Posted by mike on 2007/2/23 8:53:21 (1506) reads
Another day, another set of rumors about who is going to be purchasing Chrysler Group....
CNNMoney.com is quoting an Financial Times article that says that 4 of the largest private equity firms have been approached about taking over Chrysler Group. While nothing concrete is reported to have happened, it is interesting to note that it appears that DaimlerChrysler's top plan to save Chrysler Group is to sell it off.
There have been published reports that General Motors has held talks about possibly acquiring its troubled rival. But more analysts and industry experts have discounted that possibility, especially since GM is also struggling to stem its own operating losses on its core North American auto operations. Neither GM nor DaimlerChrysler executives have commented on the reports of those talks.
Friday, Reuters reported that a spokeswoman for Volkswagen said the German automaker has no interest in buying Chrysler.
Several other automakers, including the alliance between Nissan and Renault and Korean automaker Hyundai, said earlier this week that they are not interested in acquiring Chrysler.
An interesting side-note to the article is a commentary in which the author suggests what GM and Chrysler Group should be talking about :
But if Chrysler were to be broken up, and all its parts chucked into the bargain bin, that's a different story. Picking around the pieces, GM could find some attractive deals.
Here are a few:
The Jeep Brand. Although Chrysler has done its best to dilute the value of this American icon by building vehicles that are challenged in quality and functionality, the Jeep name still resonates with buyers. GM hopes that Hummer can some day challenge it, but in-your-face Hummer represents only a subset of the whole off-roading culture that Jeep can lay claim to. Taking on Jeep, and leaving Hummer to the X-games people, would be a smart move.
Check out the entire article.
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Posted: 2007/2/23 9:28 Updated: 2007/2/23 9:28
Home away from home
Re: More Chrysler Group Sales Rumors
There is also a rumor that cash-flush Magna (which produces the Euro-spec Commander, Grand Cherokee, and Chrylser 300 as well is one of the partners at the US Wrangler factory) is a possible buyer.
To me, this is one of the only acceptable outcomes, as Magna already has the facilities and the know-how to produce the DCX product line.