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From Autolone Detroit

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Old 04-30-2007, 12:26 AM
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Default From Autolone Detroit

Anybody watch Autoline Detroit? They had Buzz Hargrove, the president of the CAW as a guest. To sum up what he and host John McElroy had to say, The CAW wanted Daimler to keep Chrysler. But if it were to be sold they think Magna would be the best choice [even though there may be a conflict of interest over Magna making parts for other manufacturers] Other private equity firms are out there but they would be in it for the money so Chryslers future would be in jeopardy. Even if Daimler does sell Chrysler, he thinks it would be a mistake not to keep at least and interest of the company leaving options open. Chrysler has given Daimler the ability to lower manufacturing costs and new design insight that Daimler did not have before the merger. Over a 3 year period Chrysler has a 2.3 Billion dollar profit [including the 1.5 Billion loss from 2006] So this may drive the price a bit over the 4.5 being offered by Magna or Tracinda. He also went on to talk about the Big 3 and how things need to change globaly for the Big 3 to return to their haydays. He talked about Japan and Korea only having approximatley 4% of their vehiles supplied from outside of their respective countries. China has such high tariffs that you need to build from within the country. Meanwhile here in North America free trade agreements have hurt the Big 3. 40% of all Japanese brands are made in Japan and shipped to the States. If the Big 3 were to form a North America pact backed by the gov't they could turn the tide and regain their status with American buyers.I have heard that a sale may happen as early as next month but mostly there is no real breaking news. Here is a link to the show:http://www.autolinedetroit.tv/autoline/

 


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