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Reuters / September 08, 2003


FRANKFURT (Reuters) -- The U.S. Chrysler arm of German automaker DaimlerChrysler AG on Sunday denied a newspaper report that said its chief would present a plan outlining cost-cutting measures including white-collar job cuts to a board meeting in Germany on Monday.

The Detroit News reported on Sunday that Dieter Zetsche, head of the group's loss-making U.S. Chrysler unit, would present his latest turnaround strategy at a board meeting on Monday ahead of the Frankfurt Auto Show.

The paper said a major shake-up in Chrysler's sales and marketing operations was imminent and that white-collar layoffs were a distinct possibility.

"The news characterization of what is going to happen this week at a board meeting is not accurate," said a Chrysler spokesman.

A DaimlerChrysler spokesman in Stuttgart was not immediately available to comment.

A source close to the situation said the overall situation at Chrysler would be discussed at the board meeting, but there was no plan for Zetsche to make a major presentation on imminent action.

Chrysler is battling to return to long-term profits after posting a 948 million euros operating loss in the second quarter.

It has reduced its work force by about 20 percent and cut costs elsewhere in the organization in the last two and a half years but faces a price war in the U.S. market and few analysts expect it to achieve its target of posting a small operating profit this year.

Some analysts say further restructuring at Chrysler may be unavoidable given the tough environment.

There has already been upheaval at Chrysler's sales and marketing operations. At the end of May, Joe Eberhardt took over responsibility from Jim Schroer there. Last week, Chrysler announced a new program of incentives on vehicles which it described as "aggressive."
 

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hey they've hurt themselves too much in the past 15+ years...making cars that have required lots of repair... I know of a lot of people who wont own another...me being one of them unless they get things together for a significant amount of time. But look at the 2nd gen... 2.7L motors are puking....other problems and so on.

I think these cars made with mercedes will turn things around...but im still causious.... These are great cars to drive, but not to maintain..
 

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**** man, my K-Car lasted 14 wonderful years for me with the only problems really coming in year 13 of ownership :(

I've said it before and I'll say it again: I miss my Aries 5-speed :(
 

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I think the problems started after the K-Car with the invention of the ultra-drive which first powered the Acclaim/Spirit... that transmission is their biggest liability which is why I am shocked that they would continue it's existance in the Pacifica
 

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my intrepid's at 108,000kms with not a single problem...other then regualar maintain issues.. brakes etc..
 

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Mine has'nt had any problems either *knock* but I have read about too many others who have had lemons. My buddy has a 1994 3.3L, with like 250,000 K on it and it's starting to die, one thing after another... I think that's a pretty good life for a car, considering it was a taxi and now it's a delivery vehicle.
 

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Weird.

My parents have owned three mini-vans (still on the third), my sister has owned a Neon, an Avenger, and a Liberty (current car), and I have owned a Sundance and an Intrepid (current car), and with the exception of my sister treating her Neon and Avenger like ****, not a single major problem. My grandpa owns a first gen Concorde, no problems. My aunt owned a first gen Intrepid, and the only complaint she had was the suspension, but what the hell do you expect when you go flying down a bumpy dirt road!

Now my car is going to explode. :crazy:
 

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Well ive had my share off issues... mostly A/C related. But I take them in stride with a smile as they are warranty repair stuff. Hopefully things won't get any worse as the car gets older.

Still love the R/T. :)
 

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Mercedes Benz quality has fallen right into the shitter since the late 90s. The Chrysler brand (and every other domestic brand) are currently ranked ABOVE M-B for long-term dependability. Lets hope Chrysler doesnt follow M-B into the toilet.

49% of MB dealership visits are for repairs (not routine maintenance). Its only 21% for Buick.

-Jesda
 

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The #1 towed vehicle in the Toronto area is the Mercedes, the #2 is the BMW and rounding out #3 is Chrysler products closely followed by Ford then Honda.

Chrysler had record sales last year, so where's the record profits? Incentives you say, I don't believe that. Creative billing of Chrysler from Mercedes, Who Knows?
 

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Is it just me or does the big 3 always have a crises around contract time?::rolleyes:
 

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Welcome to the board NKA'sSXT and fellow Canadian member. No it's not just you, something smells fishy but there's no fish.
 

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YB Normyl said:
Welcome to the board NKA'sSXT and fellow Canadian member. No it's not just you, something smells fishy but there's no fish.
All businesses everywhere have a crisis when it's time to start talking raises... and I heard the real problem vehicle for Merc is that SUV... ML whatever... too bad because it's a sweet looking truck...
 

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alderran said:
I heard the real problem vehicle for Merc is that SUV... ML whatever... too bad because it's a sweet looking truck...
That would explain change and sharing in the next gen ML platform with the Grand Cherokee and also possibly allow Chrysler's Jeep division to foot the bill.
 

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I believe it's a new platform altogether. I think they'ld be cutting there own throats if they deviate too much from the Jeep.
 

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It may be time to re-evaluate the merger between Daimler-Benz and Chrysler... Who's doing the work, which is using the other most, and who is benefiting the most from the merger? In my opinion what Chrysler got was a load of crap whereby they are run by a bunch of Germans and run into the ground by them too. Remember that Plymouth and it's market share were done away with after the merger. I think that Chrysler (along with GM and Ford) definately had some tough times and quality issues, but is/was on a great rebound. I certainly hope that Chrysler sticks up for itself and continues things like the LX platform, retro concepts, and things like the HEMI rather than having Mercedes $#!+can Chrysler for their agenda. One of the things I really didn't like about the merger was that it was Chrysler who was purchased by Daimler-Benz instead of the other way around... :(

Long live Chrysler, Dodge, and Jeep!
 

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chrysler is gaining acess to some pretty nice suspension setups and platforms. its cutting developement time and resulting in a better product. Its win win...
 

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bjlv said:
chrysler is gaining acess to some pretty nice suspension setups and platforms. its cutting developement time and resulting in a better product. Its win win...
It is very good except for the Jeep line, the Jeep line has to be able to live up to its name. I know most people never take it offroad but alot of them bought it because they know it can.
 
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