Not much has been heard about GM's acquisition of Chrysler recently, and with parts supplier Magna partnering with two private equity firms, the General has taken a back seat in the bidding. According to both Automotive News and the Detroit News, GM's proposal is still on the table, although at first, it was rejected by DCX's execs.
The original bid, outlined by Fritz Henderson, GM's CFO, proposed that no money would be exchanged for Chrysler, however, DCX would receive a small amount of GM stock and DaimlerChrysler would actually pay General Motors $1 billion to help cover "unfunded health care liabilities." DCX felt that this bid was far too low to even consider.
Additionally, GM wants the unions in both the U.S. and Canada to make concessions for the General and Chrysler if such a purchase was to take place.
While GM's acquisition of Chrysler is still considered a long shot by many, the fact that the General Motors' bid is still being measured confirms Dr. Z's initial "all options" quote.
[Sources: Automotive News (Sub. Req.), Detroit News]
The original bid, outlined by Fritz Henderson, GM's CFO, proposed that no money would be exchanged for Chrysler, however, DCX would receive a small amount of GM stock and DaimlerChrysler would actually pay General Motors $1 billion to help cover "unfunded health care liabilities." DCX felt that this bid was far too low to even consider.
Additionally, GM wants the unions in both the U.S. and Canada to make concessions for the General and Chrysler if such a purchase was to take place.
While GM's acquisition of Chrysler is still considered a long shot by many, the fact that the General Motors' bid is still being measured confirms Dr. Z's initial "all options" quote.
[Sources: Automotive News (Sub. Req.), Detroit News]
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