I've only dealt with Dodge, but those dealerships have all been quite good... decent salespeople at one end, and good service departments at the other. But, just from price standpoint, you'll never see MB / Dodge/Plymouth dealership. Perhaps combining with Chrysler in some spots might fit in with C's 'strategy' to move the Chyrsler nameplate more "upmarket".
Also, I recently decided NOT to buy the new Intrepid (a lovely car) based on several horror stories from recent owners. A few years of "MB"-quality assurance at Dodge and I think those stories (will ?) should disappear.
BTW - I lived in Germany for more than 3 years, where Fords (pronounced "ForT" auf deutsche) and Opels (GM) were fairly common, but never saw any C except the occasional imported minivan. In lots of places, minivans are just too large for convenient driving in European cities, but anytime you ever saw a minivan it was a very popular attraction.
If you read C's annual report they say they specficially designed the new 300 (?) to match "European tastes" ... e.g. it is "only" 5m long (compared to slightly larger LHS model) so that it can be exported. It is more likely a link-up between MB and C would see more C's brought to Europe as 'entry level cars' for MB, then the other way around (MB's sold in US via C dealers).
IF anything would popular in Europe, it'll be some of the 'sportier' models of cars. Durangos, Rams, etc.. .are great in US, but - let's face it - other than specialty markets, they're just TOO BIG to drive and park comfortably around European cities.
Personally, good business model or not, I'd much rather own Chrysler than a Benz-Chrysler combo. Market cap of Baimler is twice C's, but for earnings only 2/3 of C's. Let's ask, who's getting the best of this deal... who's paying with inflated currency (stock price) and who's being bought/merged at a discount ?
last but least, somebody said the HQ would move "aus deutshland", that means "out of Germany"... do you really think that Daimler Benz would allow that ? One of the co-owners of Airbus headquartered in Detroit ? Not too likely. the "North American HeadQuarters" maybe, perhaps even the "international automobile" HQ, but the Chairman is gonna stay in Europe. IF the deal happens.