Sources close to the GM Chrysler merger talks say that both companies want to reach a deal before the end of October. An anonymous tipster told the Associated Press that talks are accelerating and a decision should come soon, The Detroit News reports.
GM wants to obtain Chrysler because it will come with $11 billion that would keep GM from bankruptcy in the coming months. The $25 billion loan from the U.S. government isn’t going to find its way to the auto companies until 2010, and GM needs cash to last until then. Chrysler sales have decreased 25% in the past year, and if the merger with GM doesn’t happenit will most likely be broken up and sold in pieces to other automakers.
The deal would most likely be the end for Chrysler and Dodge as nameplates. GM would use the Jeep brand to fill the gap left by its planned sale of the off-road brand Hummer.