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GM suspends talks to acquire Chrysler, warns it’s running out of cash
DETROIT - General Motors and Ford reported Friday that they hemorrhaged cash in the third quarter, offering more evidence that the nation’s automobile industry is on the brink of a meltdown.
GM said it lost $2.5 billion in the third quarter and warned that it could run out of cash in 2009. The nation’s biggest automaker also said it has suspended talks to acquire its smaller U.S. rival Chrysler. Ford, meanwhile, said it lost $129 million in the third quarter and will eliminate another 2,260 white-collar jobs as it battles the economic downturn, credit crisis and weak environment for car sales. Ford burned through $7.7 billion in cash in the quarter. http://www.msnbc.msn.com/id/27593678/ |
I think what may end up happening with this whole merger thing is decisions could be made by people whose hearts and heads are not in the right place. If GM acquires Chrysler, GM could eliminate most Chrysler designed products and sell rebadged GM designs through Chrysler franchises. Negotiations are still going on with GM, but I've also read that Chrysler had been negotiating with Nissan too. They've kept that quiet though, so I don't know the real deal with that.
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The Chevrolet Volt will save GM.
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GM is also testing Hydrogen Cells a fuel alternative. I think they're ahead of the game in alternative fuel research and will survive. They just have to get through this recession.
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