Rumor Mill: Is Mahindra Going To Buy Chrysler?

Chrysler LLC, which is searching for partners to help give the Auburn Hills automaker a more global reach, is reportedly in talks with Indian automaker Mahindra & Mahindra Ltd. over some sort of partnership.

Chrysler wants to tap the Indian company's engineering expertise to develop products for emerging markets, the Economic Times in India reported today, citing an unnamed industry source.

Mahindra was reportedly in the bidding to purchase the Britain-based Jaguar and Land Rover brands from Ford Motor Co. Friday's report said the potential Chrysler and Mahindra deal could include an equity stake.

A spokeswoman for Mahindra could not be reached for comment, and a Chrysler spokeswoman was unable to comment Friday. Chrysler prepared Thursday for more global alliances, appointing Simon Boag executive vice president for global alliance operations.

 

1000rrRider - 1/7/2008 2:39:01 PM

+2 Boost

R.I.P Chrysler!!!

pacotacolol - 1/8/2008 3:44:57 PM

+2 Boost

what a laughable concept

EnnNorak - 1/10/2008 4:58:29 PM

+2 Boost

It's not a laughable concept but the technical/engineering/marketing excuses given are laughable. The real reason has to be financial in nature.

RealitySmack - 1/7/2008 6:49:49 PM

+1 Boost

If I was a head of Mahindra, than I wouldn't do it. Chrysler has hit rock bottom.

Porschinator - 1/7/2008 7:09:29 PM

+1 Boost

Mahindra will NOT buy Chrysler but may have a stake in the company.

EnnNorak - 1/10/2008 5:00:17 PM

+2 Boost

Mercedes retained a roughly 20% share so now we will have 3 major partners arguing about how to run the company?

EvoAudi - 1/7/2008 11:31:57 PM

+1 Boost

i can see a 30-45% stake in chrysler.

dumpsty - 1/8/2008 12:14:55 PM

0 Boost

A quick visit to their product site shows that Mahindra makes domestic vehicles that already look like Jeeps. It would make sense for them to purchase a stake in Chrysler to benefit from the Jeep brand and styling.

EnnNorak - 1/10/2008 5:05:15 PM

+1 Boost

I agree with you. Mahindra's Jeep-like vehicles could definitely benefit from Chrysler's superior Jeep styling among other things. Mahindra might be motivated to raise the funds to buy Chrysler outright just to have Mercedes as a minority partner since Mercedes retained about 20% of chrysler. Interesting times ahead!

gregsfc - 1/10/2008 4:47:29 PM

+1 Boost

Mahindra plans to market an SUV and a mid-size pickup in the North America. A partnership with Chrysler could help them logistically accomplish marketing here.

BTW. The Mahindra pickup, for the U.S., will offer Americans a diesel option (source: Diesel Power Magazine).