"The discussions between GM and Cerberus Capital Management, the Capital Investment which owns Chrysler, it began more than a month and negotiations are not certain of reaching an agreement," writes the New York Times .
"Two people close to the discussions felt that the chances of merger were 50% at the date of Friday and that should probably be weeks before it does," added the newspaper. ( Finance Information City )
According to the Wall Street Journal, however, discussions have turned short because of the recent collapse of the exchanges.
Any merger would alter bottom of the landscape of American industry by bringing to two the traditional trio of "Big Three" Detroit (Ford, GM and Chrysler).
"A merger would be a historic event as it would bring together two of the most symbolic names of U.S. industry to enable them to survive in conditions increasingly difficult," writes the New York Times.
"Both companies are rooted in Detroit (north of the United States, Ed) for decades and have long dominated, with Ford, the automobile industry, before the Japanese or other foreign groups begin to invade U.S. market, "says the article.
The newspaper said that the automotive industry is under attack "from all sides by rising gasoline prices that consumers away from the range of profitable sport utility vehicles through a weakened economy that alienates consumers dealers, and by credit harder to get makes loans for potential buyers. "
It also notes that neither Chrysler nor GM are able to adapt to the desires of consumers, who want smaller cars and consuming less.
According to the newspaper, the group born from a merger between Chrysler and GM would control more than 35% of the U.S. car market and undoubtedly prevail on the segment of sport utility vehicles and vans.
With the intensification of the financial crisis, pushing consumers to postpone big purchases and their banks to refuse credit, the American car market collapsed in September, falling 26.6% in one year. Ford has seen its sales fall by 34% and 33% of Chrysler, while GM, the leading U.S. limited the damage with a decline of 15.8%.
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