Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Uproar After NC State Agent 'Fixes' Girl's Lunch Preschooler has to eat chicken nuggets instead of mom's meal »

GM, Chrysler Revive Merger Talks

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

By Rob Quinn,  Newser Staff

Posted Dec 18, 2008 1:46 AM CST
Email

(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.

Cerberus has so far resisted calls to inject cash into Chrysler, which is rapidly running out of funds and announced yesterday it's closing all its plants for a month. The buyout firm—whose equity in Chrysler has been valued at zero by minority stakeholder Daimler—owns both GM's former financing arm and Chrysler Financial, and its priority is believed to be protecting its investment in both.

Auto workers leave the General Motors Powertrain facility in Warren, Mich., last month. A merger deal could see GM or the UAW receive a stake in Chrysler.
Auto workers leave the General Motors Powertrain facility in Warren, Mich., last month. A merger deal could see GM or the UAW receive a stake in Chrysler.   (AP Photo/Paul Sancya)
General Motors Corp. headquarters are seen through a doorway of an empty warehouse in Detroit last week.
General Motors Corp. headquarters are seen through a doorway of an empty warehouse in Detroit last week.   (AP Photo/Paul Sancya)
A real estate availability sign is seen in front of a closed auto dealership in East Brunswick, N.J., Sunday Dec. 14, 2008.
A real estate availability sign is seen in front of a closed auto dealership in East Brunswick, N.J., Sunday Dec. 14, 2008.   (AP Photo/Mel Evans)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Chrysler shuts for a month
BusinessWeek

Cerberus unlikely to put more cash into Chrysler
Wall Street Journal

GM 'likely to file for bankruptcy'
Washington Post

 
Chrysler • Cerberus Capital Management • General Motors • merger • auto industry • US automakers • GMAC

More Newser Stories

Automakers Pushing 'Connected' Cars

Chrysler Roars to $225M Profit

GM Reclaims World's No.1 Spot

Saab Declares Bankruptcy

Car Sales Jumped 14% Last Month
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne