Wagoner: GM has ended talks with Cerberus to buy Chrysler

During a conference call with financial analysts and the media on its third-quarter earnings, GM”s CEO Rick Wagoner confirmed that the General has ended talks to buy Chrysler from Cerberus Capital Management. He said that GM had explored the possibility of GM/Chrysler merger but has decided to “set-aside” those efforts to concentrate on its own liquidity.

“Such an acquisition could have provided significant benefits,” Wagoner told analysts and the press. “Those would have been neutral or modestly positive in the short term but could have strengthened our financial position in the long term.”

GM reported a $2.5 billion dollar loss in the third-quarter earlier today and warned that it may not have enough cash to operate by mid-2009.

Does this mean Chrysler may talk to Renault/Nissan again? Who knows  – stay tuned.


Source: AutoObserver