GM, Chrysler Deep Into Merger Talks

(NEWSER) - Fiat is bound and determined to join the big boys of the auto world, and it's using ailing US companies to gain a foothold. The Italian automaker has begun surprise talks with General Motors to buy a stake in GM's Opel division and expand its presence in Europe and Latin America, the Wall Street Journal reports. Fiat is simultaneously trying to buy a 20% stake in Chrysler, now teetering on the brink of bankruptcy. More»

Chrysler's private equity owner signals willingness to give up a stake

(NEWSER) - General Motors and Chrysler are back in merger talks, reports the Wall Street Journal. Negotiations fizzled weeks ago as both companies viewed a merger as impractical and a potential distraction from federal bailout talks. Chrysler owner Cerberus Capital Management took the initiative to restart talks, and has signaled a willingness to give up some of its stake in the automaker. The move may be viewed by federal lawmakers as a sign that the companies are willing to go the distance to help save themselves. More»

Privately owned automaker preparing for Chapter 11 should feds not help out

(NEWSER) - Chrysler has contracted a law firm to help it prepare for bankruptcy, the Wall Street Journal reports. The hiring of Jones Day suggests the automaker faces immediate failure if Congress decides to deny financial assistance to Detroit automakers. Jones Day has experience in automotive matters and has represented the United Auto Workers in many cases. More»

Merger would create world's largest automaker

(NEWSER) - General Motors and Chrysler have ironed out the major issues in their proposed merger, bringing the troubled giants a step closer to becoming the world's largest automaker. The deal's final form will depend on financing and government support—of which GM is requesting $10 billion—but both companies agree GM chief Rick Wagoner will run the hybrid, Reuters reports. More»

Bankruptcy is just what Detroit needs to straighten itself out

(NEWSER) - Automakers just got a $25 billion loan from Uncle Sam, but now here GM and Chrysler are again, hat in hand, asking for another $10 billion to facilitate their merger. But the “deal is a lemon,” writes Steven Pearlstein in the Washington Post. Yes, the economy would suffer if GM and Chrysler fail, but even after a bailout the companies would have to shrink 25% and slash around 40,000 jobs. More»