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A major rehaul could be in the pipeline for auto giant




The Wall Street Journal

reported Monday that the automaker, which announced 20% workforce cuts at its troubled Chrysler unit last week, will take a 2001 charge of $2 billion to $3 billion to pay for a massive restructuring.

The company will reportedly unveil a restructuring program for its U.S. unit on Feb. 26. The paper also reported that DaimlerChrysler's Smart unit, which makes small cars targeted for consumers in small European cities, is expected to report an operating loss in the range of $300 million to $400 million this year and take a charge of $600 million to $800 million.

Media reports last week said DaimlerChrysler asked advising banks

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Deutsche Bank


J.P. Morgan

to develop a

takeover defense strategy, which the automaker has since denied.

While there are rumors of DaimlerChrysler being a takeover target or breaking up, neither is likely to happen, the


quoted its sources as saying.

Shares of DaimlerChrysler closed off $1.46 at $45.99 in Friday trading on the New York Stock Exchange, well below their 52-week high of $68.75.