DCX: We may dump Chrysler

Wow, this is a great way to begin Valentine’s Day. Turns out that the board of DaimlerChrysler is so fed up with the American arm’s inability to make money that they are looking into dumping Chrysler into someone else’s hands. The move comes as the fifth-biggest carmaker is preparing to present a new restructuring plan that could see up to 11,000 job cuts, as well as factory closures. Chrysler is expected to announce it lost $1.3b last year – still nowhere near as large as Ford, but still a concern for DCX, in which the other sub-brands are doing quite well.

DaimlerChrysler Chief Executive Dieter Zetsche doesn’t want to dump Chrysler. Instead, he wants to shrink production just as cross-town rivals Ford and GM have done and also begin developing cars more closely with Mercedes. According to the Detroit News, several joint projects are already in the works such as the development of common platforms for small cars and for the Jeep Grand Cherokee and Mercedes M-Class SUVs.

Major shareholders in DaimlerChrysler have already asked for the Chrysler Group to be removed from DCX, stating that the company has basically zero value on its own and that the synergies expected from the two groups have failed to materialize. Finding a partner for Chrysler would prove to be difficult considering the troubles facing GM and Ford.