General Motors is unlikely to make a first-round bid for the Chrysler group, leaving just private equity firms and auto parts supplier Magna International in the running, a “source familiar with the matter” told a news agency on Wednesday.

GM is more likely to keep watching the bidding process and consider buying any spare assets that buyout firms do not want, the source told Reuters.

The news agency said its source was speaking after a report in London’s Times newspaper which, citing unnamed sources close to the talks, said GM has decided against making a bid because the company felt it had no need for the extra capacity.

Bid proposals are due to be submitted this Friday, 30 March, according to the newspaper.

According to Reuters, sources familiar with the matter have said that US investment bank JP Morgan Chase is advising DaimlerChrysler on the possible sale of the Chrysler group.

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People familiar with the matter have in the past told the news agency that buyout firms Cerberus Capital Management and Blackstone Group, which has teamed up with Centerbridge, and Ontario-based auto parts supplier Magna International have emerged as leading candidates for the Chrysler group.

GM also has spoken to Chrysler about expanded cooperation in vehicle development or a potential acquisition, according to those familiar with the talks, Reuters added.