GM and Chrysler postpone tie-up talks
Amid a devastating third quarter, GM and Chrysler have postponed tie-up talks. Whether they will resume sometime in the future is an open question.
"GM has recently explored the possibility of a strategic acquisition that it believed would generate significant cost reduction synergies and substantially strengthen GM's financial position in the medium and long term, while being neutral or modestly positive to cash flow even in the near term," the Detroit automaker said Friday in a statement outlining fresh cash saving measures. "While the acquisition could potentially have provided significant benefits, the company has concluded that it is more important at the present time to focus on its immediate liquidity challenges and, accordingly, considerations of such a transaction as a near-term priority have been set aside."
Here's Inside Line's take: GM Says Chrysler Merger Talks Dropped
And it gets worse
Ford reports a $129M third quarter loss (here).
AutoObserver has a couple of editorials up on this as well:
GM Loses $4.2 Billion in 3Q; Running Near Empty Cash-Wise
President-Elect Obama Promises Help for the Auto Industry
estreka says:
12:33 AM, 11/ 8/08
Expect a possible Nissan purchase.
firstwagon says:
03:35 PM, 11/ 8/08
Hmmm, GM goes from talks to buy a major competitor to suddenly losing 4.2 billion in a quarter (as if senior management didn't know that was coming).
At the same time as a new president stands ready to hand out cash to save the economy.
Perhaps the books were "done" with an eye on getting some of that government money.
orangutan says:
09:31 AM, 11/ 9/08
They need to be allowed to fail and declare bankruptcy.
brn says:
05:23 AM, 11/10/08
$129 million loss. Still in the red, but boy does it show potential. I would have expected it to be worse. With solid products, Ford could pull out of this. I'm rooting for them.