The U.S. Treasury Department ended negotiations today with automakers who want government financing for a merger between General Motors and Chrysler. The U.S. Treasury Department is hesitant about investing billions of dollars of taxpayer’s money into a merger that will cause over 90,000 layoffs in the auto industry. Cerberus Capital Management (owner of Chrysler) and GM have been negotiating for weeks but the merger is delayed because of a lack of financing as credit availability dries up. Chrysler and GM are looking at other government institutions for financial assistance.
It’s amazing that automakers have the guts to ask taxpayers for money for a merger that will literally eliminate 90,000 taxpayer’s jobs. Oh the irony. It makes absolutely no financial sense for the government to invest in a deal that will decrease its own revenue by reducing the income of 90,000 taxpayers.