GM and Chrysler in merger talks

By Ben Oliver

Motor Industry

13 October 2008 09:12

General Motors and Chrysler are in talks to merge and create the world’s biggest car company. Reports in the New York Times and Wall Street Journal say the talks have been underway since the start of October 2008, and sources close to the possible deal put its chances of success at ’50-50’.

All three US car makers have seen their sales decimated in recent months and have been forced to deny that they might seek bankruptcy protection. Chrysler is privately owned by the Cerberus hedge fund, but GM’s share price slumped by nearly half last week to $4.89, a low not seen for half a century. Chrysler’s sales have fallen by a quarter and GM’s by 18 per cent so far this year.

By Ben Oliver