Now that they've palmed-off their Chrysler fiasco on Cerberus, Daimler is cash rich and company hungry. Reuters translates: "'Acquisitions are an option for growth,' the German news agency dpa-AFX quoted Zetsche as saying in an interview, adding the German carmaker — also the world's biggest truckmaker — had practically no financial limits for deals." Apparently, Dr. Z has ruled out scarfing-up another automaker, preferring to sniff around for companies who make technology that Daimler needs to meet new European Union fuel economy regulations, and such. Oh and to prevent a takeover– the original impetus for the Chrysler fiasco– Daimler looks set to announce another round of share buybacks. It currently owns just 4.7 percent of its shares, but plans to use the cash swilling around in its corporate coffers to repurchase up to 10 percent of Daimler stock by the end of August 2008. Why they didn't do this instead of buying Chrysler the first place, or how Zetsche remains in power after NOT doing this in the first place, remains a mystery.
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I miss the “Dear Dr. Z ” commercials. I bet the UAW don’t.
I think Daimler would be better off creating closer ties with them and BMW and using their new found cash creating lower emitting cars. They are both in the same boat regarding EU emissions. 2 heads are better than one. If the pair of them work hard enough, they can invest the time and effort into making a diesel engine which can get rid of that albatross that is the EU.
After blowing $38 billion on the Chrysler deal I’m suprised they still have lots of cash floating around.
That’s a picture of a man who thinks he’s a talented auto executive. At least he’s not a crook like Schremp.
” “‘Acquisitions are an option for growth,’ ”
A sure sign of trouble. Dr. Z doesn’t have any real plans for growing the company -aside from aquisitions. No real idea what the problems are, what the brand stands for, or how to fix the company.
Buy a company, make the numbers look good, and ignore the real problems. It’s strangely comforting to know the Germans are as inept as American execs.
“Acquisitions are an option for growth”
It makes me sick that people like this are earning far more money than I could possibly dream of.
Daimler have just gone through a messy divorce with Chrysler and dropped Mitsubishi. Ford have dismantled their PAG and GM is drowning with brands. However, Toyota, Honda and Hyundai have concentrated on expanding the “Toyota”, “Lexus”, “Honda”, “Acura” and “Hyundai” brands and making them stand for something.
Why are western car companies so afraid of organic growth?
They should have just waited and bought GM now instead of Chrysler years ago
Spend the money on engineering and quality improvements.