DaimlerChrysler is reportedly contemplating a potential deal with General Motors, which would involve swapping its money-losing Chrysler unit for a minority stake in its long-time rival. The Stuttgart-based German-American carmaker is weighing this all-share option. There are other possibilities as well on the cards that include a cash sale of Chrysler to private equity or industry investors, and a flotation of the money-losing unit. In the meanwhile, Russia’s second largest auto company has categorically denied that it was interested in the Chrysler business.
Earlier this month, DaimlerChrysler chairman Dieter Zetsche had said that the firm is considering all options on the table for the money-losing Chrysler business and hinted at the possibility of sale. GM is the world’s largest carmaker, but has been losing market share at home and is undergoing a massive restructuring that includes closing plants and cutting jobs.
However, both carmaker companies in question have repeatedly declined to comment since DaimlerChrysler set off a flurry of speculation on February 14 regarding the future of Chrysler, which has spurred the speculations of a possibility of outright sale of the division.
However several competitors, including Renault-Nissan, Toyota and Hyundai have already stated that they have no interest in buying Chrysler. General Motors however, has neither confirmed nor denied the gossip. However, this month GM had conducted preliminary talks with Chrysler that aimed at an acquisition or a strategic alliance.
