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