GM-Chrysler deal to mean big job cuts

[OhioChick]

Closing of facilities also is expected

October 29, 2008

Michigan would be hardest hit by a merger of General Motors Corp. and Chrysler, said the author of a report released Wednesday.

Progress is being made in merger talks between GM and Chrysler owner Cerberus Capital Management, the Free Press was told Wednesday, but some issues remain. As reported earlier, financing of the deal is keeping it from occurring.

GM is pushing the federal government for some sort of assistance, including $10 billion in aid, while Cerberus is said to be continuing talks with another suitor, Renault-Nissan, about a potential deal, hoping to have some resolution within two to three weeks -- if not sooner.

It's believed Cerberus prefers a deal with GM, which could give the private equity firm a larger stake in GM's financing arm, GMAC. GM's stock surged Wednesday 8.2% on reports that GM and Cerberus had resolved some issues keeping them from a deal.

http://www.freep.com/article/20081029/BUSINESS01/310290006

And the bleeding continues.....

[Freddie Stubbs]

1. Probably not as many job cuts if both of them go out of business

[Azlady]

2. K&R