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Chrysler Rumored Up For Grabs, GM Considers Merger

Posted in auto industry, Chrysler, Detroit, GM, Newsworthy, Nissan, Renault by Suzanne Denbow | October 13th, 2008 | Leave a Reply |

Although last week Cerberus Capital Management LP, owner of 80.1% of Chrysler LLC, firmly stated that Chrysler is not for sale, Chrysler CEO Bob Nardelli revealed that both a Chinese automaker and Renault-Nissan had expressed interest in obtaining the ailing automaker. Hurting for the cash, the sale of Chrysler to either interested party would effectively put 1/3 of the Detroit 3 under foreign control. Perhaps uncomfortable with that prospect, rumors from Detroit have begun to circulate that GM and Chrysler are discussing the possibility of a merger – presumably under the assumption that in the event of an outside attack, there’s safety in numbers.

Of the speculations, GM spokesman Tony Cervone would only offer a vague explanation, stating, “Without referencing this specific rumor, as we’ve often said, GM officials regularly have conversations with other automakers about items of mutual benefit.” Chrysler exec Lori McTavish was even tighter lipped on the matter, saying simply, “[Chrysler] as a matter of policy does not confirm or disclose the nature of its private business meetings.”

Source: AutoNews.com

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