An interesting conclusion to the Daimler-Chrysler saga – less than ten years ago Daimler (known for premier cars and large trucks) bought Chrysler for $36 Billion. Now, Daimler sold 80% of Chrysler to a private company, Cerberus, for less than $8 Billion.
I’m not saying this is a bad move looking forward – you don’t want to throw good money after bad, but man is this humiliating for both parties. This is another real and symbolic blow to the American auto industry. One of the most prestigious automakers in the world spends nine years with you and says we’re willing to lose billions on this if you just take it off our hands. How will the brand be perceived moving forward?
Daimler will shed itself of the pension responsibilities of Chrysler and refocus on its strengths. Chrysler and Cerberus will need to get all three heads of that dog barking and heading in the same direction to help reestablish the remaining Chrysler brands (Chrysler, Dodge, Jeep, etc.).
So, what would be more interesting ways to spend (lose) $26 Billion over a decade? I used to think that when you’re in a position to make million-dollar mistakes you’ve really made it. This really makes me reconsider and resets that bar.
Dr. Z, please send $500 Million, if there’s no ROI in nine years, you’re only out $.5 Billion.
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