Lifetime Premium Member
Date registered: Dec 2002
Vehicle: 2001 E320W(ELEGANCE) 2005 CLK500
Location: Lexington, Kentucky
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Quoted: 42 Post(s)
From a Daimler AG Shareholder
Jurgen Schremp wanted the fast designs and low costs of Chrysler as well as Chrysler's 10 billion dollar war chest. He knew that to expand Mercedes needed a low cost car and he knew that the smart wasn't doing well and the A class was too expensive to sell outside of Germany.
Mercedes wouldn't share platforms with Chrysler, thinking it would foul the Mercedes brand and Schremp began to lord over the Chrysler executives so that they either were forced out (Bob Lutz) or quit in disgust. When the bottom fell out of the auto market in 2008 Schremp insisted that Chrysler stick with the unrealistic sales projections that he had forced on them ($5 billion for that year). When the Americans couldn't do it he replaced them with Germans which made it worse. By this time the Kuwaiti Royal Investment Authority got involved as did Deutschebank and Schremp was forced out. Dieter Zetsche was appointed CEO and he immediately set out to dump Chrysler.
Schremp wanted to buy Nissan shortly after the merger but the board voted no.
If you want more details read "Taken for a Ride. How Daimler drove off with Chrysler" by Bill Vlasic and Bradley Stertz.
And no I did NOT vote for the merger!
2001 E320W (ELEGANCE)
2005 CLK500 Cabriolet