macrostiff.com Shutting Detroit Down – John Rich

Ron shows us the all new 2009 Dodge Ram 1500 at Airdrie Chrysler. This is one great looking truck.

DETROIT — General Motors Corp. and Chrysler LLC have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to published reports. The Wall Street Journal, citing people it described as familiar with the discussions, reported that Cerberus Capital Management, the private equity firm that owns 80.1 percent of Chrysler and 51 percent of GMAC Financial Services, proposed trading Chrysler’s automotive operations to GM. The Journal said Cerberus would receive GM’s remaining 49 percent stake in GMAC. The New York Times, also citing people familiar with the talks, reported that the automakers were discussing a merger. The Times did not mention GMAC. GMAC, primarily an auto lender, also has significant mortgage lending operations that have been hit hard by the crisis in that industry. The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize because both GM and Cerberus want to quickly divest the assets under discussion. The negotiations between 100-year-old GM and 83-year-old Chrysler began more than a month ago, according to the Times. Its sources said the chances of a merger were “50-50″ as of Friday and likely would take weeks to complete. Both newspapers posted their stories on their Web sites late Friday. “Without referencing this specific rumor, as we’ve often said, GM officials routinely discuss issues of mutual interest with other …

American automaker Chrysler may be forced to file chapter 11 bankruptcy after talks with hedge funds broke off. The talks were aimed at reducing Chrysler’s debt before a midnight deadline. (April 30)