Hold on to your hats, folks...
Automotive News is reporting that DaimlerChrysler may be negotiating with General Motors for GM to acquire Chrysler. That's a reversal of what DaimlerChrysler CEO Dieter Zetsche said just last fall. Is DaimlerChrysler that desperate to shed the Chrysler product line? Apparently so.
Last fall DaimlerChrysler's Chief Financial Officer had said that he wouldn't rule out a sale of the Chrysler "arm" of DaimlerChrysler, only to have the corporation itself issue a press release the next day saying Chrysler wasn't for sale. Well, maybe it is after all.
CEO Dieter Zetsche's statement resurrects the speculation from last fall, which followed on the heels of Chrysler group's dismal third-quarter results, which included a $1.48 billion loss. Perhaps someone in Germany finally looked at the numbers and said "we're bleeding all over the floor here folks" and maybe someone finally believed it1
When pushed for comment, Zetsche would refused to comment on Germany's Manager Magazin report that DaimlerChrysler was negotiating to sell Chrysler to General Motors. Manager Magazin didn't name its sources but said the talks were "in full swing."
Zetsche's reaction? "I cannot and will not go into any further details." Meanwhile a General Motors isn't talking. Typically, when two big companies are talking about one buying the other, the response that both give is very often not to say anything at all.
The "gotta sell" mentality probably wasn't helped by today's posting of a $7.28 billion operating profit by DaimlerChrysler for 2006 after the Chrysler group posted its own loss of $1.47 billion.
As Everett Dirkson said once, "A billion here, a billion there, pretty soon you're talking about real money."
Who knows what all this will mean for American consumers...we'll have to wait for the dust to settle.
ABOUT THE AUTHOR
Known nationwide as a leading Lemon Law attorney, Ronald L. Burdge has represented literally thousands of consumers in "lemon" lawsuits and actively co-counsels and coaches other Consumer Law attorneys. From 2005 through 2018, attorney Ronald L. Burdge has been named as the only Lemon Law Ohio Super Lawyer by Law and Politics magazine and Thomson Reuters Corp., Professional Division. Burdge restricts his practice to Lemon Law and Consumer Law cases. The Ohio Super Lawyer results are published annually in the January issue of Cincinnati Magazine. Ronald L. Burdge was named Consumer Law Trial Lawyer of the Year 2004 by the National Association of Consumer Advocates, the nation's largest organization of consumer law private and government attorneys. "Your impact on the auto industry has been magnified many times over because of the trail you blazed for others," stated NACA's Executive Director, Will Ogburn. Burdge has represented thousands of consumers in Ohio, Kentucky and elsewhere since 1978 and is a frequent lecturer to national, state and local Bar Associations and Judicial organizations. Burdge is admitted to Ohio's state and federal courts, Kentucky's state courts, and Indiana's federal courts. Other court admissions are on a "pro hac" temporary, case by cases basis.