Originally Posted By: fdcg27
LOL!
So a German industrial behemoth needed Chrysler for its little horde of cash and its aging product line in serious need of investment to bail it out?
Yes.
In the 90s Chrysler had billions in real cash in the bank and was making money. MB had a 1.70% market share and their mediocre cars where getting their butts handed to them by much better built and selling Lexus and BMW offerings.
You could argue that the "cloud" cars and Neon where [censored] but they did sell a ton of them in the 90s. And they where selling Jeeps,Minivans and Rams as fast as they could make them.
DB took the cash to inject in to fixing their own brand and tossed some outdated scraps to the Chrysler side.
But hey, you dont have to take my world for it.
https://www.forbes.com/forbes/1997/0113/5901082a.html#3945af5cae81
Quote:
... finished 1996 on the sunny side of $5 a share, on $60 billion in sales. The return on net sales is above 6% fantastic for a metal bender. GM, with the help of lots of diversification, has been running only 4%; Ford, a bit under 3%. The average for all 1,280 companies covered in this issue is 4.6%.
Chrysler's return on capital is 20% again fantastic for a company in a capital-intensive business. The all-industry median is 9.6%; the auto and truck industry median is 8.2%.
One in every six vehicles sold in America is a Chrysler, up from one in seven a year ago an impressive gain.
Financial strength? $7.5 billion in the bank, $1 billion a year in dividends and $2 billion earmarked for stock buybacks in 1997.
Who needed who again
LOL!
So a German industrial behemoth needed Chrysler for its little horde of cash and its aging product line in serious need of investment to bail it out?
Yes.
In the 90s Chrysler had billions in real cash in the bank and was making money. MB had a 1.70% market share and their mediocre cars where getting their butts handed to them by much better built and selling Lexus and BMW offerings.
You could argue that the "cloud" cars and Neon where [censored] but they did sell a ton of them in the 90s. And they where selling Jeeps,Minivans and Rams as fast as they could make them.
DB took the cash to inject in to fixing their own brand and tossed some outdated scraps to the Chrysler side.
But hey, you dont have to take my world for it.
https://www.forbes.com/forbes/1997/0113/5901082a.html#3945af5cae81
Quote:
... finished 1996 on the sunny side of $5 a share, on $60 billion in sales. The return on net sales is above 6% fantastic for a metal bender. GM, with the help of lots of diversification, has been running only 4%; Ford, a bit under 3%. The average for all 1,280 companies covered in this issue is 4.6%.
Chrysler's return on capital is 20% again fantastic for a company in a capital-intensive business. The all-industry median is 9.6%; the auto and truck industry median is 8.2%.
One in every six vehicles sold in America is a Chrysler, up from one in seven a year ago an impressive gain.
Financial strength? $7.5 billion in the bank, $1 billion a year in dividends and $2 billion earmarked for stock buybacks in 1997.
Who needed who again