Bush administration puts GM-Chrysler merger on ice
By Justin Couture, MSN Autos
Over the past three months, Chrysler LLC and General Motors have been in talks over a potential merger, and as of late, it appeared increasingly likely to commence. However, after an announcement made by the Bush administration today, the takeover will be put on hold.
According to Automotive News, the much-needed $10 bn financial aid package that was requested specifically for the merger by the two automakers was turned down.
It is speculated that one of the primary reasons that the request was not honoured is due to the potential loss of jobs. In a report issued by consulting firm Grant Thorton LLP, the merger would result in nearly all Chrysler models being discontinued to streamline product offerings with GM. The report speculated the Chrysler minivans, the Dodge Ram pickup truck, the Jeep Wrangler and the Jeep Grand Cherokee would be the sole surviving Chrysler products.
