GERMANY: DaimlerChrysler confirms it is in Chrysler sale talks

DaimlerChrysler acknowledges it is talking to prospective buyers for its loss-making Chrysler unit, but does not commit itself to a sale of the U.S. business. DaimlerChrysler confirmed on Wednesday (April 4) it was in talks with potential buyers for its U.S. brand Chrysler. Chief executive Dieter Zetsche told the annual meeting of the world's fifth-biggest car manufacturer: "I can confirm that we are talking with some of the potential partners who have shown a clear interest." Zetsche went on to say all options were on the table. "I cannot disclose any details, because we need to have the maximum scope for manoeuvre," he said. At the Frankfurt stock exchange, Dirk Mueller of ICF Kursmakler traders told Reuters Television: "Dramatic restructuring programmes are needed to move ahead and, if someone other than Chrysler carries them out, it will be highly unpleasant for the employees. "It's a very difficult project and the market is therefore reacting cautiously." Selling Chrysler would unwind the spectacular 1998 merger of Daimler-Benz and Chrysler that never lived up to its billing by former chief executive Juergen Schrempp as a marriage made in car heaven. Despite a recent surge, the stock trades about 14 percent below the level where it made its market debut in November 1998. The company did not reveal who had expressed interest in Chrysler since DaimlerChrysler first said in mid-February it was examining all options for the U.S. business. DaimlerChrysler reiterated its forecast for a significant increase in group profitability through 2009.

ITN Source | April 4, 2007

Tags:. .recent. .since. .never. .interest. .april