GM-Chrysler Merger Rumor Mill Resumes
That didn’t take long. A mere twelve hours following the announcement that Chrysler was idling its factories for a month, rumors of a GM-Chrysler merger are flying once again.
This morning, The Wall Street Journal reported that talks between General Motors and Cerberus Capital Management LP, Chrysler’s parent firm, have resumed. Previous talks stalled weeks ago upon GM’s disclosure of its financial situation, but the Journal claims Cerberus “took the initiative” to restart the negotiations.
Shortly after, GM countered the Journal’s claims, saying the company was not looking at a merger at the current time. GM spokesman Tony Cervone told Automotive News that the company’s position is to concentrate on its “liquidity situation,” which was a primary factor in ending the initial round of talks.