BID FOR A GIANT AUTO MAKER : Chrysler’s Rivals . . . and Suitors
Another auto manufacture could join Kirk Kerkorian in his bid to take over Chrysler Corp. But finding one with both motive and opportunity--and without other industry alliances already in place--will be difficult. Here is an overview of the major players in the world automotive industry:
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GENERAL MOTORS: The United States’ and the world’s largest auto maker. GM’s ailing North American operations turned a profit last year for the first time in five years. The company has longstanding ties with Toyota, owns 34.5% of Isuzu and about 5% of Suzuki. Antitrust concerns would almost certainly prohibit a Chrysler bid.
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FORD: The No. 2 U.S. auto maker. It contemplated a bid for Chrysler a few years back but decided against it in part because of antitrust concerns. The same thinking applies now. Ford doubled its earnings in 1994, but its 25% stake in Mazda has proven a burden recently as the Japanese auto maker’s sales continue to founder.
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TOYOTA: Japan’s biggest car manufacturer and one of the few in the industry with the financial ability to take over Chrysler. But the company is also acutely aware of the potential for a backlash of public opinion and contrary government action.
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NISSAN: The No. 2 Japanese auto maker. Nissan has extensive truck operations of its own and is not in a financial position to join in a bid for Chrysler.
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HONDA: Honda’s biggest weakness has long been its lack of significant truck production. For that reason--and because it has no other significant automotive partner--Honda and Chrysler may make a good fit.
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MITSUBISHI: Mitsubishi Motors, the automotive subsidiary of the Japanese conglomerate Mitsubishi Ltd., might be able to finance a bid for Chrysler but is unlikely to. The two car makers dissolved their joint car-making venture several years ago when their cultures and strategies clashed.
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VOLKSWAGEN: Europe’s largest car maker. It is viewed as being less compatible with Chrysler than with Ford, whose European operations it has come close to merging with in recent years. But VW would probably have the financial wherewithal to bid for Chrysler, and with its recent purchase of Czech car maker Skoda, it could perceive the deal as broadening its reach into North America.
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OTHERS: Mercedes-Benz and BMW of Germany have both opened U.S. plants recently and are looking to add downscale models to their traditionally high-end car lineups. With the majority of their sales in the European market--which is expected to open further in coming years--they may be seeking a way to expand.
Fiat of Italy has been mentioned as a potential Chrysler partner, but the company--which has held talks on and off with Chrysler for years to no avail--is seen as more likely to invest in the growth market of Eastern Europe.
Peugeot and Renault of France might be interested, but whether they could provide the financing is unclear.
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THE BIGGEST CAR COMPANIES
1993 worldwide production, in millions General Motors: 5.45 Ford: 5.30 Toyota: 3.56 Chrysler: 2.30 Nissan: 2.25 Renault: 1.78 Volkswagen: 1.70 Peugeot: 1.67 Fiat: 1.62 Honda: 1.55 Mitsubishi: 1.36 Mazda: 1.25 Mercedes-Benz: 0.596 BMW: 0.510 Volvo: 0.241
CHRYSLER EARNINGS
Chrysler announced Thursday that its first-quarter earnings slipped 37% compared to a year ago. Quarterly earnings, in millions of dollars
1995: 592 million
* Sources: Times reports, Ward’s Communications
