Mercedes still may profit from Chrysler

Mercedes still may profit from Chrysler

While the general understanding is that Mercedes is finished with
Chrysler, in fact Mercedes may still benefit from their so far
ill fated takeover. Unrecognized by most is that Mercedes made
Chrysler dependent on them for suspensions and transmissions for
its large cars, and one complete vehicle Chrysler will continue
to assemble from Mercedes supplied kits: the Sprinter. Of course,
Mercedes must be cautious to provide these parts at competitive
prices, lest Chrysler continue to lose money, something that may
be more difficult with the fall of the dollar.

Also often unrecognized is that Mercedes still owns 19.1% of
Chrysler, so if Chrysler eventually becomes profitable and
valuable, Mercedes' remaining stake might be sold for real money.
This would be in contrast to the Cerberus deal, where Mercedes
claimed it received money for Chrysler, but in actuality paid
Cerberus to take 79.9% of Chrysler.

The year end Mercedes news conference proved less than
enlightening in most respects. While Mercedes spokesman Heinreich
Tungensheek expressed disappointment over Chrysler discontinuing
the reskinned SLK it sold as the Crossfire, he refused to comment
on a question of whether retention of 19.1% of Chrysler was an
astute business move. The implication of the question was that
the only reason Mercedes still had a stake is Chrysler is because
it couldn't afford to give Cerberus any more money to take the

remainder.

However, the mystery of the pronunciation of DaimlerChrysler was
finally resolved. To American eyes, it looked like it should have
been pronounced "Dame lur cry slur". Yet ads during Mercedes
ownership consistently said "Dime lur cry slur". "It was
pronounced 'Dime lur', said Mr. Tungensheek. "The 'Chrysler' was
silent".

In article >, Comments4u wrote:

> Also often unrecognized is that Mercedes still owns 19.1% of
> Chrysler, so if Chrysler eventually becomes profitable and
> valuable, Mercedes' remaining stake might be sold for real money.
> This would be in contrast to the Cerberus deal, where Mercedes
> claimed it received money for Chrysler, but in actuality paid
> Cerberus to take 79.9% of Chrysler.

> The year end Mercedes news conference proved less than
> enlightening in most respects. While Mercedes spokesman Heinreich
> Tungensheek expressed disappointment over Chrysler discontinuing
> the reskinned SLK it sold as the Crossfire, he refused to comment
> on a question of whether retention of 19.1% of Chrysler was an
> astute business move. The implication of the question was that
> the only reason Mercedes still had a stake is Chrysler is because
> it couldn't afford to give Cerberus any more money to take the
> remainder.

They should have paid me to assume ownership of chrysler... I wouldn't
mind having my own car company.

"Brent P" > wrote in message
. ..
> In article >, Comments4u
> wrote:
>
>> Also often unrecognized is that Mercedes still owns 19.1% of
>> Chrysler, so if Chrysler eventually becomes profitable and
>> valuable, Mercedes' remaining stake might be sold for real money.
>> This would be in contrast to the Cerberus deal, where Mercedes
>> claimed it received money for Chrysler, but in actuality paid
>> Cerberus to take 79.9% of Chrysler.
>
>> The year end Mercedes news conference proved less than
>> enlightening in most respects. While Mercedes spokesman Heinreich
>> Tungensheek expressed disappointment over Chrysler discontinuing
>> the reskinned SLK it sold as the Crossfire, he refused to comment
>> on a question of whether retention of 19.1% of Chrysler was an
>> astute business move. The implication of the question was that
>> the only reason Mercedes still had a stake is Chrysler is because
>> it couldn't afford to give Cerberus any more money to take the
>> remainder.
>
> They should have paid me to assume ownership of chrysler... I
> wouldn't
> mind having my own car company.

But at least when they paid Cerbus to take it, they have the
possibility that the 19.1% they still own might one day be valuable.
If they paid you to take it,...well one can only imagine.

Ed

In article <477cdb8e$1@kcnews01>, C. E. White wrote:
>
> "Brent P" > wrote in message
> . ..
>> In article >, Comments4u
>> wrote:
>>
>>> Also often unrecognized is that Mercedes still owns 19.1% of
>>> Chrysler, so if Chrysler eventually becomes profitable and
>>> valuable, Mercedes' remaining stake might be sold for real money.
>>> This would be in contrast to the Cerberus deal, where Mercedes
>>> claimed it received money for Chrysler, but in actuality paid
>>> Cerberus to take 79.9% of Chrysler.
>>
>>> The year end Mercedes news conference proved less than
>>> enlightening in most respects. While Mercedes spokesman Heinreich
>>> Tungensheek expressed disappointment over Chrysler discontinuing
>>> the reskinned SLK it sold as the Crossfire, he refused to comment
>>> on a question of whether retention of 19.1% of Chrysler was an
>>> astute business move. The implication of the question was that
>>> the only reason Mercedes still had a stake is Chrysler is because
>>> it couldn't afford to give Cerberus any more money to take the
>>> remainder.
>>
>> They should have paid me to assume ownership of chrysler... I
>> wouldn't
>> mind having my own car company.
>
> But at least when they paid Cerbus to take it, they have the
> possibility that the 19.1% they still own might one day be valuable.
> If they paid you to take it,...well one can only imagine.

Heaven forbid US car company be product-centric instead of make crap and
then use slick marketing to sell it.

On Jan 3, 9:03*am, (Brent P) wrote:
> In article <477cdb8e$1@kcnews01>, C. E. White wrote:
>
> > "Brent P" > wrote in message
> ...
> >> In article >, Comments4u
> >> wrote:
>
> >>> Also often unrecognized is that Mercedes still owns 19.1% of
> >>> Chrysler, so if Chrysler eventually becomes profitable and
> >>> valuable, Mercedes' remaining stake might be sold for real money.
> >>> This would be in contrast to the Cerberus deal, where Mercedes
> >>> claimed it received money for Chrysler, but in actuality paid
> >>> Cerberus to take 79.9% of Chrysler.
>
> >>> The year end Mercedes news conference proved less than
> >>> enlightening in most respects. *While Mercedes spokesman Heinreich
> >>> Tungensheek expressed disappointment over Chrysler discontinuing
> >>> the reskinned SLK it sold as the Crossfire, he refused to comment
> >>> on a question of whether retention of 19.1% of Chrysler was an
> >>> astute business move. *The implication of the question was that
> >>> the only reason Mercedes still had a stake is Chrysler is because
> >>> it couldn't afford to give Cerberus any more money to take the
> >>> remainder.
>
> >> They should have paid me to assume ownership of chrysler... I
> >> wouldn't
> >> mind having my own car company.
>
> > But at least when they paid Cerbus to take it, they have the
> > possibility that the 19.1% they still own might one day be valuable.
> > If they paid you to take it,...well one can only imagine.
>
> Heaven forbid US car company be product-centric instead of make crap and
> then use slick marketing to sell it.- Hide quoted text -
>
> - Show quoted text -

or in GMs case cheesy marketing. Actually, I'll have to admit that Bob
Lutz is working wonders at GM. In 1987 or so I decided that GMs
weren't worth the steel they were stamped from, and for years wondered
how they survived. Now it looks like they are putting out quality
stuff. I'm actually impressed with the new Malibu and CTS. I Never
thought I would say that of a GM car. I guess times change. It sure
did take a while though. They'd still have to get rid of their cheesy
marketing for me to buy one though. It is kind of offensive to my
intelligence. Telling me explicitly that I will be cool if I drive a
Cobalt is about as lame as marketing can get. Trick me into thinking
that. Don't just try to tell me straight out. It's not as bad as
Toyota's insistence on saying 'MPGs.' Can you pluralize that? This car
can do lots of MPHs! Okay, I'll stop now.

On Jan 2, 11:55*pm, Comments4u
> wrote:
> Mercedes still may profit from Chrysler
>
> While the general understanding is that Mercedes is finished with
> Chrysler, in fact Mercedes may still benefit from their so far
> ill fated takeover. *Unrecognized by most is that Mercedes made
> Chrysler dependent on them for suspensions and transmissions for
> its large cars, and one complete vehicle Chrysler will continue
> to assemble from Mercedes supplied kits: the Sprinter. *Of course,
> Mercedes must be cautious to provide these parts at competitive
> prices, lest Chrysler continue to lose money, something that may
> be more difficult with the fall of the dollar.
>
> Also often unrecognized is that Mercedes still owns 19.1% of
> Chrysler, so if Chrysler eventually becomes profitable and
> valuable, Mercedes' remaining stake might be sold for real money.
> This would be in contrast to the Cerberus deal, where Mercedes
> claimed it received money for Chrysler, but in actuality paid
> Cerberus to take 79.9% of Chrysler.
>
> The year end Mercedes news conference proved less than
> enlightening in most respects. *While Mercedes spokesman Heinreich
> Tungensheek expressed disappointment over Chrysler discontinuing
> the reskinned SLK it sold as the Crossfire, he refused to comment
> on a question of whether retention of 19.1% of Chrysler was an
> astute business move. *The implication of the question was that
> the only reason Mercedes still had a stake is Chrysler is because
> it couldn't afford to give Cerberus any more money to take the
>
> remainder.
>
> However, the mystery of the pronunciation of DaimlerChrysler was
> finally resolved. *To American eyes, it looked like it should have
> been pronounced "Dame lur cry slur". *Yet ads during Mercedes
> ownership consistently said "Dime lur cry slur". *"It was
> pronounced 'Dime lur', said Mr. Tungensheek. *"The 'Chrysler' was
> silent".

I understand that Chrysler will continue to buy parts from Mercedes.
But I fail to see how Mercedes will still turn a profit on their huge
investment in Chrysler. To turn a profit they have to eventually
recover all of their investment plus earn a reasonable rate of return.
I don't know how Mercedes could do more than control their losses.

On Jan 2, 11:55 pm, Comments4u
> wrote:
> Mercedes still may profit from Chrysler
>
> While the general understanding is that Mercedes is finished with
> Chrysler, in fact Mercedes may still benefit from their so far
> ill fated takeover. Unrecognized by most is that Mercedes made
> Chrysler dependent on them for suspensions and transmissions for

I'm pretty sure the transmission plant in Kokomo Indiana went with
Chrysler to Cerberus.


> its large cars, and one complete vehicle Chrysler will continue
> to assemble from Mercedes supplied kits: the Sprinter.

Of course, if Cerberus balks at paying, Daimler also sells it as a
Freighliner.


> Of course,
> Mercedes must be cautious to provide these parts at competitive
> prices, lest Chrysler continue to lose money, something that may
> be more difficult with the fall of the dollar.
>
> Also often unrecognized is that Mercedes still owns 19.1% of

19.9%


> Chrysler, so if Chrysler eventually becomes profitable and
> valuable, Mercedes' remaining stake might be sold for real money.
> This would be in contrast to the Cerberus deal, where Mercedes
> claimed it received money for Chrysler, but in actuality paid
> Cerberus to take 79.9% of Chrysler.

80.1%

>
> The year end Mercedes news conference proved less than
> enlightening in most respects. While Mercedes spokesman Heinreich
> Tungensheek expressed disappointment over Chrysler discontinuing
> the reskinned SLK it sold as the Crossfire, he refused to comment
> on a question of whether retention of 19.1% of Chrysler was an
> astute business move. The implication of the question was that
> the only reason Mercedes still had a stake is Chrysler is because
> it couldn't afford to give Cerberus any more money to take the
>
> remainder.
>
> However, the mystery of the pronunciation of DaimlerChrysler was
> finally resolved. To American eyes, it looked like it should have
> been pronounced "Dame lur cry slur". Yet ads during Mercedes
> ownership consistently said "Dime lur cry slur". "It was
> pronounced 'Dime lur', said Mr. Tungensheek. "The 'Chrysler' was
> silent".

Comments4u wrote:

> Mercedes still may profit from Chrysler
>
> While the general understanding is that Mercedes is finished with
> Chrysler, in fact Mercedes may still benefit from their so far
> ill fated takeover. Unrecognized by most is that Mercedes made
> Chrysler dependent on them for suspensions and transmissions for
> its large cars,

Patently false. The LX transmission (the one based on a Benz design, but
revised and simplified) is manufactured at the CHRYSLER transmission
plant in Kokomo. The suspension parts, likewise, are not truly
interchangeable with Benz parts and are made by Chrysler.

The break was cleaner than you make it out to be. The "Mercedes"
components were all revised and are built in Chrysler plants by Chrysler.

In the future, Chrysler may well buy small common-rail diesel engines
from Mercedes, but that is functionally no different than buying the big
24-valve CRD from Cummins. Like Cummins, Caterpillar, Perkins, Detroit
Diesel, Scania, and others, Daimler-Benz sells diesel engines to many,
many OEMs.


and one complete vehicle Chrysler will continue
> to assemble from Mercedes supplied kits: the Sprinter.


For now. I bet the Sprinter will get tossed from the Dodge lineup and
only Benz and Freightliner will badge it in the future.

"Steve" > wrote in message
...
> Comments4u wrote:
>
>> Mercedes still may profit from Chrysler
>>
>> While the general understanding is that Mercedes is finished with
>> Chrysler, in fact Mercedes may still benefit from their so far
>> ill fated takeover. Unrecognized by most is that Mercedes made
>> Chrysler dependent on them for suspensions and transmissions for
>> its large cars,
>
> Patently false. The LX transmission (the one based on a Benz design, but
> revised and simplified) is manufactured at the CHRYSLER transmission plant
> in Kokomo. The suspension parts, likewise, are not truly interchangeable
> with Benz parts and are made by Chrysler.
>
> The break was cleaner than you make it out to be. The "Mercedes"
> components were all revised and are built in Chrysler plants by Chrysler.
>
> In the future, Chrysler may well buy small common-rail diesel engines from
> Mercedes, but that is functionally no different than buying the big
> 24-valve CRD from Cummins. Like Cummins, Caterpillar, Perkins, Detroit
> Diesel, Scania, and others, Daimler-Benz sells diesel engines to many,
> many OEMs.
>
>
> and one complete vehicle Chrysler will continue
>> to assemble from Mercedes supplied kits: the Sprinter.
>
>
> For now. I bet the Sprinter will get tossed from the Dodge lineup and only
> Benz and Freightliner will badge it in the future.

If Chrysler was smart, they would develop their own Sprinter equivalent. It
has found tremendous acceptance in the parcel delivery field and also in the
RV industry for class B and C chassis. The order backlog for the Sprinter
is enormous and they sell all they can build.

Mike

Steve wrote:

> > Mercedes still may profit from Chrysler
> > Unrecognized by most is that Mercedes made Chrysler dependent
> > on them for suspensions and transmissions for its large cars,
>
> Patently false. The LX transmission (the one based on a Benz
> design, but revised and simplified) is manufactured at the
> CHRYSLER transmission plant in Kokomo. The suspension parts
> likewise, are not truly interchangeable with Benz parts and
> are made by Chrysler.

What you guys are forgetting is that even if a Mercedes part is made
in a Chrysler plant, Mercedes will still be getting some sort of
royaly or license fee from Chrysler.

And I've posted the window-sheet (monroney) on a 300C showing that the
transmission came from Germany (not all 300's have their transmission
coming from Germany, but some do, perhaps it depends on the model, or
if AWD).

http://www.unioncjd.com/detail-2008-...c-2401517.html

And also based on the window sheet for a 300, you will note that the
car is listed at only 74% domestic parts content. That is actually 1%
short of what the US gov't considers as the threshold for a vehicle to
be called "domestically manufactured".

I'm reposting the following. Pay attention:

"The LX cars employ various parts from Mercedes E-class, such
as the 5-speed automatic gearbox, the rear differential, ESP
system, the double-wishbones front and 5-link rear suspensions."

http://www.autozine.org/html/Chrysler/300.html

"The LX platform is Chrysler's new full-size rear wheel drive
automobile platform for the mid part of the 2000s. The LX was
developed in America using components borrowed from the
Mercedes-Benz W220 S-class control arm front suspension,
Mercedes-Benz W210 E-Class the 5-link rear suspension, the
W5a580K 5-speed automatic, the rear differential, and the ESP
system."

http://www.answers.com/topic/chrysler-lx-platform


-----------
In 2005, the 3.5 was coupled to Chrysler's own four-speed automatic on
rear-drive models, and to the Mercedes five-speed automatic on
all-wheel-drive models.

Though Chrysler had already chosen rear wheel drive before the merger,
hooking up with Mercedes allowed (some say forced) the use of existing
technologies, including a low-end version of the Mercedes E-class
automatic transmission (the A580 electronic automatic), and versions
of Mercedes' stability control, steering, front suspensions,
electronics, rear suspensions, and seats. It is hard to tell how much
- if any - this has saved (or cost) in development, since
DaimlerChrysler worked hard to justify the takeover of Chrysler
Corporation in the face of stockholder lawsuits, and Chrysler
reportedly was paying steep royalties for their use of these
components (some of which were provided by outside suppliers in any
case)

The LX cars will use the Mercedes E class traction control, electronic
stability systems, axles, wire harnesses, automatic transmissions
(downgraded to five speeds from six so Chrysler won't go into Mercedes
turf - even as GM and Ford create a new six-speed automatic), steering
columns, and other major suspension components. 20% of the Magnum's
components are shared with Mercedes, according to Wolfgang Bernhard
(40% of the Crossfire is Mercedes so these figures are to be taken
lightly).

http://www.allpar.com/cars/lx/