DETROIT/NEW YORK (Reuters) - General Motors has had talks with smaller rival Chrysler LLC about a merger that would combine the No. 1 and No. 3 American automakers at a time when both are struggling to cut costs and shore up cash, according to a source briefed on the matter.

Separately, Ford Motor Co, plans to sell its shares from its controlling stake in Japan's Mazda Motor Co, a second source said.

Finally, Barron's reported that GM was preparing to approach the U.S. Federal Reserve about borrowing money from the central bank's discount window because of the logjam in credit markets that has shut it out of other kinds of borrowing.

The moves come as all three Detroit-based automakers are struggling with a plunge in U.S. sales to 15-year lows and facing tough questions from investors and creditors about whether they have the cash to ride out a deepening downturn.

Representatives of Cerberus Capital Management, the private equity firm that owns an 80.1-percent stake in Chrysler, were not immediately available for comment.

Chrysler and GM declined comment. Ford representatives could also not be immediately reached.



http://www.reuters.com/article/newsOne/idUSTRE49A0X420081011?sp=true[/quote]


just plain disgusting

10/11/2008 11:21:22 AM

10/11/2008 11:22:46 AM

Just when I thought GM couldn't possibly get any worse...

10/11/2008 11:33:41 AM

two losers put together makes a winner?

...

10/11/2008 12:27:46 PM

when has that worked out in history?

10/11/2008 6:22:55 PM

is there really a good combination here? I mean combine one domestic car manufacturer with another and you still get FAIL.

10/11/2008 6:34:14 PM

less american competition is definitely the problem - if there weren't so many american choices when buying a car consumers would quit buying foreign ones

10/11/2008 6:36:42 PM

^ummm...what?

The problem isn't selection. the problem is they suck.

10/12/2008 11:25:32 AM

i think he was being FuhCtious

10/12/2008 11:33:09 AM

Hey, i know


instead of making better, more fuel efficient cars that people would want to buy


let's combine your shoddy workmanship with my awful truck-only lineup


we'll make trucks that fall apart in 4 years and lose 75% of their resale once we drive them off the lot!




BRILLIANT!!

10/12/2008 11:45:56 AM

Quote :

"The problem isn't selection. the problem is they suck."

10/12/2008 1:51:34 PM