Chryslertakeover
First off, there’s a great editorial here
http://www.allpar.com/ed/chryslertakeover.html that has inspired me to write. I remember chryslertakeover.com, and thank Mr. Vitale for his work. I remember feeling this was a ‘bad idea’ in 1998. There was a time, not long ago, when Chrysler was busy saving Mercedes’ bacon and Zetsche was the toast of Detroit, that I thought this whole DCX thing might work out long term.
I believe I was mistaken.
It’s clear now that if Chrysler stays within the clutches of Daimler, it will slowly but surely be completely absorbed with only Jeep and Dodge Trucks left. Every “turnaround” seeks, supposedly, to grow by contraction - a short term answer intended to impress those looking to make a quick buck on the stock rather than actually grow the company long term.
There’s another angle, the one that suspects this is all a ruse to soften up the UAW. It’s a mighty sophisticated ruse then, as this has all the earmarks of really being an effort to sell. I used to place more credence in this idea than I currently do, but given what we’ve seen with DCX so far I hesitate to completely rule it out.
It is also possible that they simply will not get their asking price, and will eventually take Chrysler back off the market. In my opinion that is the least likely scenario, as they have created many, many wounds that they would then have to heal, a difficult task when they already have a plate full of those.
Key elements in Daimler want Chrysler gone. That also has been made clear. This not only makes a retention of Chrysler by Daimler seemingly unlikely, it also makes it undesirable in the extreme. For, if you cannot sell that which you want to be rid of, you can always dismantle it, jettisoning that which you don’t want and only keeping the bits that you still value.
Chrysler - as a company - ceased to exist in 1998. If Daimler does not find a buyer (and of course, maybe even if they do), Chrysler could very well cease to exist as a brand as well.
When you speak of blotting out Chrysler as a brand, I’m sure there will be at least some may be many so called experts that will say that the USA has too many brands now and why would Chrysler be missed? I say that if we have too many brands then why let China bring in probably 4-5 brands plus India etc. Why not shut the flood gates and even send some of the most recent brands and models packing? Let’s support American brands that go back 50-60 yrs.
The irony should not be lost on anyone Spt Fury. Kill off all of Chrysler Group, and then allow a dozen OTHER brands come in from a DOZEN other countries. Why not? The inmates are after all running the institution.
Chrysler, as I have said since 1998, is DEAD, it is just no one has told it yet. However, I fear that the message is on the way.
I am so glad to hear from the Chryslertakeover (CTO) webmaster again. I remember campaigning on Allpar, CTO, and other sites that the “merger” was a bad idea. However, not many people listened. The Chryslertakoever site, like Allpar, was a breath of fresh air compared to the media spewing all this garbage about this being a marriage made in heaven. With these two sites, I was able to learn what was really going on behind the scenes. I was excited by some of the efforts being proposed and implemented by people trying to fight Daimler’s takeover. Unfortunately, we were too small and didn’t have the pull of these big companies or Wall Street analysts. But, we tried to make a difference. The effort and energy was there even if it was a long shot.
I do applaud Chris Vitale and Dave, Curtis, and others at Allpar for speaking out against the takeover. I was pretty distraught when I didn’t hear any MoPar fans questioning the “merger”, but when these individuals stepped up to the plate, I finally found the group that was ready to speak out against Herr Schempp and “Money bags” Eaton. It was a very interesting time filled with hope and a sense of purpose. However, the final goal was not realized.
Today, I no longer feel the same as I did back when Schrempp and Eaton created DCX. At the time, I was furious and praying that somebody would stop the “merger” before it began. That didn’t happen, so I’ve been an opponent of DCX for the last 9 years – hoping it would crash and burn. It looks like that may very well happen soon. I don’t know if it was from years of fighting Daimler or enduring the German superiority angle, but I no longer have the energy or desire to support this entity named Chrysler – independent or otherwise. I would like to see Chrysler freed from Daimler, but I’m not very concerned where it lands. I’ve been so exposed to other car companies like Ford, GM, Lexus, Infiniti, Toyota, Honda, etc…, that I doubt I’ll come back. I just don’t have the hunger for Chrysler like I used to have.
I get a sense that Mr. Vitale has a bit of that feeling in him as well. Some of us knew the “merger” was a wrong move – and it is proving us right. We said what needed to be said back then, and when others scoffed or argued, we just kept fighting the “good fight”. But, when the “merger” went through, all you could do was sit back and watch it unravel. There really is nothing that can be done except to watch how this soap opera plays out. It may have a great finish, but I think it ultimately has the chance of being ugly. What can you do? I think there is a sense of inability to do anything on our part because the big players are again calling the shots. They will make the decisions, and what comes about comes about. In reality, I guess I take the same position that Curtis Redgap has been saying ever since I left Allpar a few years ago. Chrysler Corporation died in 1998 and what remains is just a name and memories.
This appears to me, as though reality “I guess” has perhaps soakin in.
The belief that to obtain what you want is life, Is always worth Fighting for, must be fading as a viable belief these days.
I believe someone Once built a momument as a legacy to his hiers and the future! at the top of the monument in an observation area, this person placed a simple Tool box, with his name on it, and the belief that Opening that box, would open the world to anyone whom wished to learn and build with it.
The Monument contains a portrait of what can be accomplished with pride and hard work, a testiment to a fair time and belief’s that can carry one a long way if they choose to do what they are capable of doing.
Perhaps prophecy, perhaps insight or sheer coincidence, This momument is decorated ornately with a metal, created to endure the test of time itself, topped of and incased in it for all time. A metal only available from Germany, meticuliously crafted from a time when the belief was to build the best you could build, encourage the best from other’s by your leadership,and treat them with dignity and respect.
This Monument shines brightly in the light of day, and appears as a beacon in the nightime sky!
A Legacy, an enduring symbol of a dream, and of a Man.
I must take this opportunity to state that I am glad and gratified that Mr. Vitale has come back. I remember his web site, and I was disappointed that he took down the site at the time he did. He, like myself, read the prospectus that Daimler-Benz had sent to stock holders. To me, as he has verified, I saw a lot of disingenuous information. Yet, no one was questioning it! The news all sounded like “happy, happy” good deal all around. It was during this period of transition that I also came across ALLPAR and David Zatz.
Thank you Mr. Vitate. Please, stay with us. Your powerful insight is needed now, just as much as it was needed back then. This time, I think people are not so easily charmed or fooled. The probing into the current situation, more in depth, more piercing, and very skeptical about the true origins of the “crisis” and loss of profit at Chrysler Group.
Is Chrysler really for sale? Is Daimler pulling a page from the GM/Delphi book? I’m surprised no ones looking into their creative accounting as with Freightliner, or are they? Can someone come from a failing company, use their experience from that company and do anything with Chrysler but make it fail? Is a 1.5 billion loss in a year of record vehicle launches really that bad? Do they deserve the same pity as Ford and GM who have lost billions and billions? If their troubles were from overbuilding then why do they still run extra production overtime shifts at affected plants between layoffs? If Chrysler was in the trouble they make out to be shouldn’t Dr.Zzzzz and Mr. Lasorda lead by example like Mr.Ghosn and Mr. Iacocca did with their cut salaries?
I don’t believe Chrysler is for sale although the ploy failing could result in a sale. I’d have to agree with the above “a ruse to soften up the UAW” and add the suppliers. Speaking of suppliers, Magna couldn’t possibly take over all of Chrysler, too much debt, too many suppler conflicts. Here’s another angle, last year at the NAIAS Dr. Z said something interesting, he said that eventually Chrysler would like to get out of the car building business and have someone else build them for Chrysler. Here’s where Magna comes in, already running operations in Toledo and building Grand Cherokee’s, Minivans, and 300C’s at there assembly plant in Austria, this would be the perfect opportunity for Dr. Z to get his wish. Magna could easily buy some if not all the assembly plants, the Toledo operations and the two Canadian plants where they are major suppliers for sure. The UAW would already be softened for the change.
Well, like I said, I haven’t taken that off the table, but if that’s still the underlying motive they’re playing one heck of a game of corporate chicken. And the contingent of the BOD that wants Chrysler gone isn’t a figment of DCX’s imagination. Those folks are real, and they aren’t going anywhere.
Pardon my intrusion. I registered at Allpar Forums a couple of days ago in order to seek some help on my Caravan. After activating the account, I cannot post, reply, search, nor can I private messsage any admins I see online. In short, I cannot communicate any way whatsoever. I have sent two emails to allpar forum staff with no reply. While the topic of selling Chrysler versus dismantling is quite interesting, I’d really like to join the community and seek the advice of those who know what the heck their talking about. Along with the Caravan, I also drive a Jeep Cherokee, so these forums would be doubly valuable to me. Will someone within reading distance of this post -please- contact an allpar admin and have them activate my account with the proper permissions? Thank you… and again… sorry for intruding on the blog.
- Keith
I’m not sure I understand the motive the Benz dudes have for bringing Chrysler down. Their operation looks an awful lot like the Westinghouse Corporation I once worked for: Buy valuable companies, strip them of cash, sell to the highest bidder after they tank in the marketplace. They were late on a good thing and early to dump the acquisitions. Kind of hard to make money that way in the long term. The problem I see is that this seems to be the rulebook that the AMERICAN companies normally follow. The EU companies have always had an eye on the long term historically. Is this some sort of odd corporate cross-pollination behavior of the corporate culture or what?
Chrysler products I can afford to buy on what I make. I could say the same about Ford or GM. If Chrysler dies I will likely live. What I do not understand here is how Daimler wins if Chrysler flops. They proved their incompetence with the 4 cylinder tiny Benz cars. At least people are BUYING Calibers.