VW not interested in buying Chrysler Group
Posted Feb 23rd 2007 8:05AM by Chris Shunk
Filed under: Chrysler, Volkswagen

Gee, you lose over $1.5 billion in the third quarter of 2006 and all of a sudden you're not an attractive automotive partner. First, news leaks that Daimler wants to kick the Chrysler group out the window, then Hyundai and Nissan decide that they're not interested in purchasing the struggling domestic. Now, Volkswagen has made it known that the five-star isn't on their shopping list, even though Chrysler is currently working with VW to build them a minivan based on the next-generation Town and Country.

As reported here on Autoblog, GM has been mentioned as a potential suitor for Chrysler. We wonder if the General will get a discount if nobody else is interested. It's hard to believe the company that builds the Viper and the 300C could be wanted like a sweater at Walmart in June.



WHAT THE HECK IS GOING ON!!!

 

I think the actual problem is the Legacy not the company, North American manufacturers have to much labour baggage and no one wants to take that responsibility on.
Toyota and Honda have plants here in Canada but I think that they have no CAW (UAW) to worry about and they are more productive with less costs after retirement.
The unions I believe, if I am correct (if not please feel free to correct me) have used Chrysler as the front line negotation company because they are always vulnerable to work stoppages.

 

True and it's not just Chrysler with this problem. I'm just concerned that all this house hunting by Chrysler might have a negative impact the announced production start date for the Challenger.

 

I don't think that will happen, there is still plenty of value in Chrysler, this could be posturing by the Manufacturers and the Unions as well, It's no secret that they want to reduce the number of car dealers they have as well. The truth is we as a culture need to be more productive and produce better quality products and buy what keeps the profit here in North America, I try to purchase as little as possible from the great agent of China (does everyone know who that is?) and others like them.

 

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.