Sources close to Daimler Chrysler have told Reuters the sale of Chrysler could be completed by May of this year. DCX’s corporate strategy chief is in New York, talking with potential buyers of the troubled firm. The source warned the news agency that a deal wouldn’t be completed in time to present to the DaimlerChrysler supervisory board this month and that any such deal would take a while to complete saying “there are many aspects of this deal to take into account.”
This news follows a UAW statement yesterday indicating it would prefer Chrysler remain a part of DCX, fearing any deal would involve substantial layoffs. Gettelfinger condemned efforts by private investment firms to buy the company saying the union wouldn’t allow Chrysler to be sold to just be “stripped and flipped.”
The union which represents DCX’s German employees isn’t oppose to a deal as long as there are promises that jobs will be protected and preserved in the US.
Potential suitors of Chrysler include private-equity firms Cerberus Capital Management, Blackstone Group and Canadian auto parts maker Magna International Inc.
According to the report, GM’s bid was never seriously considered because of sure union rejection due to the massive layoffs it would have entailed.
