Vonz90 wrote:That is funny relative to Chrysler - They were next to bankruptcy when Daimler bought them, they dumped a ton of money into them and the more or less gave them away when they realized they were just throwing good money after bad.
They were near bankruptcy at the end, at the time of the merger they were making a billion a quarter, and had 12 billion in cash.
They were making some money at the time, Chrysler has been bouncing between boom and bust since the 80's and always look great right up until they are going bust because they are not big enough to get the economies of scale they need to play in the markets they play in. So they were way short of what they needed and they were also trying to fight off a corporate raider takeover (from Kirk Kerkorian).
They went to Daimler and asked them to be a white knight. Daimler should have walked away, instead they bought them for $36B only to pay $650M to Cerberus to get them to take them off of their hands a few years later. The main blame to push towards Daimler is that they did not do their due diligence and I also don't think they thought through how exactly they would combine a value car maker with a luxury brand without tainting the luxury brand (news flash, they couldn't).
In the end, Daimler is really a truck and heavy equipment company that plays in the luxury car market a bit (just in the US, they own Detroit Diesel, Freightliner, Western Star, Thomas Built Buses - for years). They did not know a freaking thing about that side of the market and worse they did know what they did not know.
If they wanted to screw over Chrysler to help themselves, they did a very poor job of it. What they did was screw over their shareholder for no gain to anyone.