OTTAWA - Auto-parts giant Magna International Inc. is considering a bid for troubled Detroit auto maker Chrysler, its biggest customer, the Canadian firm said Friday.
In a statement, Magna said it "continues to review potential alternatives regarding the future of the Chrysler Group."
"Magna has previously commented that, as DaimlerChrysler is one of its largest customers, Magna is seeking a full understanding of the situation regarding the future of the Chrysler Group, and any constructive role Magna may play in a potential transaction."
But, the company added: "There is no assurance that any transaction will result from Magna's current involvement."
DaimlerChrysler AG recently put its American unit up for sale amid shareholder discontent over its continuing losses since the merger of Germany's Daimler and Chrysler in 1998.
Making seats, trim, suspension and engine components for virtually every Chrysler vehicle manufactured in North America generates about 3.6 billion dollars for Magna, or about 15 percent of its annual revenues.
In Austria, Magna also builds entire cars for DaimlerChrysler.
Thursday, the Globe and Mail newspaper quoted Magna chair Frank Stronach as saying he was wooing investment firm Onex Corp., headed by his friend Gerald Schwartz, to help him launch an all-Canadian bid for Chrysler.
"We'd like to have some partners and Gerry would be a good partner," Stronach told the Toronto-based newspaper.
"We would make a big commitment," he added, indicating that the offer would be "a big sum." But he would not overpay, saying: "I wouldn't jeopardize Magna."
The Globe and Mail said DaimlerChrysler wants at least eight billion dollars for Chrysler, but Magna and Onex would also likely have to assume pension and health liabilities topping 15 billion dollars.
Meanwhile, Stronach's daughter Belinda quit Canadian politics Wednesday to help steer the family business.
In a statement, the blonde bombshell who once challenged Prime Minister Stephen Harper for leadership of the Conservatives as a rookie glad-hander, said she would rejoin Magna as executive vice chairman.
In an interview with public broadcaster CBC, she said: "It's a significant time in the Canadian auto industry ... and I want to be a part of that."
04/13/2007 14:34 GMT