USA: Chrysler shows three new products to analysts
DaimlerChrysler shares outpaced other automakers' stock on Thursday after an analyst meeting in Detroit, during which the Chrysler group unveiled three products, Reuters reported.
"We believe the (analysts) day supports one of the key pillars of our 'overweight' investment thesis for DaimlerChrysler," Morgan Stanley reportedly wrote in a note to clients on Thursday. "Fundamentals of the Chrysler division are turning the corner despite the continued challenges in the US light- vehicle market."
According to Reuters, Merrill Lynch analyst Stephen Reitman said in a research note that the Chrysler group showed off for the first time three vehicles set to hit the market in 2005 or 2006.
These were a large Jeep Commander built on the Jeep Grand Cherokee platform due next year, a new C-segment Sebring sedan co-developed with Mitsubishi Motors to be launched in 2006 and a Dodge Charger sedan built on the Chrysler 300 platform, the report said.
"All three models seemed attractive and winning," Reitman reportedly wrote, but the car maker still faced intense competition from rivals also bent on rolling out new products into a market where generous incentives have become mandatory to sell cars.
Reuters said Morgan Stanley added that the Chrysler group expected capital spending to remain at, or under, 5% of sales.
"This level of spending, while in line with the capex/sales percentage for the group in 2003, is lower than many global competitors and is below the European sector spending range of 6-7%," the bank reportedly wrote.