Reports: GM, Chrysler hold merger talks
N.Y. Times reports preliminary talks; Wall Street Journal says talks on hold

DETROIT - General Motors Corp. and Chrysler LLC have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to published reports late Friday.

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.




"Only two things are infinite, the universe and human stupidity, and I'm not sure about
the former." - Albert Einstein

Something like this can only play into GM hands in a good way.

1. Ditch GMAC with the recession on hand.
2. Take Chrysler, and along with it its technology, and natural competitor in its car segments.
3. Nissan buying Dodge trucks



My Cav
I give up...
i'm buying a VW those people love trees, so they should love eachother too... "Andy"

I'd much prefer Chrysler to be bought by GM than by Renault, who's also circling the pentastar. However, I'm just wondering if GM will let the Dodge or Chrysler brands live. They'll want to keep Jeep for sure, but the other two are highly questionable. GM's already talking about cutting one of their own companies like Buick or maybe even Pontiac, yet they'd buy Dodge and Chrysler? Sounds fishy.

One thing is for sure though, GM quality would definitely help Chrysler.

Also, I seriously think Ford, GM and Chrysler need to sit down and have very serious talks about sharing parts and technology. There's a long hard winter coming for carmakers throughout the next couple of years and combining ressources could do a lot of good.

If they merge or Chrysler is bought by GM, two brands will be going the way of the Dodo. Hummer and Chrysler. Dodge might be around for a few years but eventually it will probably be done away with as well.

Everybody probably hopes Cerberus remembers Renault's last ventue in an american automotive brand, AMC, and that disaster.

Or Cerberus could be looking at the success it's has had in turning around Nissan. Guess you forgot about that.

I think GM doesn't needs the train wreck that is Chrysler. They make pretty cars that are total garbage....basically Chrysler makes disposable cars. Only meant to shine through 3 year leases. Gm doesn't need anything from them, they already knew how to build sh*tty cars. GM is past that and on their way to building world beating cars. Why would they want Chryslers technology on how to build good looking cars that take a dump on you in 3 years???

This is the worst possible idea for GM. If anything allowing Chrysler to go belly up only helps them. If Renault buys Chrysler they could completely turn it around, make the cars reliable, solid, improve build quality and actually then hurt GM. If anything I think GM should buy them and cancel all divisions except Jeep, that way they can ensure nobody gets Chrysler and makes it a threat to GM.



"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net

GM could totally ruin Jeep. They could turn it into another retarded hummer derivative..






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