One plan: GM may absorb Chrysler


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Posted by Will (in IL) on Thursday, October 16, 2008 at 08:32:51 :

In Reply to: Chrysler... posted by MoparNorm on Thursday, October 16, 2008 at 01:33:35 :

Thursday, October 16, 2008
One plan: GM may absorb Chrysler
Possible scenario would eliminate rival, reduce excess capacity; pact similar to AMC purchase.
David Shepardson, Christine Tierney and Alisa Priddle / The Detroit News
General Motors Corp. could swallow Chrysler LLC and end the Auburn Hills automaker's 83-year existence under one scenario being discussed by GM and Chrysler's owner, Cerberus Capital Management LP, said a source briefed on the talks.

Such a deal, similar to Chrysler's 1987 acquisition of American Motors Corp., would allow GM to pick up some of Chrysler's 2.7 million in annual sales -- while avoiding the bulk of Chrysler's costs, the source said.

GM, Cerberus and Chrysler all declined to comment.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081016/AUTO01/810160399/1148



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