A leading auto industry analyst said today that Magna is viewed as the leading contender for buying the Chrysler portion of DCX, the Detroit Free Press reported today.
Brett Hoselton of KeyBanc Capital Markets, wrote today in a research note to clients that labor unions view the Magna deal as the best possible option for saving jobs and that the UAW had even approached Magna with framework for concessions should the deal go through. He wrote that he expects Magna to spend up to $5 billion to acquire up to 50 percent of Chrysler with Daimler keeping up to 10% of the troubled automaker and Canadian investment firm Onyx expected to buy the rest in a joint bid with Magna.
It’s a somewhat ironic twist for both the UAW/CAW which have struggled for years to organize the Magna plants and Magna’s chairman Frank Stronach who is virulently anti-union and his business strategy centers around low wages.
Reuters reports, the UAW denies that it is talking concessions with Magna and both the the UAW and CAW reiterated their position that Daimler should keep Chrysler and work on restructuring the business rather than selling off the company.
