No Deal Yet for GM and Chrysler
Date 2008/10/20 8:49:46 | Topic: Miscellaneous
|The New York Times Blog is reporting that negotiations are tenuous, but ongoing, as the current major hurdle appears to be GM arranging the financing to complete the deal in the current world financial crisis.|
If and when the deal does go through, expect massive plant closures and layouffs:
Chrysler has 14 assembly plants and the expectation is that many of those would be in danger of being shut if it merges.
Once the deal closes, G.M. is only interested in keeping Chrysler plants where the No. 3 U.S. automaker has made significant investments in retooling, according to Reuters.
That could include Chryslerís truck plant in Saltillo, Mexico, the Jefferson North Jeep plant in Detroit and its Belvidere, Illinois car assembly plant, one source briefed on the talks told the news service.
The Jefferson North plant is where the Grand Cherokee and Commander are assembled, while the Belvidere plant is home to the Compass and Patriot.