Chrysler sale talk still buzzes

DaimlerChrysler's Bodo Uebber: Can't rule it out

FINAL ASSEMBLY | Automotive News / November 6, 2006 - 1:00 am

Talk that DaimlerChrysler might shed its Chrysler group business is still simmering in the German press despite repeated company denials.

An anonymous DaimlerChrysler board member told the German magazine Der Spiegel: "We would be irresponsible if we did not draw up exit scenarios."

The subject of a potential Chrysler sale took on new currency when DaimlerChrysler CFO Bodo Uebber repeatedly refused to rule it out during the company's third-quarter earnings conference call with analysts and journalists last month.

"We don't exclude anything," he said at the time. Chrysler recorded a $1.48 billion loss in the third quarter. The next day, responding to the furor, DaimlerChrysler issued a statement saying Chrysler wasn't for sale.

According to the Der Spiegel report, a number of options are being considered, including a separate stock listing for Chrysler.

A team of DaimlerChrysler executives, including some from Mercedes-Benz, is studying the Chrysler business in an effort to slash per-vehicle cost by $1,000.

Chrysler group sources have said repeatedly that structural changes will be considered, but not the sale of the group.