G.M. and Chrysler enter preliminary talks about a possible merger
Sources tell us that General Motors and Chrysler have entered preliminary talks about a possible merger with Chrysler. A deal like this would drastically change the landscape of the auto industry in general - making the Detroit Three, now the Detroit Two.
The "talks" have been taking place between Cerberus Capital Management (a private equity company that now owns Chrysler) reportedly began over a month ago. Sources tell us that as of now, the chances of this deal are no better than 50%.
Issued press release from Chrysler:
Statement in Response to Business Discussions With General Motors
Auburn Hills, Mich., Oct 11, 2008 - The following statement can be attributed to Lori McTavish, Executive Director, Communications, Chrysler LLC in response to questions regarding a potential merger between Chrysler LLC and General Motors:
Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time.