BMW and DaimlerChrysler

The objective of this investigation was to assess the performance and position of BMW and DaimlerChrysler with an objective of making recommendations relative to investing in the equity stocks of the two companies. The recommendations are based on investment analyses of the two companies which are primarily financially-oriented but which also included a strategic element in the form of SWOT analyses. The financial analyses included du Pont analyses and market (stock) trends for the 2001-2003 period of analysis.

With respect to a recommendation for investors in relation to the equity stocks of BMW and DaimlerChrysler, there are different recommendations for different investor groups. If neither of the two stocks are currently held, the recommendation is "do not buy" on each stock. If either of the two stocks is currently held, the recommendations are as follows:

For the BMW stock, the recommendation is "hold".

For the DaimlerChrysler stock, the recommendation is "sell".

This paper compares the comparative investment potential of two publicly traded companies. The first of the two companies is DaimlerChrysler, AG, which has its corporate headquarters in Germany, but which has production and marketing operations in various parts of the world. The second of the two companies is Bayerische Moteren Werke AG, more familiar

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ospace and Defense Consortium). DaimlerChrysler also has an arrangement with Hyundai Motor Company (Korea) for joint development of products on a project-by-project basis. DaimlerChrysler has a 65 percent equity position in Mitsubishi Fuso Truck and Bus Corporation (MFTBC), a spin-off company from Mitsubishi Motors. DaimlerChrysler is best by many of the same problems that plague BMW. Similarly to the BMW experience, DaimlerChrysler has experienced serious problems associated with the strength of the euro in international currency exchange. The unfavorable rate of exchange dampens sales by increasing prices outside of Europe and reduces repatriated profits from subsidiaries as a result of unfavorable translation into euros from other currencies where the company's production subsidiaries are located. To a certain extent, DaimlerChrysler has strong advantages in the marketing side, as is true of BMW. While DaimlerChrysler has many automobile products that are held in high regard by automotive professionals and more importantly by consumers in all parts of the world, the company also has some problem products in the company's Chrysler Division in the United States. The high regard for the company's German automobile products
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Approximate Word count = 1891
Approximate Pages = 8 (250 words per page)

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