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Cars and Drivers

Is The Bidding For Chrysler Over?

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By Douglas A. McIntyre Published
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Germany’s Automobilwoche reports that the bidding for Chrysler is all but over as the only serious interest comes from Magna International (MGA), the Canadian-based auto parts company. It is unknown what Magna might pay DaimlerChrysler (DCX) or what may become of the auto firm’s pension liabilities and labor contracts.

If the report is true, a company with a market cap of $8.6 billion and sales of $22.8 billion would be taking on a much larger operation. How Magna’s management will be able to operate both companies is a mystery.

Labor unions have fought to keep private equity interests away from Chrysler, driven by the fear that they would simply break the company into pieces and dispose of as many jobs as is possible. But, without the UAW’s blessing, a sales to any entity would be extremely difficult. A nationwide strike could badly cripple the company financially. a strike could cut sharply into the union’s funds, but it may be a last stand they are willing to take.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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