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GM-Chrysler Inch Closer to Deal

Merger would create world's largest automaker

By Ambreen Ali, Newser User

Posted Oct 29, 2008 1:57 PM CDT

(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.

Chrysler's owners, meanwhile, are trying to refinance $9 billion in debt through a bank consortium that includes ailing JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley. The deal is tricky because some of those lenders have sold off parts of the debt to other brokers.

Chrysler Group's CEO waves as General Motors' CEO looks on during a meeting on Capitol Hill. The companies will ask the government for $10 billion in aid to support the deal. (Getty Images)

Chrysler's owners are trying to refinance $9 billion of its debt before the merger. (AP Photo/Jerry S. Mendoza, file)

The GM-Chrysler conglomerate would be the world's largest automaker in sales. (AP Photo/Paul Sancya, file)

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GM-Chrysler Inch Closer to Deal

Merger would create world's largest automaker

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Chrysler • Cerberus Capital Management • government spending • General Motors • merger • Rick Wagoner • US automakers • refinancing

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Car Sales Jumped 14% Last Month

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Some Republicans were ready to let GM, Chrysler die: Jonathan Cohn

Chrysler Turns 1st Profit Since Bankruptcy

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GM-Chrysler Inch Closer to Deal

Merger would create world's largest automaker

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OTHER STORIES ON OUR RADAR

Chrysler • Cerberus Capital Management • government spending • General Motors • merger • Rick Wagoner • US automakers • refinancing

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Car Sales Jumped 14% Last Month

Chrysler, VW saw huge gains

Car Crash Victims Screwed by Auto Bailouts

GM and Chrysler were freed from most of their legal responsibilities

Obama Should Campaign on Auto Bailout

Some Republicans were ready to let GM, Chrysler die: Jonathan Cohn

Chrysler Turns 1st Profit Since Bankruptcy

Revenue climbs 35% as Big Three return to profitablility

GM Earns $2B in Q3

Biggest quarterly profit in more than a decade

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?