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.
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04/30, 12:50 PM
posted by:
buenos
Um.. that would be Canadian Investment Firm ONEX, not Onyx. Onyx is a software company.
04/30, 12:53 PM
posted by:
PrimeGTP
The UAW doesn’t cooperate with anyone.
04/30, 1:03 PM
posted by:
Rompn4x
I would really like to see a company pick up Chrysler and mend the injuries. Chrysler still has fight in it and I believe will turn out great cars once the problems are fixed.
04/30, 1:48 PM
posted by:
Shawn1982
Calm down homeboy234. He just said he hopes a company busy Chrysler and fixes their problems.
04/30, 1:53 PM
posted by:
Me
What is meant by Stronach’s “low wages” strategy here? Is that read: “not bloated Union wages” like those of Toyota or “too low for US and Canadian worker wages” meaning jobs go elsewhere in the world? Anyway, he’s anti-union -I like that- but as such, I don’t see much middle ground here tho.
04/30, 1:54 PM
posted by:
PrimeGTP
It doesn’t matter Shawn, homeboy will bash anything American just because it’s American. (EDITED FOR LANGUAGE)
04/30, 1:54 PM
posted by:
PrimeGTP
These days, “low wages” is when the average union worker doesn’t get twice the salary he’s worth.
04/30, 2:32 PM
posted by:
04focus
PrimeGTP: you don’t have to go very far. In the late 80s - early 90s Chrysler DID have a stake in Lamborghini.
04/30, 2:56 PM
posted by:
400horseSS
how big is this company i mean a parts supplier buying a auto maker thats huge
04/30, 3:03 PM
posted by:
Stuart
I really hope that Daimler sells all of chrysler if they are going to sell anything. They need a fresh start like BMW after the Rover selloff and shouldn’t hold any tie with any american automaker. Then sit back and watch mercedes evolve
04/30, 4:02 PM
posted by:
Piablo
I’m intertested to see what a company that is not already an automanufacturer can do with Chrysler. It could be a failure, or a huge success. Either way, I’d rather see it this way than more of the same ol same ol. Maybe they’ll aquire it long enough to redesign all of their products into the Chrylser models then sell it off again.
04/30, 4:05 PM
posted by:
Stuart
Why is daimler still gonna split the health care cost when they are only going to own 10% of the company? They should realistically only pay 10% of health care costs. I am sure daimler will not go for the deal as said above
04/30, 4:06 PM
posted by:
Madcapp
Magna-Chrysler Challenger.
04/30, 4:07 PM
posted by:
buenos
Magna is a very large, global autoparts supplier, as well as assembler. (Magna-Steyr builds BMW X3s). They have many subsidiaries like Magna-Steyr and Dortech as examples.
http://www.magnaint.com/magna/en/
04/30, 4:26 PM
posted by:
gbb
I think Magna is the only real buyer that will try to make Chrysler really work as a car company. I DO hope it works out well for Magna if they get Chrysler. They have some good offerings and with the right guy at the top, could be a profitable car company.
04/30, 4:29 PM
posted by:
buenos
Agreed gbb. Frank Stronach is one hell of a smart businessman, and his daughter Belinda, is just as capable. She is leaving Canadian politics to take the helm.
04/30, 4:34 PM
posted by:
gbb
buenos, a Canadian company, Bombardier Recational Products, (BRP) bought a bankrupt American outboard motor manufacturer, Outboard Marine Corporation, and in less than 5 years have made it a genuine top flite company. I hope for the same from Magna/Chrysler.
04/30, 4:37 PM
posted by:
buenos
Bombardier is an incredible company, though they have been bailed out be the federal governement more than once. they are a huge transportation company, not just recreational vehicles, but high speed rail, and regional jets, as well
04/30, 5:10 PM
posted by:
buenos
Indeed deantj… and a fascinating woman. In a previous job, I met her more than once.
04/30, 6:27 PM
posted by:
gbb
buenos, I think Bombardier Inc split off and sold the recreational products group to the original family members who then re-named it BRP. Almost all their products are industry leaders. Anyway, a rose by any other name……… I sincerely would like to see Magna succeed and buy and bring Chrysler to the level it should be.
04/30, 10:30 PM
posted by:
Impulsive
Hey “buenos”, did you meet her in the same way Domi and MacKay met her?
04/30, 11:49 PM
posted by:
F451
This level of negotiation, and all the entailed fine print, can be very complicated so who really knows how matters are progressing other than the parties involved. Chrysler ceased being an American car company with the ownership of Daimler—the parent company based in Germany, who currently own a car company situated in America, but its governance is German. There are two remaining large America car companies; Chrysler is not in the fold. If an American company buys Chrysler, in its entirety, or through majority, then governance will again be in America, and again it can be referred as an American company. If the Canadians’ purchase Chrysler then it will be a Canada company although it is located in America. The interesting tidbit is that Daimler is trying to keep ten percent ownership. Hmmmm…those crafty Germans must be working a tax angle, among other perks.
05/01, 8:00 AM
posted by:
buenos
Impulsive… um… no, but I did share a steamroom with Domi once. That is one scary dude.
05/01, 12:26 PM
posted by:
Impulsive
Come on … he’s Albanian … soft as butter.