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DaimlerChrysler won't part ways with Chrysler Group

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Khatir Soltani
Rumors about the potential sale of Chrysler Group started flying after Thursday's third-quarter earnings announcement by DaimlerChrysler.

The auto giant achieved a third-quarter operating profit of $1.13 billion (Q3
Chrysler Group launched the all-new 2007 Dodge Nitro during the third quarter. (Photo: DaimlerChrysler)
2005: $2.33 billion). However, the "continuation of the very positive earnings trend" at the Mercedes Car Group, the distinct increase in operating profit at the Truck Group as well as the Financial Services' operating profit only partially compensated for the loss contributed by Chrysler Group.

Indeed, while Mercedes Car Group's third-quarter unit sales remained stable compared to the same period in 2005, its revenues increased by 8 percent to $17.1 billion and its operating profit jumped by 127 percent to $1.25 billion. On the other hand, with a 14 percent decrease in unit sales, Chrysler Group posted an operating loss of $1.47 billion in the third quarter of 2006.

Overall, DaimlerChrysler sold 1.0 million vehicles worldwide in the third quarter, not equaling the high level recorded in Q3 2005 (-14 percent).

"DaimlerChrysler reaffirms its previous statements made to the media that there are no plans to sell Chrysler Group. We want to quell any speculations regarding this topic," said Hartmut Schick, Senior Vice President - Corporate Communications, DaimlerChrysler AG, during a conference call.

Khatir Soltani
Khatir Soltani
Automotive expert
As a car enthusiast, he tests and compares vehicles from different categories through the eyes of the consumer, ensuring relevant and objective reviews.
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada