GM & Chrysler Talks Getting Serious

General Motors Corp. has been in talks for two months with DaimlerChrysler AG about acquiring all of the troubled Chrysler Group and folding its operations into GM, according to people familiar with the discussions.

The first contact occurred in December, when GM Chairman Rick Wagoner and DaimlerChrysler Chief Executive Dieter Zetsche met in Detroit to discuss the blockbuster idea of GM buying Chrysler from its German parent company.

While a deal is far from certain, at least four meetings have taken place involving Wagoner and GM's chief financial officer, Fritz Henderson, and Zetsche and DaimlerChrysler's CFO Bodo Uebber. Talks are said to be ongoing, primarily between Henderson and Uebber.


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Agent63 - 2/19/2007 10:57:50 AM

+1 Boost

If the Chrysler Group is bought out by GM then it will be pushed way below the Cadillac brand perhaps in the Buick range. That would only degrade the Chrysler brand because IMO Chrysler should have targeted Cadillac all along. I don't know what went wrong in production and design. The 300C was a hit but it was still not competitive enough to be on par with Cadillac. The latest Sebring is a huge disapointment. The Aspen is just a luxurious version of the Durango trying to be an Escalade contender that is no where close. Better designers and high quality parts is a MUST if any company wishes to revise Chrysler.

lewissalem - 2/19/2007 12:07:48 PM

+1 Boost

I just can't see this happening. I think that the Hyundai deal is better for both companies.

SteveL - 2/19/2007 12:43:20 PM

+1 Boost

This could be bad or good. It alle depends what they really do. I really think its just to much to take on right now for GM. Its not like they are in the clear or anything with there new cars and trucks.