DaimlerChrylser boss Dieter Zetsche considers plan to sell ailing US car maker
14 February 2007

DaimlerChrysler boss Dieter Zetsche is studying a proposal to sell-off the company’s troubled US arm Chrysler.

After newspaper reports published in Germany today (14 February) suggested that DC was considering dumping the Chrysler Group, confirmation of the possibility came from DaimlerChrysler just hours ago.

"Today the supervisory board will reach a decision on the subject of restructuring the Chrysler Group. The board of management intends to consider other, more far-reaching strategic options with partners in order to support and facilitate the program," the company said.

"No option is being excluded in the interest of arriving at the best possible solution for the Chrysler Group and DaimlerChrysler as a whole."

Citing supervisory board member sources, German newspaper Handelsblatt this morning claimed that Zetsche has commissioned a US investment bank to examine all possible options for Chrysler.

Zetsche is expected to announce losses of over $1billion in 2006 for the American group of car brands that includes Chrysler, Jeep and Dodge.

"Everything is possible," a source told Handelsblatt, adding "it is more likely that something drastic will happen than that nothing will happen."

The news comes as Zetsche prepares to unveil the latest restructuring plan for Chrysler, some six years after DCX's initial attempt to haul the Chrysler Group back into profitability, and nine years after Daimler-Benz’s takeover of Chrysler.

The report claims that Zetsche is looking into all options for Chrysler, including a partial or complete sale of the company.

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Also among the possibilities is the formation of an alliance with another car maker. Speculation within automotive industry financial circles has linked Chrysler with Renault in recent weeks, though both sides deny that talks have taken place.

Another alternative before Zetsche is floating Chrysler on the New York stock exchange.

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