F&I Management & Training

General Motors' share price rose more than 8 per cent yesterday to close at $6.76 (£4.07) after news that it had resolved difficulties with Chrysler and merger talks were progressing.

The carmakers have reportedly agreed that GM chief executive Rick Wagoner will head the enlarged company if a merger were to take place.

Despite the talks moving forward, funding remains a major obstacle to closing the deal.

GM has requested $10bn in US government aid to support the deal, while Cerberus Capital, the owner of Chrysler, is reportedly trying to refinance billions of dollars in Chrysler debt.

Should the merger go ahead it would create the world's largest and biggest-selling car company.

DATED: 30.10.08

FEED: MT