Obama could force GM-Chrysler merger
Chrysler said in its restructuring plan submitted to the U.S., Canadian and Ontario governments last week that it still believes the best option for the auto industry "from a financial and operational perspective" is a merger between the two carmakers, which have both asked for billions in government loans to help them restructure amid slumping sales.
Chrysler and GM discussed the possibility of a merger late last year as the global financial crisis and tight credit markets took their toll on sales and carmakers' balance sheets.
But Chrysler said in its restructuring plan that GM has since taken that option "off the table."
Bill Pochiluk of industry adviser AutomotiveCompass said Chrysler seems to want to show they are still open to the idea of a merger between the two companies.
"I think it was put in their plan to basically say they're still open to that discussion if somebody wants to bring that up. For example, (President Barack Obama's automotive) task force," Pochiluk said.
"At this stage there's the funding equivalent of sticker shock. Every time we look at the numbers they're substantially larger than we've seen before and we probably haven't seen all the numbers yet," he added.
"So we have to begin to ask the question, what's really going to happen? Will there be a forced merger situation to bring the GM and Chrysler assets into one tank, then to fund that in a very controlled way?"
Meanwhile, a Chinese business newspaper reported today that Beijing Automotive Industry Holding Corp. might bid for some of Chrysler's assets. Toronto Star