered rear drive 300 and Charger will be retained to fill their proper role as specialty models built mostly for status rather than for wide market appeal.

In the midsize segment, the current Mitsubishi sourced Sebring and Avenger, awkwardly styled in the theme of a brick set on edge, will be replaced by lower, sleeker, and more aerodynamic models. In the compact segement, the PT Cruiser will be retained since it has proven appeal as a styling curiousity. The Dodge Caliber, also curiously styled but without a retro look to work in its favor, will be replaced by a conventionally styled small car which will have wider appeal.

Mercedes announcement that these changes can be accomplished in a six to twelve month time period and at a cost of a mere $1.6 billion initially baffled industry observers. "I wondered how Chrysler could produce three new lines of roomy and economical front drive cars - cars that are right for America - so quickly and for so little money" said Joseph Camel of the Brand Research Institute.

But then came the surprising answer. The solution to fixing Chrysler's current unsaleable car lineup is merely to replace the current cars with the cars they replaced: 2004 Concorde/Intrepid, the 2007 Sebring/Stratus, and the 2002 Neon.

"This is an investment in the future" said Mercedes spokesman Heinreich Tungensheek. "By spending this money, we expect the value of our 20% stake in Chrysler will eventually rise to zero!"

Reply to
Comments4u
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Oh this should be good. C4U has been unusually quiet lately...

OR to put a finer point on it, to revert to the lineup BEFORE F***ING DAIMLER SCREWED UP CHRYSLER THE FIRST TIME!! The car-knowledgeable who read this will realize that the vehicles he mentioned are ALL pre-Daimler designs.

I don't care who you are, that there's funny.

Reply to
Steve

You should be ashamed of yourself... Now I have to clean *another* keyboard. I'm going to get a water/coffee proof keyboard, this is getting to be too much trouble!

Reply to
PeterD

"Joe Camel", eh?

Reply to
Matthew Russotto

Don't understand the maths

"...we expect the value of our 20% stake in Chrysler will eventually rise to zero!"

FALL to zero maybe?

DAS

To send an e-mail directly replace "spam" with "schmetterling"

Reply to
Dori A Schmetterling

(Dori - it's satire)

Reply to
Bill Putney

This is quite smart, but sorry Chrysler the 300M I recently purchased for a few songs should last me for 8+ years. Of course keep the RWD 300C for the police who like dangerous chases.

I guess if it sells, why not. IMO it's styling is worse than the Caliper.

Too bad his will come too late for me. Actually the Compass would be easier to change for my liking, simply replace the Jeep front end. Chrysler doesn't need two Jeep front end cars in this class. My dealer told me they just don't know how to sell the split personalty Compass. (true story!)

The changes would be relatively minor, if they haven't sold the tooling to Russia and China.

Nope, a slight revision of the mid 90s LH and the 91+ Sebring, with the current drive trains (less the 2.7L V6) would have done it. Too late for me again Chrysler.

It might even rise a bit above zero, but Mercedes just doesn't know how to make a longer term hit with Chrysler. They don't understand NA.

Reply to
Josh S

,,,,,, yes, but the math is probably stil correct.... rise to zero :-)

cheers guenter

Reply to
Guenter Scholz

*WOOSH*

Missed that one completely, didn't you!

Reply to
PeterD

Interestingly, it was the Chrysler people who talked the Daimler people out of buying into Nissan (and let Renault snap it up instead). The Chrysler people said, Hey, we've worked with Mitsubishi in the past, they're good, buy into them instead.

So instead of Nissan platforms, we get Mitsubishi platforms for fwd Chryslers. Daimler bought into Mitsubishi, and found they were covering up warranty problems (Mitsu gave Daimler MitsubishiFuso trucks in compensation, which they still own). Can't blame the Daimler folks for having it in for the Chrysler people after that~

Reply to
Lloyd

You didn't understand that this was a satire and likely has no basis in fact.

Reply to
NapalmHeart

Its a fact Chrysler LLC has negative value. Its worse off now than when Mercedes sold it. And if you review the "sale" transaction, you'll find that despite saying they got something for Chrysler, Mercedes covered enough other expenses that their net from the "sale" was negative. None of which changes the humor of the original article!

Reply to
edward ohare

Strange "facts" you're using here Lloyd.

I don't know who talked Schrempp out of buying Nissan (you're talking like you were a mouse in the corner during the meetings). Nissan was on the brink. There was nothing to "snap up". Taking on Nissan was taking on a huge risk. Oh, yea, Ghosen did well, but would Schrempp have?

Chrysler already had money in Mitsubishi. They didn't put more into Mitsubishi as an alternative to buying Nissan. When Mitsubishi got into trouble, and Schrempp wanted to invest more, the Mercedes board stopped him.

You say Chrysler people had confidence in Mitsubishi, but the actions they've taken over the years don't show that. Their involvement with Mitsubishi was usually to fill a need on a temporary basis.

When Chevy and Ford started selling the Vega and Pinto, Chrysler sourced the Colt and then the Arrow from Mitsubishi. But then when they were able to build their own small car, the Omni/Horizon, they cut out Mitsubishi in that size class. But even smaller cars had become popular, so they, again unable to build one, sourced a smaller Colt from Mitsubishi, one down in the Ford Fiesta/Toyota Starlet class.

When they needed a larger 4 cylinder in the early 80s, they bought Mitsubishi engines, but only until they could expand the 2.2 into the

2.5. When that happened, the Mitsubishi 2.6 was gone. When gas stayed cheap and they needed a V6 in 87, they bought the Mitsubishi V6. But only until they could develop their own V6.

Chrysler bought small trucks from Mitsubishi, but again, only until they could build their own. Interestingly, Mitsubishi now buys the Dakota from Chrysler to sell under their name.

With the Neon, Chrysler made a decision yet again to build their own small car rather than buy something from Mitsubishi to sell. And so after having had a lot of Mitsubishi products in the showroom for years, they were down to a couple of specialty coupes, with the rest of their product range populated by their own products.

Then under Mercedes, it was decided all the midsizes, not just the coupes, would be bought from Mitsubishi. The standard small car went away, replaced by the Cruiser and Caliber, and Mercedes didn't even bother to plan for a normal small car at all.

And what's this fixation with wagons? The Caliber as a Neon replacement? The Magnum as an Intrepid replacement? (Remember there was initally to be no Charger.)

I don't see that Mercedes missed anything by failing to "snap up" a decimated Nissan. After all, they took a healthy company, Chrysler, and ran it into the dirt. And the actions over the years indicate a consistent effort by Chrysler people not to rely on Mitsubishi.

Reply to
edward ohare
**************
*************

You should READ, before you post.

Reply to
Josh S

And didn't Renault already have cooperation with and/or shareholding in Nissan?

BTW, aren't you kidding yourself that it was Mercedes that spoiled a healthy Chrysler? Chrysler was a vehicle (pun intended) for Merc to have large sales in the US (and to give the German executives an excuse to pay themselves ridiculously high American wages). Hardly motives to wreck Chrysler.

Blame the foreigners....

DAS

To send an e-mail directly replace "spam" with "schmetterling"

Reply to
Dori A Schmetterling

You mean from a minus value?

DAS

To send an e-mail directly replace "spam" with "schmetterling"

Reply to
Dori A Schmetterling

Hello Dictator, PeterD.

Don't bottom-post. I find it intensely inconvenient and irritating as I have to scroll though loads of repeat stuff just to get to a few pearls of wisdom. But I only tell you that and not the other bottom-posters as it is a case of chacun a son gout.

DAS

To send an e-mail directly replace "spam" with "schmetterling"

Reply to
Dori A Schmetterling

Exactly. (???)

Reply to
Bill Putney

So you both TOP and BOTTOM post. How retarded.

Reply to
NapalmHeart

Yes. BTW I notice that no one here appears to be a Monty Python fan :-(

cheers

Reply to
Guenter Scholz

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