DETROIT — Discussions over potential government funding to facilitate a General Motors acquisition of Chrysler are on hold until after today’s election, and the result likely will be decided by whoever wins the presidential contest, according to a person briefed on the financing details of the negotiations.
General Motors and Chrysler were still reviewing numerous options to help the deal, including tapping into a portion of the $700 billion federal bailout being administered by the Treasury Department, the person said Monday.
“I think it’s silly for anyone to count anything out,” said the person, who asked not to be identified because the negotiations are private.
Another person briefed on the talks said that despite reports to the contrary, Nissan Motor Co. is still involved in the discussions, although Chrysler’s majority owner, Cerberus Capital Management LP, would prefer GM as a single buyer. That person also spoke on condition of anonymity.
Nissan spokesman Fred Standish said he would not comment on speculation about the company’s dealings. GM spokesman Greg Martin also declined to comment.
GM has been lobbying the Bush administration for at least $10 billion to help the company maintain its operations and finance a deal with Chrysler. GM could use some of the funding to shut down redundant Chrysler operations.
Both presidential contenders have discussed support for the industry.
Democrat Barack Obama has said that if elected, he would quickly meet with the leaders of the U.S. automakers and the United Auto Workers union after the election, a sign that he could exert influence on the process during the presidential transition.
Republican John McCain has said he would “do whatever I think needs to be done to help out the auto industry.”
GM and its allies in Congress have urged the Energy Department to expedite the funding of $25 billion in loans to help the industry retool assembly plants to construct fuel-efficient vehicles.
GM could access a portion of the funding.
