Earlier this week GM approached the U.S. government for $10 billion to support a merger between GM and Chrysler.
It’s now being reported that the U.S. Treasury has denied the request due to the fact that the merger could result in the loss of thousands of U.S. jobs. Since the U.S. Treasury denied the request the merger talks have been put on hold.
Experts agree that both automakers do need to merge due to their financial crisis. GM currently has $21 billion and Chrysler has $11 billion. It’s been reported that GM is currently burning through approximately $1 billion a month. Even though experts feel like the merger is necessary for both automaker’s survival, analysts predict that it could also cost 90,000 jobs.
Is bankruptcy GM’s only option?
Full Story: CNNMoney
GM Asks U.S. Government for $10 Billion to Buy Chrysler