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Detroit’s Slump Could Break Up Chrysler Group
Published: February 15, 2007
AUBURN HILLS, Mich., Feb. 14 — Every decade provides a new lesson for the American automobile industry.
In the 1980s, automakers underestimated their Japanese competitors, thinking they would never build anything but small cars. In the 1990s, the Americans focused too heavily on sport utility vehicles, only to see profits wiped out when buyers’ tastes shifted back to cars.
The lesson of this decade? Better to go it alone than bulk up through mergers and alliances.
DaimlerChrysler said as much on Wednesday, when it disclosed that it was considering all options for its struggling Chrysler Group, including a spinoff. It has hired JPMorgan as a strategic adviser, people with knowledge of the move said.
http://www.nytimes.com/2007/02/15/business/15auto.html?ex=1172206800&en=21dbb154fe20e1fe&ei=5065&partner=MYWAY
Published: February 15, 2007
AUBURN HILLS, Mich., Feb. 14 — Every decade provides a new lesson for the American automobile industry.
In the 1980s, automakers underestimated their Japanese competitors, thinking they would never build anything but small cars. In the 1990s, the Americans focused too heavily on sport utility vehicles, only to see profits wiped out when buyers’ tastes shifted back to cars.
The lesson of this decade? Better to go it alone than bulk up through mergers and alliances.
DaimlerChrysler said as much on Wednesday, when it disclosed that it was considering all options for its struggling Chrysler Group, including a spinoff. It has hired JPMorgan as a strategic adviser, people with knowledge of the move said.
http://www.nytimes.com/2007/02/15/business/15auto.html?ex=1172206800&en=21dbb154fe20e1fe&ei=5065&partner=MYWAY