Earlier this week, we at Automotive.com blog reported that General Motors and Chrysler were in talks with the former considering buying the latter from partner/parent control-freak Mercedes-Benz. Both companies denied it, stating they were, instead, in talks to share parts and other technologies. We, in our naiveté, took their statements at face value and dutifully reported on those discussions and other related topics (see Additional articles below).
Well, GM may have been pulling a fast one. Automotive News has published a new report that the highest levels of management from both automakers are in discussion about such a acquisition. Representatives from both companies, of course, continue to deny such discussions. Same with analysts and critics, who do not see any benefit from a merger, especially for GM, which is in the midst of its own, expensive turnaround to reestablish itself in the brutal U.S. automotive market.
Our take? We agree with the analysts but realize there’s nothing GM or Chrysler can do to stop speculation especially with shareholder reaction. We’ll continue to keep everyone posted as the story continues to unfold. This time, though, we'll take everything we read and hear with a grain of salt (unless it's official, of course. And even then we'll be checking twice).
Additional articles:
Talks of GM Chrysler Merger
GM and Chrysler In Talks To Develop SUV Together
DaimlerChrysler's Recovery and Transformation Plan
Via ABC News (image from Truckin Magazine)