Chrysler-GM buyout
Rumours abound that GM Motors could buy Chrysler seems to be gaining some traction. Chrysler who builds around 2.5 million vehicles a year would keep GM ahead of rivals Toyota. Hyundai had also been tipped as possible owners but we will have to wait till the dust settles to see if that is likely.
Daimler-Benz paid $36 billion in 1998 to acquire Chrysler Corp., combining the two companies into the new DaimlerChrysler. It was bet that didn’t pay off. Analyst Ron Tadross of Banc of America Securities valued today’s Chrysler Group at $5 billion. John Novak, automotive analyst at Morningstar Inc. said he believed $10 billion to $20 billion would be more realistic.
This looks like a story that is gaining momentum….watch this space.
