PIC: Is the END NEAR - Chrysler and GM talking about MERGER!

It was a pretty bad week for the US financially and the auto industry
was far from immune. But despite our best efforts to drown our the
sorry, it just keeps on coming

General Motors and Chrysler have been in talks about a possible merger
for the past month, that "negotiations are not certain to produce
a deal," "would most likely still take weeks to work
out" and that two unnamed sources say that the chances of the
merger going through are "50-50." Obfuscate much?

With GM's stock prices ending the week below $5 a share and Cerberus –
the private equity firm that owns Chrysler – grasping at straws,
including continued talks with Nissan/Renault, a merger of unequals
is two parts disturbing and one part intriguing.

Cerberus' people haven't been returning phone calls and the only
comment offered to the NYT from the General's spokesperson, Tony
Cervone, was, "Without referencing that specific rumor, as we've
often said at GM officials routinely discuss issues of mutual interest
with other automakers." Broad, unclear and exactly what we'd
expect.

The merger of GM and Chrysler would put Cerberus in charge of an
"unspecified equity stake" in the corporation, making the
two-headed General-Chrysler (or Chrysler Motors?) the world's largest
automaker, controlling over 35 percent of the U.S. vehicle market,
causing rifts among brand faithful and offering more potential
(vehicle) cannibalization than the Donner Party. Not to mention both
automakers' labor contracts, supplier dealers and slipping market
share. Shocked?

Official statement from Lori McTavish, Executive Director,
Communications, Chrysler LLC:

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.

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