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GM has a plan to merge with Chrysler and slash costs but initial attempts to secure financing for the controversial merger have been rebuffed, raising new doubts about whether it can be completed without government aid. Chrysler has $9 billion in debt that, under a change of control, would have to be paid off if it cannot be refinanced. At some point, you have to pay off your debts and not come begging to me to bail you out with my money...

The buzz is that the merger talks between GM and Chrysler are heating up. And it would seem that the biggest point of interest in the deal for GM would be the $11 billion in cash that is currently on Chrysler's books, and Cerberus is said to be considering a large investment in GM stock should the deal get done. With a pile of cash on the table and the prospect of more from the owners of that pile if the merger happens, it looks like this has a good chance to become reality...

What could GM possibly want with Chrysler? They could use Jeep to replace Hummer as the "off-road brand", they could use the Charger and 300 to replace the Impala and LaCrosse, and they'd finally get a minivan people want. That's it...

The late arrival to the party could very well be wondering why they bothered. Jim Lentz, president of Toyota Motor Sales USA was quoted in Automotive News last week from the Paris Auto Show regarding the company's outlook on the Tundra.  Lentz noted that Toyota does not want to get caught in the Ford F-Series vs Chevy Silverado war for first place in sales, or market against the all-new Dodge Ram 1500 or Ford F150.  He acknowledged that many of the former buyers of pickups - commuters and those who wanted the "image" - have left the market for more fuel efficient vehicles (aka, cars) and likely won't return. Toyota expected to sell 20,000 units per month after a fairly successful launch year, but their September 2008 sales were a dismal 7696, down over 60 percent from the September 2007 tally...

The Chevy Cruze debuted at the Paris Auto Show and according to some is much more important than the Chevy Volt. "The Cruze has a shot at being Chevrolet's best-selling car in the United States," Cheverolet general manager Ed Peper said. Unless the bottom falls out of the market, that suggests Chevrolet expects to sell more than 300,000 Cruzes annually in the United States...

Oh yea, this will work. General Motors Corp has received interest from two separate investors from the Gulf Arab region to buy its Hummer brand, the company's Middle East chief told Reuters on Tuesday. I'm bouncing around on what's going on here...

As reported on Inside Line, General Motors is proving that times are tough in Detroit by canning its high-profile GM Style fashion show/party that has happened on the eve of the Detroit auto show each January for the past two years. GM is also cutting out its ad sponsorship of the Emmy and Academy Awards TV broadcasts. In the years between 1998 and 2007, ads on the Oscar broadcast had reportedly cost GM nearly $100 million, enough to make it the top spender...

GM will report 2nd quarter sales figures today and it's not likely to be a pretty picture. General Motors Corp investors expect the No. 1 U.S...

Can't leave Chrysler out.  Today, the Pentastar announced they will close St. Louis South (minivan plant) and cut St. Louis North (Dodge Ram plant) to just one shift.  Chrysler has ridden the minivans and Rams for nearly 15 years - for a period time, both plants were open daily with multiple shifts...

GM's stock closed today (June 26) at its lowest (adjusted for splits) price since late 1974... ironically another time of oil turmoil in the US.  Two years later, the downsizing began with the full-size (B-body) cars.  Analysts note that GM won't reap the health-benefit savings from the new UAW contract until 2009.  Some are even calling for GM to be removed from the Dow Jones Industrial Average, despite their billions in annual revenue - GM is currently the lowest valued company of the 30 DJIA stocks (Alcoa at #29 is 4 times GM's valuation). Will this lead to another drastic change at GM like the downsizing of the 70s and early 80s?  Will they back off on "consumer trucks" and leave the Silverado/Sierra derivatives to the hardcore truck users who actually need them?  Only time will tell.