Home > auto industry, business > Chrysler Renews GM Merger Idea in Survival Plan to Obama Panel

Chrysler Renews GM Merger Idea in Survival Plan to Obama Panel

Originally posted on Bloomberg

Chrysler LLC may be sending a message to President Barack Obama’s autos task force by saying the “best option” for survival is a merger with General Motors Corp. that both sides have labeled dead.

Chrysler, propped up like GM with federal aid, is suggesting a new appraisal of a tie-up in hopes that the auto panel meeting for the first time today might force a “shotgun marriage,” said Brian Johnson, a Barclays Capital analyst in Chicago.

“I can’t imagine GM doing that without being forced into it by the government, but that’s a possibility,” said Kimberly Rodriguez, a principal at consulting firm Grant Thornton LLP in Southfield, Michigan.

Obama’s task force will start reviewing $21.6 billion in new loan requests that include Chrysler’s comment on the advantages of a GM combination. GM, the biggest U.S. automaker, abandoned merger talks in November and said it is focused on its own survival, not hooking up with No. 3 Chrysler.

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  1. February 21, 2009 at 2:55 am

    LOL… Yea I know what you mean about the Donald, but the comment he made is definitely on the dot!

  2. km
    February 21, 2009 at 2:46 am

    @Greg: Exactly my feeling, and as far as Mr. Trump is concerned, I better not comment.
    Thanks for leaving a comment.

    @ Alan: Just for the sake of discussion, what if this becomes a reality and GM, Chrysler merge?
    What would be the impact?
    Thanks for leaving a comment.

  3. February 20, 2009 at 7:25 pm

    Had to laugh after reading Alan’s comment! Totally agree. In this case Donald Trump put it right in his latest appearance on the David Letterman show – “they should just file for bankruptcy”!

  4. February 20, 2009 at 5:02 pm

    Chrysler merging with GM? When you merge two losers, you don’t get a winner.

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