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Market speculates over DaimlerChrysler breakup
Eight years after it bought the US automaker Chrysler, DaimlerChrysler is believed to be mulling a sale of the loss-making division. "We would be completely thoughtless if we were not preparing an exit strategy," an unidentified member of the DaimlerChrysler board was quoted by the weekly German magazine Der Spiegel as saying. Financial director Bodo Uebber told reporters last week: "We are not ruling out anything."DaimlerChrysler shares have gained more than five percent in the past week, and closed on Wednesday at 45.69 euros, a gain of 2.21 percent on the day. Third quarter results published last week were underpinned by the German division Mercedes, while Chrysler, which also includes the Dodge and Jeep brands, posted an operating loss of 1.2 billion euros (1.5 billion dollars). The Chrysler catalogue is comprised in large part of four-wheel drive sports utility vehicles (SUVs) and pick-up trucks but US consumers are beginning to favor cars that consume less gas owing to higher prices at the pump. In October, DaimlerChrysler sales in the United States fell by two percent compared with the same month a year earlier, even though Mercedes-Benz dealers reported their best October ever, the group said Wednesday. Posted by: Fred 2006-11-02 |
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