The rumor of GM-Chrysler alliance was put off for the present after GM has retreated from the first round bid for the troubled automaker. It is reported now DaimlerChrysler may lean towards a private equity buyer who is labor friendly. Results will emerge soon in the coming weeks.
Here are the top news this week:
1.A private equity firm could cut at Chrysler
From:freep March 29
DaimlerChrysler AG, concerned about the fate of Chrysler workers, may lean toward selling the U.S.-based unit to what is deemed as a labor-friendly private equity buyer, which would still possibly seek to cut 25,000 jobs, a leading brokerage said Tuesday.
A Lehman Brothers analyst joined a growing chorus of auto industry experts saying any potential buyer for Chrysler Group will need organized labor's help to make a deal work.
2.GM-Chrysler Merger Likely to Face Antitrust Obstacles
From:bloomberg March 29
General Motors Corp. probably would have to sell at least part of the light truck division of DaimlerChrysler AG's Chrysler unit to clear U.S. antitrust review in any potential takeover, two analysts said.
``A GM-Chrysler merger would require GM to divest most, if not all, of Chrysler's truck assets,'' Bear Stearns & Co.'s Peter Nesvold in New York said today in a research note. ``This is highly unattractive, based on the disproportionate amount of profit that the truck assets contribute.''
3.DaimlerChrysler delays publishing first quarter report
From:Automotive News March 28
DaimlerChrysler has postponed publishing its 2007 first-quarter results to mid-May from April as a result of its switch from U.S. GAAP to the pan-European International Financial Reporting Standards (IFRS), the company said today.
DaimlerChrysler will not publish its interim report on the first quarter of 2007 on April 26 as was originally planned, but on May 15, the company said in a statement.
4.Bush, auto firms skirt row over US fuel curbs
From:Automotive News March 28
President Bush and U S auto executives yesterday promoted alternative fuels but did not discuss in any meaningful way their major point of disagreement, government fuel efficiency requirements.
Rick Wagoner, the chief executive of General Motors Corp., and his counterparts from Ford Motor Co., and Chrysler Group appeared to leave with little.
"Fair to say he is not necessarily advocating regulatory approaches but what kind of market-based approaches can we use," Wagoner told reporters after the group's second meeting with Bush in four months.
5.DaimlerChrysler 'rejected GM offer'
From:smh March 28
DaimlerChrysler AG initially turned down an offer General Motors Corp made in late January to buy the unprofitable Chrysler Group but the bid is still active, the Detroit News reported.
Quoting people familiar with the situation, the trade journal said, "General Motors Corp. has a bid on the table for the Chrysler Group and remains a long-shot candidate to acquire the struggling US division of DaimlerChrysler AG."