DCX Confirms Chrysler Sale Talks
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04-04-2007, 10:14 PM
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DCX Confirms Chrysler Sale Talks
BERLIN — DaimlerChryslerChairman Dieter Zetsche Wednesday for the first time formally acknowledged that DaimlerChrysler is in talks with "interested" partners regarding options for Chrysler, including its sale.[/align]A proposal to strip the "Chrysler" from DaimlerChrysler's official name drew loud applause during the company's annual shareholder meeting Wednesday morning. The proposal was read along with other measures in the day's agenda after Zetsche addressed the group of more than 8,000.
As soon as shareholders began talking in Berlin on Wednesday, Chrysler Group began taking it on the chin.
The first shareholder to speak brought applause when he called for an undoing of the Daimler-Benz and Chrysler merger, which was called a marriage made in heaven when it occurred in 1998.
"Should there be a divorce ... we would be very happy," Henning Gephardt, who helps manage investments at DWS Investment in Frankfurt, said to the supervisory board.
He questioned why Chrysler did so poorly last year.[/align]"As late as last summer the board said that with the new models Chrysler was on the right track. It was expecting a positive," Gephardt said. "How could it happen that you were so much surprised by the development in the U.S.? The Japanese competitors seem to be much better able to evaluate the market and expect new trends in the future. Turning away from gas-guzzling vehicles is not really a surprising trend. So what we have seen happening is all the more disappointing."
He added: "Our impression was that Chrysler is lagging behind all of the other companies."
Gephardt was followed by similarly minded speakers, who voiced concerns about Chrysler.
On Feb. 14, Zetsche refused to rule out selling the U.S. unit, which lost $1.5 billion last year.
"In this context, I can confirm that we are talking with some of the potential partners who have shown a clear interest," Zetsche said. "But it is also true that we need to keep all options open and that I cannot disclose any details, because we need to have the maximum scope for maneuver."
Shareholders Ekkehard Wenger and Leonhard Knoll, German university professors who own enough stock to force measures on to the official meeting agenda for vote, have proposed eliminating Chrysler from the name by as late as next year if Chrysler is not sold first.
"Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products," the proposal reads.
The company's management is recommending that the proposal be denied and it is not expected to pass during the meeting.
Regarding discussions about Chrysler's future, the company said a requirement with any option is that the company's turnaround plan announced in February be implemented. DaimlerChrysler executives want to:
• Enhance DaimlerChrysler's sustainable financial strength and increasing its enterprise value.
• Create a "clear strategic focus" for DaimlerChrysler.
• Make the Chrysler Group competitive and sustainably profitable.
• Find the best option for employees.
Said Zetsche: "This means, that after reviewing all options, we will finally decide for the option that best meets our criteria. So far, I am satisfied with the process. Everything is going according to plan."
Three groups are believed to be in the hunt for Chrysler: Canadian auto supplier Magna Internationaland Blackstone Group and Cerberus Capital Management, two private equity firms.
These groups have been to Chrysler's headquarters in recent weeks to review its finances and business. Bids worth as high as $9 billion may have been submitted, one German newspaper has reported. None of the purported suitors, however, has confirmed information about offers.
From the 'net
As soon as shareholders began talking in Berlin on Wednesday, Chrysler Group began taking it on the chin.
The first shareholder to speak brought applause when he called for an undoing of the Daimler-Benz and Chrysler merger, which was called a marriage made in heaven when it occurred in 1998.
"Should there be a divorce ... we would be very happy," Henning Gephardt, who helps manage investments at DWS Investment in Frankfurt, said to the supervisory board.
He questioned why Chrysler did so poorly last year.[/align]"As late as last summer the board said that with the new models Chrysler was on the right track. It was expecting a positive," Gephardt said. "How could it happen that you were so much surprised by the development in the U.S.? The Japanese competitors seem to be much better able to evaluate the market and expect new trends in the future. Turning away from gas-guzzling vehicles is not really a surprising trend. So what we have seen happening is all the more disappointing."
He added: "Our impression was that Chrysler is lagging behind all of the other companies."
Gephardt was followed by similarly minded speakers, who voiced concerns about Chrysler.
On Feb. 14, Zetsche refused to rule out selling the U.S. unit, which lost $1.5 billion last year.
"In this context, I can confirm that we are talking with some of the potential partners who have shown a clear interest," Zetsche said. "But it is also true that we need to keep all options open and that I cannot disclose any details, because we need to have the maximum scope for maneuver."
Shareholders Ekkehard Wenger and Leonhard Knoll, German university professors who own enough stock to force measures on to the official meeting agenda for vote, have proposed eliminating Chrysler from the name by as late as next year if Chrysler is not sold first.
"Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products," the proposal reads.
The company's management is recommending that the proposal be denied and it is not expected to pass during the meeting.
Regarding discussions about Chrysler's future, the company said a requirement with any option is that the company's turnaround plan announced in February be implemented. DaimlerChrysler executives want to:
• Enhance DaimlerChrysler's sustainable financial strength and increasing its enterprise value.
• Create a "clear strategic focus" for DaimlerChrysler.
• Make the Chrysler Group competitive and sustainably profitable.
• Find the best option for employees.
Said Zetsche: "This means, that after reviewing all options, we will finally decide for the option that best meets our criteria. So far, I am satisfied with the process. Everything is going according to plan."
Three groups are believed to be in the hunt for Chrysler: Canadian auto supplier Magna Internationaland Blackstone Group and Cerberus Capital Management, two private equity firms.
These groups have been to Chrysler's headquarters in recent weeks to review its finances and business. Bids worth as high as $9 billion may have been submitted, one German newspaper has reported. None of the purported suitors, however, has confirmed information about offers.
From the 'net
#2
04-04-2007, 10:51 PM
Record Breaker
RE: DCX Confirms Chrysler Sale Talks
Ve didn't expect ze Amerikans zo loze ze interest im petro-guzzling SUVz.
No crap, Sherlock! This is now three companies that Daimler has decided to buy and sell after it has been proven that they don't have the slightest clue what they are doing. Moronic Germans. I hope Magna gets Chrysler.
No crap, Sherlock! This is now three companies that Daimler has decided to buy and sell after it has been proven that they don't have the slightest clue what they are doing. Moronic Germans. I hope Magna gets Chrysler.