CNBC: Three Reasons For GM Not To Buy Chrysler

By:Phil LeBeau

Ever since word first leaked out about GM talking with Cerberus Capital about buying Chrysler, I've had two basic conversations with those in the companies, in the industry, on Wall Street, and you the reader/viewer.

You either think this is a chance GM should seize or you cringe at the thought of these two automakers getting together. So, just what is it about this potential deal that scares so many people?

• GM biting off more than it can chew

For this to work, GM may have to cut up to 40,000 jobs quickly, buy out thousands of dealers, and do it in the most challenging auto market since '91. The skeptics doubt GM could pull that off without stumbling.

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