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From MSN Money(Reuters) said:
NEW YORK/DETROIT (Reuters) - A deal to merge General Motors Corp and Chrysler LLC has hit an impasse after the Bush administration ruled out funding for it, three people with direct knowledge of the talks said on Thursday.

This puts any merger of the struggling automakers on hold until after the U.S. presidential election, the sources said
Source: MSN Money(Reuters)
http://news.moneycentral.msn.com/ticker/article.aspx?Feed=OBR&Date=20081030&ID=9325355&Symbol=GM

Now maybe GM will come to their senses. Don't get me wrong, I DO NOT want to see Nissan-Renault get Chrysler. However, GM taking on Chrysler would kill GM faster than anything else could, IMO.

I Hope this GM-Chrysler merger mess will drop dead soon.
 

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Unfortunately, I think this will result in Chrysler dropping dead even sooner, and maybe GM too.

I'd prefer to see the merger go thru and the combined company and resources fight the good fight.
But in what universe does no money + no money + having to combine and restructure two companies = one healthy company?

I believe that the government sees that there is no way that two combined will ever survive, so why bother throwing the money away on this issue? It would be better spent between the two to help along with current and upcoming product.

-Chase
 

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But in what universe does no money + no money + having to combine and restructure two companies = one healthy company?

I believe that the government sees that there is no way that two combined will ever survive, so why bother throwing the money away on this issue? It would be better spent between the two to help along with current and upcoming product.

-Chase
That pretty much sums up the problem.
 

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But in what universe does no money + no money + having to combine and restructure two companies = one healthy company?

I believe that the government sees that there is no way that two combined will ever survive, so why bother throwing the money away on this issue? It would be better spent between the two to help along with current and upcoming product.

-Chase
Realistically, GM's only interest in Chrysler is their $11 billion in the bank and the hope of getting 2X the government bailout money. If the government doesn't play ball, then I agree it doesn't make sense.

If GM doesn't think the $30-$60 billion extra cash from the deal will outweigh the expenses involved in absorbing Chrysler or enable GM to survive a few more years, they won't do it. If the government bailout money doesn't come, it's a moot point.

IMO, if GM doesn't takeover Chrysler, Chrysler is doomed. Cerberus wants nothing more to do with Chrysler.
 
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