SocraticGadfly: GM-Chrysler merger?

October 11, 2008

GM-Chrysler merger?

WTF? Twenty-nine year ago, when Chrysler was about to go down the tubes, no way this would pass antitrust scrutiny. But now? Both companies are too small for that to matter.

But, GM isn’t the only bidder to take Chrysler off the hands of Cerberus Capital. Nissan is also interested.

Meanwhile, Standard & Poor’s analyst Robert Schulz said Friday all three of the formerly-Big Three could be forced into bankruptcy.

Given that GM is so strapped for money, and credit markets are so tight, I don’t get how it could buy Chrysler anyway. But, Nissan, or one of the other two members of the Japanese Big Three? They’re sitting on plenty of capital, but they’d still face some liquidity issues.

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