GM Favorite to Buy Chrysler
The newspaper said that Cerberus Capital Management LP, the majority owner of Chrysler, is in advanced talks with the American carmaker that made the best offer of the three manufacturers involved in the deal. Moreover, it may seem like talks with the Renault-Nissan alliance might be put on hold, especially due to the fact that these two companies aimed to buy only 20 percent of Chrysler.
Cerberus representatives refused to comment the report, but Nissan-Renault CEO Carlos Ghosn denied talks, saying that a potential merger with Chrysler in the context of global economic crisis would be extremely risky for both companies.
More importantly, the deal between GM and Chrysler may be postponed until the end of the US presidential elections due to the fact that the current Bush administration “ruled out providing government funding for it,” as Autonews explained today.
Back in October, sources familiar with the negotiations said that a potential General Motors – Chrysler merger may kill several Chrysler cars, but no models were actually mentioned. However, rumors surrounding this matter point to Charger, Challenger and Viper, three models that may be discontinued and replaced with new GM vehicles in case the deal goes further.
But even so, there's still a lot to wait in the GM – Chrysler merger, with both companies considering options and analyzing the consequences of a potential deal for the automotive industry.