General Motors Corp. is in preliminary talks with Cerberus Capital Management LP’s Chrysler LLC about a possible merger or other partnership, a person familiar with the talks said.
The talks are very early and it’s not clear whether they will result in any agreement, said the person, who asked not to be named because the discussions are private. The New York Times reported the talks yesterday and said Cerberus is also holding talks with automakers including Nissan Motor Co. and Renault SA, citing unidentified people.
GM used to have six brands (Buick, Chevy, Cadillac, GMC, Olds, Pontiac) and 50% market share selling through 8,500+ dealers. Today GM has eight brands (Olds got killed off, but GM bought SAAB and created Hummer and Saturn) , and about 20% market share selling through 6,550 dealers.
They have too many brands and too many dealers. And they don’t have the money to properly market their 40+ vehicles (most of which are pointless re-badges).
And they’re even talking to Chrysler about taking on more brands and more models and more dealers? Like they have the time or money to waste?
It’s enough to make you wonder if GM’s brass has enough brains to get them through Chapter 11, or if Chapter 7 will become their only recourse.
UPDATE: TTAC says the story is BS. Let’s hope so.