DETROIT, Feb. 16 (UPI) -- General Motors Corp. is negotiating to buy DaimlerChrysler's troubled U.S. Chrysler Group, a published report said Friday.
The high-level talks are still preliminary, the trade publication Automotive News Europe reported, attributing its story to sources in Germany and the U.S. whom it did not identify.
Both DaimlerChrysler and GM would not comment on the report.
Germany's Manager magazine said the talks included GM Chief Executive Rick Wagoner and DaimlerChrysler CEO Dieter Zetsche. Zetsche said Wednesday DaimlerChrysler was considering all options for the ailing Chrysler division and was no longer ruling out a sale.
Klaus Franz, GM's top European union official, said buying Chrysler would be a "disaster."
"The problem is that Chrysler is in the same situation as GM," Franz told Automotive News Europe. "They don't have the right product portfolio."
DaimlerChrysler said Wednesday Chrysler lost $1.5 billion in 2006 and would cut 13,000 jobs, close a plant, cut production at others and pursue partnerships with other automakers.
Chrysler and GM also are reported in talks about jointly producing vehicles, including a large sport utility vehicle similar in size to the Chevrolet Tahoe.
