Zetsche feared takeover without sale of Chrysler

Paul Cox / Special to The Detroit News

"Top performance is the best protection against potential threats, and that applies for DaimlerChrysler as well," says CEO Dieter Zetsche, at the Geneva Motor Show. See full image

Christine Tierney / The Detroit News

GENEVA -- As DaimlerChrysler AG's top management weighed a possible sale of the Chrysler Group last fall, two events weakened Chrysler's prospects: its performance slumped, and the United Auto Workers union refused to give Chrysler the health care concessions it extended to the automaker's larger Detroit rivals.

But for the first time Tuesday, DaimlerChrysler CEO Dieter Zetsche alluded to other pressures bearing on the Stuttgart, Germany-based automaker -- the risk of a possible takeover of the company.

"In today's world, a 50 billion euro ($65 billion) market cap doesn't protect you from those considerations," he said in his first wide-ranging talks with reporters since the stunning Feb. 14 announcement that the nine-year merger might be dissolved.

"In the case that the current market capitalization of DaimlerChrysler doesn't represent the potential value of the group -- and I'm convinced that this is the case -- this of course triggers the interest of third parties to investigate if they're able to unlock hidden or undeveloped value," Zetsche said at the Geneva motor show.

Financial experts agree that DaimlerChrysler could be a takeover target because its stock market valuation has been weighed down by Chrysler's uneven performance. The automaker was protected in past years by its largest shareholder, Deutsche Bank, but the bank has reduced its stake and wants to shed its remaining 4.4 percent DaimlerChrysler holding.

"Potentially, they are a takeover target," said Juergen Pieper, an analyst at Metzler Bank, based in Frankfurt. He estimates DaimlerChrysler's assets are worth $30 billion more than its combined stock value. "If you split it up, you can generate value. Mercedes is one of the great brands of the world."

No option ruled out

Zetsche declined to discuss any negotiations regarding Chrysler, saying the first priority was to deliver on the restructuring plan announced last month. He reiterated that no option, including keeping Chrysler, had been ruled out.

Financial analysts who saw Zetsche last week in meetings in London, New York and Boston said he would not discuss sale or spinoff plans with them, but they came away with the impression that DaimlerChrysler's preferred option would be a sale of Chrysler.

General Motors Corp. and DaimlerChrysler are in talks about a possible sale of Chrysler to GM, people familiar with the discussions have told The Detroit News. But Zetsche would not confirm that sale talks were under way.

"I can confirm that nine months ago or more, some discussions between the Chrysler Group and GM -- I think initiated by GM but this doesn't matter -- took place to discuss some potential common interests in some segments. I think large SUVs were discussed. Beyond that, I can't confirm anything," said Zetsche, who ran Chrysler for nearly five years.

On Monday, a team from Cerberus Capital Management met with Chrysler officials in Auburn Hills to discuss a possible bid for the company, say people familiar with the discussions. Representatives of the Blackstone Group, a large private equity firm, are to arrive as early as today.

Pressure rose in Germany

Over the past year, soon after he became CEO of the DaimlerChrysler group on Jan. 1, 2006, Zetsche came under mounting pressure from investors and various constituencies on the German side of the company, including labor representatives, to get rid of Chrysler. Their frustration increased after Chrysler announced in July that it would lose money in the third quarter, then revised its forecast in September to a loss more than double its previous estimate.

As DaimlerChrysler was conducting its annual review of all the divisions, Chrysler's performance deteriorated as inventories of unsold vehicles ballooned. The other disturbing development was "the stance the union took, which was quite surprising, in saying that what we granted GM and Ford, we'll not grant Chrysler," Zetsche said.

Those weren't the decisive factors in the decision. "But I have to concede that those developments were part of our considerations."

Signs of an internal debate seemed to emerge in late October, when DaimlerChrysler's chief financial officer, Bodo Uebber, said during the third-quarter results teleconference that all options were under consideration for Chrysler. It had posted a $1.5 billion quarterly loss. The company issued a statement that night stating that Chrysler was not for sale.

Zetsche said Uebber's comments were misinterpreted, but many industry experts in Germany question whether his comments could be a slip of the tongue.

"Those remarks were placed there to open the discussion about DaimlerChrysler," said Willi Diez, who heads the Auto Industry Institute near Stuttgart. "At that time, it was a surprise because everyone was quite sure that Dieter Zetsche didn't want to separate Daimler and Chrysler because he was committed to Chrysler."

Zetsche on thin ice?

Some industry analysts say Zetsche's own position at the head of DaimlerChrysler might have been weakening. Many of the German labor representatives resented deep job cuts at DaimlerChrysler in Germany. Labor representatives make up half the supervisory board -- and they feel less loyal toward Zetsche than toward his predecessor, Juergen Schrempp.

Deutsche Bank also wants to see the stock rise.

"Zetsche's pressure comes from so many different constituencies telling him they're sick to death of Chrysler," said one analyst.

Zetsche said he was not seeking another shareholder to replace Deutsche Bank and act as a protector. Germany's other two big carmakers are effectively protected against takeovers by their leading shareholders.

"I believe protection usually is not the best environment for top performance, but the other way around. Top performance is the best protection against potential threats, and that applies for DaimlerChrysler as well."

Zetsche said the management's decision to consider all options for Chrysler was not due to outside pressures.

"The (DaimlerChrysler) AG management and the Chrysler management is not acting in reaction to pressure but in reaction to its own thinking and its own strategic process," he said.

He stressed that the process didn't take place only in Stuttgart and that Chrysler CEO Tom LaSorda was involved early on.

Said Zetsche: "A small, select group of the AG board, and definitely nobody of the supervisory board, took on this task to understand where we are, what the going-forward process should be, and ultimately deciding to look at further options as well."

When asked whether Chrysler might be sold in pieces, Zetsche declined to answer directly. But he noted that Chrysler is "a very integrated unit."

Geneva Motor Show: Dodge's lil' devil - Demon revealed

AUTOBLOG.COM | Posted Mar 6th 2007 11:54AM by Damon Lavrinc


Click the pic for the full gallery.

Our man Noah was on hand to watch Dodge unveil the Demon concept, proving that no niche is safe from the butcher-than-thou automaker. Some think it's a thing of beauty, others maintain that the crosshair grille has no place on a roadster. Regardless, most agree that this is strictly a design exercise, since going head-to-head with the other lightweight heavyweights in the market would prove to be too taxing on the DCX crew. No matter, some of us will still fantasize about the first-class hoonage potential of piloting a Demon equipped with the 300 HP turbo'd SRT4 mill at our beck and call.

Gallery: Dodge Demon Concept

Airbus Asks Politicians Not to Interfere

Associated Press 03.07.07, 5:40 AM ET- - Airbus Chief Executive Louis Gallois on Wednesday urged politicians not to interfere with the European aircraft maker's plans to cut 10,000 jobs and spin off or close six European plants.

"While it's normal that politicians are interested, I don't want them to interfere in the company's management," Gallois said on RTL radio.

Ahead of France's April 22-May 6 two-round presidential election, most candidates have pushed for state intervention to help rescue the company from its troubles - a weaker U.S. dollar, and a euro5 billion (US$6.5 billion) profit shortfall due to the A380 superjumbo's two-year delay.

Gallois also said there was no hurry for a capital increase, an idea that the French government has said it would support.

On Tuesday, thousands of striking Airbus workers demonstrated in the southwestern French city of Toulouse, the aircraft maker's headquarters, to protest the company's restructuring plan.

Besides the job cuts - of which 4,300 would be made in France - Airbus plans to sell or close three plants and find industrial partners to take over and upgrade three more facilities producing fuselage and wing parts. Two of the six affected sites are in France, three in Germany and one in Britain.

The French government currently owns 15 percent of parent company EADS, while Paris-based Lagardere SCA owns 7.5 percent. Their combined stake is balanced by Stuttgart, Germany-based DaimlerChrysler AG (nyse: DCX - news - people ), which holds 22.5 percent of voting rights in the defense group.

Zetsche not sold on selling Chrysler

March 7, 2007 | BY MARK PHELAN | FREE PRESS COLUMNIST | GENEVA, Switzerland -- Four thousand miles from Auburn Hills, DaimlerChrysler CEO Dieter Zetsche still sounded like a Chrysler guy.

Speaking in Europe, where sentiment runs strong to separate Chrysler from Daimler, he said flatly that the companies could stay togetherThat doesn't mean the German-American automaker might not sell part or all of the Chrysler Group, which it is pitching to potential buyers this week. But what Zetsche said in an interview Tuesday at the auto show in Geneva -- and the way he said it -- suggests that throwing Chrysler overboard is not the first item on his to-do list.

If the offers get sweet enough or Chrysler's situation grows worse, the division could go, but Zetsche repeatedly said that maintaining the status quo -- retaining Chrysler -- remains an option. He expressed interest in the Chrysler Group's recovery plan and added that the UAW's refusal to grant health care concessions last year was a factor in DCX's decision to put Chrysler on the sale block.

The lanky German was less ambiguous the first time he pledged allegiance to Chrysler in December 2000, days after he took over the company.

He had just replaced longtime Chrysler executive Jim Holden, arriving secretly on a plane from Stuttgart, Germany, with his lieutenant Wolfgang Bernhard and communications executive Ken Levy.

Rumors were rampant, and Chrysler employees and most of metro Detroit were nervous.

A reporter asked Zetsche how he would reassure Chrysler's workers.

"I am a Chrysler guy," he replied, refusing to acknowledge any conflict between himself and the troubled business he had just taken over.

Talk is cheap, but Zetsche's actions over the next few months reinforced the impression, as he learned the intricacies of the U.S. pickup market and ramrodded approval of the elegant Chrysler Crossfire coupe through DCX's hierarchy despite resistance from the company's territorial Mercedes-Benz brand.

Tuesday, he spoke of Chrysler as "we" and "our," a distinct difference from DCX executives who refer to it as a third party: "they" and "them."

A telling moment came when he responded to a question about Chrysler's February sales.

"One of our competitors in town was higher than us and the other was lower" in fleet sales for the month, he said.

Seeing competition as who wins in "our town" -- Detroit -- among General Motors, Ford and Chrysler is as sure a sign of hometown perspective as having a taste for Vernors pop.

"Dieter has a real fondness for Chrysler and Detroit," said Michelle Krebs, editor of Edmunds' www.autoobserver.com.

Zetsche also showed that he's learned another old-time Detroit perspective: Don't hesitate to blame the UAW.

DCX evaluated all its business units last year, he said. It considered selling others, but the idea never progressed far enough to go public with any but Chrysler.

"Two things happened," to put Chrysler on the hot seat, he said. First, sales fell dramatically in the spring, and the company kept building vehicles its dealers didn't want, setting the table for Chrysler's ugly $1.5-billion third-quarter loss.

Second, "the stance the union took," when the UAW refused to give Chrysler the same money-saving health-care concessions it had granted Ford and GM, both of which were teetering on the edge of financial ruin. The union thought Chrysler was too profitable to merit a matching break.

"These developments were, of course, part of our considerations," Zetsche said.

The union declined to comment.

Zetsche repeatedly said he expects Chrysler to meet its goal of having an operating profit margin of "better than 2.5%" in 2009.

"I know very well the tremendous skills of Chrysler's employees," said Zetsche, who ran Chrysler for more than five years. "I am very confident."

Zetsche effectively shot down the theory that DCX might keep the attractive Jeep brand and shed the rest of Chrysler. "Chrysler is a very integrated unit," he said.

He also conceded that uncertainty over Chrysler's fate probably damaged the company's sales last month.

"It's quite natural" for buyers to shy away if the company's future is in doubt, he said. "It is the task of management to re-instill confidence in our employees and buyers."

He refused to say when a decision on whether to sell the business would be made.

Perhaps that's an auctioneer's trick to drive up the price, and the final decision would not be his alone. But Dr. Z sounded less like a motivated seller than like Doctor Detroit.

Wider ist Better: 550-hp BRABUS Widestar - the ultimate ML63?

AUTOBLOG.COM | Posted Mar 6th 2007 5:02PM by John Neff

click above image to see many additional high-res images of the BRABUS Widestar Concept

BRABUS has taken the wraps off of a special M-Class that goes one step beyond the comparatively staid models offered by Mercedes-Benz. Though based on the range-topping ML63, all that you see on what BRABUS calls the Widestar Concept is available for any model in the range. The transformation begins with new body kit pieces that add a healthy does of aggression to the M-Class, but don't go overboard with cartoonish proportions. The design is highlighted by the extra wide fender flares that give the Widestar its name and also make room for large 23-inch BRABUS Monoblock E wheels. The German tuner also provides new front and rear fascias that look different but equally as good as the stock fascias. We especially like how the body kit is colored in a matte grey finish that contrasts with the glossy black finish of the vehicle underneath.

Of course, all of that eye candy only serves to back up what BRABUS does best, which is tune Mercedes-Benz vehicles. The Widestar is fitted with the company's B63 S performance kit that adds freer flowing air filters, new engine management software and other detail-oriented performance upgrades to boost power from 510 hp to 550 hp. That's enough to get this big ute to 62 mph in only 4.9 seconds. Likewise, BRABUS upgraded the brakes to scrub off all that extra speed. Up front the stock brake system is replaced with mighty 12-piston calipers, while the rears make do with six pots, all clamping down on larger discs.

Check out additional angles of the BRABUS Widestar in our high-resolution gallery and more impressions along with the official press release after the jump.

[Source: BRABUS]

Chrysler may expand business in 'high growth' markets

By John D. Stoll

Last Update: 5:44 AM ET Mar 7, 2007

GENEVA (MarketWatch) -- Chrysler Group's international sales chief Thomas Hausch said Tuesday that DaimlerChrysler AG's (DCX :

daimlerchrysler ag ord

DCX68.61, +2.81, +4.3% ) U.S. unit is looking at expanding into several "high-growth regions" in an attempt to outpace its current sales goal of doubling international sales by 2011.

Hausch, speaking during an interview following a Geneva auto show press conference, said the company is looking at several emerging markets, including Russia, and countries in Latin America and Southeast Asia. The company sold 207,000 vehicles in non-North American markets in 2006 and Chrysler has said it wants to double that result by 2011. Hausch says the company is "now at this point looking at an even bigger increase," but he declined to give details.

The executive did not rule out installing manufacturing capacity in high-growth regions. A December article published by WardsAuto.com said that Chrysler Chief Executive Tom LaSorda is looking at a potential expansion of the manufacturing footprint into Russia. Hausch did not rule such a move out, but did not elaborate on details.

"We're looking at places in the whole world," Hausch said, noting that the only countries off Chrysler's potential wish list are countries where U.S. companies are not allowed to sell cars.

Chrysler, in the midst of a restructuring after posting a $1.5 billion operating loss in 2006, relies heavily on exporting vehicles from North America and Austria for sale in international markets. The company also has a growing manufacturing base in China.

Hausch said the company may pursue more partnerships in emerging markets that could follow in the footsteps of its recently forged pact with China's Chery Automobile. Earlier on Tuesday, DaimlerChrysler Chief Executive Dieter Zetsche said the auto maker will utilize the Chery deal - which carries a 25-year exclusivity clause - to build profitable passenger cars for a variety of markets, including North America. Importantly, the Chery agreement opens important inroads to the Chinese market, where Chrysler sales are growing.

Chrysler's interna
tional ambitions come as the struggling U.S. auto maker is under the cloud created by its parent company's Feb. 14 move to disclose it is considering strategic alternatives for Chrysler, including a possible sale. Even as Chrysler posted a steep loss in 2006, its international operations were profitable.

Hausch said that concerns have been expressed by some non-North American buyers and dealers related to the future of Chrysler. However, he said sales continue to grow under his watch and he has no concrete data to illustrate the impact of DaimlerChrysler's disclosure that it is mulling a sale.

Ahead of the Bell: DaimlerChrysler

Associated Press 03.07.07, 7:50 AM ETDaimlerChrysler AG and General Motors Corp. are considering sharing the cost of making sport-utility vehicles, the Wall Street Journal said Tuesday, but neither party is talking about a GM purchase of Chrysler.

Based in Stuttgart, Germany, DaimlerChrysler (nyse: DCX - news - people ) said last month it will explore all options for its ailing Chrysler division - including a sale.

Daimler paid $36 billion for Chrylser nearly 10 years ago, and some analysts say Daimler may have to give Chrysler away for free. That's because whoever buys Chrysler will have to shoulder the division's health care burden.

Some analysts see Detroit-based GM as the most logical buyer because it too suffers from high costs to insure employees.

By acquiring a company with employees in the same union, the United Auto Workers, GM can negotiate a more favorable package for medical costs for employees.

Official: Firms Visiting Chrysler

Associated Press | By TOM KRISHER 03.06.07, 4:40 PM ET - - As two private equity firms examine Chrysler's books and consider making offers to buy the company this week, they'll try to answer a question whose answer is uncertain: How much is the automaker worth?

Although Daimler-Benz AG paid $36 billion for the company in 1998, industry analysts now place its value at anywhere from nothing to $13.7 billion. Estimates vary with the value placed on assets such as brand names, factories and materials, all weighed against Chrysler's estimated $19 billion long-term liability to pay health care benefits for unionized retirees.

Some analysts say the liability exceeds the value of the assets, meaning that German parent DaimlerChrysler AG (nyse: DCX - news - people ) would have to pay someone to take Chrysler. Others say the company is worth more to the right buyer.

"It's a hard thing to really figure out, and the uncertainty is what the health care liability really means," said David Cole, chairman of the Center for Automotive Research in Ann Arbor. "If that were removed, then it's a wholly different game."

Experts from one of the equity firms, Cerberus Capital Management LP, were at Chrysler's Auburn Hills headquarters on Monday, said a company official who requested anonymity because the talks are confidential. Representatives of the Blackstone Group are to arrive later in the week, the official said Tuesday.

In regular trading Tuesday, DaimlerChrysler's U.S. shares rose $2.81, or 4.3 percent, to close at $68.61 on the New York Stock Exchange.

The visits are the latest developments since DaimlerChrysler Chairman Dieter Zetsche said Feb. 14 that all options are on the table for the Chrysler business and that he would not rule out a possible sale.

Also said to be exploring a purchase of the struggling Chrysler are General Motors Corp. (nyse: GM - news - people ), Canadian auto parts giant Magna International Inc. (nyse: MGA - news - people ), and private equity firms Apollo Management LP and the Carlyle Group.

GM won't comment but won't deny the reports, while all four private equity firms have refused to comment.

Cole said Chrysler's value varies with the potential buyer. A private equity firm could take the company into bankruptcy, shed its union contracts and then break it into pieces for sale at a handsome profit, he said.

GM could sweep its estimated $50 billion retiree health care liability into Chrysler's and negotiate a deal with the United Auto Workers union to take on the cost at a discounted rate. GM, Cole said, could save billions of dollars on its health care liability by buying Chrysler.

"If that were done, you could, I think, make a pretty good case that GM would be the ideal suitor," he said.

Chrysler spokesman Jason Vines discounted analysts' estimates of a negative value, saying that Chrysler earned $4.92 billion between 1998 and 2006.

He would not place a value on the company, but said it also is cutting expenses and will introduce 20 new vehicles over the next three years as well as 13 updated cars and trucks.

The new products are a response to consumers' shifting from truck-based vehicles to more fuel-efficient car-based models, he said.

Zetsche, speaking Tuesday at the Geneva Motor Show, said he is confident Chrysler Group's restructuring plan will work. He also said that the finance arm of Chrysler could be sold.

Chrysler on Feb. 14 announced plans to shed 13,000 jobs, including 11,000 hourly and 2,000 salaried workers in the U.S. and Canada as part of its restructuring plan.

The company plans to close one manufacturing plant and make cuts at several others in order to reduce factory capacity to match lower demand for its products.

Chrysler lost $1.475 billion in 2006 and said it expects losses to continue through 2007.

This Day in Auto History: 07 MARCH

	This Day in Auto History: 3.7.1907 The Chadwick Engineering Works is incorporated in Pottstown, PA 3.7.1938 Racer Janet Guthrie is born in Iowa City, IA 3.7.1969 Racer Hideki Noda is born in Osaka, Japan 3.7.1990 William Clay Ford Jr., a great grandson of Henry Ford, is promoted by the Ford Motor Company to oversee strategic planning for worldwide operations

Source: Automobile History Day By Day, by Douglas A. Wick

Mercedes-Benz at the 77th Geneva Motor Show

    - Triple Premiere for the New C-Class

   GENEVA, Switzerland, March 6 /CNW/ - The new Mercedes-Benz C-Class is
celebrating a triple premiere at the 77th Geneva Motor Show: in addition to
the standard-production model, the "AMG-Mercedes C-Class DTM 2007" racing
version and the highly economical and environmentally friendly Vision C 220
BLUETEC, which is powered by the first four-cylinder engine to feature this
innovative emissions control technology, have their debut at the show. With a
fuel consumption of 5.5 litres of diesel per 100 kilometres, this study
demonstrates how the even more stringent EURO 6 exhaust emission standard
coming into force throughout Europe from 2015 can be achieved. Clean and
economical engines are also the hallmark of the new C-Class, which is
available on the European market from March 31.

   (Photo: http://www.newscom.com/cgi-bin/prnh/20070306/247923 )

   "Since the sales release date at the end of January, more than 55,000
customers in western Europe alone have decided in favour of the new C-Class,"
said Dr Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler
AG and Head of the Mercedes Car Group (NYSE: DCX), in his preliminary remarks
at the Mercedes-Benz press conference in Geneva. "We are confident that the
new C-Class will continue the success story of its predecessor, of which more
than two million units were sold," Zetsche continued.
   The fourth-generation C-Class has captured the enthusiasm of customers
with its unique combination of safety, comfort and agility. The standard
appointments of all variants include the innovative AGILITY CONTROL package
with its situation-responsive shock-absorber control, which opens up new
dimensions in handling refinement: it combines typical Mercedes comfort with
extraordinarily agile driving characteristics. The new C-Class is powered by
state-of-the-art four and six-cylinder engines which consume up to six percent
less fuel than the preceding models, accompanied by an increase in output of
up to 13 percent. Despite a variety of technical innovations and even more
generous standard appointments, and taking inflation into account, the price
of the new C-Class remains at the same level as that of the preceding series.
In Germany and other European countries, the entry-level price including tax
is still below 30,000 EUR.

   Exemplary safety and a versatile product concept

   The C-Class also sets new standards in its segment where safety is
concerned. Examples include the Intelligent Light System with five different
lighting functions and the PRE-SAFE(R) system with its anticipatory occupant
protection features. In addition, the new C-Class Saloon excels with a
particularly versatile product concept which meets the expectations of
different customer target groups. In the form of the AVANTGARDE, ELEGANCE and
CLASSIC lines, Mercedes-Benz offers three individual model variants which
place different emphases on comfort or agility.
   The concept of two different product personalities within the same series
is also given a visual emphasis in the new C-Class, as it is the first
Mercedes saloon to appear with two different "faces": the AVANTGARDE models
have the Mercedes star at the centre of the radiator grille and thereby follow
the styling lead of the sporty Mercedes models, especially the coupés. The
more traditional ELEGANCE and CLASSIC variants bear the star on the bonnet as
before.

   World premiere of the first BLUETEC four-cylinder engine in the
   Vision C 220 BLUETEC

   In a study based on the new C-Class, Mercedes-Benz is also presenting its
innovative BLUETEC emissions control technology in combination with a highly
fuel-efficient four-cylinder engine for the first time in Geneva. In terms of
ensuring compliance with the even stricter EURO 6 emission standard,
applicable to all new vehicles Europe-wide from 2015, the Vision C 220 BLUETEC
shows the way ahead. Boasting an output of 125 kW (170 hp) and a peak torque
of 400 Nm, the Vision C 220 BLUETEC consumes a mere 5.5 litres of diesel per
hundred kilometres.
   "The sophisticated four-cylinder diesel engine with BLUETEC emission
control is a prime example of leading-edge, future-compatible technology,"
explains Dr Dieter Zetsche. "Our diesel strategy is an effective answer to the
question of how to save fuel and, therefore, CO2, how to further reduce all
exhaust emissions including NOx and yet still ensure effortlessly superior
driving enjoyment. In this respect, we believe our state-of-the-art diesel
concept is currently the best and most efficient solution available." With the
Vision C 220 BLUETEC, Mercedes-Benz is providing a taste of things to come as
part of its BLUETEC initiative which was launched in the US last autumn. The
initial impetus came from the market launch of the E 320 BLUETEC in North
America in October 2006, which was timed to coincide with the introduction of
low-sulphur diesel in that part of the world. A fuel consumption figure of
6.7 litres per hundred kilometres makes the E 320 BLUETEC one of the most
economical vehicles in its class in the US.
   With the first four-cylinder BLUETEC model, Mercedes-Benz illustrates
just how versatile this innovative technology can be. Following the US launch,
the company will also introduce BLUETEC in other markets. The technology is
currently being adapted to European market requirements and further
Mercedes-Benz models, the aim being to also offer this environmentally
friendly and highly economical technology for European customers as well from
2008, first of all in the E-Class.

   New C-Class: CO2 emissions already reduced by 15 percent

   The standard-production version of the new C-Class is testament to the
successful work performed by Mercedes-Benz in its quest to consistently reduce
both fuel consumption and emissions. A lifecycle assessment carried out on the
new Saloon, certified by the German technical inspection authorities (TUV),
confirms that the carbon dioxide (CO2) emissions for what is now the
fourth-generation C-Class have been reduced by 15 percent. This corresponds to
nine tonnes per vehicle. This makes the new C-Class the only car in its market
segment to possess an environmental certificate.

Chrysler may expand business in 'high growth' markets

By John D. Stoll

Last Update: 5:44 AM ET Mar 7, 2007

GENEVA (MarketWatch) -- Chrysler Group's international sales chief Thomas Hausch said Tuesday that DaimlerChrysler AG's (DCX :

daimlerchrysler ag ord

DCX68.61, +2.81, +4.3% ) U.S. unit is looking at expanding into several "high-growth regions" in an attempt to outpace its current sales goal of doubling international sales by 2011.

Hausch, speaking during an interview following a Geneva auto show press conference, said the company is looking at several emerging markets, including Russia, and countries in Latin America and Southeast Asia. The company sold 207,000 vehicles in non-North American markets in 2006 and Chrysler has said it wants to double that result by 2011. Hausch says the company is "now at this point looking at an even bigger increase," but he declined to give details.

The executive did not rule out installing manufacturing capacity in high-growth regions. A December article published by WardsAuto.com said that Chrysler Chief Executive Tom LaSorda is looking at a potential expansion of the manufacturing footprint into Russia. Hausch did not rule such a move out, but did not elaborate on details.

"We're looking at places in the whole world," Hausch said, noting that the only countries off Chrysler's potential wish list are countries where U.S. companies are not allowed to sell cars.

Chrysler, in the midst of a restructuring after posting a $1.5 billion operating loss in 2006, relies heavily on exporting vehicles from North America and Austria for sale in international markets. The company also has a growing manufacturing base in China.

Hausch said the company may pursue more partnerships in emerging markets that could follow in the footsteps of its recently forged pact with China's Chery Automobile. Earlier on Tuesday, DaimlerChrysler Chief Executive Dieter Zetsche said the auto maker will utilize the Chery deal - which carries a 25-year exclusivity clause - to build profitable passenger cars for a variety of markets, including North America. Importantly, the Chery agreement opens important inroads to the Chinese market, where Chrysler sales are growing.

Chrysler's international ambitions come as the struggling U.S. auto maker is under the cloud created by its parent company's Feb. 14 move to disclose it is considering strategic alternatives for Chrysler, including a possible sale. Even as Chrysler posted a steep loss in 2006, its international operations were profitable.

Hausch said that concerns have been expressed by some non-North American buyers and dealers related to the future of Chrysler. However, he said sales continue to grow under his watch and he has no concrete data to illustrate the impact of DaimlerChrysler's disclosure that it is mulling a sale.

Chrysler Trademark: NEW YORKER update

Mark


(words only): NEW YORKER

Standard Character claim: Yes

Current Status: A request for the first extension of time to file a statement of use has been granted.

Date of Status: 2007-02-17

Filing Date: 2005-08-25

The Notice of Allowance Date is: 2006-08-22

Transformed into a National Application: No

Registration Date: (DATE NOT AVAILABLE)

Register: Principal

Law Office Assigned: LAW OFFICE 113

Attorney Assigned:
AMOS TANYA L Employee Location

Current Location: 700 -Intent To Use Section

Date In Location: 2007-02-16

---

LAST APPLICANT(S)/OWNER(S) OF RECORD

---

1. DaimlerChyrsler Corporation

Address:
DaimlerChyrsler Corporation
CIMS: 483-02-19 1000 Chrysler Dr.
Auburn Hills, MI 48326
United States
Legal Entity Type: Corporation
State or Country of Incorporation: Michigan
Phone Number: 284-944-6511
Fax Number: 248-944-6537

---

GOODS AND/OR SERVICES

---

International Class: 012
Class Status: Active
motor vehicles, namely, passenger automobiles
Basis: 1(b)
First Use Date: (DATE NOT AVAILABLE)
First Use in Commerce Date: (DATE NOT AVAILABLE)

---

ADDITIONAL INFORMATION

---

Prior Registration Number(s):
1183673

---

MADRID PROTOCOL INFORMATION

---

(NOT AVAILABLE)

---

PROSECUTION HISTORY

---

2007-02-17 - Extension 1 granted

DaimlerChrysler trademark Updates

1	78888762		ATTENTION ASSIST	TARR	LIVE
2	78884416		EDITION 10	TARR	LIVE
3	78711699		RACETIMER	TARR	LIVE
4	78693327		ADAPTIVE BRAKE	TARR	LIVE
5	78939198		GLK 350	TARR	LIVE
6	78829973		GRAND EDITION	TARR	LIVE
7	78721398		SSKL	TARR	LIVE
8	78833423			TARR	LIVE
9	78833351		SUPER BEE	TARR	LIVE
10	78920255		ROLLOVER MILES	TARR	LIVE
11	78866661		TOMAHAWK	TARR	LIVE
12	78771353		UHI	TARR	LIVE

France Offers to Boost Stake in Airbus

Associated Press

By ANGELA DOLAND 03.05.07, 1:41 PM ETFrance's outgoing prime minister and leading presidential candidates offered to come to Airbus' aid on Monday, highlighting the high political stakes in the struggle to rescue the European planemaker.

Prime Minister Dominique de Villepin and conservative candidate Nicolas Sarkozy said the government would be ready to boost its stake in the company through a capital increase.

Airbus announced a restructuring plan including massive job cuts and factory selloffs last week, but has said it will seek to avoid layoffs by using voluntary plans such as early retirement.

Villepin met Monday with lawmakers dealing with the situation, and said the state is "ready to participate" along with other Airbus shareholders "in any capital increase judged necessary by the company," Villepin said after the meeting.

"In the face of this crisis, the state will play its full role," Villepin said.

Sarkozy said that he, too, would support the idea, but added that a capital increase, "of which the state could participate, should be part of a project to bring new partners and new jobs" to Airbus. He spoke after a meeting with union leaders at the headquarters of the European planemaker in Toulouse.

"The only thing to do is profit from this crisis to renegotiate all of the balances within EADS," Sarkozy said.

The French state holds 15 percent in EADS, the joint French-German parent company of Airbus. Core German shareholder DaimlerChrysler AG has a 22.5 percent share, and Paris-based Lagardere SCA has 7.5 percent. The German government has no stake.

European Aeronautic Defence & Space Co. and Airbus Chief Executive Louis Gallois said in an interview published Saturday in the Financial Times that the EADS board agreed to consider any solution to increase the group's capital resources, including issuing new shares. However, he said that neither DaimlerChrysler nor Lagardere was interested in taking part in an equity issue.

Airbus has said it plans to shed 4,300 jobs in France, 3,700 in Germany, 1,600 in Britain and 400 in Spain over four years - with roughly half the cuts coming from the 57,000-strong Airbus work force and the rest from subcontractors, who currently employ a further 30,000 staff.

Villepin said Gallois pledged at a meeting Monday that a restructuring plan wouldn't involve forced layoffs or site closures in France.

However, he added, "As a shareholder the government thinks that EADS shouldn't pay a dividend this year in order to strengthen its investment capacity."

Villepin also said that EADS' corporate governance should be simplified to enable it to "take on the future industrial challenges faced by the company."

Troubled Airbus has become an issue in the French presidential campaign, with a string of candidates suggesting the state step in.

Airbus has announced a restructuring plan to shed 10,000 staff and sell, close or spin off six plants as it struggles to survive the fallout from a two-year delay to its A380 superjumbo and the weaker U.S. dollar.

Strikes are planned Tuesday at several Airbus plants around France, along with protest demonstrations.

Employee representatives at three German plants facing an uncertain future said Monday work had resumed after walkouts last week.

With the French presidential race between conservative Interior Minister Sarkozy and Socialist Segolene Royal neck-and-neck, Sarkozy has lately toned down his free-market ideas to appeal to the center.

As finance minister in 2004, Sarkozy engineered a rescue plan for engineering giant Alstom that included a euro2.5 billion (US$3.25 billion at exchange rates then) state-orchestrated bailout to steer the train and power plant builder away from the brink of bankruptcy. The bailout brought complaints from EU trade officials.

"Airbus is a European success, it's a very technologically advanced company and we can't let it down," Sarkozy said.

Royal also was expected to discuss the issue with German Chancellor Angela Merkel on Tuesday in Berlin.

She has said she would suspend the restructuring plan if elected and increase government investment in Airbus. She also said the state should reform its laws so that regional governments can take stakes in Airbus.

"The state must emerge from its lethargy and inertia and stop thinking that the market can solve everything," Royal said.

Any rescue plan for Airbus would come under scrutiny from EU officials and could further inflame trade relations with the United States, which is already pressing complaints at the World Trade Organization over state aid to Airbus.

Chief Says Chrysler Unit May Be Sold

By DOW JONES

Published: March 6, 2007

The financing arm of the Chrysler Group, the American division of DaimlerChrysler, could be sold as its parent company considers options, DaimlerChrysler’s chief executive said yesterday.

On Feb. 14, DaimlerChrysler said it was keeping all options open regarding the future of the Chrysler Group, leading to speculation about the prospects of a sale or a spinoff.

Speaking during the Merrill Lynch Global Automotive Conference in Geneva, the chief executive of DaimlerChrysler, Dieter Zetsche, said the same held true for the financing arm.

General Motors last year sold a majority stake in its financing arm, the General Motors Acceptance Corporation, to a group led by the private equity firm Cerberus Capital Management.

Private equity firms like the Blackstone Group, competitors like G.M. and the auto parts supplier Magna International have reportedly expressed interest in Chrysler.

The Chrysler Group posted a $1.5 billion loss in 2006 after turning a profit in 2005.

Its financial results were hurt as consumers bought fewer pickup trucks and S.U.V.’s as fuel prices increased and the housing market slumped.

The automaker also did not react fast enough to cut production, and unsold inventory piled up on dealer lots.

As the speculation increases over a sale, Chrysler is starting a revamping plan aimed at restoring profitability by 2008.

The plan calls for eliminating 11,000 hourly positions and 2,000 white-collar jobs, or about 16 percent of its work force.

Plans also call for closing a sport utility vehicle assembly plant in Newark, Del., and a parts distribution center in Cleveland. Other options include cutting shifts at three assembly plants.

Mr. Zetsche said on Monday that the company was “very much aware” of the reaction the Feb. 14 announcement would have on employees, capital markets, and dealers, but said he was “not in a position” to give a timeline for a decision on Chrysler.

Meanwhile, Ford Motor Company, which is also trying to stage a turnaround amid billions of dollars in losses in recent months, said yesterday that it would reveal at the Geneva Motor Show later this week its plans to develop a subcompact car for American consumers, based on the concept it has developed with Mazda.

Lewis Booth, president of Ford of Europe, said that the company planned to develop the car for its struggling North American unit.

He added that the European unit of Ford would develop a similar model for sale in Europe and Asia.

Ford is also taking a new version of its Mondeo, a large family car, to Geneva.

The Mondeo is important to Ford as the company seeks to gain ground in the sedan market. The car will be configured in four-door, five-door hatchback and station wagon styles.

As concerns rise about global warming and the environment, the Geneva show, which will run from Thursday through March 18, is expected to focus on reducing emissions and making engines more fuel-efficient, while helping to maintain profit for automakers.

Chrysler Group Continues to Grow Certified Pre-Owned Vehicle (CPOV) Sales in January 2007

AUBURN HILLS, Mich., -- Starting the year on an upswing, the Chrysler Group reported that its Five Star(R) dealers set a new January record of 9,122 Certified Pre-Owned Vehicle (CPOV) sales in 2007, an 8 percent increase compared with January 2006 sales of 8,444 units.

Chrysler brand sales increased 7 percent to 2,939 units for the month. Jeep(R) brand sales advanced 22 percent to 2,257 units and Dodge brand sales rose 2 percent to 3,926 units, versus prior year sales. Vehicles showing marked improvement in January 2007 include the Chrysler Crossfire (up 60 percent) the Jeep Wrangler (up 32 percent) and the Dodge Magnum (up 26 percent).

"The 125 benefits of purchasing a Chrysler Group CPOV continue to appeal to customers and have translated into sales growth in the used-vehicle segment," Peter Grady, Director - DaimlerChrysler Motors Remarketing, said. "In addition, by recently expanding the scope of the Carfax Vehicle History Report to include recall information for all Chrysler Group vehicles, consumers are ensured to be up-to-date on the proper maintenance of their vehicles. This helps improve vehicle resale value, meet the manufacturer's safety and performance standards, and preserve peace of mind in everyday driving."

The Chrysler Group offers one of the most comprehensive Certified Pre-Owned Vehicle programs in the industry. For a vehicle to be certified under the Chrysler Group's used-vehicle program, it must be a 2002 through 2007 model preowned vehicle with less than 65,000 miles and pass a stringent 125-point inspection. The Chrysler Group's CPO vehicles are backed by an eight-year/80,000-mile powertrain limited warranty, 24-hour, 365-day full roadside assistance with a $35 per day rental car allowance and a three-month or 3,000-mile Maximum Care warranty, in addition to a Carfax Vehicle History Report and buyback guarantee.

Marketed as "Brand Spankin' Used(R)," the Chrysler Group's CPO vehicles are sold only through Chrysler, Jeep and Dodge dealerships that have earned the automaker's Five Star certification. Five Star certification is a comprehensive validation of the dealership's facilities, operational processes, salesperson and technician training accreditation as well as customer satisfaction survey ratings. Approximately 2,100 Chrysler Group dealerships in the United States are certified Five Star dealers.

This Day in Auto History: 06 MARCH

This Day in Auto History: 3.6.1900 Gottlieb Daimler dies in Canstatt, Germany at age 65 3.6.1915 The tenth Vanderbilt Cup is held at the Pan-Pacific International Exposition in San Francisco, CA and won by Dario Resta in a Peugeot 3.6.1928 William Francis Nolan, biographer of Barney Oldfield, is born in Kansas City, MO 3.6.1934 The Auto Union Type C Grand Prix car makes its public debut at the Avus track in Berlin, Germany with Hans Stuck setting a world record by covering 134.90 miles in one hour 3.6.1941 Pontiac’s World War II effort begins with a government order for Oerlikon anti-aircraft cannons

Source: Automobile History Day By Day, by Douglas A. Wick

That thing got a HEMI?

If anything has made the Chrysler brand fun again, it’s the 5.7L HEMI engine originally introduced in the 2003 Dodge Ram. Since then, this wonderful and popular engine has found it’s way into several new models including the Magnum R/T,300C, Jeep Grand Cherokee and Durango. If you happen to have one of these vehicles and are looking to turn it into a horsepower monster, then you have to check out the line of supercharger kits from GS Motorsports.

GS Motorsports offers a line of supercharger kits based on the Paxton NOVI line of centrifugal superchargers. The Paxton name has been synonymous with automotive performance for nearly five decades. The original supercharger design was for the 1937 flat head Ford engine. Over 5,000 units were sold in the late 30s. Paxton Automotive currently has the widest variety of superchargers for Fords and works with companies like GS Motorsports to develop kits for many other vehicles.

In addition to the 5.7L HEMI, GS Motorsports offers kits for the 6.1L found in the SRT models. GS Motorsports made more than 500 rear wheel horsepower on the Chrysler SRT-8 300C (+150 rwhp increase!) and 389 rear wheel horsepower on the 5.7L Magnum (+123 rwhp).

Tell me about your HEMI!

Mercedes Benz Will Road Trip On Vegetable Oil

Drivers Spread The Word About Alternative Fuels

POSTED: 9:57 pm CST March 5, 2007

UPDATED: 10:29 pm CST March 5, 2007

MONROE, Wis. -- A Madison duo is hoping to spread the word about being eco-nomical with a road trip in their modified car.Sacha Deangeli and Mary Pawlek are going coast to coast in their 1982 Mercedes Benz to talk to the public about alternative fuels.Their car runs on vegetable oil."It's is less shaky and actually a little quieter with the vegetable oil," said Pawlak.On Monday they visited a classroom in Monroe."It's going to be long, long trip," said Deangeli. "We are going to be really tired of driving.""The kids don't have the chance to learn about alternative fuels or things like that at a young age," said parent Cathy Keckuk.Keckuk organized the school visit."It will be fun," said Deangeli. "We're going to teach people about environmentalism."The students were most intrigued with the car's exhaust, which smelled like fried food."I didn't really think it would smell like French fries at all, cause that's just really unusual," said student Madeline Keckuk.But Deangeli and Pawlek hope their french-fry smelling car inspires kids to go green when they're old enough."One thing I want them to remember is that there are other ways of fueling your car," said Deangeli.Some students already understood the global issue."It won't put pollution into the air," said Keckuk. "Before I came to this school, when I lived in Green Bay, I had asthma."Deangeli and Pawlek said they'd be picking up leftover oils from restaurants along the way. That will cover 90 percent of the fuel cost.To follow the trip, viewers can check out their blog at www.vegetableoilroadtrip.com.

Patriot cuts into Caliber, Compass production time

By Alex Gary
ROCKFORD REGISTER STAR
Click here for more information about Alex Gary

BELVIDERE — Slowly but surely, Jeep new-car dealers should start seeing more Patriots.

Workers at the DaimlerChrysler assembly plant in Belvidere turned out 3,033 of the crossover SUV that strongly resembles the discontinued Jeep Cherokee, nearly triple the number from January.

In February, dealers sold just 644 Patriots simply because there were few available. The Chrysler Group’s February sales figures showed just 800 were in stock at the end of the month.
With an ample supply of the other two models made in Belvidere — dealers sold 4,071 Jeep Compasses in February and had 16,500 in stock and sold 9,900 Calibers with 15,900 still in supply — the company cut back slightly on both models to make room for the Patriot. The 3,600 workers on three shifts assembled 16,879 Calibers in February, a nearly 10 percent drop from January’s total of 18,714, and 7,479 Compasses, an 11.3 percent cut from January’s 8,427 completed models.

The company, in fact, has steadily cut Compass production each month since October when workers put together 10,847 of them.

The Chrysler Group invested $419 million in the 3.9 million-square-foot plant in 2005 and 2006 to make it the most automated and flexible of any of the company’s North American assembly plants. Workers are able to increase and decrease production of any of the models without having to shut down the line. It’s the first Chrysler Group plant to be converted to the more flexible system, and the Register Star is tracking monthly production to see how the company uses the new system.

The monthly sales and production reports also illustrate how much the company is leaning on its Belvidere work force and the products made there in a time of need. In February, the company announced an aggressive restructuring that included plant shutdowns and worker buyouts to return the Chrysler Group to profitability by 2008.

But while the Chrysler Group is cutting back elsewhere, it’s increasing the workload in Belvidere. Through the first two months of the 2007, workers have completed 55,628 Calibers, Compasses and Patriots. At that pace, they would produce 333,768 of the three crossover SUVs by the end of the year. That would be a shade under the plant’s busiest year ever. In 1986, workers on two shifts put together 335,298 Plymouth Horizons and Dodge Omnis.

Zetsche Confident About Chrysler Plan

Associated Press 03.06.07, 4:14 AM ET

DaimlerChrysler AG Chairman Dieter Zetsche said Tuesday he is confident that the plan to re-energize Chrysler will work, but reiterated that all options for the unprofitable U.S. division were still on the table.

"I am sure that we will see a rebound," he told reporters on the sidelines of the 77th annual Geneva Motor Show.

"We want to make sure the framework is the best (for DaimlerChrysler (nyse: DCX - news - people )) going forward. We can take the action that is best for Chrysler and DaimlerChrysler."

Zetsche's comments follow reports in the United States that executives at the beleaguered Chrysler Group have been meeting with buyout experts and that DaimlerChrysler was preparing presentations for potential buyers.

Speculation about a DaimlerChrysler divorce has been rampant since Zetsche said Feb. 14 that all options are on the table for the money-losing U.S. business. He would not rule out a sale.

Chrysler in February announced that it lost euro1.12 billion (US$1.48 billion) in 2006 and said it expects losses to continue through 2007. Parent DaimlerChrysler, however, earned euro3.24 billion (US$4.26 billion) in 2006.

The Chrysler losses were accompanied by the announcement of plans to shed 13,000 jobs, including 11,000 production workers and 2,000 salaried employees as Chrysler trims expenses and factory capacity as sales decline.

CHRYSLER GROUP REVEALS NEW JEEP PATRIOT AT THE GENEVA MOTOR SHOW 2007 -

The Jeep brand is continuing its expansion into new territory with the European premiere of the new Jeep Patriot at the Geneva Motor Show this week.

The Jeep Patriot will be the new, entry-level price point for the Jeep brand in the UK when it launches this summer. Patriot combines the packaging and interior flexibility of an SUV with the performance, handling, fuel economy and price of a family hatchback.

Peter Lambert, Managing Director of Chrysler Group UK, said “You can’t escape the fact that the new Jeep Patriot looks like a classic Jeep – but there is nothing old-fashioned about the performance and fuel economy of this compact SUV or its state-of-the-art four-wheel drive system.

“The market place is changing and the Jeep brand is leading that change as the Compact SUV market grows. Our research shows that the Jeep Patriot appeals to younger customers that want more from their traditional family car – young families want a vehicle that looks different but still offers plenty of room and practicality, together with great performance and fuel economy.”

Safety is also increasingly important for customers and the Jeep Patriot is loaded with many standard safety features, including side-curtain airbags, anti-lock brakes (ABS), Electronic Stability Programme (ESP) with Electronic Roll Mitigation and the ‘Freedom Drive I’ full-time, active four-wheel drive system, all of which add to Patriot’s tremendous value.

Peter Lambert added: “Small family cars with four-wheel drive systems are becoming more sought after as they offer better handling and enhanced safety on the road. The higher seating position of the Patriot, together with the new four-wheel drive system that automatically switches from front to four-wheel drive if you lose traction, offers drivers a real advantage in everyday driving conditions. The Patriot is as much at home on wet and icy tarmac as on mud, sand or snow and still manages to achieve a class-leading 43.5 mpg*.”

Two Jeep Patriot models, Patriot Sport and Patriot Limited, will be offered in the UK and will be priced below the Jeep Compass Limited model. The Patriot range will launch in the UK in July 2007 with a VW-sourced 138 bhp 2.0-litre six-speed manual diesel engine and a 168 bhp 2.4-litre petrol engine with a five-speed manual or a CVT automatic gearbox.

* 43.5 mpg on the combined cycle with the 2.0-litre diesel engine.

Hybrid Technologies, Inc. (OTCBB: HYBT) First to Receive Medallion for All Lithium PT Cruiser Taxi That Hits the Streets of Manhattan With Outstanding

NEW YORK, NY -- (MARKET WIRE) -- March 06, 2007 -- Hybrid Technologies, Inc. (OTCBB: HYBT) www.hybridtechnologies.com, emerging leaders in the development and marketing of lithium powered products worldwide are pleased to announce that the world's first all lithium taxi is in full service in New York City.

To see the taxi in service: http://www.hybridtechnologies.com/media.php?mediaID=070306

With over 12,000 medallion taxi cabs in New York, Hybrid Technologies chose New York as its inaugural location. The long range, highway speed lithium full-sized passenger vehicle has won over the toughest of critics, including the general public. City Hall has requested more taxis, and a significant interest from medallion owners looking to benefit from reduced medallion fees, federal / state emissions initiatives and grants.

Hybrid placed the vehicle into service following unanimous approval from the City of New York Taxi and Limousine Commission under Article 14. The taxi has received acclaim from media, the public and President George W. Bush during the initial days of its operation.

Hybrid Technologies is fully prepared and capable of retrofitting most of the fleet of taxis in New York. The process will begin by working with local and state government to bring additional incentives to fleet owners and owner operators within the city of New York.

Hybrid President, Holly Roseberry, stated: "The introduction of our lithium taxi into service in New York City is a major step forward and a victory for the automotive industry, the city of New York, its residents and for the American public in general. We are showing that not only is a solution possible, it is a reality. As the taxis serve New York it will serve as a testimony of American innovation and willingness to accept this technology."

Chrysler group expects strong European growth

US automaker sets international sales goal of 400,000 units by 2012

Jason Stein | Automotive News Europe / March 5, 2007 - 1:00 am MUNICH -- The Chrysler group is in financial trouble in the US, but its international business -- led by increased European unit sales -- is a bright spot.

Thomas Hausch, Chrysler's executive director of international sales and marketing, told Automotive News Europe last month that the Chrysler group set a record for profitability in 2006 in international markets.

Hausch declined to provide specifics, but said Chrysler's recent success has prompted the US automaker to readjust its short-term unit-sales goals.

"Our profitability has led to the decision to continue our acceleration [in Europe]," Hausch said.

The Chrysler group includes the Chrysler, Dodge and Jeep brands.

In August, Hausch said Chrysler wanted to double its market share in Europe to 1.4 percent by 2009. That would represent close to 200,000 unit sales.

---

International success Chrysler group's top 5 foreign sales markets in 2006 and % change from 2005 Italy 21,260 12 UK 20,572 40 Germany 16,820 8 Venezuela 16,367 31 Spain 13,621 35 Source: Company

---

Ahead of schedule

Hausch said he is ahead of schedule in Europe and expects Chrysler group to expand its international sales to 400,000 units by 2012 from 206,925 this year.

"We are above our target and our latest announcement to expand sales internationally will help me achieve that goal," he said. "We could have sold more if we kept our production up to where our dealers wanted it."

In Europe last year, Chrysler sold 107,575 units, up from 92,951 units in 2005, according to UK-based market researcher JATO Dynamics.

Hausch said he expects most of Chrysler's European short-term growth to come from Russia and eastern Europe.

On the product side, Hausch said the carmaker may expand in Europe in two segments that it has not yet tapped: minicar and small car.

The Chrysler group also will push to increase its number of sales points in Europe each year for the next few years. Last year, Chrysler expanded its sales network by 50 outlets to about 1,000 and Hausch expects "single-digit" percentage growth every year for the next few years in core cities in Germany, France and the UK.

"We will continue to grow in selected markets," Hausch said. "We have quite a lot of demand for dealerships in Europe."

Chrysler foreign sales rise 9 percent in February

Reuters / March 5, 2007 - 9:00 am FRANKFURT (Reuters) -- Chrysler group sales outside North America rose 9 percent in February to 15,194 units, the U.S. arm of DaimlerChrysler said today.

After its best February since 1998, Chrysler group sales in the first two months of 2007 were up 10 percent versus the same period of 2006, the carmaker said in a statement.

Boosting foreign sales by itself or with partners is a crucial objective for loss-making Chrysler, which DaimlerChrysler has said it is examining strategic options including a sale or spinoff.

The Chrysler group includes the Chrysler, Dodge and Jeep brands.

The Dodge Caliber compact launched last year is the top-selling Chrysler group vehicle outside North America so far this year, with 4,834 units sold, it said.

"The global success of Dodge Caliber shows us that there is a significant group of customers in European and international markets who are attracted to the bold and unique characteristics of the Dodge brand," Chrysler's head of international sales, Thomas Hausch, said in the statement.

In February alone, the Chrysler 300C car led the product lineup with 2,629 units sold, an increase of 57 percent.

Italy is Chrysler's largest overseas market by volume with sales up 2 percent to 3,363 units so far in 2007. It is followed by Germany, where 2007 sales have risen 13 percent to 2,372 units

Chrysler stores are a no-sale

Bradford Wernle | Automotive News / March 5, 2007 - 1:00 am Lithia Motors Inc. is one of the nation's largest Chrysler group dealers, with 109 franchises in 40 locations. But Lithia CEO Sidney DeBoer is in no rush to buy more Chrysler stores.

That's because DaimlerChrysler CEO Dieter Zetsche put the Chrysler group up for sale Feb. 14, and nobody knows who the new owner will be or even whether there will be a new owner. "The uncertainty has alarmed us," DeBoer says.

With talks heating up last week, General Motors appeared to have the inside track to buy the Chrysler group. Dealers and brokers say buying and selling of Chrysler, Dodge and Jeep stores has slowed to a virtual halt because of doubts about the Chrysler group's future.

"There's virtually no demand for Chrysler stores in our shop," says Sheldon Sandler, managing partner of Bel Air Partners, a dealership brokerage and consulting firm in Princeton, N.J. "With the uncertainty we're looking at, the market is evaporating. No investor likes uncertainty, and you've got a mountain of uncertainty facing Chrysler right now.

"You pay blue sky for the value of the franchise and future earnings. Given current conditions, the future for Chrysler overrides any expectations of what's going to happen in the future."

DeBoer says current uncertainties haven't changed his belief that Chrysler group franchises are still a good deal for Lithia, of Medford, Ore. -- if they're in the right location, that is.

"Historically, we pay three to four times over pretax earnings for Chrysler as good will," DeBoer says. Lithia would pay roughly double that for a Toyota or Honda store.

---

The network The Chrysler group's U.S. dealer body Franchises: 3,750 Stores with all 3 brands (Chrysler, Dodge, Jeep): 1,950 Source: Chrysler group

---

No interest

But Lithia has no interest in buying Chrysler group stores in metro areas.

"Nobody wants domestics (Detroit 3 stores) in metro markets that are overdealered and they're tired old stores," DeBoer says.

Mark Johnson, president of M.D. Johnson Inc., a Seattle company that helps clients navigate dealership ownership transfers, says uncertainty could produce good deals. Would-be buyers should know the multiples could shoot up if the right buyer picks up Chrysler and assures its future.

"I think it's a great time for someone to buy a Chrysler store if they know what they're doing,' he says.

Doubts about GM

Ralph Martinez, owner of Town & Country Chrysler-Jeep and Town & Country Dodge in Portland, Ore., says he thinks GM might not be such a good buyer for Chrysler.

With GM still working on its own recovery plan, he says, "it will be four, five years before you see any true efficiencies."

Martinez thinks Chrysler has the best new products of the Detroit 3. He has been a Chrysler dealer since 1976 and doesn't plan to change.

"We've got fresh merchandise, and we hope gas prices stay low," he says.

"If somebody buys them, we'll be fine -- or they need to announce they're not going to sell it and get back to the future."

But Stephen Kaiser, president of Fairfield Chrysler-Dodge-Jeep in Muncy, Pa., says Chrysler's uncertainty has been "disheartening" for dealers in a slow winter season.

The Chrysler group's dealers have invested heavily in stores to keep up with new products, Kaiser says.

But potential store buyers don't want to take a risk on a Chrysler group store, he says. "Or if they do, they want it at bargain-basement prices."

This Day in Auto History: 05 MARCH

This Day in Auto History: 3.5.1903 The Association of Licensed Automobile Manufacturers (ALAM) is organized with 18 manufacturers as charter members following a successful patent infringement lawsuit against the Winton Motor Carriage Company on behalf of George B. Selden 3.5.1926 John David Caplan of General Motors is born in Weiser, ID 3.5.1929 Allen Edward Murray of the Mobil Corporation is born in New York City 3.5.1936 A. O. Dunk, prolific buyer of defunct automobile manufacturer inventories, dies in Los Angeles, CA at age 62 3.5.1952 Robert H. Duff, a Scottish-born truck engineer with the Chrysler Corporation since 1926, dies in Detroit, MI at age 54

Source: Automobile History Day By Day, by Douglas A. Wick

Chrysler Crossfire JAB Anstoetz Design Study – Geneva debut

CARSCOOP - - Created in conjunction with fabric designer and manufacture JAB Anstoetz, Chrysler’s Crossfire study attempts to export material and textile styles from the world of… carpets to the world of cars. And if the exterior color scheme doesn't raise an eyelid, without doubt, the light-blue and chocolate-brown toned interior that combines suede and crocodile-leather is something you don't see. Well, that's not entirely true as to be honest, I can think of a chap or two who've decorated their cars "Anstoetz" style. Only they don't wear Armani costumes and they still think that mullets are cool… -Continued: Click “Read More…” below to see more images and the German press release (the English press kit will be added later on)

PRESS RELEASE: Weltpremiere auf dem Genfer Automobil-Salon 2007

JAB Anstoetz gestaltet erstmals ein Fahrzeug - und wählt als Basis einen Chrysler Crossfire

- Design-Studie verblüfft mit außergewöhnlichen Farbwelten und Oberflächen

- Die Innenräume von Wohnungen und Autos haben mehr miteinander zu tun, als man denkt

Genf - Auf dem Genfer Automobilsalon 2007 (Presse-Tage 06. und 07. März) präsentieren die Chrysler Group, JAB ANSTOETZ und Karmann eine außergewöhnliche Design-Studie auf Basis des Chrysler Crossfire, die auf dem Karmann-Stand in Halle 1 zu sehen sein wird.

Die Herausforderung war Vater der Idee, ein automobiles Designerstück wie den Chrysler Crossfire mit Materialien und Textilien aus dem Wohnbereich auszustatten. Der weltweit führende Stoff- und Teppichverlag JAB Anstoetz nahm die Herausforderung an und stylte den Chrysler Crossfire komplett neu. Dabei wagte sich das Designer-Team um Ralph Anstoetz auf Neuland, denn bisher war das Betätigungsfeld der erfolgreichen Bielefelder eher die Immobilie als das Automobil. Seine ausdrucksstarke Dynamik ließ die Wahl für das geeignete Objekt auf das zweisitzige Sportcoupé Chrysler Crossfire fallen, denn es regte die Fantasie des Design-Teams ganz besonders an.

Ziel dieser von JAB ANSTOETZ entworfenen und von Karmann in Osnabrück gebauten Designstudie ist ein Show Car der besonderen Art das zeigt, wie nah sich der heimische Wohnbereich und das Interieur eines Autos sind - ohne es zu wissen. Denn schließlich sind dies die beiden Räume, in denen wir einen großen Teil unserer Zeit verbringen. JAB ANSTOETZ richtete das Hauptaugenmerk auf die Vielfalt an Strukturen und Texturen und schuf ein harmonisches Farb- und Textilkonzept, das sich deutlich von gewohnter Auto-Innenraumgestaltung abgrenzt.

Bei der Gestaltung der Designstudie Chrysler Crossfire by JAB ANSTOETZ ließen sich die Designer von der vornehmlich männlichen Zielgruppe des aufregenden Coupés leiten. Die maskuline Farbtonstimmung Braun wurde bislang unter modernen Gesichtpunkten eher vernachlässigt und bot sich auch deshalb für eine extravagante Gestaltung an. Die in der Designstudie verwendeten Braun- und Blautöne unterscheiden sich von den bislang in der Automobilindustrie bekannten Farbgebungen.

Ausgangspunkt des Farb-Spektrums ist ein Velours-Stoff im inneren Bereich der Sitzflächen in 'Chimneybrown' und mit drei verschiedenen Farb-Akzenten. In den Mittelbereichen des Armaturentafel- und Türbereichs kam ein Suede (Wirbelfließ) in 'Kitamiblue' zum Einsatz, der mit seiner modernen schreibenden Optik besticht.

Das obere Armaturenbrett sowie Teile der Türverkleidungen sind mit einem der Krokodilhaut nachempfundenen Kunstleder veredelt, das mit seiner glänzenden Oberfläche die Verbindung zwischen dem Lack im Außenbereich und den Texturen im Innenraum herstellt.

Den Kofferraumbereich kleidet ein moderner Langflor-Teppich der JAB ANSTOETZ- Kollektion in 'Kitamiblue' aus. Für die Einzelanfertigung der Fußmatten für Fahrer und Beifahrer wählte das Team die Struktur eines Design-Teppichs mit Schlinge und Flor und passte die Farbgestaltung dem Gesamtkonzept an.

Die Wirkung des Chrysler Crossfire-Interieurs von JAB ANSTOETZ auf die Passagiere soll ein angenehmes und ruhiges Klima befördern, ohne jedoch die sportliche Dynamik des Zweisitzers zu vernachlässigen.

Die von Karmann teilweise in Handarbeit gefertigte Designstudie Chrysler Crossfire by JAB ANSTOETZ ist das Ergebnis einer Symbiose von Partnern, deren Produkte - ob Textil, Teppich oder Automobil - gleichermaßen auf die Wünsche ihrer Kunden nach Individualität, außergewöhnlichem Design und Qualität ausgerichtet sind.