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To: ~digs who wrote (38312)	10/27/2008 9:02:37 AM
From: Bucky Katt	Respond to of 48461

Bankruptcy Fears Rise For Chrysler, GM>>> A harsh reality has emerged for GM and Chrysler: Without a merger and possibly an assist from the government, two of Detroit's Big Three auto makers could run out of cash within a year. Investors' Worries Investors and vendors to the auto makers believe bankruptcy proceedings for one of the Big Three are as likely as not, judging by a range of financial indicators. GM and Ford bonds trade between 20 to 40 cents on the dollar. Investors have valued $9 billion worth of Chrysler debt at about $3.4 billion. On Thursday, Daimler AG, which owns 19.9% of Chrysler, wrote its investment in the auto maker down to zero. The GM-Chrysler plan would effectively scrap large parts of 83-year-old Chrysler. Even people involved in the deal concede a tie-up would be risky because consolidation would have to take place quickly. In a merged company, GM would take the driver's seat in product-development activities, say several people involved in the talks. It would retool several existing Chrysler products to base them on GM-designed vehicles, or kill some products outright, these people said. GM is expected to save Chrysler's popular minivans and Jeeps. GM could also sell certain vehicle lines, such as the profitable Dodge Ram, to an auto maker seeking entry into the U.S. light-truck market. online.wsj.com