GM-Chrysler merger? Maybe not.

Michigan worried about possible job losses.
U.S. and Canadian union leaders against a merger.
This has an interesting graph of auto-industry job
losses since 2000. I'd be even more interested in
seeing a graph for, say, the last 50 years.

http://online.wsj.com/article/SB122445891509348563.html



GM may be unable to get financing to swing the merger.
This is since the paper was printed last night. I'm
not an online subscriber, so I was only able to read
the first two or three sentences of the article.

http://online.wsj.com/article/SB122447134901349421.html

Supposedly GM does not want to give up it's half of GMAC to Cerebus.

So how lucrative is GMAC, given that you can't lease a car any more, and
there are plenty of no-interest-for-5-years deals floating around. How
much money is there in car financing these days?

Does GMAC finance anything besides GM products?

And still nobody here can explain the logic behind raising / borrowing
money to buy a company with money in the bank.

If GM tells Cerebus to pull it's $11 billion out of Chrysler's bank
account, doesn't that mean GM would need $11 billion *less* to buy
Chrysler? Wouldn't that be an easier deal to swing?

On Oct 20, 7:25*pm, MoPar Man > wrote:
> Supposedly GM does not want to give up it's half of GMAC to Cerebus.
>
> So how lucrative is GMAC, given that you can't lease a car any more, and
> there are plenty of no-interest-for-5-years deals floating around. *How
> much money is there in car financing these days?
>
> Does GMAC finance anything besides GM products?
>

Actually they're one of the biggest financers of ... mortgages!

> And still nobody here can explain the logic behind raising / borrowing
> money to buy a company with money in the bank.
>
> If GM tells Cerebus to pull it's $11 billion out of Chrysler's bank
> account, doesn't that mean GM would need $11 billion *less* to buy
> Chrysler? *Wouldn't that be an easier deal to swing?