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DaimlerChrysler considering sale of Chrysler unit
DaimlerChrysler (NYSE:DCX), plans to sell off its unprofitable Chrysler unit. The move was prompted by declining sales and reduced market share since DaimlerBenz took over Chrysler Corporation in 1998. Last year, Chrysler suffered a loss of $1.46 billion. Its U.S. sales also fell by nearly 7% in the face of lower quality and fuel efficiency compared to the quality and fuel efficiency of vehicles produced by Japanese automakers like Honda. Chrysler's U.S. market share dipped to 12.9% from 13.6% in 2005, while Honda's increased to 7.9% from 7.4% and Toyota's increased to 13.4% from 11.5%. The company also plans to cut 13,000 jobs and close a factory in Newark in a bid to increase profits for its U.S. operations.



LEGO posts profit
LEGO Systems, the North American division of LEGO Group, registered a more-than-2% increase in consumer sales. The company had reported double-digit growth for the year 2005. This development further strengthens its number-one position in the category of construction toys. The company's classic construction sets have reached a remarkably strong market, which has allowed LEGO to nearly double its sales over the last three years.

Aflac restructures marketing department
Columbus-based Aflac (NYSE:AFL) has moved its sales and strategic operations division to its marketing department. Additionally, the company plans to entice corporations to sign up for its workplace disability insurance service and other services. These moves are expected to help the company's sales and marketing groups become more consumer- and product-focused than before, while compelling the sales force to accept more accountability. It is also expected that the moves will consolidate Aflac's marketing and sales communications groups. The changes have been put into effect by Jeff Herbert, who took over as the company's first CMO in October 2006. Herbert has held executive positions at Coca-Cola and the Atlanta-based Zyman Group.

Blackstone Group, LP, plans to acquire Pinnacle Foods Group, Inc.
Blackstone Group, LP, plans to acquire Pinnacle Foods Group, Inc., an owner of well-known pickle and packaged-meal brands. The buyout has been estimated to be about $2.16 billion. Apart from payment, the buyers will also take on a debt of nearly $900 million. Former Kraft Foods, Inc., Chief Executive Officer Roger Deromedi will be chairman when the deal closes. The Cherry Hill, NJ-based Pinnacle employs about 3,000 people and sees annual gross sales of close to $2.1 billion.

Hyundai America hires sales and marketing VPs
Hyundai Motor America—known for its small, reasonably priced cars—has hired David Zuchowski to take over as Vice President of Sales and Joel Ewanick as Vice President of Marketing. Formerly, Zuchowski was Vice President of Sales and Field Operations for Mazda North America and also worked at the Ford Motor Company. Ewanick was earlier with the Richards Group, a Dallas-based advertising firm. He has also held sales and marketing positions at Yamaha Motor Corporation, Porsche Cars North America, and Saatchi & Saatchi Team One Advertising. The hirings come as the company attempts to strengthen its image among customers in the U.S.

Blue Nile's fourth-quarter results out
Blue Nile (NASDAQ:NILE), a Seattle-based online retailer of diamonds and jewelry, posted an increase of nearly 24% in its fourth-quarter net sales. The three-month period ending December 31 brought in net sales of $90.7 million. The company's net income in the fourth quarter increased to $5.75 million from $5.29 million in the same quarter last year. Translated into share price, this means that Blue Nile's net income rose to $0.35 per share from $0.29 per share for the previous year. Additionally, the company promoted its chief financial officer, Diane Irvine, who will now serve as president. She takes over from Mark Vadon, who will continue his role as chief executive officer of the company.


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