Analyst: Ford to gain on Chrysler's issues

DETROIT, July 28 (UPI) -- A former International Trade Commission economist said Monday the difficulties at Chrysler LLC will benefit rival U.S. auto giant Ford Motor Co.

Peter Morici, now a professor at the University of Maryland School of Business, said Daimler AG, the German makers of Mercedes-Benz, "stripped Chrysler of its cash and gutted its engineering capabilities during its stewardship" of the American company. Chrysler, now owned by Cerbeus Capital Management LP, is now"having difficulties raising funds from banks to finance leases on its new vehicles," Morici said in a statement.

"Among the Detroit Three, it has the least desirable vehicle portfolio, and lacks engineering capability and the funds to develop new ones, to address an environment of rising gas prices," Morici said.

Morici, a former senior fellow at the Iacocca Institute, said in May the company's contracts with the United Auto Workers Union put it at a competitive disadvantage when going head-to-head against Asian manufacturers that build cars in the United States.

The current situation "raises the odds that Ford will survive the shakeout to come," Morici said.