I am a Dodge Ram Craftsman Truck Series Fan.  Consequently, Daimler-Chrysler's considering selling Chrysler, makers of Dodge trucks, concerns me.  What will the impact on truck racing be?  The latest is that Magna, a major parts supply corporation may buy Chrysler.

Finally, here's a rumor swirling around the financial press that makes a bit of sense. Magna International, a Tier 1 Canadian parts supplier, is looking at buying Chrysler Group.  It's unconfirmed, of course, but its more plausible than a GM-Chrysler hookup.

Still. It comes down to whether DaimlerChrysler chief Dieter Zetsche is willing to unload Chrysler at a fire-sale price.  Automotive News reports this week that Chrysler, Dodge and Jeep is worth maybe $15 billion.  Chrysler's unfunded health care debt wipes out that value and then some.  But if you throw in other assets, like land and a financing company, Chrysler might be worth a few billion dollars to private investors or to a Chinese company.

So why would Magna make sense?  It doesn't, really.  It just makes more sense than other buyers.  Magna counts virtually every major automaker as a customer, from building the new Chrysler minivan's seat systems to assembly of the Saab 9-3 convertible.  In 2004, it bought DaimlerChrysler's New Venture Gear, builder of four- and all-wheel-drive components, and in 2005 hired away top GM exec Mark Hogan as its president.

Analysts have considered it inevitable that strong suppliers - and Magna and its European partner Steyr are two of the few strong ones - will someday build their own cars. Magna says it has no long-term plans to become a full-fledged automaker (perhaps it has short-term plans?).

Magna?  Magnum?  Conspiracy?

more...

http://blogs.motortrend.com/6201220/car-news/w
ill-magna-buy-chrysler/