US carmakers General Motors Corp and Chrysler LLC Thursday
said they would be willing to consider a merger as a condition for receiving a
federal bail-out, dpa reported.
The idea was suggested by US lawmakers during a committee hearing on the three
US carmakers' request for 34 billion dollars in federal aid to avoid bankruptcy
in the midst of an economic recession.
Chrysler chief executive Rob Nardelli said he would accept the requirement if
it meant saving his 80-year-old company.
"If in fact that's the criteria ... I would do it," Nardelli said in
testimony before the Senate Banking Committee.
GM CEO Rick Wagoner also said he would also "consider it very
seriously" if Congress forced it upon them, but argued it would be better
to cut costs through alliances on specific models rather than a full merger.
The two companies have long been in talks about a merger, but gave up on the
idea after US financial markets collapsed in September. Both said they did not
have the short-term financing to go through with a deal.
The combination could save an estimated 8-10 billion dollars per year. But Ron
Gettelfinger, head of the industry labour union, the United Auto Workers,
voiced skepticism of the idea out of fear it would prompt significant job cuts.
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