 |
|
|||||
|
||||||
|
||||||
Rick asked you to take DaimlerChrysler for test-drive... and what did you find? A lemon. An organization in turmoil. A company that right now is facing a "no-confidence" vote from its shareholders. If the turnaround plan Rick mentioned were even halfway convincing, you wouldn't be seeing this infighting. Oh, by the way, the trouble is coming from a German investors' rights group. The group says it will file a censure motion against senior management at the April 11 annual meeting in Berlin, according to The Wall Street Journal. The group is faulting the board for being slow to react to the Chrysler disaster, and for not keeping a close enough eye on management's actions in other areas. According to the Journal, shareholders in Germany rarely initiate these types of actions. One of the group's spokespersons said the meeting is going to be "very, very turbulent." Wish I could listen in. This is the second uprising DaimlerChrysler management has had to face in its short history. After Schrempp's admission that he lied about the merger-of-equals strategy, shareholder Kirk Kerkorian hit the company with an $8 billion lawsuit. If totally successful, the suit will nullify the merger. Fellow Fools, all of this mess is coming from actual shareholders. Those who have a lot at stake are telling you, through their actions, that management is sorely lacking. There's no need to take my word for it, just listen to them. Kerkorian had billions invested in the company, but has sold off or lost a large portion of his stake. He thinks management stinks; why shouldn't we? Rick mentioned how the tough global economy means consumers simply purchase lower-priced cars, and DaimlerChrysler has plenty of those to offer on the Chrysler side. But recession-like times are never kind to automakers, and instead of seeing a boost in low-end new-car purchases, we'll see a boost in used-car buys. Yes, Chrysler came back from the brink of disaster once before. But that miraculous turnaround was engineered by a management team that knew the lay of the land and had license to make tough, quick decisions. What we have now is a team that's out of touch, trying to govern from across the ocean, inside a culture it's not familiar with. This is a company that's richly valued compared to its peers, has bad management, and is facing a slowing economy. You can find better places for your money. Rex Moore loves the Viper, but can't afford one. He doesn't own shares of DaimlerChrysler. You can view his holdings and the Fool's disclosure policy online. Vote ResultsVote Results »
RSS Headlines
Fool UK
