Is this a GM Chrysler Buy Out?
Update -October 16th 2008 – General Motors reported that one plan they had while in talks with Chrysler/Cerberus was to absorb the company, phase out similar models and eventually demolish the Chrysler and Dodge tags all together. GM would keep Jeep and Chrysler’s minivan line (because let’s be honest, how many Uplanders do you see going around?) – GM would gain Chrysler’s $11 billion in cash and remove a competitor who accounts for 1.5 million units per year.
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Over this past weekend news leaked that General Motors was in talks with Chrysler parent company Cerberus Capital Management LP about a possible merger. And if the merger won’t happen, GM may just go ahead and buy Chrysler all out.
Talks of a merger unofficially began last month, but Chrysler officials deny any such buy outs are open for discussion. Citing a rebuttal from Cerberus, Chrysler is not in the practice of making their potential business matters public. They claim to be exploring many “global partners” in light of hard financial times, both in the stock market and throughout the automotive industry.
One theory claims that if not for the recent financial-apocalypse this supposed merger might have gone through. Parent company Cerberus would have ended up owning a major chunk of the combined ChrysGM-hybrid, but now would not be sole proprietor.
Negotiations between the 100 year old General Motors and the 83 year old Chrysler may restart if the stock market can bring itself back up. Needless to say a team-up between these automotive giants would be one of the largest in the industry.
With the possible combination of CDJ and all GM makes, would we one day drive past our local Chrysler-Dodge-Jeep-Chevrolet-Buick-Pontiac-Cadillac-GMC-HUMMER dealership? All those car sales persons are going to have to learn a lot more about makes and models. Can we call the new company ChrysGMuickPontiHUMCHevillacDodgJeep?
I just can’t see why one company that’s losing a million bucks a day would want to merge with another company that’s losing two million bucks a day!?
I love Chrysler adn HATE GM!!!! I hope this does not happen!!!!
I am affraid that the jobs lost will be in the thousands and the country does NOT need this right now!!!!
I pray to God that this does not happen!!!!
I hope they can merge and not buy out chrysler.
Not sure how this would work out. Probobly would call for job cuts and a lot of layoffs which your right this is not what this country needs. All the domestic automotive car companies need to do something though. They are all in trouble. They need to focus on fuel efficiency. Somthing they have always lacked in my opinion. Going back to what I previously said, they are all ready making jobs disapear when they send jobs overseas. I used to work at Delphi automotive in Wichita Falls, TX and the plant shut down because the union drove the wages up to high so they sent the work to Mexico. Something is wrong here.
I REALLY HOPE THIS HAPPENS SO GM IS BIGGER WHO CARES IF CHRYSLER IS GONE GM IS SO MUCH BETTER
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