Here's who is not interested in buying Chrysler according to reports in both the Wall Street Journal and NY Times: Nissan/Renault, Fiat, Volkswagen and Hyundai. DaimlerChrysler's shares fell $2.04, or 2.8%, to $70.85 yesterday as more auto companies rejected the possibility of buying the company's North American unit. So who is interested? At the very least, Gm hasn't ruled out the possibility of buying its long-time rival, according to today's Journal. But the Street as well as many industry observers view such a possibility negatively citing GM's current focus on streamlining and cost cutting its own operations, heavy worker health care costs which would only be exacerbated by a Chrysler acquisition and the overlap between the two companies' product lines (especially trucks). According to Bear Stearns' Peter Nesvold, GM's objective right now "is to make its business less complex, not more complex." Goldman Sachs has called the possible merger "illogical." According to the Journal, advantages to such a deal include eliminating a major competitor and increasing its bargaining position with the United Auto Workers Union.
Sources: Wall Street Journal, New York Times
Commentary: Renault CFO: 'We Want No Part in Chrysler' • DaimlerChrysler Is Disclosing Chrysler's Financial Information to Suitors • New Direction for DaimlerChrysler?
Stocks/ETFs to watch: DaimlerChrysler (DCX), General Motors (GM). Competitors: , Nissan (OTCPK:NSANY), Ford (F), Toyota (TM), Honda (HMC), Volkswagen (OTCQX:VLKAY)
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