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Life Without Chrysler Suits Daimler Fine

German automaker predicts 10% profit margins by 2010

By Zach Samalin,  Newser Staff

Posted Aug 30, 2007 4:31 PM CDT
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(Newser) – 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.

DaimlerChrysler CEO Dieter Zetsche speaks during a news conference in Stuttgart, southern Germany, Monday, May 14, 2007. (AP Photo/Myriam Vogel)
DaimlerChrysler CEO Dieter Zetsche speaks during a news conference in Stuttgart, southern Germany, Monday, May 14, 2007. (AP Photo/Myriam Vogel)   (Associated Press)
A 2007 Chrysler 300 is offered for sale at the Star Chrysler Jeep dealership in Glendale, Calif., Monday, Aug. 27, 2007. Automaker DaimlerChrysler AG said Wednesday, Aug. 29, 2007 that its second-quarter profit fell 14 percent, even as the Chrysler division and financial services business that it has sold to...
A 2007 Chrysler 300 is offered for sale at the Star Chrysler Jeep dealership in Glendale, Calif., Monday, Aug. 27, 2007. Automaker DaimlerChrysler AG said Wednesday, Aug. 29, 2007 that its second-quarter...   (Associated Press)
DaimlerChrysler CEO Dieter Zetsche attends the Live Earth concert in Hamburg on July 7, 2007. (AP Photo/Thomas Kienzle)
DaimlerChrysler CEO Dieter Zetsche attends the Live Earth concert in Hamburg on July 7, 2007. (AP Photo/Thomas Kienzle)   (Associated Press)
Luxury car maker Mercedes Benz, owned by US-German giant Daimler, displays its latest models.
Luxury car maker Mercedes Benz, owned by US-German giant Daimler, displays its latest models.   (Getty Images)
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Chrysler • DaimlerChrysler • Dieter Zetsche • auto industry • cars • Mercedes-Benz

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