On more of a business note, Morgan Stanley made comment that expected capital spending at Chrysler Group should remain
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| Even with all the new models, such as the sensational Magnum Sport Tourer (shown), Chrysler Group's capital spending is still below many global competitors. (Photo: Trevor Hofmann, Canadian Auto Press) |
"This level of spending, while in line with the capex/sales percentage for the group in 2003, is lower than many global competitors and is below the European sector spending range of six to seven percent," stated the investment bank.
Such news bodes well for Chrysler Group and its future success not only in the competitive sales arena but also with regards to profits. It also should come as some relief to shareholders and DaimlerChrysler board members alike, especially those who backed CEO Jürgen Schrempp and his vision of DaimlerChrysler being a global automaker in all segments of the market. Schrempp has come under fire from some of his colleagues and the media
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| DaimlerChrysler CEO Jürgen Schrempp had previously come under criticism for his support of Chrysler Group, but the American division's recent success may be proving his vision was, and still is somewhat prophetic. The automaker's relationship with troubled Mitsubishi Motors, however, may not be seen in the same light when all is said and done. (Photo: Mitsubishi Motors North America) |
In other news, Mitsubishi Motors Corp.'s (MMC) share value fell 13 percent on the same day DaimlerChrysler's stock moved up. This is a new low for MMC, spurred downward by news of more cases of vehicle defect cover-ups dating back 11 years.
DaimlerChrysler still owns 37.3 percent of MMC, and has stated it doesn't plan to sell its share position despite having cut off continued financial support requested as part of the Japanese company's restructuring. MMC has since found USD$4 billion to secure its future product development.