| The news about the sale of Chrysler has caused | | | | announcement." |
| Daimler shares to rise but on the part of Chrysler, Wall | | | | Last February 1 DCX traded at $63.12 and then |
| Street analysts are doubtful whether it can make it | | | | suddenly increased to $69.78 on Valentine's Day the |
| alone. | | | | day the DaimlerChrysler CEO Dieter Zetsche has |
| Wall Street analysts view the pronouncement sale of | | | | announced that all options were being considered for |
| Chrysler by its parent company DaimlerChrysler AG | | | | Chrysler including its possible sales. |
| the producer of Mercedes 300D parts has been | | | | Then on April 5 after the announcement DCX reached |
| advantageous for the German automaker but still | | | | an amazing increase trading at $84.80. The remarkable |
| taking a wait-and-see approach to see whether the | | | | growth in price of DaimlerChrysler's share according to |
| Auburn Hills-based Chrysler can make it on its own. | | | | most analysts will continue especially after the |
| The DaimlerChrysler stock (DCX) closed Monday at | | | | expected sale of Chrysler is concluded by the third |
| $84.12 up by $2.12 or 2.6 percent a share. It was also | | | | quarter of this year. |
| a good news for DaimlerChrysler when some analysts | | | | Here are the benefits that Daimler will reap after the |
| has listed the stock as a strong buy with one German | | | | sale of Chrysler: |
| analyst estimating the stock could eventually reach | | | | 1. Daimler will become more stable and will face lesser |
| $120 especially when the deal on the sale of Chrysler | | | | financial risk without Chrysler. |
| is finished. | | | | 2. Daimler will also get rid of the $19 billion in pension |
| Analysts further say that the sale of the 80.1 percent | | | | and health care liabilities that it will shoulder if its |
| of Chrysler to Cerberus has long been anticipated. The | | | | money-losing arm is not sold. |
| sale of Chrysler to the private multi-billion dollar | | | | 3. Daimler can now focus all its efforts, time, energy, |
| investment firm would benefit both sides however | | | | and finances on profitable ventures especially on its |
| they would have to sacrifice their nine years of | | | | premier cars and trucks. |
| partnership. The downfall of the DaimlerChrysler | | | | According to Jack R. Nerad, an analyst with KBB in |
| merger as viewed by many is caused by the different | | | | Irvine, California, "I see this as a very good move for |
| goals and different operating of the two automakers. | | | | Daimler." |
| Despite the fluctuation on the stock price of | | | | Daimler is not the only one with the advantages even |
| DaimlerChrysler's shares it has still been able to record | | | | Chrysler will obtain benefits out from the sale such as: |
| an increase of $2.12 especially after the official | | | | 1. Chrysler will finally get large cash funding from its |
| announcement was made on the sale of Chrysler last | | | | new owners. This will give the Auburn Hills automaker |
| February 14, 2007. | | | | far greater staying power to compete with the likes of |
| Craig Hutson, an analyst with Gimme Credit in Chicago | | | | Ford, General Motors and other foreign automakers. |
| said, "The Daimler stock since Feb. 14 when it was | | | | 2. Chrysler may now also focus its efforts in |
| announced they were exploring options to sell off | | | | developing long terms strategy instead of worrying |
| Chrysler has dramatically outperformed the market | | | | how it would fare from quarter to quarter. |
| and its peers. Daimler had put itself in a position they | | | | 3. Chrysler may now focus on North American and |
| had to go forward with a deal. Largely the sale was | | | | who knows maybe the inroads Jeep has made into |
| anticipated by the market, which could be one reason | | | | China. |
| for the somewhat muted response after the | | | | |