ˆ GM, Chrysler holding merger talks again? Or not...

tags : cerberus , cerberus capital management , cerberus chrysler gm , cerberuscapitalmanagement , cerberuschryslergm , chrysler gm , chrysler gm merger , chryslergm , chryslergmmerger , gm chrysler , gm chrysler merger , gmchrysler , gmchryslermerger

Can this really be happening all over again? Weeks after merger talks between Chrysler and GM seemed to implode, the companies may be talking about hooking up again, according to the Wall Street Journal. General Motors Corp. and Chrysler LLC have reportedly stepped back into the negotiation room after Chrysler owner Cerberus Capital Management LP said that maybe, just maybe, it's willing to give up some ownership in the Pentastar. In fact, it may be that Cerberus has started this latest round of talks to show Washington it's willing to play nice with the other kids to secure part of a $14 billion rescue package that's on the table.
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posted : 12/22/2008 @8:18:31 PM

ˆ Rumormill: Chrysler cancels development of Phoenix V6 engines

tags : chrysler , chrysler merger , chryslermerger , gm , phoenix v6 program , phoenixv6program , renault nissan , renaultnissan

The Chrysler rumormill is running at full steam for obvious reasons, and the latest talk surrounds Chrysler and its $3 billion Phoenix V6 engine program. Word on the street is that the project has been canceled, which makes abundant sense if in fact a Chrysler merger is imminent. If a deal to merge Chrysler with either General Motors or Renault/Nissan materializes, both potential mates have V6 engines that are vastly superior to anything nestled under the hood of a Chrysler, Dodge or Jeep. Why would either automaker want to spend $3 billion for something it already has? There seems to be little doubt among analysts that Chrysler will merge with another automaker, and the only question at this point is whether it will be GM, Renault/Nissan or some mixture of the two. Continuing to spend money on projects like a new V6 engine or a new dual clutch transmission doesn't make much sense at this point, especially since Chrysler's suitors already have or are working on these technologies.

posted : 10/22/2008 @10:32:11 PM

ˆ GM wants Chrysler deal done soon, might not be able to get the cash

tags : chrysler , chrysler gm merger , chrysler llc , chrysler merger , chryslergmmerger , chryslerllc , chryslermerger , gm , gm chrysler , gm chrysler merger , gmchrysler , gmchryslermerger

General Motors and Cerberus reportedly want to act as quickly as possible if they are going to make a move on Chrysler. It seems that the two bargainers would like to come to a decision before the upcoming Presidential elections, as they believe they may get more promises from either candidate before the actual vote takes place. A potential problem exists though, as General Motors is finding it tough to come up with the cash needed to make a deal happen and banks aren't about the lend it to them. An alternative option that's being considered is getting government backing for the deal. Though it sounded hard to believe when we first heard the GM/Chrysler merger rumors, it truly appears that these talks are taking place at a very high level and the deal could indeed be on its way to. We'll just need to pay close attention in the next few weeks to the reactions from the Feds, the UAW and the thousands of workers that would inevitably be affected by the deal. Stay tuned.

posted : 10/21/2008 @8:02:40 PM

ˆ REPORT: GM could consume Chrysler in one bite

tags : chrysler , chrysler merger , chryslermerger , gm , gm chrysler merger , gm merger , gmchryslermerger , gmmerger

In 1987, Chrysler purchased the American Motors Corporation from Renault, and all AMC models ceased to exist shortly thereafter. The only survivor was Jeep, which was really the only brand worth rescuing. Could something similar happen today if GM "merges" with Chrysler? Once again, Chrysler's most desirable asset is the Jeep brand, along with its minivans – a segment that General Motors has completely abandoned in favor of three-row crossovers. In such a scenario, the Chrysler and Dodge brands would basically cease to exist, with General Motors phasing the products it wants into its own lineups. Newer, efficient plants could be converted to build GM vehicles, which would allow the General to close older plants and lose excess production capacity that isn't needed. Any cash that Chrysler has on hand would allow GM to float its own operations that much longer before returning to profitability. This is a simplistic overview, but it is a possibility being floated around by analysts that would explain why GM has any interest in Chrysler at all. We imagine there would be huge opposition to the situation playing out like this, not the least of which would come from the United Auto Workers union, which makes us wonder how likely such a "merger" could possibly be.

posted : 10/17/2008 @5:32:27 PM

ˆ In addition to Nissan/Renault, Chrysler has been talking with Tata, Fiat

tags : chrysler , chrysler merger , chryslermerger , fiat , gm , merger , nissan , renault , tata motors , tatamotors

Bob Nardelli, Chrysler's current CEO, has given his employees the closest thing to an admission as we are likely to see that the company has been in serious negotiations with other automakers regarding future product plans and possibly even mergers. As has been widely reported over the weekend, Chrysler has apparently had discussions with General Motors regarding a tie-up between the two automakers, and the rumormill is churning away with stories that GM isn't the only suitor. Carlos Ghosn already has a history of merging automakers, and his Nissan/Renault partnership has naturally been recalled as a possible mate with Chrysler, as have Fiat and Tata Motors. Remember that there's nothing concrete here to report, just speculation. At this point, all we know is that Nardelli admits that there are "third parties who are interested in exploring future possibilities with Chrysler" and that "as the company evaluates strategic options to maximize core operations and leverage its assets, we engage in a dialogue with these parties." Sounds pretty vague, wouldn't you say? These talks can be routine or they could be much more. We'll just have to keep an interested eye on the news.

posted : 10/16/2008 @4:52:06 PM

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