Why GM Is Serious About Buying Chrysler

Outsiders have been skeptical that GM is really interested in acquiring its smaller rival. But sources say both sides are giving the deal careful consideration

When news broke on Feb. 16 that General Motors (GM) could be interested in buying Chrysler from its German parent DaimlerChrysler (DCX), most industry watchers hated the idea. Longtime industry watcher John Casesa, who is now a partner in the consulting firm Casesa Shapiro, said he also couldn't see the logic. Former Chrysler President Thomas Stallkamp called it "lunacy" (see BusinessWeek.com, 2/20/07, "Kicking the Tires at Chrysler").

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