Troubled Chrysler long been a problem for Daimler AG. After President Obama refusal to rescue one of the big three auto company in the states, Chrysler have filed for chapter 11 bankruptcy. Since the merger in 1998 between Daimler and Chrysler, Daimler was only able to sell off the last of its 19.9% stake in Chrysler last week, and that is after an agreement to pay up to USD600 million into the Chrysler’s pension fund (Wikipedia).
What is next for Daimler then? Can the century old company be able to weather the financial crisis? From the merger of Fiat-Chrysler-Opel, does it mean that the only way to survive this storm is through M&A? With shrinking demand for auto vehicles and increasing cost of research and development, what might be the best option left?
According to globeandmail.com, it seem that Mercedes Benz have been talking to BMW of possible linkup in certain area of their businesses. However, in the context of protecting brand name and their ego, this “linkup” might be more of an affair than a full on marriage (globeandmail). So don’t be expecting a Benz/BMW baby coming out anytime soon, as least not officially for the record.
Posted by G-Performance 
