SAIC seen as having best chance to buy the struggling DaimlerChrysler unit
Three mainland carmakers have separately begun talks with DaimlerChrysler about potentially buying its United States-based Chrysler unit in order to speed up their global expansion, according to sources.
Shanghai Automotive Industry Corp (SAIC), Jilin-based FAW Group Corp and Anhui-based Chery Automobile have joined carmakers from around the world in early talks with the German company about acquiring all or part of the third-largest US carmaker, the sources said.
They did not say whether any of the mainland players were planning to be part of a joint bid with foreign rivals.
Among the mainland competitors, US industry players rate Shanghai-listed SAIC, the country's largest carmaker, as having the best chance to take over the struggling Chrysler, due to its easy access to the capital market and experience in buying global carmakers.
In 2004, it bought South Korean sports utility vehicle maker Ssangyong and the intellectual property rights for Rover 25 and Rover 75 from bankrupt British-based MG Rover.
While there is always a concern about a mainland company taking over a US icon - even a faded one such as Chrysler - analysts generally agree that if SAIC or one of the other two mainland companies offered the highest bid for the US firm, or was part of a consortium that did, it would have a chance of winning.
