Zetsche Confident About Chrysler Plan

Associated Press 03.06.07, 4:14 AM ET

DaimlerChrysler AG Chairman Dieter Zetsche said Tuesday he is confident that the plan to re-energize Chrysler will work, but reiterated that all options for the unprofitable U.S. division were still on the table.

"I am sure that we will see a rebound," he told reporters on the sidelines of the 77th annual Geneva Motor Show.

"We want to make sure the framework is the best (for DaimlerChrysler (nyse: DCX - news - people )) going forward. We can take the action that is best for Chrysler and DaimlerChrysler."

Zetsche's comments follow reports in the United States that executives at the beleaguered Chrysler Group have been meeting with buyout experts and that DaimlerChrysler was preparing presentations for potential buyers.

Speculation about a DaimlerChrysler divorce has been rampant since Zetsche said Feb. 14 that all options are on the table for the money-losing U.S. business. He would not rule out a sale.

Chrysler in February announced that it lost euro1.12 billion (US$1.48 billion) in 2006 and said it expects losses to continue through 2007. Parent DaimlerChrysler, however, earned euro3.24 billion (US$4.26 billion) in 2006.

The Chrysler losses were accompanied by the announcement of plans to shed 13,000 jobs, including 11,000 production workers and 2,000 salaried employees as Chrysler trims expenses and factory capacity as sales decline.