Will Britney’s crash sell more automobiles for Daimler?

14 04 2008

Will Britney’s crash sell more automobiles for Daimler?

Posted by: in Companies Competitive Strategy

Filed under: Competitive strategy, DaimlerChrysler (DAI), Scandals, Media World

Reports that Britney Spears was in a minor accident over the weekend with her Mercedes is another in a long line of mishaps for the pop star. Why this qualifies as news is beyond me, and it’s my feeling that Britney should just be left alone. The media have succeeded in driving her into a virtual nervous breakdown, for what? To sell a few more papers, or attract a few more viewers. Should the media be in the business of ruining people?

According to the AP report: “Spears was in stop-and-go traffic when her car struck a 2006 Nissan in front of her that had stopped. The Nissan then pushed forward into another car. No damage was noted to any of the automobiles.”

The one winner in this latest Spears’ episode may be Daimler AG (NYSE:DAI), maker of the famed Mercedes. As with most automakers the company has been struggling, and sales have been sagging. There’s no question that they could use the free PR. After all, Britney drives the car, and it escaped the crash without a dent.

Despite recent troubles, investors looking for a contrarian play might want to take a look at Daimler. Their new strategy of trying to gain market share in Russia and in China to help offset US weakness, seems to be a smart move. With a growing upper middle class in both of these countries, the need to own a Mercedes will be strong, as it will be perceived as a status symbol.

Maybe the media can begin focusing on global wealth creation, and leave Britney alone.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer’s fund has no position in any stock mentioned, as of 4/14/08.