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DaimlerChrysler De-Merger?


DaimlerChrysler has reported a profit of $7.3 billion in 2006, which is due
to the Mercedes arm and the commercial truck division. The Chrysler division
lost $1.3 billion last year. This is forcing management to re-evaluate the
current relationship.

A spin-off is a possibility as the Chrysler Group continues to drag down
their profits. The merger that took place in 1998 could come to an end in the
not so distant future, unless Chrysler can come up with a better plan.

A new plan announced today is calling for the layoff of 13,000 workers
(11,000 hourly and 2,000 salaried) between now and 2009. They are also planning
plant closures in order to reduce costs.

Although they announced many cost cutting measures, they are also planning
on investing $3 billion in new engines, transmissions and axles that will focus
on fuel efficiency.

What about their horrible designs and poor build quality??