CHRYSLER IN NEGOTIATIONS WITH GERMAN AUTOMAKER
By Adnews Staff
Chrysler Corp. of Detroit and Daimler-Benz of Germany stunned the auto industry yesterday after they reached an agreement to merge the two companies in a deal worth $39 billion(US). The marriage would create the fifth largest auto manufacturer in terms of light vehicle production, behind General Motors, Ford Motor Co., Toyota Motor Corp. of Japan and Volkswagen AG of Germany. The newly merged company will be called Daimler Chrysler AG and will be about 57% owned by Daimler shareholders. Chrysler shareholders will own the remaining 43%. Chrysler is strong in minivans, pickup trucks and utility vehicles in North America, while Daimler targets the affluent buyers in Europe and other countries. The merger would allow both companies to expand into each other's main markets. In addition, Daimler has interests in rail, commercial vehicles, aerospace, telecommunications and financial services. In Canada, Chrysler advertising is done by BBDO Canada of Toronto. Canadian advertising for Daimler is created by Roche Macaulay & Partners of Toronto.