Reuters: Cerberus would hold 10% of GM-Chrysler

According to a recent Reuters article, GM and Cerberus are now considering a deal that would leave GM in control, with Cerberus having a mere 10% or lower stake in the combined organization as well as all of GMAC. The minor stake in GM would give Cerberus an incentive to have GMAC work with the automaker rather than antagonizing its dealers and customers.

The deal appears to hinge on government aid; because of that, job cuts are being de-emphasized, though past reports have suggested that over half of Chrysler’s employees would lose their jobs. 

GM’s board has not yet commented on the proposed merger.

David Cole, chairman of the Center for Automotive Research, estimated that up to 2 million U.S. workers could lose their jobs if GM or Ford failed. John McCain advocated releasing pre-approved government loans within the time limit imposed by Congress, while Barack Obama said he favored more extensive support of American automakers.