"Today's action by DaimlerChrysler is devastating news for thousands of workers, their families and their communities," United Auto Workers President Ron Gettelfinger and Vice President General Holiefield said in a joint statement. "While Chrysler Group's recent losses are not the fault of UAW members, they will suffer because of the reductions announced today."

"We believe that this represents a solid plan to return to profitability and lay the groundwork for a solid future," Chrysler CEO Tom LaSorda said at a news conference.

DaimlerChrysler Chairman Dieter Zetsche, asked repeatedly about a potential sale or partners for Chrysler, refused to comment.

"I cannot and will not go into any further detail about the announcement we made today," he said during a news conference.

"In this regard we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler," Zetsche said.

Zetsche acknowledged feeling pressure about Chrysler, which the company said was a drag on its parent's earnings. But as recently as last year, Chrysler was helping to prop up Mercedes, which only recently recovered from lagging quality and profits.

Jeremy Anwyl, president of the Edmunds.com automotive information Web site, said potential buyers for Chrysler would be limited because of the price tag. He speculated that the company would be attractive to a Chinese automaker because it has a dealership network that could distribute China-built cars in the U.S. Chrysler Group and China's Chery Automobile Co. late last year agreed on a plan for the Chinese manufacturer to build small cars to be sold worldwide.

Nissan Motor Co. and Renault SA also could be suitors because Chrysler is strong in products such as minivans and trucks where Nissan is relatively weak, Anwyl said.

And several private equity groups recently have poured billions into troubled auto parts makers.

"There's so much money in terms of the private equity funds across all industries right now," Anwyl said. But if such a purchase took place, the firms would have to demonstrate quick results, something unlikely with Chrysler, Anwyl said.

Gerald Meyers, a former auto executive who teaches at the University of Michigan, said DaimlerChrysler's work to develop and integrate common vehicle platforms and components suggests the divorce would be unlikely.

"Once you've scrambled those eggs, it's really murder trying to separate them. I think Zetsche's decided to tough it out and try to make his plan work," Meyers said.