Some suppliers worry about a Chrysler sale; Deal may affect current, future parts contracts.(DaimlerChrysler AG. Chrysler Group.)

Automotive News, April, 2007

Byline: Brent Snavely

As the bidding war for the Chrysler group gathers steam, suppliers wonder how a new owner would influence existing contracts as well as competition for future ones.

DaimlerChrysler AG has been meeting with several groups interested in buying the Chrysler group. Bidders include Cerberus Capital Management, Blackstone Group, billionaire Kirk Kerkorian and Canadian parts maker Magna International Inc.

For suppliers, a sale of Chrysler raises major questions about the fate of contracts based on supplying common parts to Chrysler and Mercedes-Benz. Another concern centers on competitive issues that would arise if Chrysler were owned by Magna - a Tier 1 that, in many cases, is a direct competitor to those suppliers.

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