AM Online

DC exec opposes company break up

The Chrysler Group's difficulties are becoming a burden for DaimlerChrysler AG, but a member of the German automaker's governing supervisory board has said he would oppose a deal leading to a breakup of the carmaker.

"We wouldn't support a solution such as a private equity firm that would cut out choice bits," said Helmut Lense, one of the 10 employee representatives on DaimlerChrysler's 20-member supervisory board.

In an interview with The Detroit News, Lense said he would prefer to see a manufacturing company, such as another carmaker, take control of Chrysler in the event of a sale.

DaimlerChrysler is in talks with a small group of potential buyers, including General Motors and private equity firms Blackstone Group and Cerberus Capital Management LP, which has retained former Chrysler chief operating officer Wolfgang Bernhard as an adviser, according to insiders.

Last month, as DaimlerChrysler reported a $1.5 billion loss for Chrysler, DaimlerChrysler CEO Dieter Zetsche said the company was considering all options for Chrysler, including a sale that would put an end to the nine-year merger of Daimler-Benz AG and the former Chrysler Corporation.

DaimlerChrysler officials stress that all options remain on the table.

Among the possible scenarios, the company may retain a minority stake of 20 to 30% in Chrysler.

They said top managers are intent on working out a smooth and rapid deal to minimize management defections and disruption at Chrysler and its dealerships.

“We want the best solution for the Chrysler Group, and for DaimlerChrysler,” said one company official, according to The Detroit News.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.