Chrysler LLC, struggling with losses as US vehicle sales deteriorate, said it will carry on with efforts to team up with other automakers after General Motors Corporation suspended merger discussions.
“We will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world,’’ Chief Executive Officer Robert Nardelli said in a note to employees today.GM had been talking with Cerberus Capital Management, Chrysler’s majority owner, about combining with or buying the third-largest US automaker, people familiar with the matter have said. Detroit-based GM said today it would “set aside’’ consideration of a merger to focus on “immediate liquidity challenges’’ as it may run out of operating cash by year’s end.
“Chrysler needs a parent,’’ said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan.
“They need an investor to step in and buy either some or all of the corporation. The only hope for Chrysler would be a foreign investor.’’
Virag cited India’s Tata Motors, which bought Jaguar and Land Rover from Ford Motor Co. in June, as one possible partner for Auburn Hills, Michigan-based Chrysler.
Nardelli didn’t confirm any talks with GM. Both companies have declined to comment on whether any discussions took place. “We are consistently evaluating potential alliances and investment opportunities,’’ Peter Duda, a spokesman for Cerberus, said in an e-mailed statement. “We remain focused on working to return Chrysler to profitability in this challenging environment.’’
Chrysler, which gets almost 80 per cent of its sales from the US, is fighting a 26 per cent decline in US sales through October. The automaker is burning through its cash reserves and is readying its three brands for a possible breakup and sale.
