JUNE 4, 2003
A bad day for DaimlerChrysler
DaimlerChrysler has warned that competition in the US car markets will result in a loss for Chrysler of $1.1bn in the second quarter. The German firm has already made it clear that Chrysler will not meet its full year operating profit target of $2bn. Chrysler has been hit by falling sales and competition from Ford and GM which have both been offering "zero per cent" finance on new cars. An additional problem are major sales drives from Japan's Toyota and Honda brands.
At the same time there is word that DaimlerChrysler is suing Bill Davis Racing for an alleged breach of contract, contending that the team built and tested a Toyota prototype for the Craftsman Truck Series. A suit was filed in a Michigan state court on May 23 claiming that Davis violated a part of its contract with DaimlerChrysler's Dodge division requiring the team to "represent, endorse or otherwise promote" Dodge products. The suit alleges that the violation took place when someone from the team represented Toyota at a NASCAR wind tunnel test of a Toyota prototype that had decals from Davis' team and a Dodge engine. Dodge announced last week that it has withdrawn factory support for Davis, who runs Dodges in the NASCAR Winston Cup.
And finally Runnymede Borough Council has raised objections to DaimlerChrysler's plan to build a Heritage and Technology Centre at Brooklands in Surrey. There is no official word yet as to whether Elmbridge council will oppose the scheme, a decision being due on June 26.
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