Reuters talks to portfolio managers and strategists to find what's on the horizon. Learn how to position your portfolio in the year ahead. Full Coverage
Chrysler CEO: No comment on GM, bailout need unclear
DETROIT (Reuters) - Chrysler LLC's top executive on Thursday declined to comment on rumors of merger talks with General Motors Corp GM.N and said it was unclear if the company will need a government bailout.
"I think we are seeing an unbelievable contraction and obviously the speculation and the rumors around that is kind of due course," Chief Executive Bob Nardelli said on CNBC. "It is normal, any time you have this kind of economic pressure you are going to see consolidations, you are going to see partnerships, you are going to see alliances."
Nardelli said Chrysler has been open about seeking potential partners, but that his main focus is returning the automaker to profitability.
He added that given the ongoing downturn in U.S. auto sales, it "remains to be seen" if Chrysler will need a bailout from the U.S. government.
Sources say Chrysler is talking to GM and French automaker Renault SA (RENA.PA) on a series of potential deals that could mean the break-up of the No. 3 U.S. automaker. N16394740
Chrysler's CEO said that U.S. light vehicle sales are trending near 12 million units on an annualized basis.
"Last month, we ended with a seasonally adjusted rate of about 12.8 and there are forecasts out there that the year could end at 13 million," he said. "Right now the ... numbers have us just slightly above 12 million."
Nardelli added that the availability of credit has now replaced the price of gasoline as the main concern of U.S. consumers.
"Credit is paramount in the consumer's mind right now," Nardelli said.
(Additional reporting by David Bailey and Kevin Krolicki; Editing by Gary Hill)
