GM in talks to buy Chrysler!

Tucobkg · 02-16-2007, 11:40 AM

Reports: GM in talks to buy Chrysler Group

Sources say the No. 1 automaker may buy DaimlerChrysler's struggling auto unit, according to a report.

February 16 2007: 1:10 PM EST

NEW YORK (CNNMoney.com) -- General Motors is in talks to buy DaimlerChrysler AG's struggling Chrysler group in its entirety, according to several reports.
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.
Video

More video

CNN's Ali Velshi has details of Daimler Chrysler's restructuring plan. (February 14)Play video

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 automaker.
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 to reports.
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.
Chrysler, GM seen in SUV partnership talks
GM, Chrysler reportedly discuss joint projec

fivestar13 · 02-16-2007, 11:45 AM

Interesting....just when I was starting to like those ask Dr. Z commercials

Not really.

Anyway, seems to me that the problem for chrysler and other domestics is not the vehicles...it's the business. They are not running them right. When I see american autos on the road, I don't think they are THAT terrible. I confirm this usually when I rent a car. Just typical and sad I guess for American industry; we make a good product, but don't manage it well...or something like that.

***Bostonian1976*** · 02-16-2007, 11:53 AM

crazy. No more Big Three....Big Two if it happened

Tucobkg · 02-16-2007, 11:55 AM

I tend to think it both. The vehicles and the way their run the business. I have always bought American since I first started driving with the exception of my 19th birthday and getting a Fiat Bravo ( What a POS ). Each American car I bought brand new started to rattle within 6 months. Meaning you would start to hear noises in the cabin. Little things but they were there. It comes down to quality and America does not see that in the auto industry.

I've had my FJ since November and no rattles or any kind of noise from the cabin. It's like comparing a Fiat with a Bentley.. no comparision