Shares in DaimlerChyrsler (DCX) are up almost 35% this year. By contrast, Toyota’s (TM) stock is flat and GM’s is up 5%.

Is Daimler really so much better off? Magna International and some private equity interests appear ready to pay $4.6 billion for the Chrysler unit. That is not much compared to Wall St. expectations for what the unit would fetch. It is also unclear whether or not Daimler could keep Chrysler and turn it around to benefit from the profits.

Then there is the issue of the employee representatives on the Daimler board. They could block the sale of the Chrysler unit, or at least turn it into a bloody battle between management and labor.

A market cap increase of a third seems a bit much for Daimler’s shares, under the circumstances.

Douglas A. McIntyre