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Old 02-15-2007, 04:56 PM   #1
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Default Chrysler, GM seen in SUV partnership talks

Chrysler, GM seen in SUV partnership talks


NEW YORK (CNNMoney.com) -- General Motors and Chrysler Group are in talks to develop a large sport utility vehicle, that would be similar to the Chevrolet Suburban, according to a report published Thursday.

Citing sources familiar with the talks, The Wall Street Journal reported that the two automakers have been discussing that matter for six months but have yet to reach an agreement.

The paper reported that a partnership would mean development cost savings for Chrysler.

Currently, Chrysler Group does not make an SUV that rivals the Suburban. The two closest models are the Dodge Durango and the Chrysler Aspen.

The news comes just one day after Chrysler Group's parent company, DaimlerChrysler (up $0.67 to $70.45, Charts), said it was considering a sale of a sale or spinoff of its North American unit, in addition to cutting 13,000 jobs over the next three years. (Full story)

A German publication, Manager Magazin, reported that DaimlerChrysler Chairman Dieter Zetsche had met with GM (up $0.00 to $36.50, Charts) Chairman and Chief Executive Officer Rick Wagoner about a possible sale of Chrysler to the No. 1 U.S. automaker, which has itself been struggling, cutting jobs and closing plants.

The Journal reported, however, that if a vehicle deal is reached, it would not go beyond that.

Chrysler already has a handful of vehicle partnerships under way, including a minivan development deal with Volkswagen AG. Chrysler is also in talks to produce a subcompact car for sale in the United States with the Chinese automaker Chery
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Old 02-15-2007, 06:13 PM   #2
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I think I speak for all of us when I say that a large SUV is exactly the kind of vehicle that will save Chrysler from bankruptcy.

<sticks fingers in ears and runs around in circles>
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Old 02-15-2007, 06:17 PM   #3
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Ford, GM, and now Chrysler. It's like a trifecta of doom for American automobiles.
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Old 02-15-2007, 06:49 PM   #4
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Smart move for Chrysler - even if they are kind of 'forced' into it because of their economic troubles... but doesn't really seem like a smart move for GM. They already have the Suburban/Tahoe, and it is brand new. Would this new vehicle supersede those SUVs or be sold along-side them? And I highly doubt it is a full-size cross over, cuz once agian, GM has brand new vehicles in that catagory.

I see this as once again, Mercedes screwing over their Chrysler division... if anything, Mercedes and Chrysler should work together to design a full size SUV and share a platform... but Mercedes thinks that they are too good for that. Dumb and weird move.
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Old 02-15-2007, 07:18 PM   #5
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Suburban/Tahoe, and the entire Hummer line. This just seems improbable to me.
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Old 02-16-2007, 01:31 PM   #6
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They would probably just badge engineer it into the next gen Suburban/Yukon/Tahoe/H2/whatever. I really do not see they developing a seperate line. Especially when that market is shrinking every year.


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