Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: GM bondholders could still spur Chrysler merger]]>http://www.autoblog.com/2009/02/25/report-gm-bondholders-could-still-spur-chrysler-merger/http://www.autoblog.com/2009/02/25/report-gm-bondholders-could-still-spur-chrysler-merger/http://www.autoblog.com/2009/02/25/report-gm-bondholders-could-still-spur-chrysler-merger/#commentsFiled under: , , ,



It's the General Motors and Chrysler merger saga, take three. A few months ago, GM said "No can do" to the union, taking off its ring and walking out of church. Now GM's bondholders may be contemplating a shotgun wedding, forcing The General back to the altar over the debt-equity swap the automaker needs to conclude to have a chance at more government financing.

GM needs to shed $18 billion in unsecured public debt, but the bondholders have so far been complaining about the equity they're being offered. According to an outside analyst, if bondholders think a merged GM-Chrysler will save the combined company from $6 billion to $8 billion dollars, the bondholder might only agree to the debt-equity swap if GM merges with Chrysler. GM hasn't shared its exchange plan with the bondholders yet, so the stakeholders could change their minds once they have the information.

Of course, the problems with the merger possibility don't appear to be any different than they were last time, and while it might seem appealing to "collapse two problems into one," critics say that one combined problem could be a bigger hassle for the government than the two together. The merged company would still need funding, on top of which it would need billions to simply complete the merger. In short, this deal still doesn't look like it makes sense. Hat tip to Dan.

[Source: Financial Post]

REPORT: GM bondholders could still spur Chrysler merger originally appeared on Autoblog on Wed, 25 Feb 2009 12:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chrylserchrysler bailoutChryslerBailoutfinancialsgmgm bailoutgm chrysler mergerGmBailoutGmChryslerMergergovernmentmergermergersWed, 25 Feb 2009 12:29:00 EST<![CDATA[GM, Chrysler holding merger talks again? Or not...]]>http://www.autoblog.com/2008/12/18/gm-chrysler-holding-merger-talks-again-or-not/http://www.autoblog.com/2008/12/18/gm-chrysler-holding-merger-talks-again-or-not/http://www.autoblog.com/2008/12/18/gm-chrysler-holding-merger-talks-again-or-not/#commentsFiled under: , , , , , ,



Can this really be happening all over again? Weeks after merger talks between Chrysler and GM seemed to implode, the companies may be talking about hooking up again, according to the Wall Street Journal. General Motors Corp. and Chrysler LLC have reportedly stepped back into the negotiation room after Chrysler owner Cerberus Capital Management LP said that maybe, just maybe, it's willing to give up some ownership in the Pentastar. In fact, it may be that Cerberus has started this latest round of talks to show Washington it's willing to play nice with the other kids to secure part of a $14 billion rescue package that's on the table.

Nevertheless, GM spokesman Tony Cervone woke up this morning and immediately denied that merger talks between the two weakest Detroit automakers have resumed, saying only that GM's stance on the merger is the same as it was in November.

We talked about this the last time a merger was mentioned, but consolidating these two automakers would most likely lead to massive layoffs and more than a few plant shutdowns, plus the elimination of a lot of Chrysler models. There is too much capacity and overlap between the two companies' product lineups, but with money running low for both of them, merging could still be made a condition of receiving federal assistance.

[Source: Wall Street Journal via The Globe and Mail, Marketwatch]

GM, Chrysler holding merger talks again? Or not... originally appeared on Autoblog on Thu, 18 Dec 2008 10:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuscerberus capital managementCerberus Chrysler GMCerberusCapitalManagementCerberusChryslerGmchrysler gmchrysler gm mergerChryslerGmChryslerGmMergergm chryslergm chrysler mergerGmChryslerGmChryslerMergerThu, 18 Dec 2008 10:58:00 EST<![CDATA[U.S. Treasury ends talks with GM/Chrysler for merger funds]]>http://www.autoblog.com/2008/10/31/u-s-treasury-ends-talks-with-gm-chrysler-for-merger-funds/http://www.autoblog.com/2008/10/31/u-s-treasury-ends-talks-with-gm-chrysler-for-merger-funds/http://www.autoblog.com/2008/10/31/u-s-treasury-ends-talks-with-gm-chrysler-for-merger-funds/#commentsFiled under: , , ,


Any merger talks between Chrysler and General Motors appear to be on hold after the U.S. Treasury has talks with the struggling automakers over their request for a loan. The two automakers were reportedly asking for as much as $10 billion to support a merger, but some say the Treasury was unwilling to give money away for a deal that could potentially result in thousands of lost jobs. The Treasury says automaker financial arms like GMAC and Ford Credit are still eligible for assistance with troubled assets, which could number in the billions of dollars. The Bush administration is said to be working to speed up the $25 billion in loan guarantees that the industry was appropriated to retool factories. Massive government loans can sometimes take 6-18 months to take affect, but the way automakers are burning through cash, GM may need the cash as soon as possible.

There is no doubt these are very troubled times for the U.S. auto industry, and it seems everything is happening very quickly right now. Most forecasts are pointing to a similarly dismal 2009, too, so this mess is far from over.

[Source: Automotive News, sub. req'd]

U.S. Treasury ends talks with GM/Chrysler for merger funds originally appeared on Autoblog on Fri, 31 Oct 2008 12:37:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>general motors chryslerGeneralMotorsChryslergm chryslergm chrysler aidgm chrysler loansgm chrysler mergerGmChryslerGmChryslerAidGmChryslerLoansGmChryslerMergerFri, 31 Oct 2008 12:37:00 EST<![CDATA[REPORT: GM merger would eliminate Chrysler vehicles]]>http://www.autoblog.com/2008/10/30/told-you-so-consultant-says-gm-merger-would-eliminate-chrysler/http://www.autoblog.com/2008/10/30/told-you-so-consultant-says-gm-merger-would-eliminate-chrysler/http://www.autoblog.com/2008/10/30/told-you-so-consultant-says-gm-merger-would-eliminate-chrysler/#commentsFiled under: ,


Click above to begin GM/Chrysler Battle Royale

Earlier this week we published a Battle Royale between General Motors and Chrysler in order to determine in a fun way which vehicles from each automaker that compete directly in the marketplace would survive if the two merged. Out of 12 matchups, GM vehicles won eight and Chrysler four. A new report by consulting firm Grant Thornton LLP largely confirms that our experiment was spot on. The report says that if a GM/Chrysler merger happens, only the Dodge Ram, Chrysler and Dodge minivans and a few Jeep models will survive. We had the Ram and Wrangler as survivors on our list, though perhaps we were too generous giving the dated Dodge Dakota and slow-selling Jeep Patriot stays of execution. Either way, the point is that Chrysler's model lineup across all three brands would largely be wiped out if a merger with GM happens, as well as the plants that build those models and the workers who do the building.

[Source: Automotive News, sub. req'd]

REPORT: GM merger would eliminate Chrysler vehicles originally appeared on Autoblog on Thu, 30 Oct 2008 19:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>gm chrysler battle royalegm chrysler mergerGmChryslerBattleRoyaleGmChryslerMergerThu, 30 Oct 2008 19:58:00 EST<![CDATA[GM wants $10 billion in aid from the Feds to buy Chrysler]]>http://www.autoblog.com/2008/10/28/gm-wants-10-billion-in-aid-from-the-feds-to-buy-chrysler/http://www.autoblog.com/2008/10/28/gm-wants-10-billion-in-aid-from-the-feds-to-buy-chrysler/http://www.autoblog.com/2008/10/28/gm-wants-10-billion-in-aid-from-the-feds-to-buy-chrysler/#commentsFiled under: , , ,



In the latest development of The Incomprehensible Union, General Motors is reportedly asking the U.S. government for $10 billion -- on top of the $25 billion loan approved recently -- to help it merge with Chrysler. The supplemental infusion would give the government, i.e. you and me, a stake in the merged company in the form of preferred stock, would see the government taking over pension obligations and provide a credit line for operations.

The government is weighing the request since it's likely that no federal official wants to be on the watch that saw the instantaneous vaporizing of two American icons and hundreds of thousands of jobs. The government has asked that as many jobs as possible be spared, and GM said "Sure!" Yet for a merger where cost savings and redundancy elimination have been the headlines, we don't know why anyone believes GM-Chrysler wouldn't jettison a whole bunch of the 11 brands, 10,000 dealers, and 100,000 union jobs. And that's just for starters.

Which is one of the (many) reasons we still don't understand the GM-Chrysler union. The additional $10 billion we can swallow -- after all, the government spends much more than that on projects that could be considered far more dubious than trying to save an astronomical number of jobs and businesses. And we know what Cerberus gets from the deal. We'd like to find out what the GM guys see that makes this merger attractive... other than the fact that Chrysler has $11 billion in cash.

[Source: Reuters]

GM wants $10 billion in aid from the Feds to buy Chrysler originally appeared on Autoblog on Tue, 28 Oct 2008 16:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuschryslerchrysler llcChryslerLlcgmgm chryslergm chrysler mergergm loanGmChryslerGmChryslerMergerGmLoangovernment bailoutgovernment loansGovernmentBailoutGovernmentLoansloansTue, 28 Oct 2008 16:01:00 EST<![CDATA[Battle Royale: If GM and Chrysler merge, which models survive?]]>http://www.autoblog.com/2008/10/27/battle-royale-if-gm-and-chrysler-merge-which-models-survive/http://www.autoblog.com/2008/10/27/battle-royale-if-gm-and-chrysler-merge-which-models-survive/http://www.autoblog.com/2008/10/27/battle-royale-if-gm-and-chrysler-merge-which-models-survive/#commentsFiled under: ,


Click above for the Battle Royale between GM and Chrysler models

At first we thought the idea of a merger between General Motors and Chrysler LLC was laughable. We still do, but persistent reports to the contrary have us fearing that this marriage just might happen. Combining these two automakers would be a messy job, as many models on both sides of the fence compete directly with on another in the marketplace. If the merger does happen, someone may have to sit down and decide which models stay and which go. We decided to play arm chair auto executive quarterback and hold a Battle Royale. We've pitted model against model in 12 segments in which GM and Chrysler compete directly. In this thought experiment, only one model in each segment will survive to see the New World Order. Get to clickin' below to find out which ones make it.

Click here for Match 1: Chevy Cobalt vs. Dodge Caliber

Gallery: Battle Royale: GM vs. Chrysler

Chevy Cobalt vs. Dodge CaliberPontiac G6 vs. Dodge AvengerPontiac G8 vs. Dodge ChargerChevy HHR vs. Chrysler PT CruiserSaturn VUE vs. Jeep Patriot

Battle Royale: If GM and Chrysler merge, which models survive? originally appeared on Autoblog on Mon, 27 Oct 2008 19:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredgm chryslergm chrysler battle royalegm chrysler mergerGmChryslerGmChryslerBattleRoyaleGmChryslerMergerMon, 27 Oct 2008 19:55:00 EST<![CDATA[GM wants Chrysler deal done soon, might not be able to get the cash]]>http://www.autoblog.com/2008/10/21/gm-wants-chrysler-deal-done-soon-might-not-be-able-to-get-the-c/http://www.autoblog.com/2008/10/21/gm-wants-chrysler-deal-done-soon-might-not-be-able-to-get-the-c/http://www.autoblog.com/2008/10/21/gm-wants-chrysler-deal-done-soon-might-not-be-able-to-get-the-c/#commentsFiled under: , , , , ,



General Motors and Cerberus reportedly want to act as quickly as possible if they are going to make a move on Chrysler. It seems that the two bargainers would like to come to a decision before the upcoming Presidential elections, as they believe they may get more promises from either candidate before the actual vote takes place. A potential problem exists though, as General Motors is finding it tough to come up with the cash needed to make a deal happen and banks aren't about the lend it to them. An alternative option that's being considered is getting government backing for the deal.

Though it sounded hard to believe when we first heard the GM/Chrysler merger rumors, it truly appears that these talks are taking place at a very high level and the deal could indeed be on its way to. We'll just need to pay close attention in the next few weeks to the reactions from the Feds, the UAW and the thousands of workers that would inevitably be affected by the deal. Stay tuned.

[Sources: The Detroit News, Market Watch, Automotive News - sub. req'd]

GM wants Chrysler deal done soon, might not be able to get the cash originally appeared on Autoblog on Tue, 21 Oct 2008 08:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler gm mergerchrysler llcchrysler mergerChryslerGmMergerChryslerLlcChryslerMergergmgm chryslergm chrysler mergerGmChryslerGmChryslerMergerTue, 21 Oct 2008 08:01:00 EST<![CDATA[REPORT: GM could consume Chrysler in one bite]]>http://www.autoblog.com/2008/10/16/report-gm-could-consume-chrysler-in-one-bite/http://www.autoblog.com/2008/10/16/report-gm-could-consume-chrysler-in-one-bite/http://www.autoblog.com/2008/10/16/report-gm-could-consume-chrysler-in-one-bite/#commentsFiled under: , , , , , ,



In 1987, Chrysler purchased the American Motors Corporation from Renault, and all AMC models ceased to exist shortly thereafter. The only survivor was Jeep, which was really the only brand worth rescuing. Could something similar happen today if GM "merges" with Chrysler? Once again, Chrysler's most desirable asset is the Jeep brand, along with its minivans - a segment that General Motors has completely abandoned in favor of three-row crossovers. In such a scenario, the Chrysler and Dodge brands would basically cease to exist, with General Motors phasing the products it wants into its own lineups. Newer, efficient plants could be converted to build GM vehicles, which would allow the General to close older plants and lose excess production capacity that isn't needed. Any cash that Chrysler has on hand would allow GM to float its own operations that much longer before returning to profitability. This is a simplistic overview, but it is a possibility being floated around by analysts that would explain why GM has any interest in Chrysler at all. We imagine there would be huge opposition to the situation playing out like this, not the least of which would come from the United Auto Workers union, which makes us wonder how likely such a "merger" could possibly be.

[Source: The Detroit News]

REPORT: GM could consume Chrysler in one bite originally appeared on Autoblog on Thu, 16 Oct 2008 16:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler mergerChryslerMergergmgm chrysler mergergm mergerGmChryslerMergerGmMergerThu, 16 Oct 2008 16:28:00 EST