it looks like chrysler may be sold to a private equity firm. value rumoured to be $30bn down in 9 years (worth $6bn now, was $36bn in 1998) !
www.telegraph.co.uk/money/main.jhtml?xml=/money/20...l
.... It is reported that DaimlerChrysler, which paid $36bn for Chrysler in 1998, may announce the sale as soon as today. Chrysler may not fetch any more than $6bn, according to a recent estimate from analysts at Goldman Sachs. ...
|
|
Its the next Rover debacle cut price all the cars to get rid,rob the pension fund sell the factories,and run.
|
I don't feel at all sorry when I see car manufacturers suffer the sort of depreciation on their purchases that we do on our purchases from them!
But in the circumstances I do feel sorry for the Chrysler employees - I fear a large shaft is heading their way - how else can the deal work?
|
I don't feel at all sorry when I see car manufacturers suffer the sort of depreciation on their purchases that we do on our purchases from them!
Depreciation on cars is purely down to supply and demand ~ nothing whatsoever to do with the manufacturers. And I bet if you were buying secondhand you would want the price to be as low as you could get it!
But however you look at it, it's jobs at stake.
--
L\'escargot.
|
Depreciation on cars is purely down to supply and demand ~ nothing whatsoever to do with the manufacturers.
I agree partially but not completely - there are elements of built-in obsolescence which make it uneconomic to run an older car long before it otherwise need die.
|
Depreciation on cars is purely down to supply and demand ~ nothing whatsoever to do with the manufacturers.
To the contrary, I think manufacturers have a lot do with depreciation - they control supply. When new models are introduced expectations may be hyped up, often a marketing tool used by manufacturers, and if supplies are kept short then prices go up - appreciation rather than depreciation. The Beetle when it was re-introduced by VW was an example of this with even left hand drive imports selling at very firm prices. By contrast volume manufacturers such as Ford saturate the market by flooding the market - by selling to hire fleets, and indeed sometimes owning hire companies, as a way of accessing markets - with consequent oversupply to the detriment of second hand prices. Other manufacturers take a life cycle view of their products and recognise that low depreciation can allow a price premium and by carefully managing the family look of the vehicles, quality. low running costs etc values are preserved not just for that model but for previous models as well. BMW is a classic example of this, and when that familiarity is impaired, as with the "Bangle" designs, or if quality is reduced as with Mercedes then value of not just the model but the brand is at risk. The management of depreciation is a critical issue for manufacturers affecting as it does the decisions of private buyers interested in preserving their capital and fleet managers who worry about monthly leasing costs. There are very few markets that are "purely down" to supply and demand.
MGs
|
">There are very few markets that are "purely down" to supply and demand.<"
There are few - if any - true free markets. The buyer must have perfect knowledge for a free market to be ... er ..... free. It's the low price of second-hand vehicles that surprises me, the kudos of a new car overcomes most objective decisions, and the dealers/manufacturers work this to their advantage. Witness the depreciation of a new car as soon as it leaves the showroom.
|
|
For a humorous take on the Chrysler sale debacle, see the April 'issue' (I think) at sniffpetrol.com
|
|
I wonder what will happen to JEEP as they make most of their euro junk in a DB owned factory in Austria the old Styr plant and DB make use a Chrysler plant in the US to make some of their four wheel drive products.
|
I wonder what will happen to JEEP as they make most of their euro junk in a DB owned factory in Austria the old Styr plant and DB make use a Chrysler plant in the US to make some of their four wheel drive products.
1. The Austrian factory is not owned by Daimler but by Magna Steyr.
2. The ML, GL and R Class are made in a Mercedes-Benz factory in Tuscaloosa, Alabama. No Chrysler products are made in this factory.
|
|
I feel that this will be the beginning of the end for Chrysler. Their products are simply not competitive and the new owners don't have the time or money to get the company back on its feet. I just hope the employees get something out of it and that this purchase is not part of plot to rob the assets of the company and leave the employees high and dry.
|
2002
June 6: Resolution passed at the annual general meeting changing the name of Steyr-Daimler-Puch Fahrzeugtechnik AG & Co KG to MAGNA STEYR Fahrzeugtechnik AG & Co KG and STEYR Powertrain AG & Co KG to MAGNA STEYR Powertrain AG & Co KG.
Maybe this misled me.
|
