Treasury denies GM’s request for aid, Chrysler merger talks on hold

Posted: Oct 31, 2008
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GM CEO Rick Wagoner is probably very angry this morning along with the executives at Cerberus Capital Management. It was reported Wednesday that GM and Chrysler had worked out major issues and that a final deal could come as early as before Election Day seeing that the government approves a $10 billion aid package.

Unfortunately for GM, the U.S. Treasury has declined its request for financial aid and any progress on the merger between GM and Chrysler will have to wait until after next week’s presidential election.

According to analysts, both companies need to merge in order to stop their financial crisis. GM currently has $21 billion in cash and Chrysler has $11 billion. However, analysts also agree that the total job loss as a result of a GM/Chrysler merger could be around 90,000.

 

Source: CNNMoney


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  • zermatt

    They should wait until January and the new President and Congress will add these two to the wellfare rolls.

    Time to get the unions to take more of a pay and benefits cut, executives to do the same and for support areas pay and benefits to be in line with the rest of the local economy.

    If you are in the fight of your life, you have to do whatever it takes to make it happen. In particular, I don't believe that the unions and executives have done nearly enough.

  • CdnSolman

    What would the total job cost be if both companies went bankrupt? Look at the big picture.

  • zermatt

    They should wait until January and the new President and Congress will add these two to the wellfare rolls.

    Time to get the unions to take more of a pay and benefits cut, executives to do the same and for support areas pay and benefits to be in line with the rest of the local economy.

    If you are in the fight of your life, you have to do whatever it takes to make it happen. In particular, I don't believe that the unions and executives have done nearly enough.

  • CdnSolman

    What would the total job cost be if both companies went bankrupt? Look at the big picture.