Patience appears to have finally run out – after years spent in search of a remedy to Chrysler’s financial troubles, DaimlerChrysler have entered into negotiations with General Motors to discuss the future of the its American arm.
General Motors is rumored to be in negotiations to buy the struggling Chrysler Group, according to sources in Germany and the United States.
claims that high-level talks are taking place between executives from DaimlerChrysler and General Motors to discuss the options before them. Rumors of a GM/Chrysler alliance were first put forward in German business magazine , but reports now increasingly point to an outright acquisition.
Tensions have been running high within the Chrysler Group following last week’s announcement that 13 000 jobs were to be cut from its 83 000-strong North American workforce by 2009.
DaimlerChrysler boss Dieter Zetsche has been considering the options for Chrysler – ranging from selling the American arm to recent rumors of an attempt to turn Chrysler around with the help of financial powerhouse JP Morgan.
Another option Zetsche has at his disposal, according to German newspapers and , is to spin off the Chrysler Group on the stockmarket, therefore negating the hassle of finding another buyer for the brand.
“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.
It seems surprising that a company as financially-embattled as GM would show an interest in acquiring yet another struggling company, especially given the financial burden such a takeover would entail.
Chrysler is saddled with billions of dollars of pensions and healthcare obligations to its workers – any potential buyer should demand these costs be settled beforehand or end up footing the bill themselves.