DECEMBER 27, 2000
DaimlerChrysler shares at four-year low
MCLAREN shareholder DaimlerChrysler has been suffering on the stock markets in the Christmas week with the share price dropping to its lowest point in four years following the announcement that the company has slashed its profit forecasts because of the problems with Chrysler and fears that there will be similar problems with the debt-ridden Mitsubishi, which is also controlled by DaimlerChrysler. Interestingly many of the shareholders who are selling DaimlerChrysler stock are buying into Volkswagen and BMW. The Munich company's share price almost doubled in the course of 2000 as the firm divested itself of the troublesome Rover subsidiary.
The downturn in share price is putting pressure on DaimlerChrysler chief executive Jurgen Schrempp, a big supporter of the Formula 1 program, but even if Schrempp were to go the involvement in Grand Prix racing is likely to remain because of its beneficial effects on Mercedes-Benz sales around the world.