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Last Updated: Thursday, 22 February 2007, 15:23 GMT
VW shuns option to buy Chrysler
Chrysler

Volkswagen, Europe's biggest car maker, has become the latest company to say it is not interested in buying Chrysler.

In the week since DaimlerChrysler said it was considering all options for its US unit, the rest of the industry have been lining up to rule themselves out.

Earlier in the week, Renault-Nissan, Fiat and Hyundai all said they would not be buying the loss-making business.

General Motors has been in initial talks, but many analysts say that it would multiply GM's existing problems.

Attractive businesses

GM is in the process of closing five of its 31 assembly plants in North America, so might not want to buy another 13.

GM has 7,000 dealerships in the US and Chrysler would give it another 3,700.

Some parts of Chrysler are attractive, such as the Jeep unit. But according to reports based on the offer book being prepared by JPMorgan Chase, DaimlerChrysler prefers the idea of selling the whole business as a going concern.

As the parent company considers its options, it is also pursuing its plan to cut 13,000 staff and close all or part of four of its plants.

If no buyer can be found, DaimlerChysler needs to turn around the company that it bought in 1998 for $92bn (47bn).




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