GM Takeover of Chrysler!

[Steve]

This comes from Businessweek! It's not official, but it's on paper!

http://www.businessweek.com/bwdaily/...rss_topStories

Under the Hood of a GM-Chrysler Merger
BusinessWeek has learned details of the proposed merger between GM and Chrysler. The rewards are huge— but so are the obstacles!

As top executives at General Motors (GM) and Chrysler owner Cerberus Capital Management continue to talk about a merger, the most popular scenario at this point would still have all three companies joined at the hip.

Talks between the two companies continue, and while a deal is far from certain, the two sides are narrowing in on a merger structure that both think could work, BusinessWeek has learned. The basic outcome has GM folding Chrysler's auto business into its own while Cerberus would merge lending arm Chrysler Financial Services and GMAC Financial Services. Cerberus owns 51% of GMAC while GM owns the rest.

If that deal goes through, GM would end up owning a minority piece of the merged finance company and Cerberus would still have a stake in GM. While many analysts have figured that Cerberus would retreat from the car business, the private equity firm would remain deeply in the game. If the deal ends up working this way, every company involved has a vested interest in seeing the other succeed. It would still behoove Cerberus to run the combined lender so that it helps sell more GM and Chrysler cars.

[navyjohn]

Oooh, this spounds cool. Maybe GM can make Chrysler something I would like again.

[Steve]

It makes things interesting at least. If it's a true merger then a lot of people are going to lose their jobs. That sucks.

[navyjohn]

Ok, at first glance it appeared cool. The article brings up a few points worthy of consideration, such as the UAW affects.

This was a good article/topic, though. Thanks for posting it.