Re: Chrysler halts Renault-Nissan talks, favors GM

[Bill Watson <wwatson6@xxxxxxx>]

Cerberus owns 51% of GMAC and GM owns the other 49%.  Cerberus wants that 
49%.   Period.

On the other side of the equation, GM wants Chrysler's cash and the 
government money.

A GM-Chrysler deal would be an economic disaster for North America as a 
combined GM-Chrysler can keep all the Chrysler lines, transfer them all to 
unused GM plants, fire every single Chrysler employee, close all Chrysler 
factories, take all the government money, and continue on as if nothing 
happened.  Probably into oblivion the way GM has been handling things this 
past 20 years.

As far as manpower and plant facilities are concerned, Chrysler is just 
excess baggage.    Chrysler has the Jeep, the Dodge Caravan, the Dodge Ram 
(some say), and $11 billion in cash and marketable securities.  That 
"marketable securities" places the true value of the $11 billion in 
question, IMHO.  Everything else that Chrysler has is of no use to GM as 
they have too many factories, employees and dealers now.

Thus GM's acquistion of Chrysler will result in the single biggest employee 
layoff and plant closings the U.S. and Canada has ever seen.   Add to that 
the layoffs and plant closures of Chrysler's suppliers.  It will be the 
equivalent of Chrysler going bankrupt and will be enough to bring the 
economies of this continent to the brink of a depression, if not right into 
it.  We are talking tens of thousands of people losing their jobs in one 
day.

If the Bush administration has nixed the GM-Chrysler deal, it marks one 
occassion they have got it right.   And this is also proof that a car 
company (ie, Chrysler) needs to be run by people who know cars and not 
people with more money than brains (ie, Cerberus).

Bill
Vancouver, BC



----- Original Message ----- 
From: "Bill Maurits" <y1topbanana73@xxxxxxxxx>
To: <mml@xxxxxxxxxxxxxx>; "62-65 Mopar List" <1962to1965mopars@xxxxxxxxxx>
Sent: Monday, November 03, 2008 5:05 AM
Subject: Chrysler halts Renault-Nissan talks, favors GM


> So much for my "good" news I posted going into the weekend...Cerberus
> are idiots!
>
> DETROIT (Reuters) - Talks on a deal to sell Chrysler LLC to Nissan
> Motor Co and Renault SA have halted because the No. 3 U.S. automaker's
> owner favors a deal with General Motors Corp, The Detroit News
> reported on Saturday.
>
> Citing sources familiar with the situation, the newspaper said no
> further talks have been scheduled between private equity firm Cerberus
> Capital Management LP CBS.UL, which sees a deal with No. 1 U.S.
> automaker GM as financially more advantageous and better for the
> struggling U.S. auto industry.
>
> In an earlier report, The Detroit News said the Nissan-Renault
> alliance had proposed buying 20 percent of Chrysler.
>
> A spokesman for Cerberus declined to comment.
>
> Earlier this week Nissan-Renault Chief Executive Carlos Ghosn
> dismissed reports of merger talks with Chrysler as speculation, adding
> that it did not make sense to risk cash in the current economic
> environment to form a strategic alliance.
>
> GM and Chrysler have been in talks on a possible merger, but according
> to sources any deal will have to wait until after the U.S.
> presidential elections on Nov 4 as the Bush administration ruled out
> providing government funding for it.
>
> Bill M
> _______________________________________________


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