Chrysler Group President-CEO Tom LaSorda today said the automaker's three vehicle brands will remain intact under the automaker's new owner, private-equity firm Cerebus Capital Management. "These brands [Chrysler, Jeep and Dodge] will stay together and won't be broken up under any circumstances," he told reporters at a media briefing at Chrysler Group headquarters in Auburn Hills, Mich.
DaimlerChrysler AG is expected to narrow the list of bidders for Chrysler to one or two finalists very soon, possibly in the next few days ahead of the April 4 annual shareholders meeting, Detroit Free Press newspaper said, citing people familiar with the talks. Once that happens, due diligence and negotiations that would perhaps last for months will follow to hammer out details and the sale price, it added. It said what is all but certain at this point is DaimlerChrysler (nyse: DCX - news - people ) will sell all or part of the Auburn-Hills-based US operations as Daimler's stock price has shot up more than 25 pct since Feb 14.
Auto Unions Plan United Front On Plans for Chrysler's Future
By Gina Chon
As potential buyers prepare to submit bids for the Chrysler Group, the unions of the United Auto Workers and the Canadian Auto Workers agreed Thursday to work together to present a united front.
In the final hours before potential buyers must submit bids to DaimlerChrysler (DCX) for its ailing Chrysler Group unit, private equity group Cerberus Capital Management has decided to go it alone, instead of bidding together with Canadian auto supplier Magna International (MGA), sources close to Cerberus and Magna say. Sources say the two sides couldn't come to terms on how they would structure a deal, and that Magna Chairman Frank Stronach wanted more control over a transaction than Cerberus would permit.
Meanwhile, Magna, which has a front seat at the bidding table, is interested in a minority stake in Chrysler and is teaming up with a private equity player. KeyBanc Capital Markets analyst Brett Hoselton said earlier this week that Magna has picked a private equity partner, and a source close to Magna says the company is linked with New York-based Ripplewood Holdings. Many industry watchers have questioned whether a bid from Magna makes sense. While the company has experience running car plants, it has not engineered complete models and taken them to market.
DETROIT — Prospective bidders already have begun jockeying for position as German auto giant DaimlerChrysler prepares to spin off or sell the struggling Chrysler Group. Rumors began flying on both sides of the Atlantic — and the Pacific — almost immediately after CEO Dieter Zetsche on Thursday confirmed the company was exploring "all options" regarding Chrysler. Several media reports in Europe said Zetsche met in December with General Motors Chairman Rick Wagoner and discussed a wide range of scenarios, including the possibility of joint vehicle development. But the likelihood that GM will actually buy Chrysler seemed dim, considering how much product overlap exists between the two companies, GM's own brand-management issues and how much excess baggage Chrysler would bring to the party, from underused assembly plants to the same kinds of "legacy" health care and pension costs that still plague GM.
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