Category: People

Capitalism and the Daimler-Chrysler Saga: Part 3 of 3

In a new departure for Learning from Dogs, Sherry Jarrell publishes a three-part article on the Daimler-Chrysler merger.  Learning from Dogs is indebted to Professor Jarrell for both giving so freely of her time to the Blog and for sharing such erudite material.

Here is Part Three, the concluding part.  If you missed Part One then it is here and Part Two is here.

Where is DCX today?

The Daimler-Chrysler merger was troubled from the beginning.

Investors sued over whether the transaction was a ‘merger of equals’ or a Daimler-Benz takeover of Chrysler. A class action lawsuit was settled in August 2003 for $300 million. A lawsuit by activist investor Kirk Kerkorian was dismissed

Jürgen E. Schrempp

in April 2005, but claimed the job of the merger’s architect, Chairman Jürgen E. Schrempp, who resigned in response to the fall of the merged company’s share price. The merger was also the subject of a book Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz.

It is questionable whether the merger ever delivered promised synergies or ever successfully integrated the two businesses. As late as 2002, Daimler-Chrysler appeared to run as two still-independent companies.  In 2006, Chrysler reported losses of $1.5 billion.  In 2007, it announced plans to lay off 13,000 employees, close a major assembly plant, and reduce production at other plants in order to try to restore profitability.

It was all for naught.  In May of 2007 Daimler-Chrysler announced that it would sell 80.1% of Chrysler to Cerberus Capital Management of New York, a private equity firm specializing in troubled companies. Daimler continued to hold a 19.9% stake. Daimler paid Cerberus $650 million to take Chrysler and associated liabilities off its hands, an amazing development given the $36 billion Daimler paid to acquire Chrysler in 1998. Of the $7.4 billion purchase price, Cerberus Capital Management invested $5 billion in Chrysler Holdings and $1.05 billion in Chrysler’s financial unit. The de-merged Daimler AG received $1.35 billion directly from Cerberus but invested $2 billion in Chrysler LLC itself.

On April 27, 2009, Daimler AG agreed to give up its remaining 19.9% stake in Chrysler LLC to Cerberus and pay as much as $600 million into the auto-maker’s pension fund.  On April 30, 2009, Chrysler LLC filed for Chapter 11 bankruptcy protection and announced a plan for a partnership with Italian automaker Fiat. On June 1, Chrysler LLC stated they were selling some assets and operations to the newly formed company Chrysler Group LLC, with Fiat retaining a 20% stake in the new company.

On June 10, 2009, the sale of most of Chrysler assets to “New Chrysler”, formally known as Chrysler Group LLC, was completed. The federal government financed the deal with $6.6 billion in financing, paid to the “Old Chrysler.” The transfer does not include eight manufacturing locations, nor many parcels of real estate, nor equipment leases. Contracts with the 789 U.S. auto dealerships who are being dropped were not transferred.

By Sherry Jarrell

The secret life of the dog, Part Three

Continuing this fascinating insight into the extraordinary relationship between dogs and man.

If this is your first sight of this multi-part article about dogs then you will need to start at the beginning:

Part One is here.

Part Two is here.

By Paul Handover

The secret life of the dog, Part Two

Continuing this fascinating insight into the extraordinary relationship between dogs and man.

If this is your first sight of this multi-part article about dogs then you will need to start at the beginning:

Part One is here.

By Paul Handover

Remarkable people: Charlie Simpson

What a contribution!

How does a 7 year old contribute more in one day than most people contribute in a whole lifetime?

To give your time and effort to raise money for charity is noble and worthwhile, and many people do it for a variety of causes and for a variety of personal and public reasons.

To maximise the benefit of your efforts, however, is also important; anyone who has had difficulty finding sponsors for their swim, run or ride can tell you that!

Connecting with people

Charlie Simpson made a short video in his attempt to raise money for people of Haiti as they deal with the consequences of the earthquake there.

That video is clear, it is personal and I defy anyone who watches it not to feel a connection with this young boy from London.

He aimed for £500. At the time of writing, he has passed £118,000 !! You can give here

By John Lewis

The secret life of the dog, Part One

This may be of no surprise to dog owners!

The BBC recently screened one of the most fascinating programmes in ages (OK, subjective comment!).  It was about the relationship between dogs and humans.  The hour-long programme demonstrated just how important that relationship between dog and man really is.

Indeed, within the first few minutes of the programme, one of the contributors says that without that early domestication of dogs, civilisation of man might not have taken place!

Luckily someone has uploaded this programme onto YouTube.  This Post contains the link to the first of 6 parts with the following 5 parts being presented on this Blog each day.

Please, please take time to watch these videos – they will amaze you, and very possibly bring tears to your eyes.

So if you are a dog owner, prepare to see your dog friend in a totally new way.

By Paul Handover

And a P.S. to the Thanks, Guys.

The Los Angeles Times update on this wonderful story.

The Los Angeles Fire Department firefighter who rescued a panicked dog from the brown, rushing waters of the Los Angeles River this afternoon said that unless firefighters acted, someone else was likely to have ventured into the concrete wash and wound up a casualty.

Joe St. Georges, 50, the firefighter who captivated much of  Los Angeles as he was lowered by a tether into the churning waters to rescue the hound, told reporters late Friday that he suffered a bite to his thumb but was otherwise OK.

“I didn’t have time to establish a rapport with the dog,” St. Georges said, in a classic understatement, as he held his heavily bandaged hand in the air. “He did what dogs do.”

Joe St. Georges and 'Vernon' the dog!

The dog was taken by [human] ambulance to a Downey shelter run by the Southeast Area Animal Control Authority, which serves 14 cities, including Vernon.

Animal Control Officer Justin Guzman said the 6-year-old German shepherd mix was cold and wet, but otherwise unhurt. He showed no further aggression, and shelter staff named him Vernon.

“He’s really lovable,” Guzman said. “He’s appreciating all the attention he’s getting here.“
Guzman said there were a “million” ways and reasons Vernon could have gotten into the river channel.

“Whether he got scared by the thunderstorm and jumped the fence, we don’t know,” he said.
The dog was never really swept away, but managed for the most part to maintain his footing on a slender ledge in the middle of the river, the officer said.

The dog will be quarantined and watched for signs of rabies.

Marcia Mayeda, director of the Los Angeles County Department of Animal Care and Control, said the disease is extremely rare in domestic animals. Untagged and loose, the dog was technically in violation of city codes, but the owners will face no repercussions if they step forward and take him home, Guzman said.

If they don’t, the shelter by early evening already had a list of 20 people who want to adopt Vernon.

Mayeda said she was very impressed by St. Georges’ actions.

It’s a great and lovely story.

By Paul Handover

Thank you, guys!

Fire-fighters rescue dog from flooded Los Angeles river.

Tomorrow on Learning from Dogs there is part one of a six-part Post about The Secret Life of the Dog.  It includes the amazing proposition that our relationship with dogs was instrumental in early man becoming civilised.  (Assuming, of course, that you believe mankind is civilised!)

Thus it is with great pride that today’s Post presents the courageous and successful efforts of LA Fire Fighters rescuing a German Shepherd dog, scared out of its wits, from drowning in a river.

Here’s an extract from the Los Angeles Times:

We don’t know about you, but we were glued to our TV screen earlier this afternoon as the effort to rescue a large dog trapped in the flooded Los Angeles River was broadcast live.  The rainstorms that have been pummeling L.A. over the past few days have caused the river to swell.  It’s unclear who, if anyone, owns the dog, or how it managed to fall into the fast-moving river in Vernon.

The full article and a video of the rescue may be seen here. The article goes on to say:

Firefighters first attempted to rescue it by dangling flotation devices from a bridge overhead, to no avail.  The dog then evaded firefighters who tried to approach it, sloshing further down the river.  Around 12:30 p.m., it managed to reach the edge of the river and attempted to climb up a steep concrete wall to safety, but several times fell back into the river.

Finally, a firefighter dangling beneath a helicopter managed to grab hold of the terrified dog, who responded (rather predictably) by biting its rescuer and thrashing about.  Despite the inherent difficulty of rescuing an animal that doesn’t want to be rescued, the firefighter managed to lift the dog to safety; both were deposited on a nearby bridge.  The dog was transferred to an ambulance for veterinary care and its rescuer was taken to a hospital for treatment of bite wounds, KTLA reported.

The BBC also has a nice video clip here

And a great set of pictures here. Such as this one …

Well done, all involved.

Fantastic effort.

By Paul Handover

Craftsmanship and business in the modern age

Sally Ryan for the New York Times

Pizza and a business plan

Here is a wonderful story of craftsmanship in the modern age and its interaction with business expectations. There is a very small, but reportedly excellent, pizza place in Chicago called “Great Lake”; and I learnt about it when a friend referred me to an article about its culture, its success and the consequences published by the New York Times.

The effect of extremely good reviews has been that they have been overwhelmed by demand and some customers have reacted unfavourably as a result. I think that they should stick to their guns and not compromise their principles and standards. However, this does not mean that they could not be doing some other things too!

There also seems to be an interesting systems story here! Continue reading “Craftsmanship and business in the modern age” →

The UK, China & Tibet

A sad story just becomes …. well, sadder.

Only the most discerning of news-followers will have picked up the fact that the British government has recently abandoned a long-held position on Tibet and now fully recognizes China’s direct rule over the country.

Map of Tibet

A recent article in the British newspaper, The Daily Telegraph, explains all this far better than I could, but what intrigues me is WHY this has been done now and WHAT concessions have been made by China.

In truth, the Chinese Communist Party is not renowned for making concessions, so one suspects that the Tibetans have simply been sold down the river to gain general political kudos with the Chinese government, even though the former have an extremely good case in their claim for autonomy within China (independence having been abandoned in the cause of realism). Of course, Britain, France, the US and other western states are the world champions of freedom, democracy and the right to self-determination, aren’t they? Well, perhaps not …..

As far as Learning from Dogs is concerned, the main question is that of integrity. Should we simply change our political policies for convenience? Labour government ministers and indeed even Chris Patten, former Conservative Governor of Hong Kong, have referred to the previous view on Tibetan independence as “a quaint eccentricity”. However, I very much doubt whether the Tibetans – who after all live there and form the majority (or at least DID until they were ethnically-swamped by the Han Chinese) – would consider as an eccentricity the overnight and unheralded abandonment of yet one more hope in their fight for justice.

If the previous position was right for nearly 100 years then why is it suddenly wrong? What happened? Were we wrong all that time and have suddenly seen the light? That couldn’t be for reasons of expediency, could it?

Tibetan girl

And what HAVE the British gained? Apparently, there was no attempt to gain anything, since “The Chinese were not pushing for this.” Well, if they weren’t, then why give it? As it happens, the rather pathetic Dalai Lama is engaged in yet more “negotiations” with the CPP. I can just imagine the smirks on the Chinese side. The Tibetans didn’t have many cards to start with; now their only  Ace has been well and truly trumped.

By Chris Snuggs

Quiet time

That precious start-of-the-day time.

Most mornings I surface between 6 and 7 am and like to take the dogs out for an early walk. I cut across the green and into the forest, following a short route which takes me back round past the cricket pitch, which at this time of the year has some protective poles round the wicket area.

Every day is different and the colour in the trees that fringe the common is always changing. Each tree is a different type and it is the shape on the horizon that I like to watch, picked out in silhouette form as the sun comes up from behind.

As I walk round at this quiet time my mind seems to have a clarity which enables me to focus on what I should be doing during the day.

Occasionally there will be a squirrel or bird high in the tress.


Common English buzzard

But for the last five years I have normally seen a buzzard, England’s largest bird. The colour of this bird make it hard to pick out against the background but it seems that his habit at this time of the day is to fly from post to post round the cricket pitch, and when I finally come near he will fly off into the trees.

Perhaps illogically but I have been somewhat concerned that this bird should always be on its own.  Recently, though, I have heard it calling, a noise I never heard before.  So you can imagine how pleased I was yesterday actually to see two birds. My buzzard has finally found a mate.

Then for me it is back home, shower, make a tray of tea for the family who are now with Mum in bed for ten minutes before they too get dressed and get ready for school.

What are we? Lucky people!

By Bob Derham