Mercedes benz to dump chrysler - Page 2 - Mercedes-Benz Forum

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post #11 of 23 (permalink) Old 02-16-2007, 06:08 PM
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I agree with taroliw that Chrysler has flourished under DCX. Maybe most of the MB fans here don't care, but I'm glad to see an American car do well against foreign competition. It would be sad to see Chrysler be sucked into GM, leaving America with only "the big two", until Ford dies, leaving us with a monopoly of sorts.

Regardless of if DCX dumps Chrysler or not, they need to focus on the quality of MB cars and customer service. They can no longer sell based on the history of their name, their reputation seems too tarnished. Time to get serious and run Lexus into the ground.

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post #12 of 23 (permalink) Old 02-16-2007, 07:36 PM
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how many potential benz owner mercedes lost because of its tarnished reputation because of diverting resources to chrysler, or how much potential potential future owners will steer away from mercedes because they think parts sharing has cheapened the MB brand, we'll never know but undoubtedly it is into the billions maybe even trillion, mercedes took a big risk by agreeing to the marriage with chrysler. I would say, its probably the biggest automotive mistake of the decade. Almost every other company will learn from this , but its unfortunate that mercedes will have to financially bear the brunt of it from the carelessness and lack of itforesight of its former CEO schremp.

IT took 100 YEars to Make MB's brand value and reputation, and was tarnished in just a few short years.

Every E-class profit probably pays for 10 losses from chrysler's cheap cars.

Last edited by mbeclass; 02-16-2007 at 07:40 PM.
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post #13 of 23 (permalink) Old 02-17-2007, 12:02 AM
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Eh.... I'm not sure I agree with that assessment. I see this as more two separate situations.

The tarnishing of the Mercedes brand had more to do with long-term quality issues. Some would say this had to do with cost-cutting measures and trying to increase sales volume by Mercedes... and this happened LONG before the "merger" was even discussed. Ironically, Mercedes quality has been slowly improving (some places more than others) *since* the merger. But I don't think that was caused any more by the merger than the tarnishing.

As for the part sharing impact in all of this, I know I was very nervous about this when I was awaiting my W208 (CLK) back in 1997. I very nearly cancelled my order upon the annoucement of the agreement to "merge." I didn't, however, and haven't regretted not doing it for one moment. My biggest concerns were over the first two examples of the platform sharing: Crossfire and Pacifica (though I think the 300M is now another big example).

What I have found most striking about these cars is that I can look at them, even sit, ride, and drive in them, and *know* that this or that part is exactly what came from a Mercedes supplier or manufacturing line... but they are decidedly not the same car nor provide the same performance in any respect.

A good friend of mine has owned an R170, a Crossfire (coupe) and now a 300M. Loved her R170 but loathed the Crossfire so much that she chose to drive an old 70's Ford on long drives to Reno instead of suffering the Crossfire. And while she's very cognizant that the 300M uses the old E-class drivetrain, she actually describes driving it like driving a boat. And I can't think of anyone who ever described driving an E like driving boat.

I'm usually one to hold a very deconstructionist view, but this is one situation -- based on feedback I've heard from actual owners -- where the sum of the parts is not the same. Perhaps you could argue this from a quality standpoint, but most decidedly not from the overall perception and satisfaction of the cars as a whole.

I'm not privvy to any insider knowledge. But nowadays I tend to think the Chrysler deal -- much as I loathe the way they changed the DBAG name -- has been an overall good experience. People joked with me about having a five pointed star on the hood when the deal was announced, but I don't think there has been real brand impact. Meanwhile, I perceive MB quality has improved (on it's own) and Chrysler as a brand has been doing remarkably better than it was at the time it was acquired. I'm not really sure anyone has ultimately lost in this deal.

I kind of chuckled, actually, when I saw BMW advertising trying to capitalize on this... "we're pure and stand alone" (the basic gist). I found myself thinking "gosh, that's sad... maybe your design wouldn't have suffered from Bangle and iDrive so much if you weren't quite so 'pure'"
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post #14 of 23 (permalink) Old 02-17-2007, 09:34 AM
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I cannot imagine why GM would buy Chrysler, even if they had enough cash to do so. GM is just emerging from near bankruptcy itself and buying a big money-loser like Chrysler seems to be counter-intuitive to me.

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post #15 of 23 (permalink) Old 02-17-2007, 12:55 PM
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I saw the BMW ad too and was amazed they could say that after the losses they incurred buying Range Rover or how they would describe their ownership of the Mini.
Will DCX change to DXC as in D ex C?

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post #16 of 23 (permalink) Old 02-18-2007, 01:28 PM
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LOL. Maybe not, but I'd welcome back DBAG. Such a change might mean they would no longer be listed on NYSE though.
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post #17 of 23 (permalink) Old 02-18-2007, 08:25 PM
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I doubt very much that GM would buy Chrysler. GM has only recently sold PROFITABLE interests in other car makers (Subaru, Suzuki for example) to raise the cash it needs to stay afloat.

I hope that M-B does NOT sell Chrysler. I think the two brands can co-exist and that Chrysler has brought some good things to M-B. I wonder if M-B would have introduced the CLS if they had not had influence from the Chrysler design successes. And cars like the 300C and Crossfire show that there can be a market for funky styling with older M-B technology underpinnings.

Chrysler is in exactly the same trouble as GM and Ford. And the problems are not just product related. Fundamentally their manufacturing cost base is too high for the quality of product that they're producing. So they need to improve quality (M-B should be able to help with that) and reduce their cost base - which may mean sharing development and manufacturig resources (and this must benefit M-B also!)

Other than that rather than sell Chrysler, M-B may be better shrinking it and letting it beocme a neat niche player (similar to Mazda).

My two cents worth ...



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post #18 of 23 (permalink) Old 02-19-2007, 08:52 AM
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Today February 19, 2007

Originally Posted by cl65blackdemon
Was in the news yesturday that mercedes benz might be dumping chrysler.

Think is a good thing or bad? It might be a good thing. What will happen to the ML, GL and R since it's all made here?
"DAIMLERCHRYSLER MOVES FORWARD ON PLANS TO SELL OR SPIN OFF U.S. UNIT: DaimlerChrysler AG is moving forward with preparations to sell or spin off the Chrysler Group, raising the prospect that it could auction off the embattled U.S. unit in the coming months, two people close to the matter said. The company has already received several expressions of interest from around the world for Chrysler since saying last week that it was considering "all options" to turnaround the unprofitable operation, these people said. Wall Street Journal" - Login
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post #19 of 23 (permalink) Old 02-19-2007, 09:21 AM
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Wow... that is rife with contradictory statements... so which is it, WSJ? "is moving forward"? "raising the prospect"? "considering all options"? Doesn't sound very confident in what they're reporting, which actually echoes the more positive statements from market watchers that it's all just speculation at this point. This is much more consistent with "considering all options", which is itself just code for "we're reevaluating to see what what sense as a next step". Oh, and that's code for "we don't know yet".
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post #20 of 23 (permalink) Old 02-19-2007, 10:24 AM
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read some reports today that Hyundai Motors is also interested in acquiring Chrysler..!!

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