Things aren’t looking good for Detroit and the employees of Chrysler as talks for a possible merger with GM continue. According to people familiar with the talks, GM and Chrysler owners are now discussing a way that the merger between the two would keep some of Chrysler’s operation running to save jobs.
The move comes as GM hopes to secure some financial-aid from the U.S. government in the high-stake deal. A merger under the new terms would give majority control of Chrysler to GM but would leave its current owner Cerberus with at least 10 percent of the new combined company.
Insiders say that such a merger would create an automaker with third of the U.S. car market sales. However, immediate success of the merger would depend on the next U.S. administrations willingness to provide immediate aid.
Chrysler recently announced plans to lay off 25 percent of its salaried work force.
Source: Automotive News (Subscription Required)