WDET News
- NYT Reports General Motors And Chrysler In Merger Talks
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Oct 11, 2008Automotive & BusinessA pair of published reports say General Motors and Chrysler have been in preliminary merger talks, and one report says market conditions have put the talks on hold. Detroit Public Radio's Jerome Vaughn has more.
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The reports say talks between GM and Cerberus Capital Management -- the company that owns most of Chrysler -- began getting serious about a month ago. The New York Times says there's a 50-50 chance of the merger actually taking place. The Wall Street Journal says the talks have been suspended, but could resume.
The Times says GM had begun similar talks with Renault and Nissan.
Detroit's automakers are dealing with a myriad of financial problems. Record high gas prices this year have kept consumers from purchasing high-profit pickup trucks and sport utility vehicles. The nation's financial crisis is now causing additional pain by tightening credit -- making it harder for potential customers to get auto loans.
GM stock reached lows this week...not seen since 1950.