GM-Chrysler Inch Closer to Deal

Merger would create world's largest automaker

By Ambreen Ali, Newser Staff

Posted Oct 29, 2008 1:57 PM CDT

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GM-Chrysler Inch Closer to Deal — Chrysler Group's CEO waves as General Motors' CEO looks on during a meeting on Capitol Hill. The companies will ask the government for $10 billion in aid to support the deal. (Getty Images)

General Motors and Chrysler have ironed out the major issues in their proposed merger, bringing the troubled giants a step closer to becoming the world's largest automaker. The deal's final form will depend on financing and government support—of which GM is requesting $10 billion—but both companies agree GM chief Rick Wagoner will run the hybrid, Reuters reports.

Chrysler's owners, meanwhile, are trying to refinance $9 billion in debt through a bank consortium that includes ailing JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley. The deal is tricky because some of those lenders have sold off parts of the debt to other brokers.
(More General Motors stories.)

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