GM in Talks to Buy Chrysler
- Thread starter barondw
- Start date
Spirit
Heritage GT Owner
What would they make?
Cheslers ? :confused :eek :willy
Just couldn't resist. :biggrin
Cheslers ? :confused :eek :willy
Just couldn't resist. :biggrin
Last edited:
M
Mark O
Guest
Daimler Shares Rise on Reports G.M. May Buy Chrysler
February 16, 2007, 12:44 pm
Days after Chrysler’s parent company said it would not rule out a sale of the struggling unit, there were two reports Friday that rival automaker General Motors was negotiating to buy it. Shares of G.M. fell as much as 2.2 percent following the first report, from the Automotive News, but soon recovered. Shares of DaimlerChrysler, which owns Chrysler, rose 3.6 percent. Citing unnamed sources, Automotive News said that G.M. and DaimlerChrysler executives have held “high-level” discussions beyond teaming up to design a large sport utility vehicle together. Instead, it said, G.M. may buy Chrysler outright.
Reuters also reported Friday that G.M. was in talks to acquire Chrysler, citing its own, unnamed sources.
German magazine Manager-Magazin reported the two automakers were in talks earlier this week.
First acquired by DaimlerBenz nine years ago for $36 billion, Chrysler has since fallen into the same slump that has afflicted its Detroit competitors. Its market share has declined as its excess inventory has grown. It is losing money, and it carries billions of dollars in health-care liabilities for current and retired workers. Some analysts think that Chrysler, as an independent entity, would be insolvent.
On Tuesday, DaimlerChrysler’s chief executive, Dieter Zetsche (who as Chrysler’s head helped turn the unit around), said that “no option is being excluded” with regards to the American unit’s future. It has reportedly hired J.P. Morgan Chase to explore its options, including a sale.
Automotive News quotes an array of insiders and analysts who said they were skeptical a deal would be reached. Buying Chrysler would mean that G.M. would have to assume nearly $24 billion in pension liabilities. Moreover, a G.M. executive in Europe, who called such a link-up a “disaster,” pointed out that both his company and Chrysler have unfavorable product mixes, which were long heavy on S.U.V.’s and light on fuel-efficient cars.
February 16, 2007, 12:44 pm
Days after Chrysler’s parent company said it would not rule out a sale of the struggling unit, there were two reports Friday that rival automaker General Motors was negotiating to buy it. Shares of G.M. fell as much as 2.2 percent following the first report, from the Automotive News, but soon recovered. Shares of DaimlerChrysler, which owns Chrysler, rose 3.6 percent. Citing unnamed sources, Automotive News said that G.M. and DaimlerChrysler executives have held “high-level” discussions beyond teaming up to design a large sport utility vehicle together. Instead, it said, G.M. may buy Chrysler outright.
Reuters also reported Friday that G.M. was in talks to acquire Chrysler, citing its own, unnamed sources.
German magazine Manager-Magazin reported the two automakers were in talks earlier this week.
First acquired by DaimlerBenz nine years ago for $36 billion, Chrysler has since fallen into the same slump that has afflicted its Detroit competitors. Its market share has declined as its excess inventory has grown. It is losing money, and it carries billions of dollars in health-care liabilities for current and retired workers. Some analysts think that Chrysler, as an independent entity, would be insolvent.
On Tuesday, DaimlerChrysler’s chief executive, Dieter Zetsche (who as Chrysler’s head helped turn the unit around), said that “no option is being excluded” with regards to the American unit’s future. It has reportedly hired J.P. Morgan Chase to explore its options, including a sale.
Automotive News quotes an array of insiders and analysts who said they were skeptical a deal would be reached. Buying Chrysler would mean that G.M. would have to assume nearly $24 billion in pension liabilities. Moreover, a G.M. executive in Europe, who called such a link-up a “disaster,” pointed out that both his company and Chrysler have unfavorable product mixes, which were long heavy on S.U.V.’s and light on fuel-efficient cars.
Cobrar
GT Owner
Bowtie Boyz
Forget the public stuff & white noise from informed sources - no deal there. Kudos to GM, they've been first to the table on due diligence for Nissan/Renault & now Chrysler/Dodge. It's smart biz to get a free look at a competitors operations & and forward plans. A good 'Way Forward' always has good background/foundation on market intell. Gauntlet dropped Mr. Mullaly, your move.
Forget the public stuff & white noise from informed sources - no deal there. Kudos to GM, they've been first to the table on due diligence for Nissan/Renault & now Chrysler/Dodge. It's smart biz to get a free look at a competitors operations & and forward plans. A good 'Way Forward' always has good background/foundation on market intell. Gauntlet dropped Mr. Mullaly, your move.
Dr Robert Harms
GT Owner
- Nov 24, 2005
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