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Location: Tallahassee, Florida but missing Fort Myers
Posts: 903
Was Chrysler really the problem?
How smart is this? DCX lost €3.9 billion on Smart over four years
DaimlerChrysler stock has soared ever since news hit the street that a Chrysler sale was imminent. After all, Chrysler lost $1.5 billion in the 3rd quarter of 2006, and the Germans were convinced that the Pentastar was the root of all their problems. Now comes word from German newspaper Handelsblatt that DCX dropped a cool €3.9 billion on the Smart brand in only four years, which puts the microcar brand in Jaguar-bad territory. Since DCX doesn't break out profits or losses for Smart, Automotive News reports that Handelsblatt came up with the figure after obtaining the information from liquidated Smart GmbH in Böblingen, Germany. How could such a small, cute little vehicle cause so much financial heartache for the brilliant German luxury automaker? We don't know, but it'll be interesting to see if DCX shareholders react to this news like they did Chrysler's losses. We'd also like to know whether Daimler sought any advice or help from value brand Chrysler on how to produce a vehicle inexpensively, but somehow we doubt it.
Was Chrysler really the problem?
