Re: Mercedes still may profit from Chrysler

"Steve" <no@[EMAIL PROTECTED]
> wrote in message
news:1c2dnZcmou2syuPanZ2dnUVZ_j6dnZ2d@[EMAIL PROTECTED]
> Mike Simmons wrote:
>
>
> >>
> >>For now. I bet the Sprinter will get tossed from the Dodge lineup and
only
> >>Benz and Freightliner will badge it in the future.
> >
> >
> > If Chrysler was smart, they would develop their own Sprinter
equivalent.
It
> > has found tremendous acceptance in the parcel delivery field and also
in
the
> > RV industry for class B and C chassis.  The order backlog for the
Sprinter
> > is enormous and they sell all they can build.
> >
> > Mike
>
> Yeah, but that market segment really isn't huge compared to others, and
> profit margins on RV chassis is not huge either. I have read that even
> Ford is killing their E-series which has been a really im****tant player
> in that market for many years. A "big" player in a little market segment
> isn't necessarily going to help a company that needs to cut fat and get
> competitive in its core markets again.
>
>
> It will be very interesting to see if Chrysler survives this whole mess.

They will.  But, they probably won't survive as an independent car
company.

These venture capital firms are all the same.  They buy failing companies
at firesale prices.  Then they slash labor and any product that has a high
labor, and keep the products that are profitable.  Then they kill
investment
in R&D so the company does not have any new products coming into
pipeline.  Now the company is profitable, but as it has no future it will
not stay profitable over the long term.

The last step is then selling the company to a larger company that has
similar product line for a lot of money.  My guess is they are dolling up
Chrysler for eventual sale to General Motors or Toyota.

Ted