DaimlerChrysler Looking to Change Name
DaimlerChrysler AG — the company that owns both Mercedes-Benz and the Chrysler Group, composed of Jeep, Dodge and Chrysler — will take a vote on changing its name back to DaimlerBenz at a shareholder meeting in April.
If you follow financial news, you know there’s been considerable talk of DaimlerChrysler selling the Chrysler Group, and they aren’t hiding the fact any longer. “The Board of Management is authorized to defer notification of the change of name for entry in the Commercial Register until the Chrysler Group is separated from the Group or sold, but not later than March 31, 2008.” Note the word “until.”
In a document published by the company for shareholders, we learn that there’s a definite reason for the name change, too. We just can’t believe what we’re reading:
“Reason: Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products. This is all the more true as unflattering nicknames such as Doting Daimler, Daimler-Crisis or even Crime-ler have long been in circulation. The disadvantages this entails for shareholders, customers and employees can only be borne at most for a short transition period until there is a proper separation from Chrysler. If a proper separation cannot be effected within one year, this would only serve to underscore the need to remove this affliction on the image from the corporation’s name.”
Now you just don’t go out and give ammunition to your critics, like coming up with funny nicknames we wouldn’t have thought of on our own!
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I doubt it will pass, but it's interesting to see how unhappy shareholders are attempting to stir things up.
Man, that's harsh! Interesting how Daimler lied its way into this so-called marriage ("It's a merger of equals, not a takeover.") and retained complete dominance over the Chrysler Group -- yet everything is Chrysler's fault? Chrysler isn't a spouse, or even an abused spouse; it's an abused child. Does anyone believe that abuse is ever the child's fault?
No relationship founded on lies has a chance of success, and now, nearly a decade later, you have to look hardest at the initial liar. Is DaimlerChrysler's proposed name change an attempt to dissociate with the problem child? Seems more like a deadbeat dad changing his identity to avoid responsibility. I hope someone saves Chrysler. It deserves better.
Its all about money.
MB may suffer loss of sales in the US as a backlash to dumping Chrysler. It may be deserved.
I think this break up is nessecary, as a wake up to American auto manufacturers and the workers on the lines.
Look at Chrysler's current offerings, who do they target? No one. Lets take the namesake company for example:
Chrysler 300C: got some love thanks to 50 Cent's video using them, but otherwise who can use a Hemi powered family mover? Its maybe as luxurious as its competitors, but now, just a few years after its introduction, I see the majority of 300 and 300C owners seem to be old people. When trying to attract new customers, its not good to be making "old people's" cars.
Chrysler Aspen: No love from any stars and not the most luxurious beast. Its looks like a large minivan and rides like a beast. Its target audience were Urban DINKs (to use the cars.com terminology): note the use of chrome, the Hemi power and the attempt at comfort. But what Urban DINK needs seating for 7? Note the name: "Dual Income No Kids."
Chrysler Crossfire: an attempt to gain some market share from European sports cars with an emphasis on handling, something Chrysler is not known for. This car practically slips under the radar, because the car it attempts to take on, the Porsche 911, practically has that market tied up.
And its other companies, Dodge and Jeep, are similarly out of touch:
Dodge Ram: the move from trucks to anything else is not treating this aging design well. Most people now know that although a Hemi makes power, nothing can make up for its ineffecientcy. Not even MDS. And look at its competitors: As work trucks go even the new Tundra beats it, as family movers go the new Silverado is choice.
Dodge Avenger: who has heard of this? The few who have seen the commercials I suppose, but it is already under recall (never a good sign) and shares its platform with the new, squishy Chrysler Sebring. ITs doomed.
Dodge Dakota: the only people who buy this are brand loyal. It has competitors whose more fuel effecient V6 engines are making more power and towing just as much.
Dodge Caliber: hey, this could actually work out. It has the edgy, love it or hate it styling that sells cars, and its quite utilitarian. But still, its been so annoying to see it in all my video games and on all the billboards, it may just piss people off before they even see it.
And Jeep, the cream of the faceless crop. Statistics on population movement are usually very reliable, in that in order for the statistics to exist, people actually have to of moved somewhere else. And what do we find? Fewer and fewer people are living in rural and out-of-the-way areas. With some exceptions even suburbia is becoming less attractive compared to cities, which once again are booming. What urban renewal plans could not do for cities half a century ago, culture has done. And if people are living more and more in cities, what do they need serious 4WD vehicles for?
Jeep Commander: recent studies within the group find that it just takes sales from its Grand Cherokee brethen, and no one else. It looks like a freaken box, not even a cool, low slung box like a Scion xB. with those looks and its size few people are going to believe its very stable.
Jeep Grand Cherokee: on the top ten lists of most thirsty vehicles here at cars.com, this is the only domestic there, the rest are sports cars and luxury saloons. In an age of high gas prices, even standard Bluetooth does not help.
Jeep Patriot and Compass: low slung 4WD vehicles? What the hell? The compass is just a Caliber with different badges and some slightly different underpinnings as well. Hardly useably by anyone.
The whole group needs to take a good hard look at itself and say: "We are not in the 80s anymore. Its not even the 90s. Its almost the turn of the first decade of a new millenium. People are not looking for basics in cars anymore, because its expected cars have those. This is an age where technology and fuel economy are expected, the young buyers, the ones we need to replace our dying or no-longer-car-buying customer base, look at us and see a dinosaur. ITs time for change."
Time for Lee Iacocca and company to re-rescue Chrysler.Can the return of the K-car...the "immortal" savior of the New Chrysler Corporation 25 years ago be far off...??
Or will the yet to be released 2008 Challenger be an orphan before its even born?
Let me see...
I'm sure it goes back further but Kaiser-Hudson (AMC) merges with Jeep. AMC Jeep is bought by Renault dumping the AMC portion years later. Chrysler buys Jeep from Renault dumping Renault products and now DaimlerBenz buys Chrysler Jeep and..WOW...dumps Chrysler. The big question is what will the overall price tag be to Daimler Chrysler for Jeep? Cost of 'merger' minus possible profit from spinning off Chrysler. Having lived in Germany 5 years, I can assure you Germans, and Europeans, love Jeeps.
The only question I have is, "What took MB so long to dump this dog with fleas?" If it first takes a name change then so be it.
why cant they just dump Chrysler, but not sell Chrysler. I mean i think Mopar could keep it together on their own if they do it correctly.
MB is even more of crap than Chrysler, the latest Consumer Reports ranked it the dead bottom in terms of reliability.
scryer_360, you win the award for longest comment on KickingTires in memory. Congratulations!
I love the comments...you guys might find our post the other day on this of interest: http://www.namedevelopment.com/blog/archives/2007/03/brand_name_reco.html
Thanks.
In my opinion, Mercedes has a big responsability in the Chrysler/Dodge situation. Jeep is loved in Europe and most of the minivans and cars from these companies could be sold very easily specially with diesel engines, but Mercedes has made them outrageously pricey. Any car can cost twice the price in the USA or even more.
With the difference of a 30 per cent in the euro/dollar change some American cars like the Jeep or the Caliber could be bargains in European markets, but Mercedes prefers to spend a lot of money in a capuccino car like the Smart than in getting a good market in Europe for their American made cars.
Sorry, I mean any Chrysler/Dodge/Jeep car can cost in Europe about 2 times what they cost in the USA, so probably they have being giving a good benefit to Mercedes in Europe.
Nice job scryer. I agree with the vast majority of your commentary (except maybe the work truck; Ford is unequalled and the new Tundra is unproven as of yet).
You cannot question the aging, stuck-in-the-past vehicles C/D/J turns out on a regular basis. Chrysler seems incapable of finding it's way. Dodge believes the answer is always a bigger grille/engine/wheels regardless of the question. Jeep has been releasing a steady stream of brand new 15 year old designs for the last couple years.
Mercedes was wrong to pick up Chrysler group in the first place. Getting rid of them would be a great move.
No traditional North American auto company will make it due to the UAW. All foreign companies that build cars in the US don't use union workers.
It’s a no-brainer. Daimler never considered itself a properly merged firm, the three-pointed star still sits atop the HQ in Stuttgart, and the culture was always antagonistic toward its American subsidiary. Joe W. above, I hear you—and agree with you.
They should have never merged in the first place. The merging hindered the quality of the new MB suv's since they started assembling them in alabama instead of germany.