GM said to eye Chrysler, breakup possibleNo. 1 automaker flirts with buying struggling automaker but bidders may want just some pieces like Jeep, report says.NEW YORK (CNNMoney.com) -- General Motors is toying with the idea of buying Chrysler but the No. 1 automaker would face major hurdles if it were to acquire its crosstown rival, a news report said Thursday. Citing people familiar with the matter, the Wall Street Journal reported that GM has had talks about buying Chrysler and hasn't ruled it out. But the report noted that both GM (Charts) and Chrysler have more U.S. dealers than they need, rising health-care bills for union worker and retirees, and excess manufacturing capacity in North America. Separately, the New York Times reported that while DaimlerChrysler (Charts) would prefer to sell all of Chrysler Group, it seems hard to find potential acquirers interested in buying the unit as a whole, rather than letting bidders pick and choose assets. The newspaper noted that selling the unit as a whole would eliminate buyers who want just Chrysler's valuable Jeep brand and its American dealership network, and also limit bidders to those able to the raise the asking price. Daimler, GM CEOs seen talking Chrysler |
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