GM/Chrysler Merger Still an Option?By Liz Opsitnik
Thursday, Dec 18 2008 13:44
General Motors denied a report Thursday that the automaker and Chrysler have reopened talks to merge.
The Wall Street Journal reported late Wednesday that talks about a merger were resumed after Cerberus Capital Management LP, Chrysler's majority owner, indicated it wants to part with some of its stake in Chrysler.
GM spokesman Tony Cervone said the story was not true and GM's position on the merger has not changed since it announced on Nov. 7 it had suspended the discussions, saying the company was focused on improving its liquidity, the Detroit News reports. Cervone said there had been no merger talks since that announcement last month.
Original talks in September of a GM/Chrysler merger stopped after the companies couldn't raise enough money to finance the deal.
The Bush Administration is still considering options, such as an orderly bankruptcy, to provide immediate aid to GM and Chrysler after the Senate rejected a $14 billion loan program to save the companies from collapse.
President Bush said Wednesday a deal for the automakers would happen soon.
"I'm thinking it through, you know," Bush told FOX News. "It needs to get done relatively soon."
Chrysler and Cerberus spokespeople declined to comment. The word on the street is that we’ll know something Friday.
|Need advice about auto loans and leases?|
|Learn how to improve your credit score.|
|Find what auto loan rates are in your area.|
|Learn about negotiating and how to save money.|