DaimlerChrysler denies plans for stake in Volkswagen

[Infiniti Z350]

BERLIN (AFP) - Car maker DaimlerChrysler denied press reports that it was planning to buy into rival Volkswagen and make a deal involving possible cross-shareholdings.

"We will not take any Volkswagen shares," said a DaimlerChrysler spokesman after the Frankfurter Allgemeine Zeitung (FAZ) said the two car makers were talking about the possibility of acquiring cross-shareholdings.

The FAZ said the German-US giant could acquire a 10-percent stake of Volkswagen while the Wolfsburg-based company would take 6.9 percent of DaimlerChrysler shares which are currently being held by Deutsche Bank.

The spokesman said that the two companies had disccused a possible tie-up for years but added that the talks had come to nothing.

Volkswagen has for years been looking for a stable shareholder who would protect Europe's biggest car maker from a hostile takeover.

Last week luxury sports car maker Porsche announced that it aims to raise its stake in VW to from 10 to 20 percent.

The aim of that move was to secure Porsche's supply of parts from VW and to protect VW against possible hostile takeovers.

The DaimlerChrysler spokesman said Volkswagen and DaimlerChrysler had a number of projects for cooperation but would not give details.

More: http://news.yahoo.com/s/afp/20051001...yslervwporsche

[T-Type]

DCX would have to be crazy to do something like this. They have their hands full just to get Mercedes straightened out. They shouldn't be getting involved with the likes of a troubled VW.

If this turns out to be true, I would say this is another German thing, like the Porshe/VW deal. More about helping out a fellow German company rather than a good business deal.

[ChevroletRevived]

Yes..I agree T-Type. To quote Edmunds...It looks like the Germans are circling their wagons! I don't think it's real smart for them to do, but it looks like the Germans are helping each other out. And how many times has a company or someone denied something and it turns out to be true?

[member12]

Isn't Volkswagen AG in more trouble financially then GM or Ford? In fact, I think I read a few months ago in Motor Trend that the only cars they make profit with are a couple of Audi models.

[tgagneguam]

Yes, let's spend our limited cash on each other's shares.

[AJR]

Originally Posted by tgagneguam

Yes, let's spend our limited cash on each other's shares.

Yes, let's......

[Stéphane Dumas]

I could imagine the following, VW could sell for pinch of salt, some of their overseas operations like Brazil to DCX however (Ironically Chrysler solded their Argentinian and Brazilian plants to...VW in the late 1970's)