Buying Chrysler could bring General Motors Much Needed Cash

By Automotive Staff | October 20, 2008
As pundits have been picking apart the possibility of a merger between General Motors and Chrysler, many are saying that it just won’t work -- for one thing there are too many brands and plants and workers that will have to be cut as a result of the merger. And, they add, the lasting result won’t be all that good anyway. Now comes a pundit who says that the merger might provide much needed money to General Motors. It is said that Chrysler has $11.7 billion in cash and that would no doubt help GM make it through next year and the worst auto sales market in 15 years. There could actually be a cost savings of about $6 billion should a merger take place. Financial experts say General Motors needs $10.3 billion more in cash to make it through next year. And then there could be savings as a result of a new union contract and sales boosts of fuel efficient models like the Chevrolet Cruze and Volt. Our take? That pundit is an optimist. Any said cash will be eaten up quickly with the costs of shutting down dealerships and dealing with other Chrysler costs. And you can imagine the stink the UAW will raise as GM downsized the Chrysler workers.
via Detroit News