VH_Supra26
11-07-2008, 06:52 PM
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GM has ended the acquisitions talks in the hope to focus on remaining solvent
Following the release of details of General Motors’ substantial $2.5 billion third-quarter loss and the announcement last week that Treasury talks to secure additional aid to help fund a merger between GM and Chrysler, comes the latest statement from the ailing carmakers that all negotiations about a possible merger/ acquisition have come to a stop.
GM CEO Rick Wagoner, without naming Chrysler specifically, confirmed the end of the negotiations during a conference call with journalists today.
"We have recently explored the possibility of such an acquisition based on the analysis that it would strengthen our industry position in the long term," Wagoner said. "We've concluded at this particular time that we are better off to put 100% of our efforts on the liquidity side. We've set aside such (acquisition) actions as a near term priority."
Chrysler issued its own statement saying it would continue to work on returning Chrysler to profitability, reports Automotive News.
"As an independent company we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid our return to profitability."
Analysts have criticized GM's plans to merge with Chrysler, mostly because of the overlapping of brands and products. The savings, however, were expected to be substantial, and on top of this Chrysler has $11 billion in cash reserves. Most of the cost savings would be generated by consolidating dealer networks and administrative procedures, merging brands and cutting staff.
All Content Copyright 2006-2008 Motor Authority
http://www.motorauthority.com/report-gm-and-chrysler-could-announce-merger-in-two-weeks.html
GM has ended the acquisitions talks in the hope to focus on remaining solvent
Following the release of details of General Motors’ substantial $2.5 billion third-quarter loss and the announcement last week that Treasury talks to secure additional aid to help fund a merger between GM and Chrysler, comes the latest statement from the ailing carmakers that all negotiations about a possible merger/ acquisition have come to a stop.
GM CEO Rick Wagoner, without naming Chrysler specifically, confirmed the end of the negotiations during a conference call with journalists today.
"We have recently explored the possibility of such an acquisition based on the analysis that it would strengthen our industry position in the long term," Wagoner said. "We've concluded at this particular time that we are better off to put 100% of our efforts on the liquidity side. We've set aside such (acquisition) actions as a near term priority."
Chrysler issued its own statement saying it would continue to work on returning Chrysler to profitability, reports Automotive News.
"As an independent company we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid our return to profitability."
Analysts have criticized GM's plans to merge with Chrysler, mostly because of the overlapping of brands and products. The savings, however, were expected to be substantial, and on top of this Chrysler has $11 billion in cash reserves. Most of the cost savings would be generated by consolidating dealer networks and administrative procedures, merging brands and cutting staff.
All Content Copyright 2006-2008 Motor Authority
http://www.motorauthority.com/report-gm-and-chrysler-could-announce-merger-in-two-weeks.html