BREAKING Report : Chrysler and GM in merger talks !

The American autoindustry is bleeding . As you may read last week , General Motors’ share price took a 31% hit in a single day . And that's big . So to cure the problem , Wall Street Journal (WSJ) is claiming that GM is in talks with Chrysler over a possible merger deal . As you may know , Cerberus Capital Management owns 80.1 % of Chrysler as well as 51 % of GMAC Financial Services . So the deal would be to swap of GM’s remaining 49 % of GMAC for Cerberus’ stake in Chrysler .

But the story doesn't finish here , because last friday , GM announced its North American restructuring plan . And they simply said that they had ruled out seeking bankruptcy protection, claiming that such a decision is not in the best interests of its employees, stockholders, suppliers or customers . So the story gets two sides , the side where GM lost 31% of their price share and want to team up with Chrysler to fix-up things . And the side where they said that they went over the bankruptcy problem .

So is it true , are we going to see in the near future Dodge Volts, Hemi Camaros and Jeep Yukons ? That's what we're going to find out in the next few months or so . Hope not though , because each company has its own character . And if they merged , they'll surely lose it .

Source : [NewYork Times]

UPDATE : Official statement from Lori McTavish, Executive Director, Communications, Chrysler LLC:

Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time.