DaimlerChrysler CEO Zetche: 'Chrysler Difficult To Break Up'

DaimlerChrysler CEO Dieter Zetsche told reporters at the Geneva Motor Show yesterday that it was unlikely the sale of Chrysler would involve breaking the company up into individual parts. “Chrysler Group is very integrated. The technical lines, like platforms, do not go along the same lines as the brands. The less they are aligned with the brands, the more difficult it would be to think of any separation,” he said. Zetsche also told German paper Die Welt that the sale of Chrysler would not be in auction form, adding that when DaimlerChrysler ends its strategic review, it may decide to retain its North American division after all. Meanwhile, GM CEO Rick Wagoner was tight-lipped on the prospect of GM buying Chrysler in interviews at the Geneva show yesterday but did mention the two companies were in discussions regarding sharing the costs of future sport-utility vehicles.

Sources: Wall Street Journal, The New York Times, Reuters (i), (ii)
Commentary: Large Private Equity Meets With Chrysler • GM Vehicle Sales, U.S. Market Share Rise; Japan's 'Big 3' Continue to Roll • Chrysler's Future Remains Uncertain
Stocks/ETFs to watch: DaimlerChrysler (DCX), General Motors (GM). Competitors: Ford (F), Toyota (TM), Honda (HMC), Nissan (NSANY)

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