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Chrysler cost Daimler $1.75 billion in 2008

Chrysler cost Daimler $1.75 billion in 2008

Nelson Ireson February 17th, 2009 Nelson Ireson By Nelson Ireson Author February 17th, 2009
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December 31st, 1969 The divorce of Daimler from Chrysler in 2007 wasn't complete - the German company Daimler still holds 19.9% of Chrysler - and now that lingering relationship has come back with a vengeance. Despite a year that would be only moderately unsuccessful for Daimler, Chrysler's involvement more than doubled 2008 losses to $2.45 billion. Daimler posted a Q4 loss before interest and taxes (EBIT) of about $700 million on its own, however, so not all the blame lies at Chrysler's feet. Daimler CEO Dieter Zetsche says the company is still in a good position, despite a lost forecast for 2009 as well. Another charge of about $2.31 billion related to Daimler's ownership of Chrysler and its associated assets also ate into the company's bottom line. About 10% fewer sales are expected this year due to the overall weak market and lack of available credit. That will spell even more hardship for Daimler, and the industry, but Chrysler's impending government aid may actually improve the overall position of Daimler simply by not weighing it down. Zetsche summed up Daimler's outlook on the situation with a very positive message: “The Daimler Group is in a relatively strong position to meet this crisis. We have the opportunity not only to overcome this exceptional situation, but to emerge from it stronger. We are going to seize this opportunity.”
The financial impact on Daimler was stout, but Zetsche isn't fazed

The financial impact on Daimler was stout, but Zetsche isn't fazed

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The divorce of Daimler from Chrysler in 2007 wasn't complete - the German company Daimler still holds 19.9% of Chrysler - and now that lingering relationship has come back with a vengeance. Despite a year that would be only moderately unsuccessful for Daimler, Chrysler's involvement more than doubled 2008 losses to $2.45 billion.

Daimler posted a Q4 loss before interest and taxes (EBIT) of about $700 million on its own, however, so not all the blame lies at Chrysler's feet. Daimler CEO Dieter Zetsche says the company is still in a good position, despite a lost forecast for 2009 as well.

Another charge of about $2.31 billion related to Daimler's ownership of Chrysler and its associated assets also ate into the company's bottom line.

About 10% fewer sales are expected this year due to the overall weak market and lack of available credit. That will spell even more hardship for Daimler, and the industry, but Chrysler's impending government aid may actually improve the overall position of Daimler simply by not weighing it down.

Zetsche summed up Daimler's outlook on the situation with a very positive message: “The Daimler Group is in a relatively strong position to meet this crisis. We have the opportunity not only to overcome this exceptional situation, but to emerge from it stronger. We are going to seize this opportunity.”

Tags: Economic, Industry, bailout, recession, Daimler

Posted in: Chrysler, News


Comments (2 total)

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  1. ma_danDAN avatar by danDAN #1, Posted: 2/17/2009

    what does Daimler still own?

    MB
    Maybach
    Smart?

  2. ma_danDAN avatar by danDAN #2, Posted: 2/17/2009

    to answer my own question...source wiki

    Brands

    Daimler sells automobiles under the following marques worldwide:
    Mercedes-Benz Cars
    Maybach
    Mercedes-Benz
    smart
    Mercedes-AMG
    Daimler Trucks
    Commercial vehicles
    Freightliner
    Mercedes-Benz (truck group)
    Mitsubishi Fuso
    Thomas Built Buses
    Sterling Trucks
    Western Star
    Components
    Detroit Diesel
    Mercedes-Benz
    Mitsubishi Fuso
    Daimler Buses
    Mercedes-Benz buses
    Orion Bus Industries
    Setra
    Mercedes-Benz Vans
    Mercedes-Benz (vans group)
    Daimler Financial Services
    Mercedes-Benz Bank
    Mercedes-Benz Financial
    Daimler Truck Financial
    [edit]Holdings

    Daimler currently holds interests in the following companies:
    85.0% Mitsubishi Fuso Truck and Bus Corporation of Japan
    50.1% Automotive Fuel Cell Cooperation of Canada
    40.0% McLaren Group of United Kingdom
    22.4% European Aeronautic Defence and Space Company (EADS) - a parent company of Airbus of Europe
    22.3% Tognum of Germany
    19.9% Chrysler LLC of United States
    10.0% KAMAZ of Russian Federation
    7.0% Tata Motors of India [11]
    [edit]Partners

    Tesla Motors has supposedly inked some sort of technology deal with Daimler [12] .
    [edit]

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