Chrysler Still Up For Sale
Friday, March 9th, 2007
DaimlerChrysler AG, which controls the Mercedes-Benz and Chrysler brands, is still actively looking to bisect its name and rid itself of the cash-hemorrhaging Chrysler arm of the company. In spite of vehicles that have seen approval from enthusiasts and critics alike, Chrysler products continue to be a money loser for DaimlerChrysler AG. In fact, Chrysler boss Tom LaSorda has said the company is in the process of cutting 13,000 jobs in an effort to reverse its last-year loss of almost $1.5 billion. LaSorda thought of asking Warren Buffett to check his couch cushions to cover the loss, but LaSorda’s calls were not returned.
Several suitors for Chrysler have been mentioned in the news. General Motors has expressed interest in an alliance or an outright acquisition of the Chrysler, Dodge and Jeep brands, and several American and European equity firms have also made inquiries. Of note for Canadians, auto parts behemoth Magna has recently been linked to buying Chrysler. Magna already has significant ties to Chrysler; a quarter of Magna’s yearly sales are generated from contracts with DaimlerChrysler AG. Magna chairman Frank Stronach has not committed to any action regarding such a purchase, but like his daughter Belinda, he could flip-flop on that statement at any time.