Sunday, November 02, 2008

The Surge IS Working! Chrysler and General Motors Verge on Merger

And it'll only cost the country around TWO HUNDRED THOUSAND jobs...

Chrysler had been part of a proposed deal that would have united France's Renault, Japan's Nissan and the US firm. The deal had been proposed by Cerberus Capital Management. According to Wiki, "Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by 48-year-old financier Steve Feinberg. Former U.S. Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units."

But Cerberus apparently prefers a union between Chrysler and General Motors mostly because, apparently, there's MORE free money available from the US government for throwing MORE Murkin workers into poverty by merging two domestic companies than they could have collected by crushing the workforce in THREE countries simultaneously.

The essential Calculated Risk has the stories.
From Detroit News: Chrysler-Nissan talks halt
Talks between the Renault-Nissan alliance and Cerberus Capital Management LP have stopped as both sides acknowledged Cerberus's preference to conclude a deal for Chrysler LLC with General Motors Corp. ... viewing it as financially more advantageous and also better for the U.S. auto industry.
The WSJ hints that a deal may be imminient:
Speculation continues to swirl that Cerberus is looking to make a move on Chrysler as early as Tuesday but has run into problems in lobbying for federal aid.
And the impact of a merger could be significant:

News of a GM-Chrysler merger has chilled automotive workers throughout the country. Such a partnership would result in the closing of seven of Chrysler's 14 U.S. factories and ... As many as 200,000 jobs could be cut ...
Who says Dan Quayle didn't learn anything from his stint a heart-beat away? Quayle, a colossus, standing astride the financial world!!! It's the stuff of LEGEND!

Interesting, too, the NAME of the company:
"Cerberus (Κέρβερος Kérberos) is the name given to the entity which, in Greek and Roman mythology, is a multi-headed dog which guards the gates of Hades, to prevent those who have crossed the river Styx from ever escaping. The name "Cerberus" is a Latinised version of the Greek word "Kerberos," meaning "demon of the pit".
That, too, seems fitting for, Quayle, nest paw?

No comments: