ChryslerGmMerger

Chrysler LLC just released a statement from Bob Nardelli in which the CEO responds, in a way, to General Motors' third quarter earnings report. In the report, GM acknowledged that it had "recently explored the possibility of a strategic acquisition". While not citing Chrysler by name, we all know the strategic acquisition in question is the Auburn Hills-based automaker currently owned by private equity group Cerberus Capital Management. Nardelli responds by comically not confirming that his company was GM's target, reiterating for the umpteenth time that Chrysler doesn't talk about its business dealings with other companies because they often lead nowhere, like in this case we suppose.

General Motors and Cerberus reportedly want to act as quickly as possible if they are going to make a move on Chrysler. It seems that the two bargainers would like to come to a decision before the upcoming Presidential elections, as they believe they may get more promises from either candidate before the actual vote takes place. A potential problem exists though, as General Motors is finding it tough to come up with the cash needed to make a deal happen and banks aren't about the lend it to them. An alternative option that's being considered is getting government backing for the deal.

One aspect of the possible GM/Chrysler merger often overlooked is that Daimler didn't completely divest itself of its Chrysler ownership back in early 2007, and the German automaker's 19.9% stake could get in the way of any deal. Daimler has been clear that it is disinterested in becoming part of some Detroit super conglomerate, and Automotive News is reporting that Cerberus is close to a deal to buy up the remaining 19.9% stake. Also part of the rumor mill is possible involvement with Renault/Nissan, which has been actively working with Chrysler on collaboration projects in the past year.

The latest rumors regarding Cerberus-owned Chrysler and its possible sale point to the breakup of Chrysler's assets, and in particular its brands. General Motors may be interested in bits and pieces of its cross-town rival, but perhaps not the entire automaker. Jeep is considered Chrysler's most valuable asset and was purchased by the automaker from Renault in the '80s, around the same time that AMC ceased to exist. A similar scenario may put Jeep back in the hands of Renault.

Will the blending of Maximimum Bob and Minimum Bob be like putting matter and anti-matter together? We may find out sooner than expected if what CNBC is reporting is accurate. The possible merger deal between General Motors and Chrysler that hit the web waves recently will reportedly be concluded in the next two weeks one way or the other. Although original reports of talks between the two automakers indicated that they had walked away from the table already, it now appears the negotiations are going hot and heavy. Of course, no one with any actual knowledge of what is happening will discuss the situation on the record, so we are simply left to speculate whether this is really a good idea.