FEBRUARY 16, 2007
Daimler and Chrysler
The moves will not affect Formula 1 but it is interesting to note nonetheless that DaimlerChrysler is rumoured to be on the verge of announcing that it will be selling its unprofitable Chrysler unit. Despite the best efforts of the German manufacturer the US operation has failed to respond to treatment, despite wholesale restructuring and it may be that the company will ultimately give up on the idea. The US company announced a 16% reduction in the work force plus tha closure of one factory and reductions of shifts at others earlier this week, blaming poor sales on the cuts.
Chrysler says it hopes the move will return the company to profitability by next year. Like the other domestic automakers - Ford Motor Co. and General Motors Corp. - DaimlerChrysler's earnings have been hit hard by rising labor costs and slumping sales as consumers have turned to foreign models.
It has been speculated that Renault and Nissan might be interested in buying Chrysler to increase its global presence and strengthen its product range, particularly with SUVs.
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