The latest on the GM/Chrysler saga
 

There have been so many conflicting stories written about the GM/Chrysler merger that it's difficult to determine exactly where we are in the process.

Here's the situation as I see it:

1. This deal is not about Chrysler - It's about GM's need for cash
2. Cerberus wants to dump Chrysler but they want to do it on their terms
3. Cerberus will use GMAC to put pressure on GM to extract the best possible terms
4. GM needs capital to put this deal together but Wall Street refuses to issue new debt because of bankruptcy fears
5. GM will need to go to the Federal Government for the capital to put this deal together
6. The Federal Government will rationalize a loan to GM by indicating that it is less risky then letting GM fail and then being forced to take on GM's pension responsibilities
7. This deal will come together before the Presidential Election

If the Federal Government is involved my bet is that there will be less talk about lay-offs and the elimination of certain brands.

As always, it will be interesting to see what happens.

GM, Chrysler request $10 billion in aid:
 

Great we could all end up having gov't jobs, and get pay raises ha ha ha

So, I guess I'm not the only one that's a little bit concerned about the future? :)

I'm starting to think that's where this deal is headed.

I keep hearing that GM is "too big to fail" and that it would be cheaper for the Federal Government to give them a loan than to allow them to fail and be responsible for their pension obligations.

If the Federal Government does participate there will be an effort to try to save as many jobs as possible - a tough mandate if you're trying to cut costs to survive.

For me, the most distressing quote was from Nissan's Carlos Ghosn indicating that as bad as the car business is right now that "the worst is yet to come." :(

So, I guess I'm not the only one that's a little bit concerned about the future?


no and all the Chrysler dm's are feeling the same way, apparently Friday they were all offered an incentive to go get a job some were else...

I just read about that - here's the link to the news report: http://www.reuters.com/article/newsO...49R73O20081028

Essentially it looks like they'll pay $50K plus a $25K vehicle voucher for employees with less than 10 years of service and $75K plus the $25K voucher for employees with more than 10 years of service.

If they do not hit their target of 5,000 resignations they'll begin involuntary separations beginning in December.

It's not clear if the people who get fired in December receive any separation money?

GM goes to the Federal Government looking for $10 Billion
 

The latest stories indicate that GM has approached the Federal Government and is looking for $10 Billion to complete the merger/takeover of Chrysler.

Most experts indicate that the private sector in unwilling to issue more debt to GM leaving the Federal Government as the lender of last resort.

With the election only one week away I'm sure that this story will continue to develop.

I was told by my dm, no money in December layoffs...

Feds Fast-Track Loan Plan for GM

Funding would help automaker seal deal with Cerberus; Ford, Chrysler lobby for aid as well
WASHINGTON -- The U.S. Energy Department is intensifying its effort to begin lending money through a $25 billion auto loan program that could be a critical source of funding for General Motors Corp. GM has been lobbying the government for financial aid to help it conclude a deal with Cerberus Capital Management LP for a possible merger or other tie-up with Chrysler LLC, which is majority-owned by Cerberus. The Energy Department is circulating draft regulations for the loan program, a critical first step in getting the money flowing that was not expected to happen before the end of next month. The draft included several questions that still must be resolved, said an official who reviewed the document, but final rules could come as early as next week. "The government recognizes that it needs to be involved, and they have two big pots of money to work with," said David Cole, chairman of the Center for Automotive Research in Ann Arbor, referring to the auto loan program and the $700 billion bank bailout. "The idea is that potentially Chrysler could go down, and it's a lot better if it goes down in somebody's arms," he said.
Source: The Detroit News

Well mabe some of those die hard dm's that love cars will get some floor time and find out the truth about car sales

that would be a switch...

That will be a tough decision for any Chrysler Employee that didn't get a good personnel review.

You either walk away with a check today or run the risk of getting fired in December with nothing.

GM's stock spikes up 8% on Cerberus news
 

GM's stock just spiked up 8% on news that they may be closer to a deal with Cerberus.

News reports indicate that GM's Rick Wogoner would run the combined company.

In another twist, CNBC reported that there are rumors that GM is working with Toyota in some fashion - details were not available.