Bill Vlasic and Andrew Ross Sorkin of the New York Times revealed that General Motors has been in talks with Cerberus, majority holders of Chrysler, over the past month about merging the two corporate giants together. You read that correctly. So while GM was celebrating its centennial in full swing just last month, talks were already underway in a merger. Mr. Vlasic also reports that GM first entered merger talks with Ford Motor Company in July, 2008. Ford eventually walked away from the negotiating table, believing they would be better off on their own.Ã‚Â
General Motors is losing billions. Its stock is trading at the same price it was in 1950. GM has denied rumors that it would file for bankruptcy, but you have to wonder how much more this once mighty corporation can withstand.
Cerberus is a private company, but it is no secret that Chrysler is suffering terribly with a truck/SUV heavy line-up that are not selling, subpar midsize passenger car offerings, and virtually nothing to offer the consumer seeking a small, fuel efficient car. As a car guy, I love the Viper. I think its great that we have the 300C and the Challenger SRT/8. Exciting cars, yes, but not the cars that keeps a company this size afloat.