English 
English Welcome
on East Filters
Looking for auto parts? Please click below.
Our products
Racor Fuel filter/Water Separator
Oil water separator parts
Sakura Filters Equivalent
Fuel filter accessory
Top Searches
Oil filter
Fuel filter
Air filter
Oil water separator
Fuel water separator
Racor
Volvo
Caterpillar
Benz
Perkins
Scania
Komatsu
MAN
HINO
Iveco
TOYOTA
GM/Chrysler seek US$10 bln gov aid for merge
GENERAL Motors Corp and Cerberus Capital Management have asked the US government for around US$10 billion in an unprecedented rescue package to support a merger between GM and Chrysler LLC, two sources with direct knowledge of the talks said yesterday.
The government funding would include roughly US$3 billion in exchange for preferred stock in a merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly.
The US Treasury Department is considering a request for direct aid to facilitate the merger and a decision could come this week, sources familiar with the still-developing government response said earlier yesterday.
GM has been in talks with Cerberus about buying Chrysler since last month but the discussions have been snagged by difficulty in securing investment or financing for a deal at a time when credit is tight and global auto sales are in rapid retreat, others close to the talks have said.
A decision by the Bush administration to provide the government's first funding for the auto sector since the US$1.5 billion bailout of Chrysler in 1980 has been widely seen as the merger's best chance for success.
'The automakers are facing a maelstrom and that's why I think an unprecedented government infusion could happen,' said Efraim Levy, an automotive equity analyst with S&P.
An injection of US$3 billion in equity to support a GM acquisition of Chrysler would be roughly equivalent to the current, depressed value of the top US automaker.
It would also give US taxpayers a large stake in the turnaround of a struggling auto industry that employs over 350,000 American workers and is credited with supporting employment for another 4.5 million in related fields.
Analysts see GM, Chrysler and rival Ford Motor having been driven to the brink of failure by a combination of management missteps, slowing global growth and problems in credit markets.
The government funding would include roughly US$3 billion in exchange for preferred stock in a merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly.
The US Treasury Department is considering a request for direct aid to facilitate the merger and a decision could come this week, sources familiar with the still-developing government response said earlier yesterday.
GM has been in talks with Cerberus about buying Chrysler since last month but the discussions have been snagged by difficulty in securing investment or financing for a deal at a time when credit is tight and global auto sales are in rapid retreat, others close to the talks have said.
A decision by the Bush administration to provide the government's first funding for the auto sector since the US$1.5 billion bailout of Chrysler in 1980 has been widely seen as the merger's best chance for success.
'The automakers are facing a maelstrom and that's why I think an unprecedented government infusion could happen,' said Efraim Levy, an automotive equity analyst with S&P.
An injection of US$3 billion in equity to support a GM acquisition of Chrysler would be roughly equivalent to the current, depressed value of the top US automaker.
It would also give US taxpayers a large stake in the turnaround of a struggling auto industry that employs over 350,000 American workers and is credited with supporting employment for another 4.5 million in related fields.
Analysts see GM, Chrysler and rival Ford Motor having been driven to the brink of failure by a combination of management missteps, slowing global growth and problems in credit markets.
