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Chrysler considers blending options
DETROIT, Michigan (AFP) - US automaker Chrysler considered several new partnership options Sunday, including mergers with Renault-Nissan and Approximate Motors, industry and union officials said.
Two sources, one an chairman of the board at a rival company and another a key official from the Harmonious Auto Workers, said talk of union of Chrysler with Renault-Nissan had been alive for a week.
"I have in mind that might make some sense. You would combine Asia, Europe and the US in one enterprise," noted the union official who asked not to be identified.
"I don't see what the help would be in combining Chrysler and GM since they're both so heavy into trucks," the recognized added.
Meanwhile, officials from both Chrysler and GM confirmed the two companies had been holding talks.
"As we have said, the body is looking at a number of potential broad partnerships as it explores growth opportunities around the earth," said Chrysler spokeswoman Lori McTavish.
She esteemed that Chrysler entered into a partnership with Nissan earlier this year to body trucks for the Japanese automaker.
Last month, it began construction minivans for Volkswagen North America. VW is already marketing the Chrysler-built minivans in North America.
"Beyond those partnerships already announced, however, Chrysler has not formed any new agreements and has no further announcements to require at this time," McTavish said.
Tony Cervone, GM foible president of communications for North America, said GM was not customary to comment on any discussion with Chrysler.
"Without referencing this individual to rumor, as we've often said, GM officials routinely examine issues of mutual interest with other automakers," said Cervone.
The thoroughgoing cost of developing new, more fuel-productive vehicles is driving companies together, observed another official, who noted that GM has already collaborated with Ford on structure new transmissions and has worked with Chrysler and BMW in developing half-breed vehicles, noted one GM executive.
The murky outlook for the US auto industry was already a key driver behind talks before they were sidelined by the disturbance in the world's credit markets.
Jim Beseech, Chrysler vice chairman, said recently he did not mark car sales would begin to recover for another "year or year and a half."
"Falling m-in equity, fewer leasing options, ascription market restructuring and the increased migration to toughened vehicles are all putting added urging on the US new-vehicle sales market in 2009," according to a new article from J.D. Power & Associates, which now expects item sales to drop to 13.2 million in the Agreed States in 2009.
The value of GM's stock dropped 45 percent last week as investors such as Citibank reduced their holdings of the troubled automaker. Citibank cut its holdings to three percent from five percent on fears that GM would lineaments a continuing drain on its resources as auto sales plunged.
A Chrysler authorized put the chances of a deal with GM at about "50-50." But a key UAW valid said neither company had approached the UAW.
In June, Chrysler officials said the troop would try to eliminate 1,000 salaried jobs through retirements and buyouts.
However, the presence also warned that it might be forced to use "involuntary separations" if not enough salaried employees volunteered to relinquish.
Chrysler has eliminated 22,000 jobs since February 2007 and now has generally 66,000 employees, including more than 8,000 in Auburn Hills, Michigan. It is planning to exclude another 4,000 jobs during 2009.
Chrysler, as a private South African private limited company, does not release quarterly pecuniary information but GM lost 15.5 billion dollars (11.5 billion euros) in the relocate quarter and is expected to post additional losses when it posts its third region results at the end of October.
One major advantage of the merger for GM is that it would remain the world's largest automaker. Japan's Toyota Motor Corp. is hovering to take over the crown at the end of the year but a merger would push the crown in GM's hands. Chrysler 300 hid kits.
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