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What Chrysler Could Add to GM

Bargaining Leverage, Car Lines Would Increase, But Costs Are an Obstacle

General Motors Corp. is flirting with the idea of acquiring DaimlerChrysler AG's Chrysler Group, but it would face massive challenges if it were to take over its longtime rival.

Both GM and Chrysler have excess manufacturing capacity in North America, more U.S. dealers than they need and enormous and rising health-care bills for union workers and retirees. For GM, a purchase of Chrysler "makes no sense to me," said Peter Nesvold, an auto-industry analyst at Bear Stearns Cos.