Is Magna kicking Chrysler's tires?

It has been rumored for some time that DaimlerChrysler, the parent of the Chrysler Group, would like to sell, (read unload) the money losing division. Chrysler lost $1.5 billion last year.

Magna is a first tier auto parts supplier, who's number one customer is Chrysler. Given the decline in the US auto industry combined with Magna's desire to expand in the assembly business, the match could have some positive results. Accordingly, Magna has lined up Wolfgang Bernhard, a prominent global auto exec, spoken with the CAW and UAW, and met with Deiter Zetsche, (CEO of the parent group). The benefits to Magna, (debt-free, with cash reserves of $1.6 billion) are: a) they could probably pick up the Chrysler group and its assets dirt cheap, b) would provide a guaranteed source for the parts and assembly. On the downside Magna would have to assume Chrysler's pension and healthcare legacy costs, sitting at about $16 billion, and put Magna in direct competition with two of it's biggest customers, Ford & GM. It will be interesting to see how this all works out, after all Frank Stronach is very sharp, business wise.