Deal or No Deal? GM/Chrysler merger will be decided in next two weeks

[jamz]

Filed under: Chrysler, LLC., GM
Will the blending of Maximimum Bob and Minimum Bob be like putting matter and anti-matter together? We may find out sooner than expected if what CNBC is reporting is accurate. The possible merger deal between General Motors and Chrysler that hit the web waves recently will reportedly be concluded in the next two weeks one way or the other. Although original reports of talks between the two automakers indicated that they had walked away from the table already, it now appears the negotiations are going hot and heavy. Of course, no one with any actual knowledge of what is happening will discuss the situation on the record, so we are simply left to speculate whether this is really a good idea.

While GM certainly has a stronger product lineup right now, Chrysler may actually have a better cash balance. Would GM absorbing Chrysler and then dispensing with a bunch of brands be enough to save the remnants of both? Or would it simply drag both into the muck at the bottom of the lake? There is certainly plenty of redundancy between the two companies. The disposing of excess tech centers, proving grounds, offices and the like could theoretically help raise valuable cash. That theory, however, is predicated on a market where there would be buyers for those assets, something which currently does not necessarily exist, especially in Michigan. We'll just have to watch and wait. Thanks for the tip, Ian!

[Source: CNBC]


Read | Permalink | Email this | Comments

More...