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Almost all of Chrysler’s product would be gone in a buyout (it’s not a merger). Cerberus wants out and wants the rest of GMAC which is what they wanted to begin with. Chrysler has some cash on hand and is pairing down to become more attractive. This also gives GM leverage with the Feds as in “If we fail think of all the jobs lost now”. Very little that Chrysler produces is competitive and even if they have some competitive models most compete directly with existing GM models. One of the things GM has is too many brands, adding 3 more does nothing for them.
The sole reason for doing this is to kill part of your competition and essentially force the Feds to keep you in business. How Wagoner keeps his job is beyond me. They need a complete wipe of upper management and the board of directors. Bring in someone like Mullaly along with new management (not from existing D3) and give them complete control.
As it stands now GM has about a year before it’s forced to file Chapter 11 unless there is a bailout. They can say bankruptcy is not an option until they are blue in the face. The sad part is Chapter 11 would actually be very beneficial and I believe they would return smaller and much much more profitable.
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