10/11/2008, 12:17 AM

Chrysler News

Shock report: General Motors, Chrysler strongly considering merger

On the backdrop of a global financial crisis and dwindling auto sales, General Motors and Chrysler are said to be strongly considering a merger. Talks between GM and Chrysler parent company Cerberus Capital Management began in secret over a month ago, according to a new report by the New York Times.

Sources told the newspaper the odds of a merger happening are about “50-50.” The final terms of such a deal have not yet been established, and a decision is still weeks away. The talks have involved the “most senior executives” of both companies, according to the report.

Under the preliminary arrangement, Chrysler would be absorbed by GM, and Cerberus would take a minority stake in the auto giant. It’s unclear how Chrysler’s brands and products would be integrated into GM’s already complex mix.

The upside to such a deal would include combining dealer networks, cutting jobs, and merging R&D projects.

Insiders say Cerberus is determined to make a deal with another automaker, and if the GM deal falls through, it will likely turn to Nissan and Renault.

Stay tuned — this story is likely to develop rapidly in the coming days.

 
 

10/11, 12:24 AM

posted by:

johnnycanuck

Wow.

10/11, 12:24 AM

posted by:

Rafa LL

And hell is buried in snow…

10/11, 12:25 AM

posted by:

Rafa LL

Shoot we posted at the same precise time…XD

10/11, 12:28 AM

posted by:

johnnycanuck

…something had to give.

10/11, 12:43 AM

posted by:

AxeHead

It’s too late, GM and Chrysler and Ford are all ready to perish. They can do all they can to survive but in the end, the inevitable is pending. The parasitic unions need to die and the only way to kill a parasite is to let the host die. Unions can only feed on a dying carcass for so long until they realize there is no money left and they have to go find another host to attack. I say, let GM die, let Ford die, let Chrysler die and then let the greedy bastard unions die as well. Then, maybe GM can rise from the ashes and become a real competative company and compete with Toyota, Honda and Volkswagen on perhaps even win. They need this. A merger with Chrysler is only a stop gap measure.

10/11, 12:48 AM

posted by:

tyler_is_aero_tt

Get ready for flying pigs…

10/11, 12:59 AM

posted by:

tyler_is_aero_tt

But seriously I think Ford should also merge. They, right now, are the closest to going bankrupt and will be left behind. Just think GM’s modern styling, Chrysler’s money, and Ford reliability along with all three of their research on alternate fuels and smaller cars. They will totally crush Toyota and Honda IMO.

10/11, 1:10 AM

posted by:

Ratman

Cool now all the cars and trucks that I don’t want to buy will be made by the same company. Crap + More Crap = Super Crap!

10/11, 1:22 AM

posted by:

Lariat Luxury Locomotive Liner No.3

Merge into what? Seriously, what? GM for Chrys[ler's] sake.

10/11, 1:26 AM

posted by:

feariam

Chrysler, the new GMC = General Motors Crap

10/11, 1:30 AM

posted by:

tyler_is_aero_tt

Or General Crap.

10/11, 2:19 AM

posted by:

1c3d0g

Oh my God…well I look at it this way: if they were going to axe the Viper by 2012 anyway, at least bits and pieces can live on through Corvette. I don’t know what they’re going to do with the Ram though…Chevrolet Ram? Dodge Silverado? But I don’t think that’s too much reason to worry, they’ll find a way to make it work out, after all.

10/11, 2:51 AM

posted by:

A4

i think theyd keep the ram and silverado pretty separate…

10/11, 3:53 AM

posted by:

GM CEO

You all are speaking out of panic and fear. We are fine. My company is brilliant and has barely any multi-billion dollar debt. Barely a -$10,000,000,000 debt and decling sales. You can trust a CEO. You must. We are GM. We are too big to be forgotten. We are too big to fail. You must bail us out. We are one.

*Stalin Salute*

10/11, 8:44 AM

posted by:

bigp

ford is here to stay if the can last intil obama get in power, if they sell madza it over

10/11, 8:53 AM

posted by:

Ketzer

AxeHead, tru dat!

GM CEO, that last bit… dude, we prolly oughta start learning that salute for real!

10/11, 10:04 AM

posted by:

monte

How does one company with no money buy another company? And GM CEO, we get it, you’re an overexaggerating sarcastic deuche. It does get old at some point.

10/11, 10:12 AM

posted by:

golf4me

I think what should, and probably will happen is that they will merge, then go BK, where they can: shed a ton of dealers, axe labor contracts, massive layoffs, eliminate brands (and the dealers).

Emerging will be a pretty lean company hopefully combining the strengths of both companies.

GM is basically buying market share, which is cheaper than trying to do it on your own.

10/11, 10:40 AM

posted by:

Need4SSpeed

It’s not going to happen… And if it does… then well I think they are both even more screwed…

10/11, 10:50 AM

posted by:

hangonbig3

Hang on big two!!!

10/11, 10:55 AM

posted by:

VWgrouP

OOOHHH MYYYY GOOOOOSH

lmfao their screwed

10/11, 10:56 AM

posted by:

VWgrouP

Hey, am I the only one who has noticed that need more oil hasnt commented in a while?
haha

10/11, 11:29 AM

posted by:

RTT10

im with VWgroup.. i think we scared him away… finally.. anyways Ratman is so right…anyways.. its gonna end up being a monopoly at the end if u want an american car theres only one place to get it and i think its totally stupid

10/11, 12:31 PM

posted by:

Lariat Luxury Locomotive Liner No.3

Actually, people in finance are not betting on Ford; Ford may go under. It is best that Ford release both Volvo and Mazda to prevent collateral damage as it already doing to Mazda and Volvo. If Ford goes down thereafter people who are interested in buying a Volvo or a Mazda (less so Mazda) will hesitate with the uncertainty of what will happen next.

10/11, 12:47 PM

posted by:

JoeKing

The 21st century equivalent of the Lusitania hitting the Titanic…

10/11, 1:02 PM

posted by:

DrFill

Can’t wait to test drive the new 2010 Ramerado!
Can I get a Sebring Hybrid that gets 23 MPG please
I’d appreciate it.
DrFill

10/11, 2:19 PM

posted by:

Lariat Luxury Locomotive Liner No.3

How much do your think Nardelli will receive—for yet another failed leadership executive position—as a golden parachute this time when he leaves? The American taxpayer is sick of these useless bastards. Where is the American taxpayer bailout money going? Bailouts do not work, they never have.

10/11, 2:33 PM

posted by:

andy

so if this goes through, what kind of relationship will there be between Dodge and Jeep with GM?

10/11, 3:08 PM

posted by:

cereal

HAHA.

The future is looking funnier.

*laugh*

10/11, 3:11 PM

posted by:

FlyingB

There’s a lot of love in the room..

10/11, 3:32 PM

posted by:

bolex

im with Need4SSpeed, it aint gonna happen. if anything i can see them doing joint ventures. As BR Miller at Allpar.com wrote, “It’s like attaching a canoe to the Titanic and calling the contraption seaworthy.”

10/11, 3:35 PM

posted by:

Mr. Piston

Pretty soon all American cars will be made by the same company Chev-ord-sler-odge !!

10/11, 3:38 PM

posted by:

bolex

so if they do ‘merge’ who owns who? would it be General Chrysler Motors (sounds funny already) or Chrysler General Motors? i wonder if GM is gonna pull a Daimler on Chrysler, if that were the case, Chryslers are dirty little cars.

10/11, 5:55 PM

posted by:

jayjc08

A year ago I thought this would never happen. This has got to be about the most ridiculous, absurd idea I’ve heard on LLN.

First of all, it’s so ridiculously over redundant, if it wasn’t over redundant in the first place. Chrysler has their whole line up screwed to hell in the first place. Dodge and Chrysler have no brand image, Jeep has a good brand image… but what about Hummer? It would make more sense if they sold Hummer, but otherwise…

How are the dealerships going to work? Pontiac-Chrysler-Buick-GM, Dodge-Chevrolet-Cadillac? It’s so freaking redundant. Pontiac and Dodge are trying to go for the same brand image here, but Dodge has a bunch of sh!t products that would compete with Chevrolet. Chrysler’s trying to be in the same territory as Buick, but would have problems with Chevrolet… and Buick! AND GM, all at the same time! What technologies would they share? Chrysler has little to offer… GM has plenty of resources, none of them seemed tapped… Maybe they would then get Chrysler out of Europe, with their shameful sales over there…

I don’t see Ford as the most likely to go under… their foreign operations are well under way, including highly competitive markets such as Europe which have been doing excellent. Chrysler’s foreign exploits are not doing nearly as well, and their native market is dwindling… fast.

10/11, 6:05 PM

posted by:

TomF

The surviving company will be GM. If they’re smart, they’ll keep Jeep but cut Jeep nameplates in half; sell the Chrysler minivan as a Chevy; and cancel every other product, present or planned. From the Caliber to the Avenger to the 300, there’s not one other Chrysler vehicle that represents unique value.

GM wants to do this for the same reason American Airlines wanted to acquire (the dying) TWA a few years ago: to remove a competitor and take capacity out of the market. Cerberus wants to do this because those guys have lost their nerve and want out. ChryCo’s problems are a bottomless pit; they see that now. It looked bad for Chrysler when the economy was good. Now that we’re in cardiac arrest, it looks hopeless.

Ford collapsing completely is a good 50/50 bet, leaving GM as the sole American automaker… one of six major automakers that will remain in the world after the global wipeout now in progress: GM, Toyota, Honda, Nissan / Renault, Volkwagen and Hyundai.

People think the world can’t change for good. It is changing for good, right now, under our feet.

10/11, 6:05 PM

posted by:

bigdawg

I will believe it when they actually announce it & have a plan in place to address the issue of product overlap. Some of the brands will have to die & they are going to have to close some dealerships for this to work.

10/11, 7:12 PM

posted by:

beatusmongous

The merging and betterment of their products is an interesting thought…

Corvette and Viper - Both are great cars, so I don’t see how merging the two would improve either. However, maybe that big V10 in a Vette could be interesting…

PT Cruiser and HHR - The merging of these two could actually make for a decent vehicle. The ride and handling of the PT Cruiser combined with the efficiency and practicality of the HHR would be nice. However, they need to keep that price low.

Hummer and Jeep - Jeep would be able to really make Hummer shine, although I think the Hummer name just needs to go. Period. However, a diesel vehicle with the comfort and ride of the H2 and H3, the offroad capability of the older Jeeps, and OnStar as a standard feature would be really nice. Since the grilles are so similar, and so is much of their exterior design, I could see this particular union going far.

Chrysler minivans sold as Chevys or something else is a great idea. The Uplander is the most hideous vehicle ever to be made. I even prefer an Aztec over an Uplander. So Chevy might actually have a decent minivan for once. Make a Chrysler or Dodge minivan body, frame and interior, and then put a Chevy drivetrain in it, and you’d have a real winner.

A Cummins Turbo Diesel in a Silverado… Hmm…

Or even a Hemi motor in any Chevy… Hmm…

Or a Chevy 350 in a Chrysler 300 or a Charger…

Imagine the Crossfire with Solstice guts…

Very interesting thoughts.

However, too bad this most likely won’t happen.

10/11, 7:54 PM

posted by:

Dante_JoseCuervo

Hmmm, what happened to need more oil for gm? Did they finally realize the truth?

10/11, 8:06 PM

posted by:

NipponRules

You goofballs cheering on the possibility of Ford or GM or Chrysler or all three going down the tubes are absolutely as dumb as they come. I take it you are probably just children who don’t have a clue what you are saying and have a lot to learn. Go ask your mommies and daddies what would happen if Ford and GM go under especially in turbulent times like this. You goof balls better get real and not make so much lite of it.
If people are worried now look out if Detroit fails. The auto industry going down would be the nail in the coffin and you little kiddies won’t have much of a future for a long long time. Too bad for the majority but serve you right.

10/11, 10:24 PM

posted by:

DrFill

Nippon
You are probably one of the smart marks that approves bailouts of companies that are corrupt, mismanaged, and outright destroying the US Capitalist system, right?

How much should we hand Ford to stay alive, and build mediocre cars in a global automotive renaissance?

Henry Ford is turning over in his grave. And if he were alive, he’d fire every Ford exec, and shutter the place himself, because the company is probably too far gone to fix.

If we are dumb, and you are so f’n smart, tell us who is at fault for Ford, and what to do, except let them die.

Oh, I get your point. Let’s have the government run the company, like they’ll run the banks.

Who needs capitalism, right?

The government is so well-run, and is really helping America.

Being an American business, and a capitalist system, means you run your business well, which means save money and invbest in the future when times are good, so you can operate when times are bad.

NO U.S. AUTOMAKER DID THAT! Guess who was doing that?

Blame the foreign automaker. Blame the U.S. consumer all you want. WE know who is screwing up

Do you have a solution? IF they are a charity case, say so.

Otherwise don’t wise off to me, if you don’t know what’s been going on for the last 30 years. I worked for Ford for 3 years, before I sobered up!

This has been a long time comin

NO ONE is ahappy about it!

But wiping their bottom for them is the wrong answer. They’ll just make a mess again, and not clean it up.

DrFill

10/11, 11:32 PM

posted by:

VWgrouP

Okay, Although I could care less about NA made cars, but if GM and Chrysler merge..that’s going to leave a huge gap in the “autoworld”.
Personally, GM has several “different” makes, but they all make the same cars, just w/ different emblems on the hood. Same deal w/ Chrysler…So really, why would we want to ADD to that pointless comfusing cycle..
And if I am right, GM and Chrysler are head to head competitors. So that only leaves GM+Chrysler against Ford…

I really don’t think this should go through. If its money their worried about, maybe GM and Chrysler should put more quality into their products and maybe they would sell more..

AND I think Need more oil got banned like I suggested..YOUR WELCOLM…just kidding

10/11, 11:32 PM

posted by:

Lariat Luxury Locomotive Liner No.3

10/12, 3:20 AM

posted by:

GM CEO

If we perish, my CEO bonus will be larger than the wealth of a 3rd world country. Thanks for the loans though. It will go to good use yeah!?

ITS WIN WIN! TRUST ME! LOL

10/12, 10:05 AM

posted by:

olds307

British Leyland

10/12, 12:30 PM

posted by:

Jeepster

Merger or no merger, the Jeeps could use a modern engine that got decent mileage. The 3.7 V-6 makes noise like standing next to 4 running chain saws, and 17 mpg highway was OK in 2000.

10/12, 1:09 PM

posted by:

NipponRules

Drfill
Couple last comments:
I guess I owe an apology. I thought smug comments like that would come only from children.
Whether you are going to be sour on Detroit for the rest of your life is your choice. For you to go bad mouthing and ridiculing them consistently (like others on here do as well) and having glee in their woes is not IMO very respectful.
Sure they have produced some questionable quality products in the past as have every other manufacturer. Are you bad mouthing Toyota about all the recalls they have had recently? What about the POS Tundra with its weak frame? What about all the quality problems with VW? Are you trashing them and giving them a deathwatch? Do you discount JD Powers or Yahoo with there customer surveys just because Ford and GM are looking much better?
Detroit is trying to turn things around and people like you mindlessly and smugly working against them is unfair. If you think you are hurting them because of your negative attitude you may be right. On the bigger scale however you are doing a much more damage to the economy. If there is any consolation you guys hopefully will be included.
Easy to say crap like that when you are unaware or don’t give a **** (as yous’ have stated) about what happens to all the affected people. I’ll bet yous’ are some self centered dudes.
Ford in particular have obtained excellent management and what is apparently a good plan for the future. People like yourself who don’t have the ability to get over the past and look at the present and future are an unfortunate hurdle that may be difficult for them to jump.
You are enjoying mocking them just because you can’t get over the past while they attempt to make things right. If I was working for Detroit I would just luv to be able to reach thru this screen, grab your head, tear it off and sh.. in the hole. Too bad you are insulated by unanimity.
I shouldn’t be so passionate about you guys as it is not my battle or my country for that matter. As well at this stage of my game it doesn’t really concern me other than seeing people have such little regard for their impact on others.
If it was my problem I’d be coming after you for mocking me.

10/12, 1:47 PM

posted by:

John Doe Jr

Nice rant… Did you get it all out? Do you feel better now? wah-wahh….

10/12, 2:50 PM

posted by:

DrFill

You started the smug statements. All I did was state facts, and point out plausible scenarios for the future. You are in no position to talk down to me, since I ACTUALLY WORKED FOR FORD, and did more to help US carmakers than you.

You bring up Toyota and VW. Is this article about them? Who cares what they’re doing? You are the one with an agenda. Toyota and VW are making money, and at least have a plan. VW isn’t even doing well in the US and are still rolling in dough. Why can’t Ford diversify and leverage itself like that? If you want to defend poor management, that says a lot about you.

And don’t bring up recalls. Detroit invented, refedined, and perfected the art of the recall, so don’t make a fool of yourself and go down that road. Detroit knows recalls, and everyone else learns from them.

You still haven’t given all of us dopes a solution! Oh, great one, what’s is Ford’s solution! You know so much, but you are just like Detroit. All hype, no plan.

GM is actually making cars worth buying. 25 years too late, but at least they’re trying.

Chrysler and Ford are done. The Verve/Fiesta taking 3 years to reach America is a joke. A good company wouldn’t waste that much time. That’s the best idea Ford has had in 2 decades and they can’t sell it for 3 years. Pathetic!

Why don’t you go get some credibility. You have no ideas. You have no plan. And you want me to pat Detroit on the back, and say don’t worry? For what? Why should they get a pass? They are no different than the Wall Street companies and CEOs wrecking our economy from their side.

This is not about anybody else but the Weak 3. You can try to demonize everyone. If Ford and Chrysler fall, it is their fault alone. Not mine. Not consumers, Not Toyota’s.

You can’t handle the truth. Powder Detroit’s bottom all you want. That’s not my job anymore.

DrFill

10/12, 4:00 PM

posted by:

GM CEO

I use a lot of the money from the loans from the American people for advertising. Instead of getting the good ratings in quality studies like Honda, Audi, Porsche. ITS A WINNING PLAN

10/12, 6:25 PM

posted by:

NipponRules

You call these comments a plan?

Comments by you where I don’t see a heck of a lot of positive input. Must be a lot of fun for you. How do you think the people working for these companies feel about stuff like your deathwatch comments:

Ford sells Mazda
Mazda outsells Ford
GM buys Chrysler
Regains world #1 for a few weeks
We buy GM/Ford cars/stock
Resell at a loss
Japanese watch Keystone cops
Japanese laugh and inherit US market
Japan buys GM
Sells it to Dubai at big profit
DrFill
Guess that puts the kibosh on the Focus ever becoming any good, as a Mazda3 knock-off
F-150 falls
Camaro kills ‘Stang
Ford kills Focus, Ranger and Taurus thru mismanagement
I know 2nd graders who use their allowance to become major shareowners
Can we start the Deathclock please?
DrFill
dash
Who said anything about ‘Yota
Subaru would buy 20% of Ford if they didn’t need to pay the plant janitor a X-Mas bonus!
DrFill

Pretty smug to me. brilliant sicko

10/12, 10:31 PM

posted by:

maxzorin

To see any U.S. company fail is not a good thing for america it will affect alot of workers. Too bad some of you bloggers don’t get this, I don’t buy the idea that the big 3 don’t build quality cars. I have owned at least 7 new or used american vehicles with good success. I have owned 3 foreign vehicles that had serious problems and were expensive to repair. And all the people laughing at the failure of Ford or Chrysler, this problem will trickle down to your buisiness or job. So stop complaining we are all in this together lets hear some positive ideas on how to fix this problem. Hooah!!!!!!!!!!!!!!!!!!!!

10/12, 11:47 PM

posted by:

John Doe Jr

“As for how the market views the financial viability of the companies, Ford’s total market valuation has slid to $4.5 billion — a fraction of the company’s annual revenue of $170 billion — while GM has dropped to $2.8 billion, on roughly the same revenue as Ford. That puts GM only marginally ahead of India’s Tata Motors, which is valued at $2.3 billion. In comparison, Toyota, which also has suffered punishing losses in the market this week, was valued late Friday at $95.5 billion.” - Edmunds.com
I’d say Gm and Ford are going to have an awfully hard time surviving, with valuations like that…

10/12, 11:55 PM

posted by:

441Zuke

all American car companies should merge. consolidate their manufacturing operations, research, drivetrain and engine programs and chassis/ platform design. all they have to do is adjust the transmisson gearing electronic and suspension. if they did this they would save billions but they won’t it makes sense and as doctor phil 2 years to reengineer a car is a ****ing joke i mean they don’t have 3 years they need to be aggressive. they should pool resources for hybrids hell if they pooled imagin this the avenger/fusion/malibu share a platform using an ecoboost engine and the 6 speed transmission ford and gm developed. i mean it blows me away by how ****ign stupid these companies are i would gather every one on this site so we can throw them all a great big ****ing firing party. i would walk around their headquarters laughing kicking in the doors yelling GET THE **** OUT OF HERE!!!! YOU ARE ALL FIRED!!! YOU HAVE KILLED OUR COMPANIES!! YOU GREEDY , SHORT SIGHTED, LAZY BASTARDS. I own no stock in any of these companies but i feel that as a car enthusist and an a American that they are ****ing over what is our countries. When I was a kid I loved cars an I still do. I remember when my dad got his mustang and i was young i diden’t know **** about cars but i loved that car it was a crappy v6 automatic and i thought it was better then a corvette. i saw a first gen viper today and and it still looks like sex and i think i am mad because my kids won’t have that they’ll as why aren’t their cars made in america like the viper or mustang and it will becasue of these basterds and it just sends me into a rage. I think everyone hear can agree HTF did it come to this how can a group of people get it so wrong and not be fired. american autos are going the way of britsh autos

10/13, 12:03 AM

posted by:

441Zuke

i guess at their current stock value i could buy alot of stock

10/13, 1:07 AM

posted by:

cftisa

Need More Oil For GM must be shattered by this news!

10/13, 7:51 AM

posted by:

MercMark

GM wants to sell Hummer and now buy Jeep? WTF?

10/13, 9:59 AM

posted by:

inline6

I’m not sure how this will work, but I’ve got some ideas:

GM cans the Hummer name and the H2, melds the H3 into the Jeep lineup, and continues that brand, but the Compass goes away. Jeep and Hummer being reunited will be proper, as they were part of the same company as late as the early ’80s - both were owned by AMC.

Dodge becomes a truck-only division, replacing GMC. The Ram is kept (and awaits a redesign to share a common platform with the Silverado), while the Sierra is dropped. The Canyon gets dropped and is replaced by the Dakota. The Durango, Envoy, Journey, and Nitro get pruned and the Yukon, Acadia, a 7-seat TE-based Terrain joins the Dodge line. The next-gen Caliber becomes a true (and much better) small crossover and remains in the line. The Grand Caravan remains, while the Savana replaces the Sprinter (as the Daimler tie-up responsible for this vehicle will be over). The Charger gets redone as the next-gen Impala, while the Challenger gets a bit more luxurious and gets redesigned to become the next Riviera. Avenger goes away. And so does the Viper. I think even the XLR outsells the Viper.

The PT Cruiser gets the boot. The Sebring goes away, while the Invicta gets a convertible model. The next 300 forms the basis of the Lucerne replacement, while the Enclave stays at the top of the line, and the Aspen dies. If they really want to continue the Town & Country nameplate, they can give that to Buick, too.

Cadillac will need to move upmarket. And they might want to drop Saturn. It’s got its own dealer body, but sales that make it hard to justify the expense.

It’s not a perfect plan, but it works, I think. So GM-Chrylser would consist of: Chevrolet, Dodge Trucks, Pontiac, Jeep, Buick, and Cadillac. Chevrolet would stand alone. Buick and Jeep would tie up. So would Dodge and Pontiac. Cadillac would stand alone at the top. That would be four dealer bodies versus six or seven (depending on how you count them) for the two companies as it stands now.

10/13, 10:16 AM

posted by:

Z06ified

The NY Times says? I wouldn’t trust ANYTHING that trash rag says.

10/13, 10:18 AM

posted by:

NipponRules

maxzorin, appreciate your throwing that in.
These guys making a joke of it is plain dumb. They either have rich parents or just don’t get it. I presume it may be the former. Too bad for their parents who may be affected by all what is happening in the economy as well.

10/30, 12:42 AM

posted by:

dodge fan 1

My husband works at one of the Chrysler Assembly Plants and to know that he may not have a job would sink us. I am beyond upset. Talk about rocking your world upside down, and knowing that you have a family to provide for, and not knowing the outcome is awful. I have personally owned 3 Dodge Neons, 2 Dodge Dakota’s, 1 Dodge Ram, 1 Dodge Charger, and right now a Dodge Caliber. I enjoyed owning each and every one of these vehicles. I have never owned a foreign made vehicle and I never will, I support what our hardworking men and women make. I can’t even express how upset I feel to know that alot of families will be out of a job if this merger happens.

 
 
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