Magna International Inc., Canada's largest auto-parts maker, said it's exploring DaimlerChrysler AG's potential sale of Chrysler.
Magna "continues to review potential alternatives regarding the future of the Chrysler Group," according to a statement Friday. The Aurora, Ontario, supplier said there's no assurance that an accord will be reached and didn't say whether it had bid.
....Magna gets 15 percent of its revenue from Chrysler. It builds minivans and Jeep Grand Cherokees for DaimlerChrysler at a plant in Austria. It also operates the paint shop at Chrysler's Toledo, Ohio, Jeep plant.....
http://www.detnews.com/apps/pbcs.dll/article?AID=/20070414/AUTO01/704140...
or
http://www.bloomberg.com/apps/news?pid=20601082&sid=a_N9JGA2W6mw&refer=c...
Don't know if this is relevant - but I don't see how they even take seriously bids on daimler for 4 to 7 billion dollars, when it cost Daimler something like 35 billion dollars to be built.
9 years ago there was a stronger cushion in the financial markets for automotive players.
Now Germany made it clear, Chrysler is going to find a new home.
The question is if the new homeowners can get along with the UAW and its confusion on how global markets are wrecking havoc on organized labor / healthcare / legacy platforms?
IF the new Odd Couple fights, stalls, misses a few targets, or can't portray the love to the anaylsts - the Short Trader Greed will be all over the market (just check out the Greed now bidding up the share price to new highs to ride the buyout wave, which means we're probably closer to a good sell point).
Throw in Pressure to go Al Gore Green, Poor employee morale, 800lb Asian Gorillas employing non-union U.S. workers in southern states, ramped up R&D, tight cash flow, health care, CA litigation, nervous dealer base, high legacy costs, Sept 2007 UAW contracts, change in Bankruptcy laws, Gasoline Pump Pressures / Refinery Capacity, IRAN & Oil Markets, Democrats wanting to let Bush's $1000 per child tax credit and marriage penalty tax relief to expire in 3 years from car buying family budgets, and the stakes get BIG.
Chrysler could stumble, trip, and fall in today's new economy if Labor and New Management appear slow to deliver to customers, dealers, and analysts or try to debate each other through the news channels.
Who knows with too many mature competitors on U.S. soil able to absorb markets, could make a bailout unlikely.
This is scary stuff, the Survival of Chrysler Debates are in full gear.
I listened to a report last week on NPR that show cased the purchase price, also.
It was a bad fit, two clashing cultures in the car companies and the purchase of Chrysler by Benz hurt the Benz image and business overall.
http://toledoohioneighborhoodconcerns.com/blog