Freep: GM Says It Can Handle Chrysler Merger

There’s a reason the headline above attributes this “story” to The Detroit Free Press. Let me put it this way: “people familiar with the situation,” “one of these people added,” “other observers,” “one person told the Free Press,” “a person briefed on the talks,” “several analysts have speculated,” and “a person briefed on the strategy.” Seven references to unnamed sources? That’s gotta be some kind of record– and not for reputable journalism. OK, be that as it may, The Freep is asking us to believe that there’s method to this banker-lead executive hysteria. “If a merger is consummated, Chrysler’s brands would become just like Chevrolet, Pontiac and Buick, people familiar with the situation tell the Free Press.” And that’s a good thing? “Conflicting brands could be dealt with in a few years after this industry turmoil has passed, one of these people added.” Later. Got it. “Another concern raised by analysts and other observers regards the addition of 3,500 Chrysler dealers into GM’s already over-dealered network. One person told the Free Press that those ‘excess dealers’ would cost GM nothing in the short-term and that some — if not many — will fail on their own anyway.” Later. Got it. Of course, Ace scribe Tim Higgins has more conjecture information on GM’s thinking…

“There is no certainty yet that any deal will come to pass,” Higgins writes in a CYA aside. “Smaller ventures or deals with other automakers could be pursued.” Huh? “But a straight-out combination of operations is the assumed model for GM’s team, led by President Fritz Henderson and Ray Young, his chief financial officer.” Assumed by…? And here’s the kicker: “A person briefed on the talks said Cerberus wants to keep a stake in a combined automaker to ensure its GMAC lending business is tied to an automaker when the auto industry rebounds down the road.” See? Now that’s funny.