General Motors News - Jalopnik releases rendering of C7 ZR1

[nthfinity]

http://biz.yahoo.com/ap/081011/gm_ch...ger_talks.html

AP Reports: Chrysler, GM discuss merger, acquisition Saturday October 11, 1:31 am ET Reports: Chrysler, General Motors discuss merger or acquisition of Chrysler by GM DETROIT (AP) -- 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.

I don't see the merger happening. GM couldn't viably "absorb" Chrysler without destroying 1/3 Jobs in s/e Michigan in the wake, and the Gov. intervening; and Cerberus retiring in haste to the Cayman Islands.

I'd say GM is ONLY interested in the Jeep brand... other options would be for platform sharing.

[RC45]

Makes no sense for this to happen

[HeilSvenska]

No. It shouldn't happen. And won't happen. Unless for some crazy reason, GM execs didn't learn anything from the FIAT fiasco. Additional bulk when downsizing is necessary = corporate suicide.

[10000rpmlover]

that would be like buying direct competition and utter suicide...

the challenger and the camaro under same brand... well tough choice there

I see lots of jobs lost in this merger, hope it never happens

[styla21]

Originally Posted by 10000rpmlover I see lots of jobs lost in this merger, hope it never happens

Merger or not, appears that will be necessary regardless.

This rumor is heating up.. Wonder if it has traction? Watch this space.

[HeilSvenska]

^Nah. They had rumors like this before. Renault/GM ring any bell? It didn't happen, and it won't happen. I personally think that Chrysler has nothing to offer GM.

[nthfinity]

Originally Posted by HeilSvenska ^Nah. They had rumors like this before. Renault/GM ring any bell? It didn't happen, and it won't happen. I personally think that Chrysler has nothing to offer GM.

its not the first time in 12 months that GM and Chrysler had talks of merger. GM would not offer more than what they did last time, which was peanuts.

[nthfinity]

GM suspending most product development for 2009, and 2010. And reducing engineering as well....

[HeilSvenska]

DETROIT (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) is delaying planned spending on product development for 2009 and 2010 in a bid to save cash, Automotive News reported on Wednesday.
The reduced spending, along with cuts to design, engineering and research budgets, could delay the launch of vehicles such as the Chevrolet Cruze, a fuel-efficient, small sedan that GM has touted as crucial to its turnaround effort, the newspaper said.
Automotive News quoted an unnamed person familiar with GM's plans as saying the cutbacks were aimed at saving as much as $1.5 billion.
GM spokesman Tom Wilkinson said the automaker was reviewing its spending because of an industry-wide slump in sales, but declined to discuss whether specific vehicle programs such as the Cruze could be delayed as a result.
"We look at our portfolio on a monthly basis," he said. "We are looking at our capital spending in the midst of the industry downturn."
Wilkinson said GM was pushing ahead with development of the highly anticipated Chevy Volt, an all-electric car scheduled for release in 2010.
In May, GM scrapped development plans for a replacement platform for its full-size SUVs like the Cadillac Escalade because of a sharp and continued drop in demand for full-size sport utility vehicles.
More recently, GM has announced a series of stepped-up cost cutting as it battles to shore up its cash position amid a global slump in auto sales that threatens to overrun its restructuring plans.
In an unusual step also driven by cost cutting, GM said earlier this month that it was pulling two new models it had planned to display at the Los Angeles Auto show.
Without new borrowing or asset sales, GM is in danger of running dangerously low on cash in 2009, analysts have said. GM ended the second quarter with $21 billion in cash and has been burning through more than $1 billion per month. It needs a minimum of $11 billion to run its operations, GM has said.
The automaker has been in talks with Cerberus Capital Management since September about a merger with Chrysler LLC, the struggling No. 3 U.S. automaker owned by Cerberus.
GM has asked the government for $10 billion to support that transaction, which could also include a transfer of its remaining stake in finance company GMAC to Cerberus, sources familiar with those discussions have said.

[79TA]

I reeeeeeaally hope this merger never occurs. Chrysler would get chewed up and spit out and GM owning Jeep would just be weird.

[bluedemon]

Originally Posted by 79TA I reeeeeeaally hope this merger never occurs. Chrysler would get chewed up and spit out and GM owning Jeep would just be weird.

Here's the thing though if they don't merge then I think the posibility of Chrysler going under is increased ten fold. I used to work for Roush Industries test driving cars and most of them were from Chrysler and my mom now works for them and they are terrified of losing their jobs because of this merger. It's strange for sure.

[nthfinity]

Originally Posted by bluedemon Here's the thing though if they don't merge then I think the posibility of Chrysler going under is increased ten fold. I used to work for Roush Industries test driving cars and most of them were from Chrysler and my mom now works for them and they are terrified of losing their jobs because of this merger. It's strange for sure.

Nope, GM is going to determine that it's not in their interest to take on a severely ailing Chrysler; and Chrysler will receive a second bailout; or, will be bought out by foreign entities.

[79TA]

Originally Posted by bluedemon Here's the thing though if they don't merge then I think the posibility of Chrysler going under is increased ten fold. I used to work for Roush Industries test driving cars and most of them were from Chrysler and my mom now works for them and they are terrified of losing their jobs because of this merger. It's strange for sure.

My neighbor across the street used to test drive for Roush until a couple of years ago. I just don't see Chrysler coming out of the merger very gracefully.

[nthfinity]

Michigan Economic Development Cooperation has announced a "city hall" style meeting for citizens of cities with either GM or Chrysler buildings within the city.

Stupid senator Levin says "supports the move to merge" and will cause "fewer job losses"

Expect 20,000 jobs to be lost. In Michigan alone.

From what I'm told, GM is against the move; however, it seems there are extrinsic forces behind the merger that are forcing the hand to be dealt.

This is the beginning of the end.

I suspect an announcement of the merger will come as early as Monday of next week.

[nthfinity]

GM / Chrysler merger is officially "off the table"

GM only has enough cash at the current rate to last through mid 2009.