GM Unlikely to Win Chrysler Bid

Washington DC March 26, 2007; The AIADA newsletter reported that according to Automotive News General Motors' offer to acquire the Chrysler group has moved to the back burner.

Several weeks ago the automaker offered to buy the Chrysler group. But, DaimlerChrysler deemed GM's bid to be too low.

According to published reports, the lead bidders appear to be two private equity funds - Cerberus Capital Management and Blackstone Group - and Canadian supplier Magna International Inc.

During a meeting last week with dealers in Florida, Chrysler group CEO Tom LaSorda said he expected a resolution of the sale process before September.

LaSorda said DaimlerChrysler will have a list of bids by the end of the month - in time for its April 4 shareholders' meeting in Berlin.

Spokesmen for GM and the Chrysler group declined to comment on the negotiations.

Jerry York, an industry veteran and former Chrysler CFO, had some advice last week for would-be buyers: Cut a deal with the unions first. "I wouldn't even think about it unless I could form a true partnering relationship with the UAW," York said.