rly, Daimler-Benz emerged as the leading entity and named many of its executives to the board of directors. Chryslers management took a back seat, and the former Chrysler CEO was given a lesser role in the new organization. Since the completion of the merger, Daimler Chrysler stock (DCX) has suffered over a 55% decline. The fundamentals of the company trail its rivals in nearly every category. Daimler Chryslers net profit margin of 1.5% lags both that of Ford, at 2.0%, and GM, at 2.4%. Revenues have increased sequentially more than that of rivals GM and Ford, but gross margin, 16.98% lags both GM, 20.07%, and Ford, 20.24%. Return on Equity, 5.8%, lags Fords 18.6%, and GMs 14.8%. Return on Investment, 2.01%, trails the industry average of 2.91%. Return on Assets, 1.2%, is in line with GM and Ford, 1.5% and 1.2%, respectively. Market Value Added was over 65B for FY 98, dropped to 42B in FY 99, and by FY 00 was (1.2B).Management performance overview DCX Ford GMGross Margin 16.98% 20.24% 20.07%LT Debt/Equity ratio 2.0 8.88 4.72ROE 5.8% 18.6% 14.8%ROI 2.01% 2.91% 2.93%ROA 1.2% 1.2% 1.5%Net Margin 1.5% 2.0% 2.4% The Chrysler division continues to suffer from the weak North American economy. In response to weak sales, tough economic conditions, and lagging fiscal performance, Daimler Chrysler asked suppliers for one-time 5% cost reductions. Although synergies are anticipated to reduce costs by 3B o...
