Obama: I'll meet with Detroit automakers immediately!

Gordon Trowbridge / Detroit News Washington Bureau

Democratic presidential nominee Barack Obama said Thursday he would immediately meet with the heads of Detroit's automakers and union once he takes office, telling NBC News, "We do need American cars."

Obama's comments came in an interview with anchor Brian Williams to air later Thursday on NBC's "Nightly News."

"My hope is if I'm elected, that I'm immediately meeting with heads of the Big Three automakers, as well with the United Auto Workers," Obama told Williams. "And to sit down and craft a strategy that puts us on a path for an auto industry that can compete with anybody in the world." ....More



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Obama: I'll meet with Detroit automakers immediately!

Gordon Trowbridge / Detroit News Washington Bureau

Democratic presidential nominee Barack Obama said Thursday he would immediately meet with the heads of Detroit's automakers and union once he takes office, telling NBC News, "We do need American cars."

Obama's comments came in an interview with anchor Brian Williams to air later Thursday on NBC's "Nightly News."

"My hope is if I'm elected, that I'm immediately meeting with heads of the Big Three automakers, as well with the United Auto Workers," Obama told Williams. "And to sit down and craft a strategy that puts us on a path for an auto industry that can compete with anybody in the world." ....More



Stupid Daily News---Political Roast----Lingerie Football Pics

Obama: I'll meet with Detroit automakers immediately!

Gordon Trowbridge / Detroit News Washington Bureau

Democratic presidential nominee Barack Obama said Thursday he would immediately meet with the heads of Detroit's automakers and union once he takes office, telling NBC News, "We do need American cars."

Obama's comments came in an interview with anchor Brian Williams to air later Thursday on NBC's "Nightly News."

"My hope is if I'm elected, that I'm immediately meeting with heads of the Big Three automakers, as well with the United Auto Workers," Obama told Williams. "And to sit down and craft a strategy that puts us on a path for an auto industry that can compete with anybody in the world." ....More



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The Fed's Say No To Auto Industry Bailout Merger! What is next for the GM Chrysler Merger?

The Fed's Say No To Auto Industry Bailout! What is next for the GM Chrysler Merger?

The latest rumor is that the Feds might consider a bailout plan that doesn't cause massive job cuts! Possibly a bailout deal created for both car companies would be more practical.

It is now time to see if the Michigan leadership, The Union leadership and automotive brain trust can creatively solve this problem. Anyone can cut jobs to save cost, but as we see the direction the economy is going this is not an option to save Michigan!

The mission is save jobs, save the American auto companies and save the economy of Michigan.
Each problem must be solved in concert with one another, if not it will all fail.

Good Luck!

Stupid Daily News---Political Roast----Lingerie Football Pics

The Fed's Say No To Auto Industry Bailout Merger! What is next for the GM Chrysler Merger?

The Fed's Say No To Auto Industry Bailout! What is next for the GM Chrysler Merger?

The latest rumor is that the Feds might consider a bailout plan that doesn't cause massive job cuts! Possibly a bailout deal created for both car companies would be more practical.

It is now time to see if the Michigan leadership, The Union leadership and automotive brain trust can creatively solve this problem. Anyone can cut jobs to save cost, but as we see the direction the economy is going this is not an option to save Michigan!

The mission is save jobs, save the American auto companies and save the economy of Michigan.
Each problem must be solved in concert with one another, if not it will all fail.

Good Luck!

Stupid Daily News---Political Roast----Lingerie Football Pics

The Fed's Say No To Auto Industry Bailout Merger! What is next for the GM Chrysler Merger?

The Fed's Say No To Auto Industry Bailout! What is next for the GM Chrysler Merger?

The latest rumor is that the Feds might consider a bailout plan that doesn't cause massive job cuts! Possibly a bailout deal created for both car companies would be more practical.

It is now time to see if the Michigan leadership, The Union leadership and automotive brain trust can creatively solve this problem. Anyone can cut jobs to save cost, but as we see the direction the economy is going this is not an option to save Michigan!

The mission is save jobs, save the American auto companies and save the economy of Michigan.
Each problem must be solved in concert with one another, if not it will all fail.

Good Luck!

Stupid Daily News---Political Roast----Lingerie Football Pics

GM, Chrysler merger talks on hold after aid hopes fade

By Jui Chakravorty Das and Kevin Krolicki, Reuters

A deal to merge General Motors (GM) and Chrysler has hit an impasse after the Bush administration ruled out funding for it, three people with direct knowledge of the talks said.

This puts any merger of the struggling automakers on hold until after the presidential election, the sources said.

The development adds a new element of uncertainty for the embattled U.S. auto industry as Detroit's political allies warn that the auto sector faces a deepening financial crisis that threatens tens of thousands of jobs.

It also opens the door for Cerberus Capital Management, which owns Chrysler, to restart talks with the Nissan-Renault alliance run by Carlos Ghosn. The private equity firm has seen that option as a backstop to an outright acquisition of Chrysler by GM, one of the sources said.

The sources declined to be named because they are not authorized to discuss the private talks. GM and Cerberus declined comment.

This week, Ghosn said he sees any deals among automakers involving cash as unlikely unless the cash came from outside, such as from the government.
Discussions with Nissan-Renault would likely start with consideration of an expanded product-based tie-up, building on an existing deal between Chrysler and Nissan, the source familiar with those talks said.

A merged GM-Chrysler would be the largest automaker by sales, but analysts have cautioned it would struggle to turn around the overlapping operations of two firms that have seen mounting losses tied to a global downturn.

Chrysler, which has seen sales fall 25% this year, says it is moving ahead with a cost-cutting plan and with plans for new vehicles, including a plug-in hybrid.
"We are taking the tough but necessary decisions to stabilize the business in the short term and making the viable long-term business decisions to restructure the company for the future," Chrysler spokeswoman Lori McTavish said.
GM and Cerberus have been in talks since September.

GM had approached the U.S. Treasury in recent days about support for the merger through some $10 billion in new funding that would have included taking an ownership stake in the merged company, people familiar with the talks have said.
But a Bush administration official said Thursday that the Treasury Department is not negotiating direct aid for the merger.

Instead, the official told Reuters, the administration is working to speed the distribution of $25 billion in low-cost loans for automakers to retool factories, a move authorized by Congress last month.

With merger aid off the table, talks about combining GM and Chrysler are on hold until after the Nov. 4 election, when the parties hope to sit down with representatives of the new administration, the sources said.

A decision by the Bush administration to provide the government's first funding for the auto sector since the $1.5 billion bailout of Chrysler in 1980 had been widely seen as the merger's best chance for success.

Private investors consulted in the course of the talks have not expressed interest in providing funding for the controversial deal in the absence of government backing, people with knowledge of the talks have said.

In the absence of a deal, Cerberus pushed ahead with a restructuring for GMAC, the money-losing auto finance and mortgage provider in which it owns a 51% stake.
The lender said it was in talks with federal regulators about becoming a bank holding company, which would make it easier to participate in a $250-billion bank recapitalization plan.

GM shares, down 76% since the start of the year, have reacted this week to word of its progress in the merger talks and its lobbying for federal aid. The stock closed down 10% Thursday after the Bush administration official ruled out merger help from the Treasury.

Analysts have challenged the merits of a GM merger with Chrysler. Grant Thornton consultant Kimberly Rodriguez issued a study Thursday estimating that a GM merger with Chrysler would likely cut jobs for up to 40,000 Chrysler workers.
Democratic presidential candidate Barack Obama told NBC news in an interview he would meet with Detroit automakers and union representatives if elected.
"My hope is if I'm elected, that I'm immediately meeting with the heads of the Big Three automakers as well as with the United Auto Workers," Obama told NBC. "And to sit down and craft a strategy that puts us on a path for an auto industry that can compete with anybody in the world."
Republican John McCain's campaign has said he favors moving to disburse the $25 billion in low-interest loans already approved for the industry as a first step.

Stupid Daily News---Political Roast----Lingerie Football Pics

GM, Chrysler merger talks on hold after aid hopes fade

By Jui Chakravorty Das and Kevin Krolicki, Reuters

A deal to merge General Motors (GM) and Chrysler has hit an impasse after the Bush administration ruled out funding for it, three people with direct knowledge of the talks said.

This puts any merger of the struggling automakers on hold until after the presidential election, the sources said.

The development adds a new element of uncertainty for the embattled U.S. auto industry as Detroit's political allies warn that the auto sector faces a deepening financial crisis that threatens tens of thousands of jobs.

It also opens the door for Cerberus Capital Management, which owns Chrysler, to restart talks with the Nissan-Renault alliance run by Carlos Ghosn. The private equity firm has seen that option as a backstop to an outright acquisition of Chrysler by GM, one of the sources said.

The sources declined to be named because they are not authorized to discuss the private talks. GM and Cerberus declined comment.

This week, Ghosn said he sees any deals among automakers involving cash as unlikely unless the cash came from outside, such as from the government.
Discussions with Nissan-Renault would likely start with consideration of an expanded product-based tie-up, building on an existing deal between Chrysler and Nissan, the source familiar with those talks said.

A merged GM-Chrysler would be the largest automaker by sales, but analysts have cautioned it would struggle to turn around the overlapping operations of two firms that have seen mounting losses tied to a global downturn.

Chrysler, which has seen sales fall 25% this year, says it is moving ahead with a cost-cutting plan and with plans for new vehicles, including a plug-in hybrid.
"We are taking the tough but necessary decisions to stabilize the business in the short term and making the viable long-term business decisions to restructure the company for the future," Chrysler spokeswoman Lori McTavish said.
GM and Cerberus have been in talks since September.

GM had approached the U.S. Treasury in recent days about support for the merger through some $10 billion in new funding that would have included taking an ownership stake in the merged company, people familiar with the talks have said.
But a Bush administration official said Thursday that the Treasury Department is not negotiating direct aid for the merger.

Instead, the official told Reuters, the administration is working to speed the distribution of $25 billion in low-cost loans for automakers to retool factories, a move authorized by Congress last month.

With merger aid off the table, talks about combining GM and Chrysler are on hold until after the Nov. 4 election, when the parties hope to sit down with representatives of the new administration, the sources said.

A decision by the Bush administration to provide the government's first funding for the auto sector since the $1.5 billion bailout of Chrysler in 1980 had been widely seen as the merger's best chance for success.

Private investors consulted in the course of the talks have not expressed interest in providing funding for the controversial deal in the absence of government backing, people with knowledge of the talks have said.

In the absence of a deal, Cerberus pushed ahead with a restructuring for GMAC, the money-losing auto finance and mortgage provider in which it owns a 51% stake.
The lender said it was in talks with federal regulators about becoming a bank holding company, which would make it easier to participate in a $250-billion bank recapitalization plan.

GM shares, down 76% since the start of the year, have reacted this week to word of its progress in the merger talks and its lobbying for federal aid. The stock closed down 10% Thursday after the Bush administration official ruled out merger help from the Treasury.

Analysts have challenged the merits of a GM merger with Chrysler. Grant Thornton consultant Kimberly Rodriguez issued a study Thursday estimating that a GM merger with Chrysler would likely cut jobs for up to 40,000 Chrysler workers.
Democratic presidential candidate Barack Obama told NBC news in an interview he would meet with Detroit automakers and union representatives if elected.
"My hope is if I'm elected, that I'm immediately meeting with the heads of the Big Three automakers as well as with the United Auto Workers," Obama told NBC. "And to sit down and craft a strategy that puts us on a path for an auto industry that can compete with anybody in the world."
Republican John McCain's campaign has said he favors moving to disburse the $25 billion in low-interest loans already approved for the industry as a first step.

Stupid Daily News---Political Roast----Lingerie Football Pics

GM, Chrysler merger talks on hold after aid hopes fade

By Jui Chakravorty Das and Kevin Krolicki, Reuters

A deal to merge General Motors (GM) and Chrysler has hit an impasse after the Bush administration ruled out funding for it, three people with direct knowledge of the talks said.

This puts any merger of the struggling automakers on hold until after the presidential election, the sources said.

The development adds a new element of uncertainty for the embattled U.S. auto industry as Detroit's political allies warn that the auto sector faces a deepening financial crisis that threatens tens of thousands of jobs.

It also opens the door for Cerberus Capital Management, which owns Chrysler, to restart talks with the Nissan-Renault alliance run by Carlos Ghosn. The private equity firm has seen that option as a backstop to an outright acquisition of Chrysler by GM, one of the sources said.

The sources declined to be named because they are not authorized to discuss the private talks. GM and Cerberus declined comment.

This week, Ghosn said he sees any deals among automakers involving cash as unlikely unless the cash came from outside, such as from the government.
Discussions with Nissan-Renault would likely start with consideration of an expanded product-based tie-up, building on an existing deal between Chrysler and Nissan, the source familiar with those talks said.

A merged GM-Chrysler would be the largest automaker by sales, but analysts have cautioned it would struggle to turn around the overlapping operations of two firms that have seen mounting losses tied to a global downturn.

Chrysler, which has seen sales fall 25% this year, says it is moving ahead with a cost-cutting plan and with plans for new vehicles, including a plug-in hybrid.
"We are taking the tough but necessary decisions to stabilize the business in the short term and making the viable long-term business decisions to restructure the company for the future," Chrysler spokeswoman Lori McTavish said.
GM and Cerberus have been in talks since September.

GM had approached the U.S. Treasury in recent days about support for the merger through some $10 billion in new funding that would have included taking an ownership stake in the merged company, people familiar with the talks have said.
But a Bush administration official said Thursday that the Treasury Department is not negotiating direct aid for the merger.

Instead, the official told Reuters, the administration is working to speed the distribution of $25 billion in low-cost loans for automakers to retool factories, a move authorized by Congress last month.

With merger aid off the table, talks about combining GM and Chrysler are on hold until after the Nov. 4 election, when the parties hope to sit down with representatives of the new administration, the sources said.

A decision by the Bush administration to provide the government's first funding for the auto sector since the $1.5 billion bailout of Chrysler in 1980 had been widely seen as the merger's best chance for success.

Private investors consulted in the course of the talks have not expressed interest in providing funding for the controversial deal in the absence of government backing, people with knowledge of the talks have said.

In the absence of a deal, Cerberus pushed ahead with a restructuring for GMAC, the money-losing auto finance and mortgage provider in which it owns a 51% stake.
The lender said it was in talks with federal regulators about becoming a bank holding company, which would make it easier to participate in a $250-billion bank recapitalization plan.

GM shares, down 76% since the start of the year, have reacted this week to word of its progress in the merger talks and its lobbying for federal aid. The stock closed down 10% Thursday after the Bush administration official ruled out merger help from the Treasury.

Analysts have challenged the merits of a GM merger with Chrysler. Grant Thornton consultant Kimberly Rodriguez issued a study Thursday estimating that a GM merger with Chrysler would likely cut jobs for up to 40,000 Chrysler workers.
Democratic presidential candidate Barack Obama told NBC news in an interview he would meet with Detroit automakers and union representatives if elected.
"My hope is if I'm elected, that I'm immediately meeting with the heads of the Big Three automakers as well as with the United Auto Workers," Obama told NBC. "And to sit down and craft a strategy that puts us on a path for an auto industry that can compete with anybody in the world."
Republican John McCain's campaign has said he favors moving to disburse the $25 billion in low-interest loans already approved for the industry as a first step.

Stupid Daily News---Political Roast----Lingerie Football Pics

210,000 Jobs Effected---Joe Auto Worker Is In Trouble!

From Gm-Chrysler-Merger.Com

The rumors are swirling inside the two automakers General Motors and Chrysler!

The deal is coming they just don't know when! Sources have told us that if the deal goes through, GM and Chrysler will cut jobs. All the job cuts will not just be from the Chrysler side.

We think GM could get a buyer for Hummer, cut back their truck line,let Buick and Pontiac go!

Then bring in the successful Jeep line, the Chrysler Mini-van, Chrysler 300 platform (which includes the Dodge Challenger) and have the Hemi Dodge Truck share platform with the Chevy Trucks.

The Chrysler 300, Jeep Models, Minivans and Dodge Truck/Hemi engine are strong brands. They have been successfully marketed throughout the years and will likely survive. Just like GM, the weak vehicles will be lost in this merger.

Platform sharing will be the key to long term success!

GM and Chrysler have talked with Nissan and we are even hearing Toyota! Yes, Toyota and Nissan could help build small cars, this would help GM reduce cost.

At this point in the game GM is losing money hand over fist, a Billion Dollars a month to be exact and must cut another 10,000 workers just survive another couple months.

Again this is all speculation, but if 10% of the rumors and reports are true it doesn't look good for Joe Auto-worker!

Remember one automotive job supports 7 other jobs!
So if 30,000 auto jobs are cut, the impact will be 210,000 people losing work!
We all hope this is the bottom of the market, but some say it has just started!

Stupid Daily News---Political Roast----Lingerie Football Pics

210,000 Jobs Effected---Joe Auto Worker Is In Trouble!

From Gm-Chrysler-Merger.Com

The rumors are swirling inside the two automakers General Motors and Chrysler!

The deal is coming they just don't know when! Sources have told us that if the deal goes through, GM and Chrysler will cut jobs. All the job cuts will not just be from the Chrysler side.

We think GM could get a buyer for Hummer, cut back their truck line,let Buick and Pontiac go!

Then bring in the successful Jeep line, the Chrysler Mini-van, Chrysler 300 platform (which includes the Dodge Challenger) and have the Hemi Dodge Truck share platform with the Chevy Trucks.

The Chrysler 300, Jeep Models, Minivans and Dodge Truck/Hemi engine are strong brands. They have been successfully marketed throughout the years and will likely survive. Just like GM, the weak vehicles will be lost in this merger.

Platform sharing will be the key to long term success!

GM and Chrysler have talked with Nissan and we are even hearing Toyota! Yes, Toyota and Nissan could help build small cars, this would help GM reduce cost.

At this point in the game GM is losing money hand over fist, a Billion Dollars a month to be exact and must cut another 10,000 workers just survive another couple months.

Again this is all speculation, but if 10% of the rumors and reports are true it doesn't look good for Joe Auto-worker!

Remember one automotive job supports 7 other jobs!
So if 30,000 auto jobs are cut, the impact will be 210,000 people losing work!
We all hope this is the bottom of the market, but some say it has just started!

Stupid Daily News---Political Roast----Lingerie Football Pics

210,000 Jobs Effected---Joe Auto Worker Is In Trouble!

From Gm-Chrysler-Merger.Com

The rumors are swirling inside the two automakers General Motors and Chrysler!

The deal is coming they just don't know when! Sources have told us that if the deal goes through, GM and Chrysler will cut jobs. All the job cuts will not just be from the Chrysler side.

We think GM could get a buyer for Hummer, cut back their truck line,let Buick and Pontiac go!

Then bring in the successful Jeep line, the Chrysler Mini-van, Chrysler 300 platform (which includes the Dodge Challenger) and have the Hemi Dodge Truck share platform with the Chevy Trucks.

The Chrysler 300, Jeep Models, Minivans and Dodge Truck/Hemi engine are strong brands. They have been successfully marketed throughout the years and will likely survive. Just like GM, the weak vehicles will be lost in this merger.

Platform sharing will be the key to long term success!

GM and Chrysler have talked with Nissan and we are even hearing Toyota! Yes, Toyota and Nissan could help build small cars, this would help GM reduce cost.

At this point in the game GM is losing money hand over fist, a Billion Dollars a month to be exact and must cut another 10,000 workers just survive another couple months.

Again this is all speculation, but if 10% of the rumors and reports are true it doesn't look good for Joe Auto-worker!

Remember one automotive job supports 7 other jobs!
So if 30,000 auto jobs are cut, the impact will be 210,000 people losing work!
We all hope this is the bottom of the market, but some say it has just started!

Stupid Daily News---Political Roast----Lingerie Football Pics

Latest From The Detroit News-Investors Are Warming Up To The GM Chrysler Merger

Securing fed aid could pave way for private financing of complex deal.

Christine Tierney and David Shepardson / The Detroit News

Private investors have shown interest in General Motors Corp.'s proposed acquisition of Chrysler LLC and may help finance the deal if the U.S. government agrees to provide funds, sources close to the negotiations said Wednesday.

GM and Cerberus Capital Management LP, Chrysler's majority owner, seek as much as $10 billion in federal loans and other aid to finance a deal.

Outside investors have expressed interest in the deal, but Cerberus is focusing on lining up crucial government aid, said one source familiar with the situation.

In addition to lobbying top Bush administration officials, GM and Cerberus executives have reached out to both presidential candidates to seek support for a deal, sources say.

The government signaled its responsiveness this week, with the U.S. Energy Department moving to speed up the release of $25 billion in low-cost loans that Congress authorized earlier this year for the auto industry.

While a GM-Chrysler combination would lead to thousands more job cuts, the deal is increasingly being presented as the best alternative to the possible collapse of one or more of Detroit's automakers in a rapidly deteriorating environment.

Industry analysts say the U.S. auto market's slump to its weakest levels since the 1980s is forcing the industry to consolidate.

"A merger of some type is likely to occur because the economics now are not sustainable for three separate Detroit automakers," Patrick Anderson, CEO of the consulting firm Anderson Economic Group, said Wednesday.

GM and Cerberus negotiators have made progress in the talks, reaching agreement on some key issues, said sources familiar with the situation.

Cerberus also is in talks with the Renault-Nissan alliance, but the two sides have been unable to agree on a valuation for Chrysler.

Carlos Ghosn, CEO of Renault SA and Nissan Motor Co., has said publicly that automakers are unlikely to take part in deals requiring cash investments during the global credit crunch.

Last week, Daimler AG said it had written down the book value of its remaining 19.9 percent stake in Chrysler to zero.

Cerberus purchased 80.1 percent of Chrysler in August 2007 from Daimler for $7.4 billion, with most of that money going into Chrysler.

But within months, the industry spiraled into a downturn that has grown increasingly perilous for Detroit's automakers. With credit hard to obtain and U.S. consumer confidence at historic lows, some analysts estimate the selling pace slowed this month to its lowest level since 1983.

GM Chairman and CEO Rick Wagoner was in Washington on Friday and Monday warning policymakers of the dire state of the automaker's finances.

GM has lost $18.8 billion in the first six months of the year -- and nearly $70 billion since 2004.

On Wednesday, the biggest U.S. automaker found itself denying rumors that it was seeking help from Japan's Toyota Motor Corp.

Detroit's automakers are asking Washington to double the $25 billion in low-cost loans that were intended to help the auto industry produce more fuel-efficient cars.

They also are trying to position their auto loan financing operations to benefit from the $700 billion bank bailout.

Cerberus owns 51 percent of GMAC Financial Services, which it acquired from GM in 2006, and wants to obtain at least half of GM's 49 percent stake in the lending firm as part of a deal. That would allow GMAC to become a bank holding company eligible for a capital infusion under the bailout plan.

In addition to the difficulties lining up financing in the volatile environment, the deal faces another big hurdle, a GM official said -- winning the backing of the United Auto Workers union.

Without the UAW's support, congressional Democrats might not support a deal.

A source familiar with the situation said GM and other officials have spoken with the presidential candidates, Republican Sen. John McCain and Democrat Sen. Barack Obama, as part of their effort to line up support in the capital.

A spokesman for Cerberus, Peter Duda, said no meetings or conversations involving Cerberus officials took place.

A top adviser to McCain, Doug Holtz-Eakin, told The Detroit News on Wednesday that McCain had not decided whether to support significant government assistance for a GM-Chrysler merger.

The Obama campaign's key auto adviser, Jason Furman, didn't return messages.

"Our priority is to get the $25 billion out the door and make them available," Holtz-Eakin said of the low-cost loans.

Another thorny issue is whether GM will be able to finance a trust fund to be managed by the UAW that was agreed to during last year's labor contract talks to take over retiree health care in 2010. Such a move would save GM $3 billion a year, but requires payments of more than $30 billion to fund it. Some reports have suggested that GM has sought help with its pension obligations from the U.S. Treasury Department.

In addition, Chrysler's estimated $10 billion bank debt must be refinanced in the event of a deal.

Analysts say GM would get access to Chrysler's cash on hand, which totaled $11.7 billion at the end of June.

But the deal has critics who question whether it resolves the big challenges facing GM.

"We do not view the potential for any eventual transaction involving GM and Chrysler -- or any other automaker -- even in combination with government support, as a panacea for these companies' credit concerns," S&P analyst Robert Schulz wrote in a report Wednesday.

Stupid Daily News---Political Roast----Lingerie Football Pics

Latest From The Detroit News-Investors Are Warming Up To The GM Chrysler Merger

Securing fed aid could pave way for private financing of complex deal.

Christine Tierney and David Shepardson / The Detroit News

Private investors have shown interest in General Motors Corp.'s proposed acquisition of Chrysler LLC and may help finance the deal if the U.S. government agrees to provide funds, sources close to the negotiations said Wednesday.

GM and Cerberus Capital Management LP, Chrysler's majority owner, seek as much as $10 billion in federal loans and other aid to finance a deal.

Outside investors have expressed interest in the deal, but Cerberus is focusing on lining up crucial government aid, said one source familiar with the situation.

In addition to lobbying top Bush administration officials, GM and Cerberus executives have reached out to both presidential candidates to seek support for a deal, sources say.

The government signaled its responsiveness this week, with the U.S. Energy Department moving to speed up the release of $25 billion in low-cost loans that Congress authorized earlier this year for the auto industry.

While a GM-Chrysler combination would lead to thousands more job cuts, the deal is increasingly being presented as the best alternative to the possible collapse of one or more of Detroit's automakers in a rapidly deteriorating environment.

Industry analysts say the U.S. auto market's slump to its weakest levels since the 1980s is forcing the industry to consolidate.

"A merger of some type is likely to occur because the economics now are not sustainable for three separate Detroit automakers," Patrick Anderson, CEO of the consulting firm Anderson Economic Group, said Wednesday.

GM and Cerberus negotiators have made progress in the talks, reaching agreement on some key issues, said sources familiar with the situation.

Cerberus also is in talks with the Renault-Nissan alliance, but the two sides have been unable to agree on a valuation for Chrysler.

Carlos Ghosn, CEO of Renault SA and Nissan Motor Co., has said publicly that automakers are unlikely to take part in deals requiring cash investments during the global credit crunch.

Last week, Daimler AG said it had written down the book value of its remaining 19.9 percent stake in Chrysler to zero.

Cerberus purchased 80.1 percent of Chrysler in August 2007 from Daimler for $7.4 billion, with most of that money going into Chrysler.

But within months, the industry spiraled into a downturn that has grown increasingly perilous for Detroit's automakers. With credit hard to obtain and U.S. consumer confidence at historic lows, some analysts estimate the selling pace slowed this month to its lowest level since 1983.

GM Chairman and CEO Rick Wagoner was in Washington on Friday and Monday warning policymakers of the dire state of the automaker's finances.

GM has lost $18.8 billion in the first six months of the year -- and nearly $70 billion since 2004.

On Wednesday, the biggest U.S. automaker found itself denying rumors that it was seeking help from Japan's Toyota Motor Corp.

Detroit's automakers are asking Washington to double the $25 billion in low-cost loans that were intended to help the auto industry produce more fuel-efficient cars.

They also are trying to position their auto loan financing operations to benefit from the $700 billion bank bailout.

Cerberus owns 51 percent of GMAC Financial Services, which it acquired from GM in 2006, and wants to obtain at least half of GM's 49 percent stake in the lending firm as part of a deal. That would allow GMAC to become a bank holding company eligible for a capital infusion under the bailout plan.

In addition to the difficulties lining up financing in the volatile environment, the deal faces another big hurdle, a GM official said -- winning the backing of the United Auto Workers union.

Without the UAW's support, congressional Democrats might not support a deal.

A source familiar with the situation said GM and other officials have spoken with the presidential candidates, Republican Sen. John McCain and Democrat Sen. Barack Obama, as part of their effort to line up support in the capital.

A spokesman for Cerberus, Peter Duda, said no meetings or conversations involving Cerberus officials took place.

A top adviser to McCain, Doug Holtz-Eakin, told The Detroit News on Wednesday that McCain had not decided whether to support significant government assistance for a GM-Chrysler merger.

The Obama campaign's key auto adviser, Jason Furman, didn't return messages.

"Our priority is to get the $25 billion out the door and make them available," Holtz-Eakin said of the low-cost loans.

Another thorny issue is whether GM will be able to finance a trust fund to be managed by the UAW that was agreed to during last year's labor contract talks to take over retiree health care in 2010. Such a move would save GM $3 billion a year, but requires payments of more than $30 billion to fund it. Some reports have suggested that GM has sought help with its pension obligations from the U.S. Treasury Department.

In addition, Chrysler's estimated $10 billion bank debt must be refinanced in the event of a deal.

Analysts say GM would get access to Chrysler's cash on hand, which totaled $11.7 billion at the end of June.

But the deal has critics who question whether it resolves the big challenges facing GM.

"We do not view the potential for any eventual transaction involving GM and Chrysler -- or any other automaker -- even in combination with government support, as a panacea for these companies' credit concerns," S&P analyst Robert Schulz wrote in a report Wednesday.

Stupid Daily News---Political Roast----Lingerie Football Pics

Latest From The Detroit News-Investors Are Warming Up To The GM Chrysler Merger

Securing fed aid could pave way for private financing of complex deal.

Christine Tierney and David Shepardson / The Detroit News

Private investors have shown interest in General Motors Corp.'s proposed acquisition of Chrysler LLC and may help finance the deal if the U.S. government agrees to provide funds, sources close to the negotiations said Wednesday.

GM and Cerberus Capital Management LP, Chrysler's majority owner, seek as much as $10 billion in federal loans and other aid to finance a deal.

Outside investors have expressed interest in the deal, but Cerberus is focusing on lining up crucial government aid, said one source familiar with the situation.

In addition to lobbying top Bush administration officials, GM and Cerberus executives have reached out to both presidential candidates to seek support for a deal, sources say.

The government signaled its responsiveness this week, with the U.S. Energy Department moving to speed up the release of $25 billion in low-cost loans that Congress authorized earlier this year for the auto industry.

While a GM-Chrysler combination would lead to thousands more job cuts, the deal is increasingly being presented as the best alternative to the possible collapse of one or more of Detroit's automakers in a rapidly deteriorating environment.

Industry analysts say the U.S. auto market's slump to its weakest levels since the 1980s is forcing the industry to consolidate.

"A merger of some type is likely to occur because the economics now are not sustainable for three separate Detroit automakers," Patrick Anderson, CEO of the consulting firm Anderson Economic Group, said Wednesday.

GM and Cerberus negotiators have made progress in the talks, reaching agreement on some key issues, said sources familiar with the situation.

Cerberus also is in talks with the Renault-Nissan alliance, but the two sides have been unable to agree on a valuation for Chrysler.

Carlos Ghosn, CEO of Renault SA and Nissan Motor Co., has said publicly that automakers are unlikely to take part in deals requiring cash investments during the global credit crunch.

Last week, Daimler AG said it had written down the book value of its remaining 19.9 percent stake in Chrysler to zero.

Cerberus purchased 80.1 percent of Chrysler in August 2007 from Daimler for $7.4 billion, with most of that money going into Chrysler.

But within months, the industry spiraled into a downturn that has grown increasingly perilous for Detroit's automakers. With credit hard to obtain and U.S. consumer confidence at historic lows, some analysts estimate the selling pace slowed this month to its lowest level since 1983.

GM Chairman and CEO Rick Wagoner was in Washington on Friday and Monday warning policymakers of the dire state of the automaker's finances.

GM has lost $18.8 billion in the first six months of the year -- and nearly $70 billion since 2004.

On Wednesday, the biggest U.S. automaker found itself denying rumors that it was seeking help from Japan's Toyota Motor Corp.

Detroit's automakers are asking Washington to double the $25 billion in low-cost loans that were intended to help the auto industry produce more fuel-efficient cars.

They also are trying to position their auto loan financing operations to benefit from the $700 billion bank bailout.

Cerberus owns 51 percent of GMAC Financial Services, which it acquired from GM in 2006, and wants to obtain at least half of GM's 49 percent stake in the lending firm as part of a deal. That would allow GMAC to become a bank holding company eligible for a capital infusion under the bailout plan.

In addition to the difficulties lining up financing in the volatile environment, the deal faces another big hurdle, a GM official said -- winning the backing of the United Auto Workers union.

Without the UAW's support, congressional Democrats might not support a deal.

A source familiar with the situation said GM and other officials have spoken with the presidential candidates, Republican Sen. John McCain and Democrat Sen. Barack Obama, as part of their effort to line up support in the capital.

A spokesman for Cerberus, Peter Duda, said no meetings or conversations involving Cerberus officials took place.

A top adviser to McCain, Doug Holtz-Eakin, told The Detroit News on Wednesday that McCain had not decided whether to support significant government assistance for a GM-Chrysler merger.

The Obama campaign's key auto adviser, Jason Furman, didn't return messages.

"Our priority is to get the $25 billion out the door and make them available," Holtz-Eakin said of the low-cost loans.

Another thorny issue is whether GM will be able to finance a trust fund to be managed by the UAW that was agreed to during last year's labor contract talks to take over retiree health care in 2010. Such a move would save GM $3 billion a year, but requires payments of more than $30 billion to fund it. Some reports have suggested that GM has sought help with its pension obligations from the U.S. Treasury Department.

In addition, Chrysler's estimated $10 billion bank debt must be refinanced in the event of a deal.

Analysts say GM would get access to Chrysler's cash on hand, which totaled $11.7 billion at the end of June.

But the deal has critics who question whether it resolves the big challenges facing GM.

"We do not view the potential for any eventual transaction involving GM and Chrysler -- or any other automaker -- even in combination with government support, as a panacea for these companies' credit concerns," S&P analyst Robert Schulz wrote in a report Wednesday.

Stupid Daily News---Political Roast----Lingerie Football Pics

AP source: Issues resolved in GM-Chrysler talks

By TOM KRISHER – 2 hours ago

DETROIT (AP) — Several issues standing in the way of General Motors Corp. acquiring Chrysler LLC have been resolved, but others remain including the big one: how to finance the deal, according to two people who have been briefed on the talks.

Both people said GM's management, including CEO Rick Wagoner, would remain in place should a deal take place, because GM would be running the company. Neither wanted to be identified because the talks are confidential.

One of the people said the deal isn't close yet.

"There are issues besides financing," the person said.

Chrysler's owner, Cerberus Capital Management LP, is still talking with GM about financing a transaction. GM is lobbying the federal government for $10 billion to $15 billion in aid to help keep the company going and possibly to make the Chrysler deal work.

That could include direct aid and loans from the government, a government equity stake in GM, and Cerberus having an equity stake in GM.

GM, which is burning through more than $1 billion per month, is interested in acquiring Chrysler to access its $11 billion cash stockpile. Chrysler, however, has an unspecified amount of debt, and many of its dealers, factories, brands and models duplicate GM's and likely would be shed if GM acquires Chrysler.

GM likely wants government dollars to make the numbers work to acquire Chrysler, perhaps using some of the money to shut down redundant Chrysler operations.


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Gm Chrysler Merger

AP source: Issues resolved in GM-Chrysler talks

By TOM KRISHER – 2 hours ago

DETROIT (AP) — Several issues standing in the way of General Motors Corp. acquiring Chrysler LLC have been resolved, but others remain including the big one: how to finance the deal, according to two people who have been briefed on the talks.

Both people said GM's management, including CEO Rick Wagoner, would remain in place should a deal take place, because GM would be running the company. Neither wanted to be identified because the talks are confidential.

One of the people said the deal isn't close yet.

"There are issues besides financing," the person said.

Chrysler's owner, Cerberus Capital Management LP, is still talking with GM about financing a transaction. GM is lobbying the federal government for $10 billion to $15 billion in aid to help keep the company going and possibly to make the Chrysler deal work.

That could include direct aid and loans from the government, a government equity stake in GM, and Cerberus having an equity stake in GM.

GM, which is burning through more than $1 billion per month, is interested in acquiring Chrysler to access its $11 billion cash stockpile. Chrysler, however, has an unspecified amount of debt, and many of its dealers, factories, brands and models duplicate GM's and likely would be shed if GM acquires Chrysler.

GM likely wants government dollars to make the numbers work to acquire Chrysler, perhaps using some of the money to shut down redundant Chrysler operations.


Stupid Daily News---Political Roast----Lingerie Football Pics
Gm Chrysler Merger

AP source: Issues resolved in GM-Chrysler talks

By TOM KRISHER – 2 hours ago

DETROIT (AP) — Several issues standing in the way of General Motors Corp. acquiring Chrysler LLC have been resolved, but others remain including the big one: how to finance the deal, according to two people who have been briefed on the talks.

Both people said GM's management, including CEO Rick Wagoner, would remain in place should a deal take place, because GM would be running the company. Neither wanted to be identified because the talks are confidential.

One of the people said the deal isn't close yet.

"There are issues besides financing," the person said.

Chrysler's owner, Cerberus Capital Management LP, is still talking with GM about financing a transaction. GM is lobbying the federal government for $10 billion to $15 billion in aid to help keep the company going and possibly to make the Chrysler deal work.

That could include direct aid and loans from the government, a government equity stake in GM, and Cerberus having an equity stake in GM.

GM, which is burning through more than $1 billion per month, is interested in acquiring Chrysler to access its $11 billion cash stockpile. Chrysler, however, has an unspecified amount of debt, and many of its dealers, factories, brands and models duplicate GM's and likely would be shed if GM acquires Chrysler.

GM likely wants government dollars to make the numbers work to acquire Chrysler, perhaps using some of the money to shut down redundant Chrysler operations.


Stupid Daily News---Political Roast----Lingerie Football Pics
Gm Chrysler Merger

Hot Rumor-The GM Chrysler Merger Is Happening!

Latest reports are that the Gm Chrysler Merger is happening!
Gm will keep some of the Chrysler Car Line and Nissan my get the Dodge Trucks!

We will dig for more concrete reports on this rumor!

Stupid Daily News---Political Roast----Lingerie Football Pics

Hot Rumor-The GM Chrysler Merger Is Happening!

Latest reports are that the Gm Chrysler Merger is happening!
Gm will keep some of the Chrysler Car Line and Nissan my get the Dodge Trucks!

We will dig for more concrete reports on this rumor!

Stupid Daily News---Political Roast----Lingerie Football Pics

Hot Rumor-The GM Chrysler Merger Is Happening!

Latest reports are that the Gm Chrysler Merger is happening!
Gm will keep some of the Chrysler Car Line and Nissan my get the Dodge Trucks!

We will dig for more concrete reports on this rumor!

Stupid Daily News---Political Roast----Lingerie Football Pics

GM CHRYSLER MERGER-Will The Feds Help?

While all parties involved with the General Motors and Chrysler merger await any news, the auto analyst believe the deal is coming.

The rumors and reports indicate the deal is done, but still nothing official!

It seems the merger is hinging on an influx of cash from the Treasury to help facilitate the merger,But will the Fed's give up billions with nothing in return?

When the federal Government bailed out Chrysler in the 1980's the UAW had to give up benefits and pay cuts to get the federal aid.

Will GM UAW workers have to give up pay and benefits to save their failing company?

Will thousands of jobs be lost from Chrysler and GM?

This deal is either going to be to complex to help everyone or to simple to believe it happened!

All the auto sources believe we will hear something by 11/1/08!

Stupid Daily News---Political Roast----Lingerie Football Pics

GM CHRYSLER MERGER-Will The Feds Help?

While all parties involved with the General Motors and Chrysler merger await any news, the auto analyst believe the deal is coming.

The rumors and reports indicate the deal is done, but still nothing official!

It seems the merger is hinging on an influx of cash from the Treasury to help facilitate the merger,But will the Fed's give up billions with nothing in return?

When the federal Government bailed out Chrysler in the 1980's the UAW had to give up benefits and pay cuts to get the federal aid.

Will GM UAW workers have to give up pay and benefits to save their failing company?

Will thousands of jobs be lost from Chrysler and GM?

This deal is either going to be to complex to help everyone or to simple to believe it happened!

All the auto sources believe we will hear something by 11/1/08!

Stupid Daily News---Political Roast----Lingerie Football Pics

GM CHRYSLER MERGER-Will The Feds Help?

While all parties involved with the General Motors and Chrysler merger await any news, the auto analyst believe the deal is coming.

The rumors and reports indicate the deal is done, but still nothing official!

It seems the merger is hinging on an influx of cash from the Treasury to help facilitate the merger,But will the Fed's give up billions with nothing in return?

When the federal Government bailed out Chrysler in the 1980's the UAW had to give up benefits and pay cuts to get the federal aid.

Will GM UAW workers have to give up pay and benefits to save their failing company?

Will thousands of jobs be lost from Chrysler and GM?

This deal is either going to be to complex to help everyone or to simple to believe it happened!

All the auto sources believe we will hear something by 11/1/08!

Stupid Daily News---Political Roast----Lingerie Football Pics

GMAC seeks bank status for rescue funding

Report: Auto finance company wants access to $700 billion bailout

WASHINGTON - GMAC, the auto finance and mortgage company, is seeking to become a bank holding company in order to access the government’s $700 billion financial rescue plan, the Wall Street Journal reported on Tuesday.

GMAC spokesman Gina Proia said the finance company had no comment on the report.

Cerberus Capital Management, the private equity firm that also controls Chrysler LLC, has been discussing the matter with the U.S. Federal Reserve for over a month, the newspaper reported, quoting unnamed people familiar with the talks.

As a bank holding company, GMAC could receive equity injections from Treasury Department and sharply reduce its borrowing costs in part by gaining access to the Fed’s discount window.

Proia said earlier on Tuesday that GMAC LLC had been granted approval by the Fed to use a commercial paper funding facility created earlier by this month by the central bank.

Cerberus and General Motors Corp have been discussing a merger deal for Chrysler since September, according to people familiar with the talks.

The Wall Street Journal said that those talks were being structured so that both GM and Cerberus could benefit from the financial support being offered by the Treasury Department and the Federal Reserve.

The newspaper said that while the mechanics of a bank registration would be complex for GMAC it might include a requirement that GM’s stake in GMAC be no more than 24.9 percent.

Cerberus owns 51 percent of GMAC. GM owns the remainder. In addition to a merger of GM and Chrysler’s struggling auto operations, the two sides have also discussed a transfer of some of GM’s stake in GMAC to Cerberus, people with knowledge of the talks have said.

The newspaper said that one idea being discussed would merge Chrysler Financial into the entity controlled by the bank holding company in order to create a financial services company that would offer services including auto loans, interest bearing accounts and credit cards.

GM and Chrysler have declined to comment since word of their merger talks broke earlier this month.

Stupid Daily News---Political Roast----Lingerie Football Pics

GMAC seeks bank status for rescue funding

Report: Auto finance company wants access to $700 billion bailout

WASHINGTON - GMAC, the auto finance and mortgage company, is seeking to become a bank holding company in order to access the government’s $700 billion financial rescue plan, the Wall Street Journal reported on Tuesday.

GMAC spokesman Gina Proia said the finance company had no comment on the report.

Cerberus Capital Management, the private equity firm that also controls Chrysler LLC, has been discussing the matter with the U.S. Federal Reserve for over a month, the newspaper reported, quoting unnamed people familiar with the talks.

As a bank holding company, GMAC could receive equity injections from Treasury Department and sharply reduce its borrowing costs in part by gaining access to the Fed’s discount window.

Proia said earlier on Tuesday that GMAC LLC had been granted approval by the Fed to use a commercial paper funding facility created earlier by this month by the central bank.

Cerberus and General Motors Corp have been discussing a merger deal for Chrysler since September, according to people familiar with the talks.

The Wall Street Journal said that those talks were being structured so that both GM and Cerberus could benefit from the financial support being offered by the Treasury Department and the Federal Reserve.

The newspaper said that while the mechanics of a bank registration would be complex for GMAC it might include a requirement that GM’s stake in GMAC be no more than 24.9 percent.

Cerberus owns 51 percent of GMAC. GM owns the remainder. In addition to a merger of GM and Chrysler’s struggling auto operations, the two sides have also discussed a transfer of some of GM’s stake in GMAC to Cerberus, people with knowledge of the talks have said.

The newspaper said that one idea being discussed would merge Chrysler Financial into the entity controlled by the bank holding company in order to create a financial services company that would offer services including auto loans, interest bearing accounts and credit cards.

GM and Chrysler have declined to comment since word of their merger talks broke earlier this month.

Stupid Daily News---Political Roast----Lingerie Football Pics

GMAC seeks bank status for rescue funding

Report: Auto finance company wants access to $700 billion bailout

WASHINGTON - GMAC, the auto finance and mortgage company, is seeking to become a bank holding company in order to access the government’s $700 billion financial rescue plan, the Wall Street Journal reported on Tuesday.

GMAC spokesman Gina Proia said the finance company had no comment on the report.

Cerberus Capital Management, the private equity firm that also controls Chrysler LLC, has been discussing the matter with the U.S. Federal Reserve for over a month, the newspaper reported, quoting unnamed people familiar with the talks.

As a bank holding company, GMAC could receive equity injections from Treasury Department and sharply reduce its borrowing costs in part by gaining access to the Fed’s discount window.

Proia said earlier on Tuesday that GMAC LLC had been granted approval by the Fed to use a commercial paper funding facility created earlier by this month by the central bank.

Cerberus and General Motors Corp have been discussing a merger deal for Chrysler since September, according to people familiar with the talks.

The Wall Street Journal said that those talks were being structured so that both GM and Cerberus could benefit from the financial support being offered by the Treasury Department and the Federal Reserve.

The newspaper said that while the mechanics of a bank registration would be complex for GMAC it might include a requirement that GM’s stake in GMAC be no more than 24.9 percent.

Cerberus owns 51 percent of GMAC. GM owns the remainder. In addition to a merger of GM and Chrysler’s struggling auto operations, the two sides have also discussed a transfer of some of GM’s stake in GMAC to Cerberus, people with knowledge of the talks have said.

The newspaper said that one idea being discussed would merge Chrysler Financial into the entity controlled by the bank holding company in order to create a financial services company that would offer services including auto loans, interest bearing accounts and credit cards.

GM and Chrysler have declined to comment since word of their merger talks broke earlier this month.

Stupid Daily News---Political Roast----Lingerie Football Pics

Latest On The GM Chrysler Merger

GM and Chrysler discuss altering deal to save jobs and receive aid

DETROIT: General Motors and Chrysler's owners are discussing a merger that would keep some of Chrysler's operations intact and save jobs, with the intent of securing the U.S. government financial aid that the high-stakes deal would require, people familiar with the talks said.

A merger under these terms would give control to GM but leave Chrysler's owner, Cerberus Capital Management, with a stake of less than 10 percent in the combined company, the people, who were not authorized to discuss the talks publicly, said Sunday.

Such a merger would shake up the U.S. industrial landscape and create an automaker with about a third of the U.S. car market by sales. But its immediate success would hinge on the willingness of the next U.S. administration to step up with billions of dollars in immediate aid. The amount required would dwarf the $1.5 billion in loan guarantees that kept Chrysler from failure in the U.S. auto industry's last government bailout almost 30 years ago, the people familiar with the talks said.

The merger would also require the backing of GM's board, which has been steadfast in backing the company's chief executive, Rick Wagoner, through a painful and, so far, failed restructuring effort since 2005. The board has withheld judgment on the proposed merger so far.

A deal brokered with the support of U.S. lawmakers would leave GM executives walking a delicate balance in managing a bigger but still deeply troubled automaker.

Costs and production would have to be slashed. But the merged company would also have to show that it represented a less painful alternative for American workers and suppliers than the failure of one or both of the struggling auto giants.

"It's clear that there are three parties at the table. There's GM, Cerberus and then there's the government," said one person briefed on the talks.

GM, Chrysler and Cerberus declined to comment Sunday.

Until now, attention has focused on the prospect of a GM acquisition in which the larger automaker would move quickly to cull Chrysler's slow-selling vehicle lineup and cut more than half of Chrysler's 66,000 employees.

Analysts have been skeptical that a deal even under those ruthless terms could deliver sufficient savings, since GM and Chrysler face many of the same problems, including an excess of workers, dealers and factories, along with product lineups that rely heavily on sales of gas-guzzling trucks and SUVs.

While a deal that keeps more operations afloat would risk deepening those problems of excess capacity, it could also win government backing and provide GM with much-needed liquidity.

Analysts say GM would also almost surely choose to shut down Chrysler's separate supply of engines, transmissions and powertrain components and merge those with its own.

GM has failed to find an outside investor to help finance its acquisition at a time when global auto sales are slowing and U.S. sales are dropping toward the lowest level in two decades.

In addition, Chrysler creditors have been wary of restructuring its $7 billion bank term loan due in 2013, a person familiar with the financing effort but not authorized to speak publicly said last week.

That has put the focus on the U.S. government as lender or investor of last resort to save the deal, people who asked not to be named because of the sensitivity of the issue said Sunday.

By retaining a stake in the combined GM/Chrysler, Cerberus hopes to benefit from an auto recovery, they said. It acquired an 80.1 percent stake in Chrysler in a 2007 deal with Daimler AG.

GM sees a retained Cerberus stake as helping to align the interests of the finance company GMAC with sales for its brands like Chevrolet and Cadillac, helping to bridge a widening gap between GMAC and GM's more than 6,500 U.S. dealers. Cerberus bought a 51 percent stake in GMAC in 2006 from GM as the automaker sought to raise cash for its restructuring.

But under Cerberus, GMAC has pulled back hard on its auto lending, restricting loans to the most credit-worthy borrowers and costing GM sales in an already tough market.



Stupid Daily News---Political Roast----Lingerie Football Pics

Latest On The GM Chrysler Merger

GM and Chrysler discuss altering deal to save jobs and receive aid

DETROIT: General Motors and Chrysler's owners are discussing a merger that would keep some of Chrysler's operations intact and save jobs, with the intent of securing the U.S. government financial aid that the high-stakes deal would require, people familiar with the talks said.

A merger under these terms would give control to GM but leave Chrysler's owner, Cerberus Capital Management, with a stake of less than 10 percent in the combined company, the people, who were not authorized to discuss the talks publicly, said Sunday.

Such a merger would shake up the U.S. industrial landscape and create an automaker with about a third of the U.S. car market by sales. But its immediate success would hinge on the willingness of the next U.S. administration to step up with billions of dollars in immediate aid. The amount required would dwarf the $1.5 billion in loan guarantees that kept Chrysler from failure in the U.S. auto industry's last government bailout almost 30 years ago, the people familiar with the talks said.

The merger would also require the backing of GM's board, which has been steadfast in backing the company's chief executive, Rick Wagoner, through a painful and, so far, failed restructuring effort since 2005. The board has withheld judgment on the proposed merger so far.

A deal brokered with the support of U.S. lawmakers would leave GM executives walking a delicate balance in managing a bigger but still deeply troubled automaker.

Costs and production would have to be slashed. But the merged company would also have to show that it represented a less painful alternative for American workers and suppliers than the failure of one or both of the struggling auto giants.

"It's clear that there are three parties at the table. There's GM, Cerberus and then there's the government," said one person briefed on the talks.

GM, Chrysler and Cerberus declined to comment Sunday.

Until now, attention has focused on the prospect of a GM acquisition in which the larger automaker would move quickly to cull Chrysler's slow-selling vehicle lineup and cut more than half of Chrysler's 66,000 employees.

Analysts have been skeptical that a deal even under those ruthless terms could deliver sufficient savings, since GM and Chrysler face many of the same problems, including an excess of workers, dealers and factories, along with product lineups that rely heavily on sales of gas-guzzling trucks and SUVs.

While a deal that keeps more operations afloat would risk deepening those problems of excess capacity, it could also win government backing and provide GM with much-needed liquidity.

Analysts say GM would also almost surely choose to shut down Chrysler's separate supply of engines, transmissions and powertrain components and merge those with its own.

GM has failed to find an outside investor to help finance its acquisition at a time when global auto sales are slowing and U.S. sales are dropping toward the lowest level in two decades.

In addition, Chrysler creditors have been wary of restructuring its $7 billion bank term loan due in 2013, a person familiar with the financing effort but not authorized to speak publicly said last week.

That has put the focus on the U.S. government as lender or investor of last resort to save the deal, people who asked not to be named because of the sensitivity of the issue said Sunday.

By retaining a stake in the combined GM/Chrysler, Cerberus hopes to benefit from an auto recovery, they said. It acquired an 80.1 percent stake in Chrysler in a 2007 deal with Daimler AG.

GM sees a retained Cerberus stake as helping to align the interests of the finance company GMAC with sales for its brands like Chevrolet and Cadillac, helping to bridge a widening gap between GMAC and GM's more than 6,500 U.S. dealers. Cerberus bought a 51 percent stake in GMAC in 2006 from GM as the automaker sought to raise cash for its restructuring.

But under Cerberus, GMAC has pulled back hard on its auto lending, restricting loans to the most credit-worthy borrowers and costing GM sales in an already tough market.



Stupid Daily News---Political Roast----Lingerie Football Pics

Latest On The GM Chrysler Merger

GM and Chrysler discuss altering deal to save jobs and receive aid

DETROIT: General Motors and Chrysler's owners are discussing a merger that would keep some of Chrysler's operations intact and save jobs, with the intent of securing the U.S. government financial aid that the high-stakes deal would require, people familiar with the talks said.

A merger under these terms would give control to GM but leave Chrysler's owner, Cerberus Capital Management, with a stake of less than 10 percent in the combined company, the people, who were not authorized to discuss the talks publicly, said Sunday.

Such a merger would shake up the U.S. industrial landscape and create an automaker with about a third of the U.S. car market by sales. But its immediate success would hinge on the willingness of the next U.S. administration to step up with billions of dollars in immediate aid. The amount required would dwarf the $1.5 billion in loan guarantees that kept Chrysler from failure in the U.S. auto industry's last government bailout almost 30 years ago, the people familiar with the talks said.

The merger would also require the backing of GM's board, which has been steadfast in backing the company's chief executive, Rick Wagoner, through a painful and, so far, failed restructuring effort since 2005. The board has withheld judgment on the proposed merger so far.

A deal brokered with the support of U.S. lawmakers would leave GM executives walking a delicate balance in managing a bigger but still deeply troubled automaker.

Costs and production would have to be slashed. But the merged company would also have to show that it represented a less painful alternative for American workers and suppliers than the failure of one or both of the struggling auto giants.

"It's clear that there are three parties at the table. There's GM, Cerberus and then there's the government," said one person briefed on the talks.

GM, Chrysler and Cerberus declined to comment Sunday.

Until now, attention has focused on the prospect of a GM acquisition in which the larger automaker would move quickly to cull Chrysler's slow-selling vehicle lineup and cut more than half of Chrysler's 66,000 employees.

Analysts have been skeptical that a deal even under those ruthless terms could deliver sufficient savings, since GM and Chrysler face many of the same problems, including an excess of workers, dealers and factories, along with product lineups that rely heavily on sales of gas-guzzling trucks and SUVs.

While a deal that keeps more operations afloat would risk deepening those problems of excess capacity, it could also win government backing and provide GM with much-needed liquidity.

Analysts say GM would also almost surely choose to shut down Chrysler's separate supply of engines, transmissions and powertrain components and merge those with its own.

GM has failed to find an outside investor to help finance its acquisition at a time when global auto sales are slowing and U.S. sales are dropping toward the lowest level in two decades.

In addition, Chrysler creditors have been wary of restructuring its $7 billion bank term loan due in 2013, a person familiar with the financing effort but not authorized to speak publicly said last week.

That has put the focus on the U.S. government as lender or investor of last resort to save the deal, people who asked not to be named because of the sensitivity of the issue said Sunday.

By retaining a stake in the combined GM/Chrysler, Cerberus hopes to benefit from an auto recovery, they said. It acquired an 80.1 percent stake in Chrysler in a 2007 deal with Daimler AG.

GM sees a retained Cerberus stake as helping to align the interests of the finance company GMAC with sales for its brands like Chevrolet and Cadillac, helping to bridge a widening gap between GMAC and GM's more than 6,500 U.S. dealers. Cerberus bought a 51 percent stake in GMAC in 2006 from GM as the automaker sought to raise cash for its restructuring.

But under Cerberus, GMAC has pulled back hard on its auto lending, restricting loans to the most credit-worthy borrowers and costing GM sales in an already tough market.



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Chrysler cuts may help deal with General Motors!

With the cuts being made at Chrysler And GM, Are they rightsizing the companies to make the merger???

Latest from Detroit News Auto Reporter:

Trimming 5,000 salaried jobs may make it more attractive to GM or other potential suitors.
Alisa Priddle, Bryce Hoffman and David Shepardson / The Detroit News
Chrysler LLC said Friday that it will cut almost a third of its white-collar work force, raising questions about whether the move is in response to difficult market conditions or a step toward preparing the struggling automaker for a possible sale.

Chrysler will cut about 5,000 of its 17,300 salaried and contract workers worldwide by Jan. 1 through buyouts and layoffs as plunging car and truck sales force Detroit's Big Three automakers to reduce costs to conserve cash.

About 95 percent of Chrysler's white-collar force is in North America, with at least 10,000 workers in Michigan, which means the state would take the brunt of the downsizing....Detroit News


Stupid Daily News---Political Roast----Lingerie Football Pics

Chrysler cuts may help deal with General Motors!

With the cuts being made at Chrysler And GM, Are they rightsizing the companies to make the merger???

Latest from Detroit News Auto Reporter:

Trimming 5,000 salaried jobs may make it more attractive to GM or other potential suitors.
Alisa Priddle, Bryce Hoffman and David Shepardson / The Detroit News
Chrysler LLC said Friday that it will cut almost a third of its white-collar work force, raising questions about whether the move is in response to difficult market conditions or a step toward preparing the struggling automaker for a possible sale.

Chrysler will cut about 5,000 of its 17,300 salaried and contract workers worldwide by Jan. 1 through buyouts and layoffs as plunging car and truck sales force Detroit's Big Three automakers to reduce costs to conserve cash.

About 95 percent of Chrysler's white-collar force is in North America, with at least 10,000 workers in Michigan, which means the state would take the brunt of the downsizing....Detroit News


Stupid Daily News---Political Roast----Lingerie Football Pics

Chrysler cuts may help deal with General Motors!

With the cuts being made at Chrysler And GM, Are they rightsizing the companies to make the merger???

Latest from Detroit News Auto Reporter:

Trimming 5,000 salaried jobs may make it more attractive to GM or other potential suitors.
Alisa Priddle, Bryce Hoffman and David Shepardson / The Detroit News
Chrysler LLC said Friday that it will cut almost a third of its white-collar work force, raising questions about whether the move is in response to difficult market conditions or a step toward preparing the struggling automaker for a possible sale.

Chrysler will cut about 5,000 of its 17,300 salaried and contract workers worldwide by Jan. 1 through buyouts and layoffs as plunging car and truck sales force Detroit's Big Three automakers to reduce costs to conserve cash.

About 95 percent of Chrysler's white-collar force is in North America, with at least 10,000 workers in Michigan, which means the state would take the brunt of the downsizing....Detroit News


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Cerberus and Mr. Invisible-Stephen Feinberg

The founder of Cerberus Stephen Feinberg is one of the most elusive men in America. Hardly any photos can be found of him! Try and find some! Good luck!


See more Car Pictures at CarSpace.com

Since graduating from Princeton 25 years ago, Feinberg has never given an interview and has never been photographed by the press.

Not that there has been much demand until now. On Wall Street, the C.E.O. of Cerberus Capital Management, an investment firm with $26 billion in assets under management, has long been admired. (“You probably think you’re smart,” says one former employee. “Now take your brain and mine, take them to the 28th power, and you have Steve Feinberg.”)

To the general public, though, Cerberus has been just another shadowy buyer of companies in an already overpopulated field. The firm’s purchases include a grab bag of brands that lurk on the edge of consumer consciousness: Fila sporting goods, Mervyn’s department stores, Alamo and National rental cars, Air Canada, the GMAC lending arm of General Motors.


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Cerberus and Mr. Invisible-Stephen Feinberg

The founder of Cerberus Stephen Feinberg is one of the most elusive men in America. Hardly any photos can be found of him! Try and find some! Good luck!


See more Car Pictures at CarSpace.com

Since graduating from Princeton 25 years ago, Feinberg has never given an interview and has never been photographed by the press.

Not that there has been much demand until now. On Wall Street, the C.E.O. of Cerberus Capital Management, an investment firm with $26 billion in assets under management, has long been admired. (“You probably think you’re smart,” says one former employee. “Now take your brain and mine, take them to the 28th power, and you have Steve Feinberg.”)

To the general public, though, Cerberus has been just another shadowy buyer of companies in an already overpopulated field. The firm’s purchases include a grab bag of brands that lurk on the edge of consumer consciousness: Fila sporting goods, Mervyn’s department stores, Alamo and National rental cars, Air Canada, the GMAC lending arm of General Motors.


Stupid Daily News---Political Roast----Lingerie Football Pics

Cerberus and Mr. Invisible-Stephen Feinberg

The founder of Cerberus Stephen Feinberg is one of the most elusive men in America. Hardly any photos can be found of him! Try and find some! Good luck!


See more Car Pictures at CarSpace.com

Since graduating from Princeton 25 years ago, Feinberg has never given an interview and has never been photographed by the press.

Not that there has been much demand until now. On Wall Street, the C.E.O. of Cerberus Capital Management, an investment firm with $26 billion in assets under management, has long been admired. (“You probably think you’re smart,” says one former employee. “Now take your brain and mine, take them to the 28th power, and you have Steve Feinberg.”)

To the general public, though, Cerberus has been just another shadowy buyer of companies in an already overpopulated field. The firm’s purchases include a grab bag of brands that lurk on the edge of consumer consciousness: Fila sporting goods, Mervyn’s department stores, Alamo and National rental cars, Air Canada, the GMAC lending arm of General Motors.


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Who Is Cerberus Capital Management and Steve Feinberg?

Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by 48-year-old financier Steve Feinberg. Former U.S. Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units.

Founded in 1992, Cerberus (named for the legendary three-headed dog in Greek mythology that guarded the gates of Hades) invests primarily in companies which are near bankruptcy in the hope of making the businesses it acquires profitable. Feinberg has stated to his employees that while the Cerberus name seemed like a good idea at the time, he later regretted naming the company after the mythological dog.[1]

The company has been a very active acquirer of businesses over the past several years and now has sizable investments in sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. In 2006, its holdings amounted to $24 billion. While many of its peers have bought out companies in order to strip assets and sell on for a profit, Cerberus builds its reputation on identifying firms that are undervalued, and assisting in rejuvenating them by working with current management.[1]

On October 19, 2006, John W. Snow, President George W. Bush's second United States Secretary of the Treasury, was named chairman of Cerberus.






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