During the negotiations for the multi-billion dollar bailout being announced today, an option again apparently came up that might have gone a long way toward strengthening General Motors and Chrysler’s viability that wouldn’t have cost taxpayers a dime — a merger between the two of them.
But also once again, the idea was quickly shot down. The companies didn’t give a reason, but more than likely it was the hurdles of antitrust rules. The Detroit News recently quoted an antitrust expert saying…
In early 2007, the economy was humming along and General Motors was considered to be in the process of a turnaround. To help stabilize itself, the company was considering buying its smaller, money-losing rival Chrysler.
But it faced a stumbling block in the form of antitrust law. According to analysts looking at a potential merger, the government would consider a combined GM and Chrysler too big and powerful with the ability to drive competition out of the market. The Wall Street…
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