GM-Chrysler merger and Cerberus--Very Little Options!

RPT-DEALTALK-Options scarce if GM-Chrysler merger talks fail

DETROIT, Oct 22 (Reuters) - As General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) pushes ahead with talks to acquire Chrysler LLC, uneasy suppliers and workers are bracing for a deal that would combine two struggling automakers and cost tens of thousands of jobs.

But as GM struggles to line up financing for an acquisition, attention has turned to an even more uncertain prospect: What happens if the controversial deal falls apart?

For Chrysler, owned for the past year by Cerberus Capital Management, the options are dwindling, according to bankers, consultants and experts on corporate strategy.

If GM pulls out, people briefed on the talks expect Cerberus to seek another buyer for the maker of Jeep, Dodge and Chrysler models. Failing that, Cerberus would likely look to break up Chrysler and sell whatever assets it could, they said.

"Selling off assets will only become strategy if GM is off the table and they have not found any other buyer," said one person familiar with the matter, who estimated the GM deal now has about a 1-in-3 chance of success because of difficulties in securing outside funding.

Another person familiar with Chrysler's planning said the automaker had drawn up scenarios that would involve selling key assets like the Jeep brand, its specialty parts business Mopar and even its engineering operations if Cerberus is pushed to break up the 80-year-old automaker.

Both GM and Chrysler have declined to comment when questioned about the merger talks. Both automakers have also ruled out bankruptcy as an option as they restructure......Read More

Stupid Daily News---Political Roast----Lingerie Football Pics

GM-Chrysler merger and Cerberus--Very Little Options!

RPT-DEALTALK-Options scarce if GM-Chrysler merger talks fail

DETROIT, Oct 22 (Reuters) - As General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) pushes ahead with talks to acquire Chrysler LLC, uneasy suppliers and workers are bracing for a deal that would combine two struggling automakers and cost tens of thousands of jobs.

But as GM struggles to line up financing for an acquisition, attention has turned to an even more uncertain prospect: What happens if the controversial deal falls apart?

For Chrysler, owned for the past year by Cerberus Capital Management, the options are dwindling, according to bankers, consultants and experts on corporate strategy.

If GM pulls out, people briefed on the talks expect Cerberus to seek another buyer for the maker of Jeep, Dodge and Chrysler models. Failing that, Cerberus would likely look to break up Chrysler and sell whatever assets it could, they said.

"Selling off assets will only become strategy if GM is off the table and they have not found any other buyer," said one person familiar with the matter, who estimated the GM deal now has about a 1-in-3 chance of success because of difficulties in securing outside funding.

Another person familiar with Chrysler's planning said the automaker had drawn up scenarios that would involve selling key assets like the Jeep brand, its specialty parts business Mopar and even its engineering operations if Cerberus is pushed to break up the 80-year-old automaker.

Both GM and Chrysler have declined to comment when questioned about the merger talks. Both automakers have also ruled out bankruptcy as an option as they restructure......Read More

Stupid Daily News---Political Roast----Lingerie Football Pics

Cerberus cut off investment on Chrysler's vehicle development beyond 2010

Jim Press says, "We Will Be Here" and Bob Nardelli Say's the Merger reports are rumors!
Sell, Sell, Sell!

FROM BAD TO WORSE

One reason for Cerberus to press for a quick deal is that the private equity firm has effectively cut off investment on Chrysler's vehicle development beyond 2010, analysts said.

"Time will not be their friend," said Kimberly Rodriguez, a principal at Grant Thornton LLP, an advisory firm with a specialty in automotive restructuring.

Rodriguez estimated that 30,000 to 40,000 jobs could be lost if GM absorbs Chrysler and the smaller carmaker's supplier base would be decimated. "This is not a hit most could take," she said.

Stupid Daily News---Political Roast----Lingerie Football Pics

Cerberus cut off investment on Chrysler's vehicle development beyond 2010

Jim Press says, "We Will Be Here" and Bob Nardelli Say's the Merger reports are rumors!
Sell, Sell, Sell!

FROM BAD TO WORSE

One reason for Cerberus to press for a quick deal is that the private equity firm has effectively cut off investment on Chrysler's vehicle development beyond 2010, analysts said.

"Time will not be their friend," said Kimberly Rodriguez, a principal at Grant Thornton LLP, an advisory firm with a specialty in automotive restructuring.

Rodriguez estimated that 30,000 to 40,000 jobs could be lost if GM absorbs Chrysler and the smaller carmaker's supplier base would be decimated. "This is not a hit most could take," she said.

Stupid Daily News---Political Roast----Lingerie Football Pics

Chrysler's Jim Press downplays sale talk

Chrysler's Press downplays sale talk
Tom Krisher / Associated Press
DETROIT -- Reports that Chrysler LLC is being shopped for sale by its owners are just speculation, a top Chrysler executive said Wednesday night.

Vice Chairman and President Jim Press said Chrysler would "be here," saying he had confidence in the company.

"There's not a lot of reason to talk about mergers and things like that because it's all speculation. We've been doing fine," he told reporters after speaking to a Society of Automotive Engineers' conference on vehicle electronics.

People familiar with the talks have told The Associated Press that Chrysler's owners are talking to General Motors Corp., the combined Nissan Motor Co.-Renault SA, and others about a possible sale or merger. The people have asked not to be identified because the talks are private.

During his speech, Press said there was no reason for concern.

"The best thing we can do is focus on our business at hand and try to match and beat the competitors," he said, telling the engineers that they would lead the U.S. auto industry out of its slump.

Chrysler, he said, has changed its business model by reducing the size of the company to match sales, stopping a high level of negative cash flow and stabilizing its finances for the company to go forward.

"Maybe that's one of the reasons why a lot of people have been smelling around the Chrysler vault lately, I don't know," he said.

Chrysler reportedly has about $11 billion in cash, something that cash-starved GM is interested in accessing. GM is burning through $1 billion in cash per month and would have difficulty borrowing more money. Analysts say it could reach the minimum amount needed to run the company sometime next year.

If GM acquired Chrysler, many fear it would eliminate redundant brands and models and lay off thousands of workers.

After speaking, Press repeatedly said he wouldn't respond to sale questions because they were based on rumor and speculation. The reports have filled the Detroit area with worry about thousands of job losses.

During the speech, which took place in a hotel ballroom inside GM's downtown Detroit headquarters complex, Press called the sale talk the elephant in the room and joked about why he was at GM's offices.

"We only came here for the dinner. That's the only reason we're in this building," he said. "And we really can't say anything else about the fact that we're here."




Stupid Daily News---Political Roast----Lingerie Football Pics

Chrysler's Jim Press downplays sale talk

Chrysler's Press downplays sale talk
Tom Krisher / Associated Press
DETROIT -- Reports that Chrysler LLC is being shopped for sale by its owners are just speculation, a top Chrysler executive said Wednesday night.

Vice Chairman and President Jim Press said Chrysler would "be here," saying he had confidence in the company.

"There's not a lot of reason to talk about mergers and things like that because it's all speculation. We've been doing fine," he told reporters after speaking to a Society of Automotive Engineers' conference on vehicle electronics.

People familiar with the talks have told The Associated Press that Chrysler's owners are talking to General Motors Corp., the combined Nissan Motor Co.-Renault SA, and others about a possible sale or merger. The people have asked not to be identified because the talks are private.

During his speech, Press said there was no reason for concern.

"The best thing we can do is focus on our business at hand and try to match and beat the competitors," he said, telling the engineers that they would lead the U.S. auto industry out of its slump.

Chrysler, he said, has changed its business model by reducing the size of the company to match sales, stopping a high level of negative cash flow and stabilizing its finances for the company to go forward.

"Maybe that's one of the reasons why a lot of people have been smelling around the Chrysler vault lately, I don't know," he said.

Chrysler reportedly has about $11 billion in cash, something that cash-starved GM is interested in accessing. GM is burning through $1 billion in cash per month and would have difficulty borrowing more money. Analysts say it could reach the minimum amount needed to run the company sometime next year.

If GM acquired Chrysler, many fear it would eliminate redundant brands and models and lay off thousands of workers.

After speaking, Press repeatedly said he wouldn't respond to sale questions because they were based on rumor and speculation. The reports have filled the Detroit area with worry about thousands of job losses.

During the speech, which took place in a hotel ballroom inside GM's downtown Detroit headquarters complex, Press called the sale talk the elephant in the room and joked about why he was at GM's offices.

"We only came here for the dinner. That's the only reason we're in this building," he said. "And we really can't say anything else about the fact that we're here."




Stupid Daily News---Political Roast----Lingerie Football Pics

Chrysler to close factory, cut shift at another

Chrysler to close factory, cut shift at another
Tom Krisher / Associated Press
DETROIT -- Chrysler LLC says it will eliminate one shift at a Toledo, Ohio, Jeep plant and accelerate the closure of its sport utility vehicle factory in Newark, Del., because of the slowing global economy and a continuing shift toward smaller vehicles.

About 825 workers at the Toledo North Assembly Plant will be laid off indefinitely as of Dec. 31. The Newark closure also will be effective at the end of the year and affect about 1,000 jobs, the company said in a news release.

The Toledo factory makes the Dodge Nitro and Jeep Liberty. Both have been selling slowly this year due to high gas prices and a slowing U.S. economy.

The Newark plant makes the slow-selling Dodge Durango and Chrysler Aspen sport utility vehicles. It originally was expected to close at the end of 2009.

Auburn Hills, Mich.-based Chrysler said in a statement that the changes will adjust inventory to better match consumer demand.

"The markets are facing unprecedented turmoil and we are in a time of historic change in the auto industry," Frank Ewasyshyn, Chrysler's executive vice president of manufacturing, said. "These tough, but necessary steps are vital to our long-term viability."

The company said it would work with the United Auto Workers union to handle the layoffs in a "socially responsible manner."

The company in the past has offered buyout and early retirement programs to workers affected by plant slowdowns and closures.

Chrysler spokesman Ed Saenz said the Toledo North plant now is operating on two shifts. It has a total of 2,100 employees, 1,800 of whom are blue-collar.

Neither of its vehicles is selling well. Through the first nine months of the year, Chrysler sold 30,071 Nitros -- 46 percent fewer than the same time last year. Liberty sales of 54,293 were off 21 percent through September, according to Autodata Corp.

The Newark plant has been running on one shift since July of 2006. The company announced its intent to shut the factory down in February of 2007. It has total employment of about 1,000, Chrysler said.

Stupid Daily News---Political Roast----Lingerie Football Pics

Chrysler to close factory, cut shift at another

Chrysler to close factory, cut shift at another
Tom Krisher / Associated Press
DETROIT -- Chrysler LLC says it will eliminate one shift at a Toledo, Ohio, Jeep plant and accelerate the closure of its sport utility vehicle factory in Newark, Del., because of the slowing global economy and a continuing shift toward smaller vehicles.

About 825 workers at the Toledo North Assembly Plant will be laid off indefinitely as of Dec. 31. The Newark closure also will be effective at the end of the year and affect about 1,000 jobs, the company said in a news release.

The Toledo factory makes the Dodge Nitro and Jeep Liberty. Both have been selling slowly this year due to high gas prices and a slowing U.S. economy.

The Newark plant makes the slow-selling Dodge Durango and Chrysler Aspen sport utility vehicles. It originally was expected to close at the end of 2009.

Auburn Hills, Mich.-based Chrysler said in a statement that the changes will adjust inventory to better match consumer demand.

"The markets are facing unprecedented turmoil and we are in a time of historic change in the auto industry," Frank Ewasyshyn, Chrysler's executive vice president of manufacturing, said. "These tough, but necessary steps are vital to our long-term viability."

The company said it would work with the United Auto Workers union to handle the layoffs in a "socially responsible manner."

The company in the past has offered buyout and early retirement programs to workers affected by plant slowdowns and closures.

Chrysler spokesman Ed Saenz said the Toledo North plant now is operating on two shifts. It has a total of 2,100 employees, 1,800 of whom are blue-collar.

Neither of its vehicles is selling well. Through the first nine months of the year, Chrysler sold 30,071 Nitros -- 46 percent fewer than the same time last year. Liberty sales of 54,293 were off 21 percent through September, according to Autodata Corp.

The Newark plant has been running on one shift since July of 2006. The company announced its intent to shut the factory down in February of 2007. It has total employment of about 1,000, Chrysler said.

Stupid Daily News---Political Roast----Lingerie Football Pics

This is why the deal will be done! Bob Nardelli and George Bush

This is why the GM Chrysler Deal Will Be Done! Bob Nardelli is pushing to get the merger through before Nov. 4th! He is George Bush's Buddy!

During his tenure at The Home Depot, Nardelli met President Bush at the White House in 2002 and was appointed to Bush's Council on Service and Civic Participation.
Nardelli also hosted a garden reception/fundraiser for Bush at his Atlanta home on May 20, 2004.

US President George W. Bush(L) speaks about the economy, as Home Depot President and CEO Bob Nardelli (R) looks on inside the Home Depot in Halethorpe, Maryland in this 05 December 2003 file photo near Baltimore, Maryland. The large packages corporate executives receive when they leave CEO jobs such as at Home Depot and Pfizer have caused everyone from President Bush to professional compensation consultants to suggest the high payment for leaving a company needs to be tied more closely to company performance

Here is Bob Nardelli's Republican Contribution record----Report

Stupid Daily News---Political Roast----Lingerie Football Pics

This is why the deal will be done! Bob Nardelli and George Bush

This is why the GM Chrysler Deal Will Be Done! Bob Nardelli is pushing to get the merger through before Nov. 4th! He is George Bush's Buddy!

During his tenure at The Home Depot, Nardelli met President Bush at the White House in 2002 and was appointed to Bush's Council on Service and Civic Participation.
Nardelli also hosted a garden reception/fundraiser for Bush at his Atlanta home on May 20, 2004.

US President George W. Bush(L) speaks about the economy, as Home Depot President and CEO Bob Nardelli (R) looks on inside the Home Depot in Halethorpe, Maryland in this 05 December 2003 file photo near Baltimore, Maryland. The large packages corporate executives receive when they leave CEO jobs such as at Home Depot and Pfizer have caused everyone from President Bush to professional compensation consultants to suggest the high payment for leaving a company needs to be tied more closely to company performance

Here is Bob Nardelli's Republican Contribution record----Report

Stupid Daily News---Political Roast----Lingerie Football Pics

What Is Next For The Big Three? Will They All Fail?

Since the report one week ago that Cerberus is dumbing Chrysler, the public and employees have gotten a better view of the financial mess the Big Three are facing.

From all the reports it looks like they are all going to collapse and must consolidate into one company!

Cerberus has damaged it's relationship with the Chrysler employees and it's customers.
Financing companies need to stay out of the car business, you need a passion for automobiles to run a car company. If you don't, that lack of auto savvy Leach's through the company and is translated into the cars you build!

Bob Nardelli couldn't build a house and look what he did to Home Depot!
He certainly doesn't know cars and look at Chrysler!

To the next company that hires Bob Nardelli, employees........Start Your Resumes!!!

Stupid Daily News---Political Roast----Lingerie Football Pics

What Is Next For The Big Three? Will They All Fail?

Since the report one week ago that Cerberus is dumbing Chrysler, the public and employees have gotten a better view of the financial mess the Big Three are facing.

From all the reports it looks like they are all going to collapse and must consolidate into one company!

Cerberus has damaged it's relationship with the Chrysler employees and it's customers.
Financing companies need to stay out of the car business, you need a passion for automobiles to run a car company. If you don't, that lack of auto savvy Leach's through the company and is translated into the cars you build!

Bob Nardelli couldn't build a house and look what he did to Home Depot!
He certainly doesn't know cars and look at Chrysler!

To the next company that hires Bob Nardelli, employees........Start Your Resumes!!!

Stupid Daily News---Political Roast----Lingerie Football Pics

In addition to Nissan/Renault, Chrysler has been talking with Tata, Fiat

Bob Nardelli, Chrysler's current CEO, has given his employees the closest thing to an admission as we are likely to see that the company has been in serious negotiations with other automakers regarding future product plans and possibly even mergers. As has been widely reported over the weekend, Chrysler has apparently had discussions with General Motors regarding a tie-up between the two automakers, and the rumormill is churning away with stories that GM isn't the only suitor.

Carlos Ghosn already has a history of merging automakers, and his Nissan/Renault partnership has naturally been recalled as a possible mate with Chrysler, as have Fiat and Tata Motors.

Remember that there's nothing concrete here to report, just speculation. At this point, all we know is that Nardelli admits that there are "third parties who are interested in exploring future possibilities with Chrysler" and that "as the company evaluates strategic options to maximize core operations and leverage its assets, we engage in a dialogue with these parties." Sounds pretty vague, wouldn't you say? These talks can be routine or they could be much more. We'll just have to keep an interested eye on the news.

Stupid Daily News---Political Roast----Lingerie Football Pics

In addition to Nissan/Renault, Chrysler has been talking with Tata, Fiat

Bob Nardelli, Chrysler's current CEO, has given his employees the closest thing to an admission as we are likely to see that the company has been in serious negotiations with other automakers regarding future product plans and possibly even mergers. As has been widely reported over the weekend, Chrysler has apparently had discussions with General Motors regarding a tie-up between the two automakers, and the rumormill is churning away with stories that GM isn't the only suitor.

Carlos Ghosn already has a history of merging automakers, and his Nissan/Renault partnership has naturally been recalled as a possible mate with Chrysler, as have Fiat and Tata Motors.

Remember that there's nothing concrete here to report, just speculation. At this point, all we know is that Nardelli admits that there are "third parties who are interested in exploring future possibilities with Chrysler" and that "as the company evaluates strategic options to maximize core operations and leverage its assets, we engage in a dialogue with these parties." Sounds pretty vague, wouldn't you say? These talks can be routine or they could be much more. We'll just have to keep an interested eye on the news.

Stupid Daily News---Political Roast----Lingerie Football Pics

Is Chrysler Going To Be Ripped Apart?

The reports about Chrysler are all across the board, auto analysts are just taking wild guesses about Cerberus's next move.
Now we are hearing reports that Chrysler is in talks with Tata, Nissan and General Motors!
Who is going to jump in the Frey next Ford,Toyota and BMW?
There has been no official word from Chrysler's leadership, but it seems Cerberus is going to have a fire sale!
If there is no takers is Chrysler going ask the Union for major wage concessions?

Stupid Daily News---Political Roast----Lingerie Football Pics