The imminent sign of deflation and future depression in the economy - Daimler Chrysler is planning to auction off the embattled U.S. unit in the coming months.
Sam Adelton
Feb. 18, 2007

No one could ever think of that one of the three major car manufacturers – a German company could auction off the Chrysler Unit. That is exactly what is happening behind the scene. The situation is an alarm for the whole world economy. If Chrysler has to auction off, then many companies will be in trouble. It is just question of time.

The economy is facing deep deflation and underemployment. Daimler Chrysler finally gave up on the US unit. The money-losing unit is more than just a single stray case.

The fact is car manufacturers cannot raise prices. They lost their pricing power when under employment started – in late eighties. The legacy cost is killing Ford and GM. Toyota, Honda, and Nissan cannot raise prices either. But they lack the legacy cost.

The Chrysler’s problem is actually wide spread in the economy. When corporate audits are properly done and facts come out in the next several years, it will found that there thousands of ‘Chrysler’ hiding behind options backdating scandal and manipulated financial statements.

The fact that Daimler Chrysler planning to auction off the embattled U.S. unit in the coming months is the sign of imminent sign of deflation and future depression in the economy

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