The much-talked-about GM and Chrysler merger is expected to be on hold until after next week’s presidential election because the U.S. Treasury Department said it will not provide the automakers with aid, the Detroit Free Press reports.
GM was lobbying Congress for a loan of about $10 billion to help fund a merger with the automaker and Chrysler, among other financial woes.
While a merger would financially help both companies, it also would result in a loss of tens of thousands of jobs. Analysts have estimated that as many as 90,000 jobs could be lost in a GM-Chrysler merger.
The AP reports that a Michigan Economic Development Corp. meeting of local governments to discuss the merger was cancelled after news broke that the government would not provide GM with the money.