WORLD> America
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WORLD> America
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Chrysler, GM have merger talks - sources
(Agencies)
Updated: 2008-10-12 12:18 "Cerberus, to begin with, is impatient money. Their way of operating is to get in, make a killing and get out. Well, they got in, they got killed and they've got to get out," he said. Combining GM with Chrysler would match companies with similar weaknesses, other analysts said. Both GM and Chrysler have been hurt by their reliance on sales of trucks and SUVs. "It would be taking two cash-burning companies and put them together so they burn cash faster," said Erich Merkle, an auto industry consultant with Crowe Horwath. GM shares fell to near a 60-year low this week on fears the global financial crisis could derail its turnaround plans. The shares closed Friday at $4.89 and have lost 80 percent since the start of the year. On Friday, GM and Ford both ruled out bankruptcy protection as an option. GM, Ford and Chrysler are all eligible for a share of $25 billion in low-cost federal loans to retool factories in order to build more fuel-efficient vehicles. But the disbursement of those funds is expected to take months as regulators put rules into place that will govern distribution of the funds. More immediately, GM could seek a direct loan from the US Federal Reserve, business publication Barron's said on Saturday. A Fed spokesman declined comment. A GM spokesman said it was not actively pursuing loans from the Fed but wanted to keep all of its options open. |
