Reuters dominates coverage of crisis in U.S. auto industry

Reuters has been ahead on most of the major developments in the negotiations over a General Motors-Chrysler tie-up as well as lobbying for a government bailout of the auto industry. Among the highlights of this week’s coverage were: Reuters alone on Oct 19 in reporting that GM was pushing ahead with talks to acquire Chrysler and aiming to complete a deal to bolster a diminished cash position. The Reuters report was not immediately matched by competing media and detailed the Chrysler plants GM was interested in retaining if it completed a deal. Reuters was first on Oct 20 to report that a proposed deal had hit a snag because of difficulties in securing financing. GM and Cerberus approached one major investor with a pitch to help provide cash to support the deal but that request was turned down, threatening the success of the talks in the absence of U.S. government support. Reuters was alone again on Oct 22 with news of leading auto parts supplier Federal-Mogul taking steps to apply for a share of the $25 billion in low-interest loans for the U.S. auto industry just approved by the Congress. Reuters was first to report on Oct 26 that the deal terms were being changed in a bid to secure U.S. government financial support.