Canadian supplier Magna International and an unnamed private equity group have placed a bid for the Chrysler Group, according to KeyBanc Capital Markets analyst Brett Hoselton. The bid for Chrysler is worth approximately $4.7 billion. Given most analysts stating that Chrysler is worth anywhere from nothing to around $13 billion, the offer may not be as low as it sounds.

DaimlerChrysler could also consider offering Magna a minority stake in Chrysler, if other bidders “retreat.” DaimlerChrysler expects that Magna’s bid will not be the last before its annual shareholder meeting on April 4th.

## Source: Reuters ##

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Cerberus Capital Management, one of the two leading contenders to buy the Chrysler Group, has hired former Chrysler COO Wolfgang Bernhard as a consultant. Cerberus and private equity firm Blackstone Group have emerged as front runners in the bids for Chrysler.

As a former executive at Chrysler, Bernhard was one of the primary architects of Chrysler’s short-lived rebound earlier this decade. He could be an asset to Cerberus’ potential bid with his knowledge of Chrysler’s strengths and weaknesses.

Bernhard was most recently at Volkswagen before leaving during the automaker’s management shake-up. Bernhard joined VW after he was dropped at DaimlerChrysler in 2004 just before he was about to take over the Mercedes Car Group. Don’t be surprised to see Bernhard running the Chrysler Group if Cerberus ends up as the next owner of the automaker.

## Source: Automotive News ##

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Two DaimlerChrysler shareholders have called on the automaker to drop "Chrysler" from the company's name if the Chrysler Group isn't sold by March 31st, 2008. The proposal from shareholders Ekkehard Wenger and Leonhard Knoll have requested the amendment the company's articles of incorporation at the annual meeting April 4 in Berlin.

"Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products," they wrote.

Under the proposal to change DaimlerChrysler's name, the shareholders have proposed that the automaker's name be changed to Daimler-Benz AG.

DaimlerChrysler is opposed to the name change. "The DaimlerChrysler name is established all over the world," the company said in a statement. "There are no grounds to change the name of the corporation."

## Source: Detroit Free Press ##

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DaimlerChrysler has said that all of its future vehicles will be available with an optional hybrid powertrain. DaimlerChrysler CEO Dieter Zetsche told German automotive magazine Auto Motor und Sport that hybrids are “very important” due to new European and U.S. regulations on CO2 emissions.

DaimlerChrysler’s first hybrid will be a hybrid version of the Dodge Durango, which will use the two-mode transmission currently being developed in conjunction with BMW and General Motors. Zetsche said the first Mercedes-badged hybrid vehicle will arrive for the 2008 model year.

## Source: Auto Motor und Sport ##

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In the saga that is the potential sale of the Chrysler Group, another automaker is said that it is not interested in acquiring the troubled American arm of DaimlerChrysler. Last week, China’s SAIC said it does not have any current plans for any overseas acquisitions. This announcement came in response to a Hong Kong newspaper report that China’s largest automaker carmaker had begun talks with DaimlerChrysler AG about buying Chrysler.

“We have no plans for acquisitions at the moment,” said SAIC spokeswoman Zhu Xianjun.

The potential sale of the Chrysler Group has lead to speculation that Chinese automakers, including FAW, SAIC and Chery Automobile, may be interested in Chrysler as an easy way of the entering the U.S. market.

However, it looks like SAIC is another automaker is in expanding list of automakers that is not interested in the Chrysler Group. Volkswagen, Fiat, Nissan-Renault, Hyundai, and now SAIC have all said they were not interested in Chrysler.

## Source: Reuters ##

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DaimlerChrysler is considering holding on to the Chrysler Group’s Jeep brand in the possible sale of the American arm of the Anglo-German company, according to German newspaper Handelsblatt. According to inside sources, DaimlerChrysler is considering splitting the Jeep brand out Chrysler and keeping it independent. Experts believe that Jeep fits well with the Mercedes brand, and offers a line of vehicles that don’t fit in the Mercedes brand.

While taking Jeep off the table may make sense for Mercedes, with only Dodge and Chrysler brands, it makes the possible sale of the Chrysler Group much harder.

## Source: Yahoo ##

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DaimlerChrysler and BMW have announced that they are expanding their hybrid system collaboration. The two German automakers have already worked with General Motors on the development of the two-mode full hybrid system, which will debut in early 2008 on the Chevrolet Tahoe/GMC Yukon and Dodge Durango.

DaimlerChrysler and BMW will work together to develop a mild hybrid drive system to be used in both automaker’s rear-wheel-drive premium segment cars. The system is expected to go into production in about three years. The technolgy will be adapted by the companies to fit the different character of the two brands.

Press release after the jump.

## Source: DaimlerChrysler ##

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The DaimlerChrysler Supervisory Board today finally signed off on the limited partnership between the Chrysler Group and Chery to develop small vehicles. Under the agreement, Chery would build vehicles to be distributed under the Chrysler brands, primarily in North America and Western Europe. While DaimlerChrysler’s press release says “the Chrysler brands,” we assume it is talking about Dodge, as it is the only Chrysler brand that makes sense for a small car.

Back in December, Chrysler announced a preliminary agreement with Chery to build a new small car in China for worldwide export. At that time, Chrysler Group CEO Tom LaSorda said the automaker was not considering a production version of the Dodge Hornet concept, but rather it would a Dodge-branded Chery model. Word on the street is that Chrysler is now considering a production version of the Hornet, because of quality concerns of Chery vehicles.

While DaimlerChrysler has signed off on the deal, it’s still contingent upon approval of the Chinese government.

Full press release after the jump.

## Source: DaimlerChrysler ##

(more…)

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Despite exploring an alliance with General Motors last year, Nissan-Renault is not interested in acquiring DaimlerChrysler’s Chrysler division, said a Nissan official. While Nissan-Renault is open to new partnerships, it is not looking at a new partnership right now because it is focused on its own financial woes, said a Nissan spokeswoman.

Carlos Ghosn, CEO of both Nissan and Renault has said a North American ally would be a good balance for the company. But after Nissan reported a 22 percent drop in earnings for its October-December quarter, the company has changed its priorities. Ghosn said Nissan faced a “performance crisis” that must be fixed as “soon as possible.”

“As Mr. Ghosn has said, the company right now is as it is today because it has its own problems inside and we’re not going outside to look for the solutions,” said Nissan spokeswoman Madoka Soma. “We’re not in a rush for a partner.”

With Hyundai and Nissan-Renault saying they are not interested, the list of potential buyers gets even shorter.

## Source: Forbes ##

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Talks between General Motors and DaimlerChrysler about the future of the Chrysler Group are serious and have been going on for two months, according to the Detroit News. GM has been in discussions with DCX about acquiring all of the American arm and folding it into the greater GM.

The high-level talks started back in December, with GM Chairman Rick Wagoner and DaimlerChrysler CEO Dieter Zetsche meeting in Detroit to discuss the sale of Chrysler. While talks are still at a high-level, there have been at least four meetings between Wagoner, Zetsche, and CFOs from both companies. Discussions are said to be continuing, primarily between the CFOs. As usual, both companies declined to comment.

If GM purchased Chrysler, it would no longer exist as a unique company or a subsidiary. Instead all of its brands and factories would become part of the larger GM organization.

Auto industry experts say a deal would be extremely risky for GM, which is in the middle of its own turnaround. Analysts believe GM already has too many brands, and too much cannibalization of its products, adding three more would just make it worse. If GM’s cutting of more than 30,000 jobs and Chrysler’s recent announcement of 13,000 job cuts are painful, the combination of GM and Chrysler would result in even more cuts — massive cuts. And how is the UAW going to react to that.

## Source: Detroit News ##

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Automotive News continues to insist that General Motors is in talks with DaimlerChrysler about the possible buyout of the Chrysler Group. Inside sources in both the U.S. and Germany claim that GM is interested, and that high-level talks are taking place between executives.

GM spokesman Tony Cervone wouldn’t comment, but said, “We have always said that conversations (between GM and many other parties) have happened all the time, and many times they don’t come to fruition.”

When asked about the deal, Klaus Franz, a top GM executive in Europe, said acquiring Chrysler would be a “disaster”. “This is only a step to remain the number-one automaker,” added Franz.

All of this speculation was launched by DaimlerChrysler CEO Dieter Zetsche stating that the company was open to all options for the Chrysler group, including a sale.

## Source: Automotive News ##

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Following today’s announcements, DaimlerChrysler responded to queries about the potential sale of the Chrysler Group. Statement follows:

Today the Supervisory Board will reach a decision on the Board of Management’s decision to restructure the Chrysler Group. The Board of Management intends to consider other, more far-reaching strategic options with partners in order to support and facilitate the program. No option is being excluded in the interest of arriving at the best possible solution for the Chrysler Group and DaimlerChrysler as a whole.

More news as it comes.

## Source: DaimlerChrysler ##

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In a turnaround from his statements last fall, DaimlerChrysler CEO Dieter Zetsche would not rule out a sale of the Chrysler Group. According to a report by Reuters, Zetsche said all options are on the table.

“In this regard, we do not exclude any option in order to find the best solution for both the Chrysler group and DaimlerChrysler,” said Zetsche.

Following Chrysler Group’s $1.48 billion third-quarter loss, DCX CFO Bodo Uebber refused to rule out selling Chrysler. However, DaimlerChrysler issued a statement the next day saying Chrysler wasn’t for sale.

Zetsche refused to comment on a report that DCX has begun talks with General Motors for the Chrysler Group. Sources say that talks are in full swing but at an early stage.

Reports also indicate the Zetsche has hired investment bankers to review strategic options for the Chrysler Group.

## Source: Automotive News ##

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DaimlerChrysler today published its preliminary financial results for 2006. Despite a significant decline in earnings at the Chrysler Group, DCX recorded an operating profit of $7.28 billion in 2006, in comparision to $6.843 million in 2005. DaimlerChrysler total revenues increased by 1 percent to $200.1 billion.

The decline at the Chrysler Group was more than offset by a substantial improvement at the Mercedes Car Group, the Truck Group and the Financial Services division. DaimlerChrysler sold a total of 4.7 million vehicles in 2006 (down from 4.8 million in 2005).

The Mercedes Car Group sold 1,251,800 vehicles in 2006 — up slightly from 1,216,800 in 2005. Revenues of $72.0 billion were 9 percent higher than last year. But the operating profit is the big news — $3,187 million in 2006, compared with an operating loss of $666 million in 2005.

The drag on DaimlerChrysler for 2006 was the Chrysler Group, which faced significant challenges in 2006. The Chrysler Group shipped 2.7 million Chrysler, Jeep and Dodge vehicles worldwide in dealerships in 2006, down slightly from 2.8 million in 2005. The result of lower volumes and a weaker U.S. dollar for the year, the Chrysler Group’s revenues for the year of $62.2 billion were significantly lower than the $66.1 billion in 2005. While the operating profit at Mercedes was the big news, it is the operating loss at Chrysler. For 2006, the Chrysler Group posted an operating loss of $1,475 million, compared with an operating profit of $2,024 million in 2005.

The Truck Group added $2,666 million in operating profit in 2006, with the Financial Services division adding other $2,262 million in 2006.

Full press release after the jump.

## Source: DaimlerChrysler ##

(more…)

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While facing the same automobile weight challenge as other automakers, DaimlerChrysler is looking to address the overall weight gain in its vehicles.

According to Thomas Weber, DaimlerChrysler’s board member in charge of group research and development, vehicle weight has grown between one-half of 1 percent and 1 percent per year. And said that DCX wants to stop the trend, which will also help to reduce fuel consumption. DCX has begun to use more ultrahigh-performance steels and aluminum. While the new C-Class weighs the same as the outgoing model, due to new technolgies, electronics, etc, the body shell is about 18 pounds lighter.

Weber also said that while Chrysler and Mercedes will continue to increase component sharing, there will not be platform sharing.

## Source: AutoWeek ##

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