GM / Chrysler discuss merger?

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GM / Chrysler discuss merger?

Post by Winston Cup »


http://money.cnn.com/news/newsfeeds/art ... 739769.htm

Reports: Chrysler, General Motors discuss merger or acquisition of Chrysler by GM
October 11, 2008: 01:31 AM EST


NEW YORK (Associated Press) - General Motors Corp. and Chrysler LLC have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to published reports Saturday.

The Wall Street Journal, citing people it described as familiar with the discussions, said Cerberus Capital Management, the private equity firm that owns 80.1 percent of Chrysler and 51 percent of GMAC Financial Services, proposed trading Chrysler's automotive operations to GM. The Journal said Cerberus would receive GM's remaining 49 percent stake in GMAC.

The New York Times, also citing people familiar with the talks, said the automakers were discussing a merger. The Times did not mention GMAC, a traditional auto lender hit hard by the housing market downturn.

The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize because both GM and Cerberus want to quickly divest the assets under discussion.

The negotiations between 100-year-old GM and 83-year-old Chrysler began more than a month ago, according to the Times. Its sources said the chances of a merger were "50-50" as of Friday and likely would take weeks to complete.

Both newspapers posted their stories on their Web sites late Friday.

"Without referencing this specific rumor, as we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Tony Cervone said.

Chrysler spokeswoman Shawn Morgan declined comment.
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Re: GM / Chrysler discuss merger?

Post by RAD4EVER »

Winston Cup wrote:

http://money.cnn.com/news/newsfeeds/art ... 739769.htm

Reports: Chrysler, General Motors discuss merger or acquisition of Chrysler by GM
October 11, 2008: 01:31 AM EST


NEW YORK (Associated Press) - General Motors Corp. and Chrysler LLC have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to published reports Saturday.

The Wall Street Journal, citing people it described as familiar with the discussions, said Cerberus Capital Management, the private equity firm that owns 80.1 percent of Chrysler and 51 percent of GMAC Financial Services, proposed trading Chrysler's automotive operations to GM. The Journal said Cerberus would receive GM's remaining 49 percent stake in GMAC.

The New York Times, also citing people familiar with the talks, said the automakers were discussing a merger. The Times did not mention GMAC, a traditional auto lender hit hard by the housing market downturn.

The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize because both GM and Cerberus want to quickly divest the assets under discussion.

The negotiations between 100-year-old GM and 83-year-old Chrysler began more than a month ago, according to the Times. Its sources said the chances of a merger were "50-50" as of Friday and likely would take weeks to complete.

Both newspapers posted their stories on their Web sites late Friday.

"Without referencing this specific rumor, as we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Tony Cervone said.

Chrysler spokeswoman Shawn Morgan declined comment.
Months back I had put the question to the membership as to wither Chrysler/Dodge will exist in the next 2-3 years?
Guess we know when they file for protection and sell (Rid) off it's lead weights next year?
What does GM need from C/D?
Not much other than to eliminate a competitor?

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Re: GM / Chrysler discuss merger?

Post by tomjeeps2 »

I've heard nothing of this via the Chrysler rumor mill, make no sense the company just got out of one, just like I can't understand why all the banks are trying to take each other over. As far as why in general some of us dreamed up a theory around the water cooler, with all these bail out deals the new goal is, it don't matter who with since we're all broke but get so big the Government has to bail you out...TJ
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Re: GM / Chrysler discuss merger?

Post by tomjeeps2 »

Paulson to GM-Chrysler: No Bailout for You!
Posted Oct 31, 2008 01:56pm EDT by Aaron Task
Related: GM, F, NSANY, TM
Apparently there are limits to the government's bailout bonanza after all.

After funding bailouts and backstopping deals for a number of banks, brokers, GSEs and insurance companies, the Bush administration will not provide funding for a GM-Chrysler merger, Reuters reported early Friday morning.

As with all things related to the autos, this is a highly polarizing issue.

On the one hand, a lot of jobs are potentially at stake here. Earlier this week, six governors sent a letter to Secretary Paulson and Fed Chairman Bernanke encouraging government funding for the deal, citing the following:

355,000 Americans are directly employed by GM, Chrysler, and Ford.
4.5 million Americans work in sectors supported by the auto industry.
Over 2 million Americans received healthcare benefits from the "Big 3."
775,000 retirees and their survivors receive pension payments from the industry.
On the other hand, government support for a GM-Chrysler merger can't guarantee the jobs of current employees or the benefits of retirees. Even if you could set aside complicating issues like union contracts and the quality of the cars being made in America, automakers around the world are struggling right now with a slowing global economy, including industry leader Toyota and Nissan, another potential partner for Chrysler.

In addition, a government-sponsored deal will help private equity firm Cerberus Capital, which bought a majority stake in Chrysler at arguably the worst possible time.

At this point a GM-Chrysler deal appears to be on hold, at least until after the election. But this political and economic football can only be kicked down the field so far, and for so long.
Gees...TJ
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They are lead by the even fewer that step up.

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Re: GM / Chrysler discuss merger?

Post by ChoppedLiver »

IMO if this happens it will spell the end of Dodge as a brand. I believe Chrysler will still exist and their unique models will remain or it could merge with Buick. Not even rumor, just my gut. As far as my opinion of it goes, i think it's a bad idea for GM especially.

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