Report: General Motors in serious talks to acquire Chrysler
General Motors is in negotiations with DaimlerChrysler to buy the Chrysler Group in its entirety, according to sources in Germany and America. The group consists of the Chrysler, Dodge, and Jeep brands. High-level talks are underway between DCX and GM executives, according to trade publication Automotive News.
Rumors of an alliance first appeared in Germany's Manager-Magazin, but today's report is the first calling for an outright acquisition. Speculation about a GM acquisition began this week, but today's report is the first claiming to cite high-level sources. What's more, this is the first we've heard of actual negotiations taking place.
Following its announcement earlier this week of a $1.3 billion loss in 2006 for the Chrysler Group, DaimlerChrysler said it would consider all possible options to rectify the situation.
"No option is being excluded in the interest of arriving at the best possible solution for the Chrysler Group and DaimlerChrysler as a whole," the company said.
German newspapers Handelsblatt and the Frankfurter Allgemeine Zeitung said DaimlerChrysler was specifically looking at a spin-off of the Chrysler Group on the stock market. The reasoning behind such a move is to avoid the hassle of finding a company to acquire Chrysler. However, it appears GM was quick to step up to the plate.
On Wednesday, Chrysler announced three-year Recovery and Transformation Plan that seeks a return to profitability by 2008, including 13,000 job cuts and one plan closure.