Possibility of GM-Chrysler Merger Sparks Debates
 File phoito of DCX GM BMW CEO's celebrating alliance to develop alternative powered vehicles |
SEE ALSO: The DCX Wedding Videos and other Lovey-dovey PDA (public displays of affection)
Washington DC February 21, 2007; The AIADA newsletter reported that debate continued Tuesday on whether General Motors Corp. and the Chrysler Group will merge.
According to the Detroit Free Press, a leading Wall Street auto analyst said that GM could be eyeing a deal to buy Chrysler as a way to increase its bargaining power with the UAW and hold off competition in the US.
However, Roger Penske, CEO of United Auto Group Inc. doesn't foresee a GM-Chrysler deal. In an interview before last week's NASCAR race in Daytona Beach, Fla., Penske told Bloomberg News: "The overlap in models, I think that'd be awful tough."
Talk of a Chrysler Group sale started last week when DaimlerChrysler AG Chairman Dieter Zetsche said he would not rule out any options for the Chrysler Group's future. DaimlerChrysler and GM, the world's largest automaker, are discussing the sale of Chrysler as one potential option, said people with knowledge of the talks.
Chrysler said last week it's cutting 16% of its workforce and closing a Delaware plant.