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A little too intertwined?

May 6, 2009

Let me start by setting the scene.  Chrysler is on life support, and is relying on a merge with Fiat.  GM is also in terrible shape, and is two inches away from bankruptcy.

Now enter this new development: GM is looking to take a stake in Fiat.  No, you did not hallucinate.  GM is looking to sell a few of it’s foreign units in exchange for 30% of Fiat.  So if all of this comes through GM will have some sort of proxy stake in Chrysler.

Is it just me or is this strange?  The last thing GM needs if it wants to survive is a tie to the “Titanic” of Rochester Hills.  And somehow I see this being bad in the great scheme of things as well…

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