Financial Times: Cerberus still wants Chrysler-GM Merger

Even as Chrysler CEO Bob Nardelli was in Washington pleading pleading for money, the Financial Times reports that an unnamed source says owner Cerberus Capital Management is interested in returning to merger talks with General Motors. The talks are currently at what the Times‘ source describes as ”a very low level” but they would be ramped up quickly if a federal financial aid program is approved.
 
Thought never officially confirmed, both companies have said they have been involved in “partnership” or “strategic acquistion” discussions, however General Motors recently said it was tabling talks to focus on its own pressing cash flow problems.
 
Cerberus is believed still to be eager to getting money-losing Chrysler off its books. With Hyundai, Nissan and Tata Motors all ruling out any actions that would put money in Cerberus’ pocket, Cerberus may be simply reverting to its original preferred solution: dumping the car maker onto GM. A merger with GM, which would amount to GM taking over the smaller automaker, would certainly mean massive job losses at Chrysler and the likely disappearance of one or more of its brands. Since Chrysler has gone on record stating its reported $11.7 billion cash reserve has dwindled to about $6 billion, it is difficult to determine a benefit for General Motors which would have to assume billions of dollars in debt and obligations.

 Like on Facebook