GM AND CHRYSLER IN MERGER TALKS!!!

[DevilDougWS6]

i like the new g8s, never got to drive a challenger yet....i would imagine it rides/drives like a mid 80s lincoln town car. but then again i could be wrong.

[BigAls87Z28]

Its a good platform. Not nearly as agile as the Zeta platform, not nearly as sophisticated as Sigma, and not nearly as light as the old DEW Lincoln LS platform was, but a good platform.
Zeta is also a ton more flexible to offer more wheel bases as well as other vehicles off such a platform.
Zeta and Zeta 2 underpin 2 wheel base sedans, wagon model, a truck, and now a coupe. They are built for RHD and LHD, and can swallow anything from an Ecotec to a Gen IV, to an LS7 to an LS9. They are also designed for, soemthing Chrysler had to redo, a manual transmission.
And it was a hell of a lot cheaper then LX was. A LOT.

[BonzoHansen]

Update....
**************************
OCTOBER 17, 2008 GM and Chrysler Step Up Talks Over a Combination
By JOHN D. STOLL and JEFFREY MCCRACKEN

General Motors Corp. and Chrysler LLC are accelerating merger discussions amid strong support from potential lenders that are eager to see a deal done.

GM is set to report dismal third-quarter earnings in coming weeks and is scrambling to find new sources of funding, according to people familiar with the matter. That's spurring the auto maker to complete the deal as soon as the end of October, these people said.

Major banks that have long lent to both companies, such as J.P. Morgan Chase & Co., are also keen to do a deal to help reduce exposure to the auto industry

Cerberus Capital Management, which owns Chrysler, is looking to have a stake in a combined GM-Chrysler, according to people familiar with the situation. While some lenders like J.P. Morgan have shown interest in equity in such a deal, several other lenders approached by the parties have passed on the deal.

J.P. Morgan and Citigroup Inc., are representing Chrysler and Cerberus, while Morgan Stanley and Evercore Partners are representing GM, according to a person involved in the situation.

At this point, GM and Chrysler are far from having a firm deal in hand, people briefed on the negotiations said. Certain members of GM's board of directors continue to give the deal a cool reception. It is also unclear whether a key element of the talks -- swapping Chrysler for GM's 49% stake in GMAC LLC -- will happen, say these people.

Still, GM's management team is hammering out a potential takeover of Chrysler, and top-level executives remain bullish on the prospects of a combined GM and Chrysler.

While industry analysts have criticized the potential merger as being the equivalent of a Hail Mary, GM believes it can squeeze more than $10 billion in cost synergies from a deal, and get access to Chrysler's approximately $11 billion cash pile.

A GM spokesman declined to comment, as did spokeswomen for Cerberus and Chrysler.

The United Auto Workers has been among the constituents downplaying any potential benefits of a deal. However, the UAW leadership hasn't been as hostile in private in regard to the tie-up as public comments would suggest, people close to the union said.

The sale of Chrysler would trigger warrants the UAW has in the auto maker, a stake the union negotiated in last year's national labor talks. It is unclear what impact that would have, though it could give the UAW an even bigger ownership piece in a combined GM-Chrysler operation.

GM already has teams of people analyzing potential cost-cutting and savings it can do with Chrysler, which has about 66,000 hourly and salaried employees in North America.

"They'd have to move fast and gets lots of cost savings very quickly," said one person briefed on the talks.

Recently, GM has increased its estimates of how deep it could cut costs if it combined forces with Chrysler. And it is growing confident that it can slash those costs relatively quickly.

As GM continues to weigh a potential deal with Chrysler, the No. 1 U.S. auto maker is scrambling for ways to conserve cash amid what is turning out to be a horrendous month for U.S. auto sales. The company will lay off 1,500 workers in coming months at three assembly plants.

Even as Cerberus continues to engage in discussions with GM, it is also fielding talks with other potential suitors for Chrysler, people familiar with the matter said. The New York-based private-equity firm bought control of GMAC from GM in April 2006, and then turned around to buy Chrysler from Daimler AG about one year later.

Since Cerberus engaged in its buying spree, the U.S. auto industry has fallen into deep decline, with sales in coming months now expected to run at the lowest pace since the late 1980s.

Adding further pressure, key markets in other parts of the world -- including Europe and Asia -- are showing signs of fatigue, potentially limiting the near-term growth opportunities for U.S. auto makers looking to expand abroad.

[CamaroGirlie]

I hope it happens. This is because I leased a charger in april and now their not doing leases anymore and I know everyones gonna say something about leases but I like them because I don't keep cars very long but anyway I'm hoping GM will take over and hook me up with another lease on a 2011 dodge charger srt8

[LS1Hawk]

Under the Hood of a GM-Chrysler Merger
BusinessWeek has learned details of the proposed merger between GM and Chrysler. The rewards are huge—but so are the obstacles

Article from BusinessWeek...similar to what Bonzo posted but with some other information

http://www.businessweek.com/bwdaily/...017_939535.htm

[Frosty]

Good article. GM will have a ton on its plate if the merger happens.

[Frosty]

Rumor has it that this merger could/should happen by the end of the month.

[Iroc-z86]

sounds good i guess, chrysler has been going down in quality with their cars for a little while now...:/ which is a shame because i like them. hope something good comes from this..

like a v8 powered wrangler ! so i can get 8-10 mpg instead of the 15-17 i already get lol

[BonzoHansen]

Current news is GM can't arrange the financing.

[Frosty]

Originally Posted by BonzoHansen

Current news is GM can't arrange the financing.

There's a shocker lol

[BigAls87Z28]

Its possible that Cerberus is going to divide Chrysler in half. Half to GM, half to Renault/Nissian.

[Frosty]

Al, if GM doesn't get all of Chrysler will they still give up their 49% of GMAC financing to Cerberus?

[BigAls87Z28]

Originally Posted by Frosty

Al, if GM doesn't get all of Chrysler will they still give up their 49% of GMAC financing to Cerberus?

Good question. Dunno, we will see in a few weeks.

[Frosty]

Oh ok, I thought maybe the place you heard about them only getting half of Chrysler maybe mentioned the status of GMAC.

I still don't know how GM will benefit, then again I'm far from a financial expert...but if one company is losing $$ how could taking over another company that is losing $$ be beneficial?

If this merger does happen I'm REALLY curious to see how the UAW reacts...they're already bitching and moaning.

[Tru2Chevy]

GM should try for Jeep and forget the rest

- Justin

[Savage_Messiah]

Earlier, I read this... http://www.fquick.com/blog/GM_and_Ch...Two_Weeks/2353


Now I just read this... http://www.marketwatch.com/news/stor...54FC1D4E8F8%7D



I'm about to not even give a damn what I hear until it's official


Oh and semi-related-ish... http://www.fquick.com/blog/Ford_shar...g_trouble/2356

[BigAls87Z28]

Originally Posted by Frosty

Oh ok, I thought maybe the place you heard about them only getting half of Chrysler maybe mentioned the status of GMAC.

I still don't know how GM will benefit, then again I'm far from a financial expert...but if one company is losing $$ how could taking over another company that is losing $$ be beneficial?

GM gets Jeep and Minivans on top of a HQ and some 11 billion dollars in cash. Dealers can be eliminated by lack of sales (as is happening now) as well as sell off the excess plants that have zero to do with GM or GM programs sold off to Foreign automakers such as Renault/Nissan, Fiat (make some of that 2.2 billion back) and even VW.

GM also gets a 10% increase in market share in the US, as well as 2 other companies to enter Europe and China with. Dodge and Chrysler have made small inroads in Europe. Chrysler vehicles would eventually be moved over to GM platforms, there for lessening excess capacity in current GM factories.

[Frosty]

That's all well and good and it makes sense the way you explain it but there's NO way the UAW is going to accept this. No way in hell.

[BigAls87Z28]

Originally Posted by Frosty

That's all well and good and it makes sense the way you explain it but there's NO way the UAW is going to accept this. No way in hell.

Nope, they are pissed off cause they know that GM will cut a massive amount of jobs...massive. But also, white collar jobs at Chrysler will be gone as well.
Either GM buys it and it stays American, or foreign companies buy it and start building here...either way, there will a lot of blood letting. More like a blood bath of jobs.
US Goverment sees this as a good thing, so they only have to bail out one company, not two.

[WildBillyT]

Originally Posted by Frosty

That's all well and good and it makes sense the way you explain it but there's NO way the UAW is going to accept this. No way in hell.

Well they had better start working with the companies more or they will find themselves in the unemployment line.

[SteveR]

Originally Posted by Frosty

Rumor has it that this merger could/should happen by the end of the month.

They always tell you that. I guess GM and Chrysler want to get the deal done before the incentives change next month "Buy GM now, you get $10B off sticker!!!"

[BonzoHansen]

GM&Ford may be talking again.....

[SteveR]

Originally Posted by CamaroGirlie

I hope it happens. This is because I leased a charger in april and now their not doing leases anymore and I know everyones gonna say something about leases but I like them because I don't keep cars very long but anyway I'm hoping GM will take over and hook me up with another lease on a 2011 dodge charger srt8

Leases are done, period. No manufacturer is offering them anymore, not GMAC, not Dodge, not Ford Motor Credit, nobody. There is no money to lend and the risk is too high for leases now. Dealerships are scrambling to arrange options for leases through outside lenders, but you have no idea what you're signing up for right now, and the leases would have no connection to the manufacturer.

[WildBillyT]

Originally Posted by SteveR

They always tell you that. I guess GM and Chrysler want to get the deal done before the incentives change next month "Buy GM now, you get $10B off sticker!!!"

And in typical GM fashion, you will have to pay 25% more for a "package" of **** you don't want or need.

[Frosty]

Originally Posted by WildBillyT

Well they had better start working with the companies more or they will find themselves in the unemployment line.

I agree 100%. Then again I'm very anti union so I'm biased. I personally think the UAW is filled with crooks. Granted GM mismanaged their funds and products horribly but the UAW is NOT helping matters. I guess they don't realize that if you bleed the company they work for dry everyone loses.