According to reports, ailing U.S. automakers are already lobbying the Obama transition camp for a taxpayer-financed bailout, and they’ve turned up the dial on doom and gloom in recent weeks to make government action appeal all the more pressing. General Motors, for one, says it will run out of cash around the end of the year unless something big happens — like an immediate economic rebound that boosts sales of its autos (unlikely) or a major infusion of government money. These efforts are showing signs of success. In a letter …
According to the latest news, the only obstacle remaining to complete a merger between General Motors and Chrysler is $10 billion in taxpayer money. Jui Chakrovorty Das and Kevin Krolicki detailed that GM and Cerberus Capital Management, the owner of Chrysler “have resolved the major issues in a proposed GM-Chrysler merger, but the final form of any deal would depend on the financing and government support available.” The full breakdown of the $10 billion but it has been reported that GM and Chrysler would have the Treasury invest $3 billion …
General Motors wants to merge with Chrysler. Doesn’t sound so bad, right? Turning Detroit’s Big Three into the Big Two might be just the remedy for an ailing U.S. auto industry. Maybe not. But that’s not the problem. The problem is how GM is proposing to merge with Chrysler — asking me and you to pay for it. Chief Executive Officer Rick Wagoner is leading the plea to Congress and the Treasury for $10 billion to complete the merger with Cerberus Capital Management, the owner of Chrysler, that would assist …
Automobile sales have plummeted across the board for the month of September. Not only were sales down for Chrysler (33%), General Motors (16%) and Ford (34%), but Asia-based brands Toyota, Honda and Nissan fell 30% over the course of the month. Sales in European and Asian markets are down as well. Can we blame the credit crunch? That’s certainly part of it. Todd Greenbaum, general sales manager for Castle Hyundai in New Castle said, We’ve had people with what seemed like OK credit, but we still couldn’t get them a …
