>From: "Johannes Schneider" <[EMAIL PROTECTED]> >To: <[EMAIL PROTECTED]>, >>From todays Frankfurter Allgemeine Zeitung > >www.faz.com > >Chrysler May Be Facing Huge Losses and Job Cuts > >By Holger Appel >and Carsten Knop > >STUTTGART. Speculation that Chrysler is set to post a huge loss has led to >rumors about a takeover of the U.S. carmaker's parent company. > >The announcement of the week-long closure of three Chrysler factories by >Dieter Zetsche, the newly appointed president of Chrysler, did not help the >rumors to abate. The move came as no surprise, as it is known that >farther-reaching measures to lower costs and reduce stocks are in the cards. > >Meanwhile, the DaimlerChrysler share has again slipped. It fell a further >1.5 percent to under euro 46 ($39) Wednesday. The company is valued at only >euro 36 billion and could be regarded as a takeover candidate. This has >given rise to wild speculation, with just about every international carmaker >plus independent financing companies being forwarded as possible buyers. > >Irrespective of whether DaimlerChrysler and major shareholders Deutsche Bank >and the State of Kuwait would agree to a takeover, DaimlerChrysler would be >a lucrative investment. The earning power of Mercedes-Benz alone would make >it worthwhile. > >A potential buyer could also try to restructure Chrysler. If this succeeded, >Chrysler could be listed separately on the stock exchange, if not, the >company could be sold or closed. One analyst compared the scenario to that >of BMW and Rover. > >Investors and observers are nervous, fired by Mr. Zetsche's announcement >that there would be painful cuts. Mr. Zetsche would not reveal how he came >to his conclusion, why the situation in the United States came as such a >surprise to DaimlerChrysler, or what concrete measures he planned to take. >Some observers believe Chrysler is about to post large losses. The speed of >the company's decline is worrying, as competitors Ford and GM seem to be >better able to cushion the onsetting market downturn in the United States. > >Mr. Zetsche also has the difficult task of stopping the discount policy of >Chrysler dealers which is proving ruinous to the brand name. > >He must also come up with a convincing restructuring concept for Chrysler's >shareholders and yet not lower the morale of Chrysler's 125,000 employees >even further. This will be hard, for it will not suffice to lay off a few >managers and enforce saving drives among suppliers. Nor is his acceptance as >a German manager replacing his U.S. predecessors by any means ensured. > >There is every indication that Mr. Zetsche will have to meet with >representatives of the United Auto Workers (UAW) union to discuss drastic >measures which would affect all employees. > >Under the long-standing agreement with UAW, Mr. Zetsche cannot simply lay >off workers. For the first 42 weeks after a factory closes, they remain on >the payroll and get 95 percent of their wages. After that, they enter >"protected status," whereby they receive preferential treatment if a vacancy >arises in the company. Chrysler can more easily let white-collar workers go, >but it is assumed that it will try to reach a compromise with the UAW. > > > >_______________________________________________ >Leninist-International mailing list >[EMAIL PROTECTED] >To change your options or unsubscribe go to: >http://lists.wwpublish.com/mailman/listinfo/leninist-international > _______________________________________________________ KOMINFORM P.O. Box 66 00841 Helsinki - Finland +358-40-7177941, fax +358-9-7591081 e-mail [EMAIL PROTECTED] http://www.kominf.pp.fi _______________________________________________________ Kominform list for general information. Subscribe/unsubscribe messages to [EMAIL PROTECTED] Anti-Imperialism list for anti-imperialist news. Subscribe/unsubscribe messages: [EMAIL PROTECTED] [EMAIL PROTECTED] _______________________________________________________
