This is just bizarre if it ends up being true. GM has been losing billions so they think buying another company that’s also losing billions would be a smart thing to do? So says the folks at Leftlane News:
Rumors of an alliance first appeared in Germany’s Manager-Magazin, but today’s report is the first calling for an outright acquisition. Speculation about a GM acquisition began this week, but today’s report is the first claiming to cite high-level sources. What’s more, this is the first we’ve heard of actual negotiations taking place.
Following its announcement earlier this week of a $1.3 billion loss in 2006 for the Chrysler Group, Daimler Chrysler said it would consider all possible options to rectify the situation.
“No option is being excluded in the interest of arriving at the best possible solution for the Chrysler Group and Daimler Chrysler as a whole,” the company said.
German newspapers Handelsblatt and the Frankfurter Allgemeine Zeitung said Daimler Chrysler was specifically looking at a spin-off of the Chrysler Group on the stock market. The reasoning behind such a move is to avoid the hassle of finding a company to acquire Chrysler. However, it appears GM was quick to step up to the plate.
Sounds like a desperate move to hold onto the title of “Worlds Largest Automaker” when they should be more concerned about trying to become the world’s most profitable automaker.