Old 02-23-2007, 05:07 PM
  #5  
BootCamp
Senior Member
 
BootCamp's Avatar
 
Join Date: Jun 2006
Location:
Posts: 822
Likes: 0
Received 0 Likes on 0 Posts
Default RE: VW not interested in buying Chrysler Group

I think a lot of folks are overreacting to DCX's announcement that with a $1.5B loss, they wouldn't discount any measure to address the problem. Everyone instantly jumps to a "DCX is selling Chrysler" frame of mind.
There are a lot of factors that go into calculating that $1.5B figure - many of which were cumulative over a number of quarters, not just one. When compared to Ford and GM's financial situations, the loss stated by DCX is not out of line, or without hope, yet no one is screaming that Ford or GM are selling. Seems more like a misinterpretation of the German parent company's statement.
Chrysler has a lot going for it that the other domestic automakers don't, like a virtual monopoly on domestic minivan production, the original SUV - Jeep, as well as a very potent engine lineup (across the board).
I think it would be a huge mistake for Daimler to sell Chrysler because of a downward swing that ALL automakers are enduring.
As the economy goes, so do auto sales. DCX would be foolish to divest themselves of such a large segment of the auto market - especially in the largest market in the world, and put all of thier eggs back into one basket.