It was the worst-kept 'secret' in the auto industry, and now we can 
tell you: Chrysler is for sale. Just a few years after "merging" with Chrysler, Daimler is looking to 'off' Their American Cousin, the company they purchased to learn how to make small, economical cars --- Of course the fact that the certified manufacturing genius who headed Chrysler's small car-making business quit as soon as the Germans took over meant things might change. And change they did. Today, Chrysler car and truck sales are in the dumps, the company insists on throwing a gas-hog Hemi engine into anything that'll stand still for 10 minutes, their "new" small cars are not nearly as appealing as their simple old Neon (and all the hi-po SEMA-type equipment which grew up around it) and Chrysler's retirement and health care obligations are possibly enough to bankrupt Daimler. What to do, what to do?
Though it was called a 'merger' when it happened, there were lawsuits filed quickly after DaimlerChrysler became an entity saying that in reality the move by Daimler was a take-over. When tapes of top Daimler execs saying as much surfaced, things only got worse for the newly-merged companies.
Today, Chrysler has a "For Sale" sign on the lawn at Highland Park, MI, and the Germans are looking to dump this money-loser on whoever can come up with some cash and a good story. (Photo - DCX's Jeep Division's Wrangler).
Could that 'someone' be General Motors? GM needs help, especially in small-car manufacturing in the USA (it'd be a whole lot cheaper to make a car like the Chevy Aveo in the US than in Korea, by Daewoo, as it is now) and Chrysler could not only bring GM some of the manufacturing expertise and plants they need, but it could also invigorate both companies as GM would remain the world's biggest car-maker, and hold onto that title for many more years, though Toyota is yapping at their heels. With Chrysler on-board, though, GM might keep that title for longer, and that kind of thing is important to Detroit-type execs, no matter what they say publicly.
Also, with Kirk Kerkorian and his GM stock (and his man, Jerry York, was on the GM Board of
Directors and could come back), the MGM Grand multi-zillionaire might finally have the kind of impact on both GM and Chrysler which he has always wanted --- And through Kerkorian and York, their great buddy, Lido A. Iacocca, who sits quietly off on the sidelines, is biding his time until he might have some "juice" once again not only at his beloved Chrysler, but also at gigantic GM, if the two should merge. 'Heck', Lee might figure, ''if they let an old guy like Bob Lutz' (and these two hated each other at Chrysler) have so much power at GM, virtually able to "green light" entire $1 billion platform projects with the stroke of his pen, maybe there's still room for him in the business, too. And you know what? America could use Lee Iacocca and his marketing genius. He and Lutz might be a formidable pair, even though they can't stand each other. People can get over those things ... If the price (and the power ... and use of the company jet) is right ...
It's also no secret that American car companies (The Former Big Three) have become mostly health care providers which only incidentally make cars and trucks. Health and retirement (H&R) payments have become the main outflows of cash for GM, FoMoCo and Chrysler. Several thousands of dollars on each and every car and truck they sell goes directly to these payments. Dropping those H&R costs could have an immediate effect on the cost of cars and trucks made in the USA.
Remember --- This is NOT the "fault" of the workers and/or their unions. No one held guns to the companies' heads when they signed these agreements with the UAW years ago. All the union contracts should be honored to n-th degree. (Photo - UAW workers on the line). It as the short-sightedness of American executives from the '50s, '60s and '70s which forced the companies into the untenable situations they now find themselves in today.
Looking at health care, there appears to be some hope: It's reported this week that Daimler is going to make a one-time $1 billion payment to the United Auto Workers to cover all present and future Chrysler retirees as far as their health care is concerned, and then the UAW will take-over and handle the details and run the program. This might be one kind of acceptable answer for everyone. Goodyear is looking at doing the same thing (again that $1 billion figure pops up) with the Steelworkers of America, who work in the many Goodyear plants still in the USA.
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