Treasury working on aid for GM, Chrysler merger
GM-CHRYSLER MERGER TALKS
WASHINGTON (Reuters) – The U.S. government is considering direct financial assistance to facilitate a possible merger between General Motors Corp (GM.N) and Chrysler LLC, a private sector source familiar with Treasury discussions told Reuters on Monday.
The Treasury Department is weighing aid of at least $5 billion, which could include capital injections and government purchases of bad auto loans, according to the source, a financial policy executive who spoke anonymously because the discussions are private.
Emergency financing, at least initially, most likely would be focused on GM and Chrysler and not Ford Motor Co (F.N), which is struggling but still better off financially than its U.S. rivals, the source said.
A Treasury decision could come this week, the source said.
READ MORE http://news.yahoo.com/s/nm/20081027/bs_nm/us_financial_gm
UPDATE OCT/31/08
GM-CHRYSLER MERGER TALKS
Sources: GM, Chrysler merger on hold
A deal to merge General Motors and Chrysler has hit an impasse after the Bush administration ruled out funding for it, three people with direct knowledge of the talks said. This puts any merger of the struggling automakers on hold until after the U.S. presidential election, the sources said. » Read Article [REG] 1:00 am U.S. ET |
October 29th, 2008 at 5:01 pm
Source: GM, Chrysler resolve major issues
WASHINGTON — General Motors Corp. and Cerberus Capital Management LP have resolved key issues over a deal for the Detroit automaker to acquire Chrysler LLC, but are still trying to hammer out financing, a person familiar with the matter said Wednesday. - 4:32 pm
http://www.detnews.com
October 29th, 2008 at 5:05 pm
Analyst: GM-Chrysler deal could cost 35,000 jobs in Michigan
The automotive market cannot sustain three Detroit car companies, making a merger of General Motors Corp. and Chrysler LLC a more palatable option for the industry than allowing one of the Big Three to go bankrupt, Patrick Anderson, principal and CEO of Anderson Economic Group said today. - 10/29/2008
http://www.detnews.com
October 29th, 2008 at 5:21 pm
Reuters: Major issues resolved in GM-Chrysler talks
Wagoner said to lead combined automaker if deal gets financed
http://www.autonews.com\
October 29, 2008 - 1:00 pm ET
UPDATED: 10/29/08 5:03 p.m. EDT
DETROIT (Reuters) — General Motors and Cerberus Capital Management LP have resolved the major issues in a proposed GM-Chrysler merger but the final form of any deal will depend on the financing and government support available, sources familiar with the talks said today.
As a condition of government support, GM has offered to merge the auto operations in a way that protects as many jobs and as much of the Chrysler sales volume as possible, sources have said.
http://www.autonews.com\