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Chrysler, GM have merger talks: sources
- Text size
Kevin Krolicki and Jui Chakravorty Das
Reuters
October 12, 2008
DETROIT/NEW YORK (Reuters) – Chrysler LLC has had talks with General Motors Corp about a deal to combine the No. 1 and No. 3 American automakers at a time when both are struggling to cut costs and shore up cash, according to three people familiar with the matter.
- A d v e r t i s e m e n t
Talks between Chrysler’s majority owner, Cerberus Capital Management LP, and GM began several weeks ago and were initiated by the private equity fund, according to the people familiar with the talks, who spoke on condition of anonymity.
But the talks got hung up on the question of how to value Chrysler’s loss-making auto operations, which include the Chrysler, Dodge and Jeep brands, two of the sources said.
At the center of the proposed deal was a swap with GM that would give the private equity firm the 49 percent stake in GM’s finance company GMAC that it does not already own. In exchange, Cerberus would hand over the Chrysler auto business to GM.
But GM rebuffed that offer because it saw it as overpaying for Chrysler. It would also have meant taking on the challenge of cutting overlapping brands, dealerships, factories and union-represented workers, one source said.
Cerberus bought an 80.1 percent stake in Chrysler from Daimler AG in 2007 for $7.4 billion. It paid the same amount to GM in 2006 for a 51 percent stake in GMAC.
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October 12th, 2008 at 10:36 am
Who is Cereberus? are they owned by the 13 families? I know it’s probably a stupid question. But I see the consolidation of the mega corps in this & want to be sure. The name is interesting considering Cereberus was a many headed monster dog
October 12th, 2008 at 10:42 am
Who is this ‘Cerberus Capital Management LP’? I don’t fucking believe how you can have so many people that don’t like working,or getting thier hands dirty! I think the LP stands for LAZY PEOPLE!
On a LIGHTER NOTE, now you will be able to buy a Dodge Truck with either a ‘Cummins’ or a ‘Duramax’, and likewise if you buy a Chevy or GMC Truck!
October 12th, 2008 at 10:52 am
GM is close to being bankrupt… wtf… watch they’ll want a bailout next followed by Ford
October 12th, 2008 at 11:36 am
GM already got 25 billion , which was snuck into a military bill. And that happened 2 weeks ago.. I think the real problem is that we don’t have the money yet. Those printing presses are prolly working overtime right about now. They might have to start printing 1000 dollar bills again or bigger. Face it, we are broke.
October 12th, 2008 at 2:20 pm
YES! T888. Response#1. My guess is that it is the Illuminatti!
During the COLD WAR,we used to make fun of the USSR because they only had 1 or 2 makes of Cars!
THIS IS JUST TO FUNNY!
October 12th, 2008 at 5:34 pm
T888: Wiki Cerberus…The Name means “The Hound of Hades!!!” Now isn’t that special!!! I would say ‘Apropo’ seeing OUR current BuLLLshit!!!! Yes 3 L’s!!!!!!!! “All ‘HAIL’ Thermal Expansion!!!”
October 12th, 2008 at 6:56 pm
Cerberus indeed is a three headed hound, a very very large hound at that, of hell. It’s from Greek mythology and was the gate keeper of Hades to prevent the souls of the dead from escaping and anybody living from entering. He also had a snake for a tail to strike anyone who tried to attack from behind.
I get a kick out of how a company was named such a thing.
October 12th, 2008 at 7:48 pm
It really shows how bad things are when 2 of the greatest american companies like this which have each been in business for over 100 years are in finacial trouble. It’s really a shame, people in that company have worked their butts off to build it to what it is and our government couldn’t give a crap less, Americans should be ashamed that this is happening.
October 12th, 2008 at 9:55 pm
Americans don’t care about Ameica, they only care about SUVs, big screen TVs, American Idol and whoring themselves out to each other.
As much a patriot as I am and as much as I want to take up arms to restore the republic, 95% of Americans don’t deserve my time or effort
October 13th, 2008 at 9:42 am
Gee Alex, am i being censored?… you guys whining about all the “censorship” on infowars sure look dumb when your comments are eventually posted. as if Alex has nothing better to do than go through all these comments and extract the ones he personaly doesnt like. instead of checking every 10 minutes to see if your fantastic wisdom made it on this message board, go get a life , girlfriend, or something. Get it through your head ALEX IS NOT YOUR ENEMY. ( unless your on the wrong side)
October 13th, 2008 at 10:13 am
With GM’s already tremendous pension liability and with the auto market set to contract by an estimated one million units next year, these “merger talks” sound more like a couple of zoo-keepers foolishly venturing into an angry gorilla’s cage and taking bets as to whose back the 600- pound Big Fella is going to jump on first…