Cars
According to separate reports in The New York Times and The Wall Street Journal, two of the most iconic and troubled.... names in the American industry, General Motors and Chrysler LLC, have been in preliminary talks the past month or so concerning a possible merger. It is also reported that Cerberus Capital Management, the private equity firm that owns Chrysler LLC is also holding talks with other automakers including the Renault - Nissan Group.
Citing unnamed sources close to the process, the New York Times said that the chances of a merger between the General and Chrysler LLC were “50-50†as of Friday and would most likely still take weeks to work out. Officially, GM declined to comment on any specific talks with Chrysler. “Without referencing this specific rumor, as we’ve often said G.M. officials routinely discuss issues of mutual interest with other automakers,†told NYT GM's spokesman, Tony Cervone. -Continued
On Chrysler LLC's behalf, behalf, Lori McTavish, Executive Director, Communications, Chrysler LLC said: "Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time."
It is apparent that the two American giants have indeed explored the possibility of a merger, but that shouldn't surprise anyone. However, from an automotive prospective and aside from the brisk bragging rights for forming the largest automaker in the world (GM sold 9.4 million vehicles in 2007, Chrysler 2.7 million) we just can't figure how this merger could possibly benefit two problematic companies with a near identical product portfolio.
Links: NYT & WSJ
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As soon as it became known that General Motors suspended its acquisition efforts of its equally financially troubled cross-town rival (click here for details), Reuters broke a news story saying that the Chrysler LLC owner Ceberus Capital Management has...
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- Rumorville: Renault-nissan Seeking To Buy 20% Of Chrysler Llc
Another day, another Chrysler LLC rumor. This time the Detroit News is reporting that the Renault-Nissan alliance has made a proposal to obtain a 20 percent stake in Chrysler LLC from Cerberus. Citing sources familiar with the matter, the newspaper said...
- Breaking News Whoa Dude! General Motors And Chrysler Talking About A Merger
You know the financial crisis (you tired of that phrase, too?) is really stinging when sudden merger talks pop up. No, it's not BMW and Mercedes-Benz or General Motors and Ford Motor Company: it's GM and the privately held Chrysler LLC. Preliminary...
- Breaking News - Chrysler
Chrysler has been SOLD for $7.4 billion dollars. The seller keeps 20% of the business, leaving the door open for economies-of-scale benefits and some giving/sharing/taking opportunities between Benz and the Chrysler Group. The buyer is Cerberus Capital...
Cars
Chrysler in Preliminary Merger Talks with GM
According to separate reports in The New York Times and The Wall Street Journal, two of the most iconic and troubled.... names in the American industry, General Motors and Chrysler LLC, have been in preliminary talks the past month or so concerning a possible merger. It is also reported that Cerberus Capital Management, the private equity firm that owns Chrysler LLC is also holding talks with other automakers including the Renault - Nissan Group.Citing unnamed sources close to the process, the New York Times said that the chances of a merger between the General and Chrysler LLC were “50-50†as of Friday and would most likely still take weeks to work out. Officially, GM declined to comment on any specific talks with Chrysler. “Without referencing this specific rumor, as we’ve often said G.M. officials routinely discuss issues of mutual interest with other automakers,†told NYT GM's spokesman, Tony Cervone. -Continued
On Chrysler LLC's behalf, behalf, Lori McTavish, Executive Director, Communications, Chrysler LLC said: "Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time."
It is apparent that the two American giants have indeed explored the possibility of a merger, but that shouldn't surprise anyone. However, from an automotive prospective and aside from the brisk bragging rights for forming the largest automaker in the world (GM sold 9.4 million vehicles in 2007, Chrysler 2.7 million) we just can't figure how this merger could possibly benefit two problematic companies with a near identical product portfolio.
Links: NYT & WSJ
- Report: Chrysler In Talks With Hyundai And Renault-nissan
As soon as it became known that General Motors suspended its acquisition efforts of its equally financially troubled cross-town rival (click here for details), Reuters broke a news story saying that the Chrysler LLC owner Ceberus Capital Management has...
- Report: Gm-chrysler Wedding May Cost 25,000 To 35,000 Jobs
Unless you have been hiding under a rock for the past few weeks, you've probably heard about the ongoing merger talks between General Motors and Chrysler LLC. Today, a consulting firm from Michigan named Anderson Economic Group of East Lansing released...
- Rumorville: Renault-nissan Seeking To Buy 20% Of Chrysler Llc
Another day, another Chrysler LLC rumor. This time the Detroit News is reporting that the Renault-Nissan alliance has made a proposal to obtain a 20 percent stake in Chrysler LLC from Cerberus. Citing sources familiar with the matter, the newspaper said...
- Breaking News Whoa Dude! General Motors And Chrysler Talking About A Merger
You know the financial crisis (you tired of that phrase, too?) is really stinging when sudden merger talks pop up. No, it's not BMW and Mercedes-Benz or General Motors and Ford Motor Company: it's GM and the privately held Chrysler LLC. Preliminary...
- Breaking News - Chrysler
Chrysler has been SOLD for $7.4 billion dollars. The seller keeps 20% of the business, leaving the door open for economies-of-scale benefits and some giving/sharing/taking opportunities between Benz and the Chrysler Group. The buyer is Cerberus Capital...