GM denies holding new merger talks with Chrysler

NEW YORK (Reuters) – General Motors Corp has not reopened merger talks with Chrysler LLC, a GM spokesman said on Thursday, denying a report in The Wall Street Journal that talks had been revived. “We have had no talks with them since we announced during our third-quarter earnings call that the talks had been suspended,” GM spokesman Tony Cervone said.

Representatives for Chrysler and Cerberus Capital Management, which owns an 80 percent stake in Chrysler, did not return calls seeking comment on the Journal report. GM and Cerberus suspended talks in late October. GM had pushed for up to $10 billion in U.S. government aid to support an acquisition of Chrysler, according to sources with knowledge of the talks. The discussions were dropped when no financing was immediately available.

The Bush administration is considering using funds from the $700 billion financial industry rescue to bail out the Big Three U.S. automakers. A proposed $14 billion bailout collapsed in Congress in the face of opposition from Senate Republicans. Analysts have said GM and Chrysler could face bankruptcy without quick help. GM has said it needs at least $4 billion by the end of December. The chief executives of GM and Chrysler told the Senate Banking Committee during hearings for financial aid earlier this month that they would consider restarting merger talks if needed.

(Reporting by Jui Chakravorty Das; editing by John Wallace)

Auto bailout prospects revived in Senate

By John Crawley and Thomas Ferraro

WASHINGTON (Reuters) – Prospects for an auto industry bailout revived in the U.S. Senate on Thursday as surprise negotiations on a compromise moved forward and a vote was possible later in the day. Senate Majority Leader Harry Reid said on the Senate floor that the deal, if struck, “would overwhelmingly pass” the chamber that just hours ago seemed resigned to sending the automakers back to Detroit empty-handed. The scenario at the core of the possible compromise was proposed by Sen. Bob Corker, a Tennessee Republican, who would grant loans under stricter conditions than favored by Democrats and the White House.

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GM says it “disappointed” and “betrayed” consumers

DETROIT (Reuters) – General Motors Corp on Monday unveiled an unusually frank advertisement acknowledging it had “disappointed” and sometimes even “betrayed” American consumers as it lobbies to clinch the federal aid it needs to stay afloat into next month. The print advertisement marked a sharp break from GM’s public stance of just several weeks ago when it sought to justify its bid for a U.S. government on the grounds that the credit crisis had undermined its business in ways executives could never have foreseen.

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BMW, Mercedes sales plunge, Honda quits Formula One

By Michael Shields and Alastair Himmer

FRANKFURT/TOKYO (Reuters) – Global sales at the world’s top premium carmakers, BMW and Mercedes, plunged by a quarter in November and Honda backed out of Formula One racing as the economic downturn exacted a mounting toll on automakers.

With even well-heeled consumers keeping a tight grip on their wallets, group vehicle sales at BMW fell 25.4 percent to 96,570 units, led down by a 26.2 percent drop at the flagship BMW brand, it said on Friday.

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China’s Chery auto maker wins access to $1.5 billion loans

BEIJING (Reuters) – Chery Automobile Co, China’s fourth-largest car maker, will have access to loans of 10 billion yuan ($1.5 billion) from the China Export and Import Bank to finance overseas expansion, the Xinhua news agency reported on Sunday.

The Anhui Province-based Chery, the largest home-brand carmaker, would use the money to support its global business, such as increasing exports as well as imports of technology and equipment, according to an agreement.

Chery exported 125,000 cars in the first 10 months of this year, outnumbering the export volume for 2007. The company planned to export 400,000 cars in 2010, Xinhua said. Earlier this year, Chery said it aimed to expand sales in the Americas, first in South America and eventually in the United States.

(Reporting by Ken Wills; Editing by Kim Coghill)

Bush, Democrats seek to finalize auto bailout

By Thomas Ferraro and Donna Smith

WASHINGTON (Reuters) – White House and congressional negotiators sought on Sunday to resolve remaining differences over an emergency rescue for the struggling auto industry, a stark symbol of the deepening U.S. economic crisis.

Prodded by shock unemployment figures that showed the country shed more than half a million jobs last month alone, negotiators tried to turn into legislation an agreement in principle to provide “The Big Three” U.S. automakers with at least $15 billion in short-term loans.

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Fisker Automotive Announces Intent to Source General Motors Components

Fisker Automotive, Inc., a green American premium car company, today announced that General Motors has been selected to supply, through its on-highway integrator Powertrain Integration LLC, the gasoline engine that will be used in the Fisker Karma, Fisker Automotive’s new Extended Range Hybrid Electric Vehicle. GM’s Powertrain organization will supply the gasoline engine that generates electricity when the driver has exceeded the 50 mile electric-only range.

The 2.0 direct injection, turbo-charged 4-cylinder Ecotec gasoline engine will deliver 260 horsepower. Fisker Automotive is also considering the purchase of several additional GM vehicle components to enhance the Karma.

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