Private firms reported to be interested in Chrysler

The American division of Daimler Chrysler, according to a Dow Jones report could be soon sold off as its parent company seems to be mulling over options but Dieter Zetsche, the Chief Executive of Daimler Chrysler said on Tuesday that Chrysler would not be easy to split because of an integrated production system that unites its various brands.

“Chrysler Group is very integrated,” Zetsche said in an interview at the Geneva Car Show. “The technical lines, like platforms, do not go along the same lines as the brands. The less they are aligned with the brands, the more difficult it would be to think of any separation.”

However, a person familiar with the state of affairs said a U.S.-based buyout firm, The Blackstone Group [BG.UL] has approached Chrysler and been granted access to its books in preparation for a possible bid.

Zetsche stressed on the fact that he was only making an observation, not commenting on options for how DaimlerChrysler might sell the Chrysler unit, an outlook that was confirmed three weeks ago. But his statement did not seem to ward off the reports that DaimlerChrysler hoped to unload Chrysler as a single unit.

Chrysler suffered 2006 operating losses of 1.12 billion euros ($1.47 billion) and instigated a reformation plan that will lead to a slash of 13,000 jobs and closing of a plant as the troubled-company tries to return to profit by 2008.

Zetsche refused to comment on fresh reports that two private-equity firms, Cerberus Capital Management and Blackstone Group, had contacted DaimlerChrysler about Chrysler.

Rick Wagoner, Chief Executive of General Motors Corp, refused to give any indication on the world's largest automaker’s interest in Chrysler. "There's nothing we want to say about it," he told reporters at the Geneva show.

The finances of Chrysler group have been hurt as higher fuel prices kept the consumers from buying pickup trucks and SUVs. Zetsche claimed to be looking for the best future for Chrysler and DaimlerChrysler.