GM looks at possible bid for Chrysler

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The Independent Online

General Motors, America's largest carmaker, is exploring the possibility of a bid for Chrysler, the No 3, which was put up for sale this week by its German parent.

DaimlerChrysler and GM are understood to have begun negotiations that might lead to joint ventures on some models, or an outright bid. A combination of the two would create an industry giant, controlling brands from Chevrolet to Dodge and Jeep.

The reports, published yesterday in an industry magazine, sent DaimlerChrysler shares up 6 per cent, despite widespread scepticism that an outright bid by GM would be forthcoming. Both sides are in the midst of painful restructurings of their ailing US operations. Chrysler announced this week it would cut 13,000 jobs.