India Business Forum

Search Button

The Indian Express

The Financial Express

Latest News

EIW

Market Indicators

Screen

Boulevard India

Celebrity Chat

Express Computers

Express Power

Letters

Advertisers Forum


Headstart: Express Careers

Business Forum

Lifemate: The Net Express Matrimonial Section

Zevraat

Express Properties

Palki - Travel & Tours

Information Technology

Astrosurf

Eco-India

Dr Know

Morning Digest

Express Greeting

Graffiti


FINANCIAL EXPRESS FRONT PAGE

Corporate

Economy

Expressions

Markets

Leisure

 

Thursday, November 19, 1998

DaimlerChrysler plans to build beefier pickup 

Ben Klayman  
Auburn Hills (Michigan), Nov 18: The new automaker created by the merger of Chrysler Corp. and Daimler-Benz AG is exploring a plan to build a beefier full-size pickup truck to compete against the likes of Ford Motor Co.'s popular F-Series Super Duty line, a Chrysler executive said.

"It's a very active consideration," said Bernard Robertson, who was in charge of Chrysler technology and truck operations. "It's one of the identified near-term opportunities to look at. We're in the midst of analysing the ramifications."

DaimlerChrysler AG -- whose stock began trading on Tuesday on the New York Stock Exchange and other markets around the world -- is considering a model that could go head to head with Ford's Super Duty line, which has been a huge success, especially among commercial buyers. It accounts for 40 per cent of total F-Series sales, up from 30 per cent a year ago.

In the light truck segment, the newly merged DaimlerChrysler offers the Dodge Dakota compact and Ram full-size pickups, while its Freightliner division is best known for its heavy trucks, Robertson said. In between, the company has a gap, one that the beefed-up full-size pickup could help fill.

Indeed, at least one analyst says DaimlerChrysler already intends to introduce such a pickup, based on the next-generation full-sized Dodge pickup platform, in model-year 2003.

At the same time, Jim Hall, an analyst at AutoPacific, said he expected the company's Freightliner division, through its Sterling brand, to expand its small presence in the medium-duty market.

"They have an advantage nobody else has," Hall said. "They have two very separate and distinct brands they can leverage, and they may find using both brands will get them plus business with very little crossover. That's an option Ford and General Motors do not have."

Whether to build a beefier pickup is only one of many technology and vehicle development issues under consideration by officials at DaimlerChrysler, formed on November 12 through the merger of Germany's Daimler Benz and Chrysler Corp. of the United States.

Before their union, Daimler was way ahead of Chrysler in developing fuel cells, diesel engines, onboard devices such as navigation systems and safety equipment such as side-impact airbags, Robertson said. On the other hand, DaimlerChrysler is throwing its weight behind Chrysler's electric-vehicle effort, the EPIC minivan.

Chrysler was slightly ahead in developing synthetic fuels, computer-aided design and supplier relations that result in large savings, he said.

He said a plan to build a Mercedes vehicle on a Chrysler platform has been discussed, but it was not likely to be carried out any time soon. The most likely candidate is a Mercedes minivan built on a Chrysler platform.

Before the merger, Chrysler spent about 2.8 per cent of revenue on research and development and Daimler spent about 6 per cent, including research in its aerospace and rail divisions, Robertson said. Those figures will not change.

One big question is whether DaimlerChrysler wants to pursue the opportunity in medium-duty trucks, which only account for about annual industry sales of 60,000-75,000 units in the United States. Even so, the segment is growing and profits are often stronger than for other vehicles, Hall said.

Ninety per cent of Ford Super Duty pickup sales are light trucks, Ford spokesman George Pipas said. The remaining 10 per cent are medium-duty trucks -- vehicles with platforms similar in size to United Parcel Service delivery trucks.

DaimlerChrysler holds about 20 per cent of North America's Class light truck business with vehicles as large as the one-ton Ram pickup, while its Freightliner division accounts for 25-30 per cent of sales in the heavy truck segment, which includes semis and tractor-trailers, Robertson said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


Top


The Ambassador Group of Hotels

Global Tenders invited by MSTC

The National Stock Exchange of India (NSE)

 

Click here for a printer-friendly page Printer-friendly page

One of India's Leading Banks


The Indian Express  |  The Financial Express  |  Latest News
Screen  |  Express Investment Week  |  Market Indicators  |  Express Computers
Astrosurf  |  Eco-India  |  Travel & Tourism  |  Information Technology  |  Drumbeat: Ad Buzzaar
Advertisers Forum  |  Career India  |  Business Forum  |  Match Maker  |  Express Properties