BY BILL VLASIC and DAVE PHILLIPS
Detroit News
NEW YORK - Wall Street and the world welcomed the birth Tuesday of DaimlerChrysler AG, a new automotive giant that promises to be the model for global corporations in the 21st century.
Standing on a podium decorated with front ends of a Jeep Grand Cherokee and a Mercedes-Benz E class, co-chairmen Robert Eaton and Juergen Schrempp pushed a button together at 9:30 a.m. and rung in the first day of trading in stock on the New York Stock Exchange. DaimlerChrysler is considered the first truly global stock and is traded under the symbol DCX on 19 exchanges in North America, Europe and Asia.
In the first day of trading on the NYSE, DaimlerChrysler closed at $83.87ï, down 43ó cents. A total of 6.19 million shares changed hands.
The mega-merger brings together the mass-market cars and light trucks produced by once-No. 3 U.S. automaker Chrysler Corp., and the luxury cars, heavy trucks and other transportation equipment made by the German industrial powerhouse Daimler-Benz AG.
The euphoric mood of DaimlerChrysler executives was tempered by the challenges ahead in integrating the two companies.
"There is no blueprint for what we're doing today," Mr. Eaton said at a news conference. "This is something new."
Mr. Schrempp said the new company already has cleared some important hurdles, including choosing its name, selecting top managers and identifying its strategies for brands and products going forward. "We will have our ups and downs, and we will particularly concentrate on the downs," he said to the pop of camera flashes in the ornate NYSE boardroom. "But so far, so good. The work starts now, the challenges start now, but the fun also starts."
Mr. Eaton and Mr. Schrempp sealed the merger deal May 7 in London. DaimlerChrysler is expected to generate annual revenues of $145 billion, produce 4.4 million vehicles a year and spend $15 billion annually on capital investments. DCX stock is owned 44 percent by U.S. shareholders, 44 percent by Europeans and 12 percent by other international investors.
In a series of interviews, DaimlerChrysler executives said the new company will:
Hit or exceed its target of $1.4 billion in cost cuts in 1999. Report specific financial results for its Chrysler and Mercedes-Benz auto operations.
Announce a decision soon on the possible acquisition of the Nissan Diesel heavy-truck business.
Begin work on merging operations of Chrysler Financial Services and the German-based Debis financial arm.
DaimlerChrysler's 18-member board of management meets this weekend to discuss the new company's mission statement, and the top 250 executives convene in Spain for strategy sessions Dec. 10. One key message to be delivered: Keep focused on operations despite the merger hoopla.
A festive atmosphere reigned outside the exchange on Broad Street, where DaimlerChrysler products were displayed on the cordoned-off street.
A yellow 1999 Plymouth Prowler was parked near a Eurocopter helicopter and a massive diesel yacht engine.
NYSE officials said many CEOs and celebrities are invited to ring the opening bell at the exchange, but the DaimlerChrysler event was among its most elaborate.
"Companies bring their products, but this is the biggest display we've had," said Rich Adamonis, NYSE vice-president of communications. "The key is visibility."
