I think a major reckoning is coming quite soon for the Germans – it may not seem that way, but Europe isn’t immune to high fuel prices (far from it). As they’ve gotten bigger, heavier and more powerful, they’ve made even diesel-powered cars prohibitively expensive for many. If gas is $10 a gallon in the US, it will be $20 in the UK. Who’s going to buy an X5 in that context?

And that’s before we address the declining quality of German cars and their relentless need to defile their brands by propogating model after model after model, from lowly VW all the way up to Porsche.

No company executives in their right mind would want anything to do with Daimler after how they treated Chrysler and Mitsubishi, particularly.

Time for a Daimler death watch?”

A couple of points:

First, at the time of the “merger” it was the prevailing wisdom that the auto industry would coalesce into about half dozen or so “mega companies”. This started Mercedes looking for a “partner” (victim) because they were afraid they would be taken over by someone and also convinced Bob Eaton, head of Chrysler that he couldn’t make it on his own either. They had no business taking over a mass market company like Chrylser and telling them how to run their business. Most now realize that that conventional wisdom was incorrect. You can be small and profitable if you know what you’re doing, making a good product, and keeping your brand focused. Although Mercedes is a lot smaller now I still don’t think it’s a takeover target – I believe the German government would prevent it, because unlike the US, Germany believes it should have an independent domestic auto industry.

You’re right that no executive in their right mide should want anything to do with Daimler, but they recently announced a joint effort with BMW to develope engines and related technologies. I wouldn’t trust them but maybe the brain trust in Bavaria knows something I don’t.

Finally about the Studebaker Packard deal: As far as I know Studebaker didn’t come in all arrogant and takeover Packard. I thought they really tried to help each other out. But maybe I’m wrong. Can you shed some light on this?

Studebaker bled Packard dry in less then 2 years (1955, 1956) and the 1957 cars were mere Packabakers (Studebakers in drag with Packard Clipper badging), as were the 1958’s swan song.
Or should that be Cormorant death song?

Studebaker didn’t live beyond 1966.

So the thought occurred to me – Mercedes had their “merger” (bought up) Chrysler in order to ensure they grew sufficiently to survive. Now they’ve bled it dry and tossed it overboard (along with stakes in Hyundai and Mitsubishi), they’re now not only small-fry in a world of far stronger whales and sharks, they’re out of hosts to potentially bleed dry.

No company executives in their right mind would want anything to do with Daimler after how they treated Chrysler and Mitsubishi, particularly.

Time for a Daimler death watch?