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
Life Without Chrysler Suits Daimler Fine
DaimlerChrysler CEO Dieter Zetsche speaks during a news conference in Stuttgart, southern Germany, Monday, May 14, 2007. (AP Photo/Myriam Vogel)   (Associated Press)

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. (More DaimlerChrysler stories.)

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