Wednesday, August 29, 2007

Chrysler may sell or close two units - report

AFX News Limited
LONDON (Thomson Financial) - Chrysler LLC has proposed selling or closing its parts unit Mopar and Chrysler Transport, which manages deliveries of supplies to the carmaker's plants, the Wall Street Journal reported.

The newspaper, citing people familiar with the matter, said the possibility was raised by the company in contract talks with the United Auto Workers.

It said Mopar, which produces high performance and speciality auto parts, and Chrysler Transport together employ about 1,300 people.

The union is opposing the move and talks are continuing.

Chrysler is 80 pct owned by private-equity firm Cerberus Capital Management LP, with the rest held by its former parent, DaimlerChrysler AG (nyse: DCX - news - people ).

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