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Chrysler on the Auction Block

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According to the U.K.’s Times, U.S. investment bank JPMorgan is preparing to start an auction of the Chrysler Group on behalf of DaimlerChrysler. It was rumored that Hyundai may have been interested in buying the troubled automaker, but those rumors have been denied. That leaves GM as the only company currently interested in acquiring the group (not confirmed). It is rumored that GM is basically interested in Jeep and Dodge, but will buy the whole group if it is necessary. It is estimated that if it does go up for sale the Chrysler Group could go for $13 billion.

According to Merrill Lynch the move by GM could be a "defensive maneuver". By buying Chrysler they would be eliminating part of their direct competition. This would also ensure that GM would remain the number one company, ahead of Toyota.

Shouldn’t GM focus on fixing the problems that they currently have before they add even more? The only thing that Chrysler could bring to the mix is their minivans (a declining market) and the Hemi engine.