Canada’s Magna Corp studies bid for Chrysler
Canadian Auto Workers President Buzz Hargrove said Monday that he met twice last week with Magna Chairman Frank Stronach about Chrysler. He declined to discuss details of the meetings.
"We talked about the Magna-Chrysler situation, but I can't go any further than that," Hargrove said in an interview.
Hargrove's comments follow media reports speculating about Magna's interest in Chrysler. Also on Monday, Brett Hoselton, an auto analyst with KeyBanc Capital in Cleveland, wrote in a report to investors that Magna has done "substantial due diligence" on Chrysler, including reviewing its financial information, and is "seriously considering the potential purchase" of the Auburn Hills-based automaker. Hoselton did not cite specific sources for the information.
Rumors have been swirling about possible buyers for Chrysler since DaimlerChrysler CEO Dieter Zetsche said earlier this month that the automaker would consider all options for its money-losing U.S. unit, including the possibility of a sale. Chrysler lost $1.5 billion in 2006 and is cutting 13,000 hourly and salaried jobs as part of a three-year turnaround plan. More at Detroit News