NPC: Should Daimler dump Chrysler? Options

[Charles Deutsch]

So far, the whole DaimlerChrysler thing hasn't been working out too well http://story.news.yahoo.com/news?tmpl=stor...mlerchrysler_dc . I, personally, never understood why a premium, German, luxury automaker would buy the company that brought us the K-car. IMO, Mercedes should dump Chrysler the same way BMW dumped money-bleeding Rover.

[Charles Deutsch]

http://www.usatoday.com/money/autos/2003-1...-mercedes_x.htm

Publicly, Mercedes executives say their plans have not been affected by
Chrysler's cash burn - estimated by analysts at more than $1 billion this
year. But privately, executives say Mercedes is slowing down technological
innovation, its hallmark for the past century. Furthermore, efforts to wring
out more savings through joint purchasing efforts with Chrysler and other
brands seem to be hurting Mercedes' quality.

That's Mercedes biggest problem now. In a recent survey of German car owners
conducted by Auto Motor und Sport motoring magazine, Lexus, Porsche, Honda
and BMW captured the four top slots, while Mercedes came in 17th. In J.D.
Power and Associates' 2003 U.S. vehicle dependability survey, Mercedes sank
to 26th place, from 16th a year ago.

"It's such a stark contrast to where they had been. In 1990, they were No.
1," said Brian Walters, J.D. Power's research director. "They just haven't
been able to keep up with the likes of Lexus and Toyota as a whole."