Reports: GM in talks to buy Chrysler Group
NEW YORK (CNNMoney.com) -- General Motors is in talks to buy DaimlerChrysler
AG's struggling Chrysler group in its entirety, according to several
According to the reports, sources in Germany and the United States said
high-level talks between GM (up $0.16 to $36.60, Charts) and DaimlerChrysler
(up $2.50 to $72.75, Charts) executives are taking place.
Chrysler Group announced Wednesday it would be cutting about 13,000 workers
over the next three years as a part of a restructuring plan. Reports also
said its German parent was considering selling or spinning off the unit.
Talks of an alliance between GM and DaimlerChrysler was first reported last
week in Germany's Manager-Magazin.
Chrysler's Valentine's Day massacre
The German publication said DaimlerChrysler Chairman Dieter Zetsche had met
with GM Chairman Rick Wagoner about a possible sale of Chrysler to the
Other unnamed sources said to be familiar with the discussions confirmed the
reports for Reuters and the industry newspaper Automotive News.
DaimlerChrysler employed J.P. Morgan Chase & Co. to consider options for the
Chrysler Group, to help the automaker explore strategic options, according
But others are also skeptical on whether the discussions are real.
"This would be a at least $5 billion plus deal and GM is not that liquid
right now," John Casesa said, an automotive analyst with Cases Strategic
Advisors LLC. "I'm not convinced at all and I think it's unlikely."
Officials for DaimlerChrysler and GM issued no comments on the reports.
DaimlerChrysler has long tried to reverse the drop in sales with previous
cost-cutting moves but slipped into the No. 4 spot last year behind Toyota
(down $0.37 to $136.40, Charts) in the United States.
Renault Nissan's (down $0.16 to $23.32, Charts) Chief Executive Officer
Carlos Ghosn expressed interest in the past in buying the automaker.
"The king of Israel answered, "Tell him: 'One who puts on his armor should
not boast like one who takes it off."