Chrysler's Future Remains Uncertain

Chrysler is in talks to expand its alliance and buy more parts and car models from China's Chery Automobile Co., which specializes in making fuel efficient vehicles gaining popularity on the U.S. market, Bloomberg learned from anonymous sources. The negotiations are reported to be at an advanced stage. Meanwhile, the AP is reporting that China's FAW Group Corp. refused comment after the Oriental Morning Post reported it had sent representatives to Detroit to negotiate with Chrysler for an undisclosed stake in the company. In other Chrysler-related news, the Wall Street Journal is reporting infighting between Chrysler unions in Canada and Germany over the company's fate. The divisiveness could hamper parent DaimlerChrysler's attempts to unload the company if potential buyers view the company as not presenting a unified front.

Sources: Bloomberg, AP, Wall Street Journal
Commentary: Financial Times: Chrysler Considering An All-Equity Deal With GM • Large Private Equity Firms Approached About Buying Chrysler • GM To Buy Chrysler? At Least It Hasn't Been Ruled Out
Stocks/ETFs to watch: DaimlerChrysler (DCX). Competitors: General Motors (GM), Nissan (NSANY), Ford (F), Toyota (TM), Honda (HMC), Volkswagen (VLKAY.PK)

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