More news coming; keep an eye on Allpar over the weekend

We have now gotten three reports of a “big announcement” on November 4 or November 5, involving GM and Chrysler. Speculation includes:

• the usual “GM giving Cerberus GMAC in return for Chrysler” rumor
• GM being purchased (in whole or in part) by Cerberus
• the formation of a new jointly owned company (”letting the old ones die”)
• both GM and Nissan/Renault linking up with Chrysler somehow
• whatever your imagination comes up with. It’s not likely to be nuttier than what some of the analysts have suggested.

We don’t know what’s happening. However, I’m pretty sure they won’t start a new auto company and let the shells of GM and Chrysler fall apart just to have revenge on the unions for not demanding better executives. Likewise, I somehow doubt Nissan/Renault would want to get too tied up in a three way match.

We suspect there is a way for GM to buy Chrysler’s assets in such a way that either union agreements or, more important, dealer agreements fall apart. We’re not lawyers, though, so we don’t know if that’s possible. You can’t just close down a brand… or can you?

It is possible that all that’s going on is an agreement to consolidate Chrysler Financial into GMAC, completely. That wouldn’t really be worth all the hyperbole, though.

Again, we’ll keep you updated - as far as we can. But be prepared for something to happen on November 4 or November 5.

Oh, and Chrysler is celebrating 25 years of the minivan on Monday morning. If we’d had more notice, we’d be covering it. It should be a fun shindig for the reporters who go there - complete with a 1984 minivan and the original program head.

GM-Chrysler deal to be quietly announced on election night? (Updated)

“The GM executive told me the big announcement will be during election evening… and that it will be very bad indeed for Chrysler.”

This statement made by a source who wishes to remain anonymous reinforces my earlier opinion. To summarize that:

The deal will involve GM getting Federal aid to acquire and largely shut down Chrysler.

The deal will be announced on November 4 because the news media, and the nation’s attention, will be distracted.

Instead of being front page news, the taxpayer financed destruction of a large automaker with a strong history of patriotism and free services to the United States military will be on page B37.

They are counting on Americans not caring, and they are probably justified.

That is — if the rumors are true. We have no reason to believe they are not.

You can find more details on this scenario in my earlier opinion.

Update: It looks like the GM deal might fall through, as the Treasury said they wouldn’t give GM a loan to merge with Chrysler. That said, keep an ear out on November 4… because several people within Chrysler and GM have now been told to prepare for “the biggest event in company history” on November 5. It is possible that Cerberus will be acquiring a stake in - or all of - General Motors. They have the capital to do it… and it’s a lifetime opportunity for a few very wealthy men.