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Life Without Chrysler Suits Daimler Fine
German automaker predicts 10% profit margins by 2010
By Zach Samalin
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Posted Aug 30, 07 4:31 PM CDT
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(Newser)
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Rid of the Chrysler albatross since its May sale, German automaker DaimlerChrysler says its profits are taking off, Business Week reports. CEO Dieter Zetsche said yesterday the company—which aims to strip "Chrysler" from its name this fall—is likely to beat his estimates of 7% profit this year, and hit 10% by 2010, which would boost it past luxury rival BMW.
Before Daimler can fly solo, though, there's a mountain of costs run up by Chrysler, including a $3.4B disposal fee and a $1.5B loan to the new owner, Cerberus Capital Management. But with pre-tax earnings at Daimler's Mercedes Auto Group up 74% in the second quarter, the company is back on the road with other luxury automakers.