Rather than being tapped to fend off a rumored hostile takeover, the two banks have been retained to study possible disposal of non-core assets. But an outright sale of Chrysler, bought just over two years ago, is highly improbable, these people say. Some critics suggest he should resign if Chrysler's problems continue to drag down the entire company. Deutsche Bank, DaimlerChrysler's largest shareholder, has maxed out the amount it can lend the company under German law and has said it wants to start selling some of its stake next year. Chrysler announced Monday that it will lay off 26,000 workers and idle six plants to stem growing losses.
Some investors say deeper cuts are needed.
Analysts say that while an outright sale of Chrysler is highly improbable, DaimlerChrysler may consider selling some of its parts. I think Plan B would have them examining an exit strategy that would be to maximize the value of the Chrysler divisions. Some companies, including General Motors and Ford, have expressed interest in parts of Chrysler.