Toyota denies GM ever requested its help

The negotiations between General Motors and Chrysler are reportedly going well, with some major hurdles being overcome this week. However, discussions on how GM plans to finance Chrysler's estimated $10 billion of debt are proving to be a major snag in the process, with cash-strapped GM struggling to raise enough funds to complete the merger. These factors are what made a rumor that GM had approached Toyota for help somewhat believable, but Toyota today issued a denial that any such request had been made by GM.

Yesterday, the Kyodo News reported that GM CEO Rick Wagoner was considering a trip to Japan to meet with Toyota’s senior management. The trip supposedly would have involved discussions surrounding the two industry giants creating a business partnership, with Toyota to provide GM funds by buying some of its assets. A Toyota spokesman silenced the speculation today, saying, "There is absolutely no truth to the report."

As GM works to improve its liquidity and possibly merge with or acquire Chrysler, talks with Cerberus Capital Management, the company that owns Chrysler, could also prove to be fruitful in terms of raising cash. Cerberus, which owns 51% of GMAC, could possibly acquire the remaining 49% of the auto-lending firm from GM. This would not only raise cash for GM, it would also allow GMAC to be classified as a bank holding company, and thus make it eligible for bank loans as part of the federal government's $700 billion Wall Street aid package.

A spokesperson from the White House stated that the government's decision on whether or not to help auto makers was still forthcoming, and that it could go either way. This would explain GM's eagerness to find an alternative route to raising cash should the government deny it any bailout package.