Major shareholders in DaimlerChrysler are asking for Chrysler to be removed from the DCX group, stating that the company has basically zero value on its own and that the synergies expected from the two groups have failed to materialize. In a scathing news report from Reuters many well known investment fund managers are quoted claiming not only that nobody would buy Chrysler, but that DCX would have to pay someone to take it off their hands. Potential buyers would be turned off by the billions of dollars in unfunded pensions and healthcare costs, not to mention the sagging brand name and lack of small car expertise. Some fund managers are even suggesting a tie-up with Nissan/Renault to get access to small cars for the US market.

Chrysler has announced that it plans on decreasing the cost of new cars by around $1000 but the recent fiasco with overproduction hasn’t helped their cause. Our thoughts? The merger should never have happened.