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

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