More economic chaos...

More trials and tribulations in the US auto industry:

Chrysler LLC may be sending a message to President Barack Obama’s autos task force by saying the “best option” for survival is a merger with General Motors Corp. that both sides have labeled dead.

Chrysler, propped up like GM with federal aid, is suggesting a new appraisal of a tie-up in hopes that the auto panel meeting for the first time today might force a “shotgun marriage,” said Brian Johnson, a Barclays Capital analyst in Chicago.

“I can’t imagine GM doing that without being forced into it by the government, but that’s a possibility,” said Kimberly Rodriguez, a principal at consulting firm Grant Thornton LLP in Southfield, Michigan.

Obama’s task force will start reviewing $21.6 billion in new loan requests that include Chrysler’s comment on the advantages of a GM combination. GM, the biggest U.S. automaker, abandoned merger talks in November and said it is focused on its own survival, not hooking up with No. 3 Chrysler.

From Bloomberg. Meanwhile, other big industries aren't much better off:

New York Times Co., the third-largest U.S. newspaper publisher, will stop paying a dividend for the first time in its 40-year history as a public company.

The publisher said in a statement today it suspended its quarterly dividend of 6 cents a share to help reduce debt, three months after slashing the payout. It joins McClatchy Co., owner of the Sacramento Bee, and Media General Inc. in halting dividends.

The suspension will save New York Times about $34.5 million annually, based on shares outstanding. The publisher is cutting jobs and selling assets as advertising dwindles. It’s seeking buyers for its stake in the Boston Red Sox baseball team and is in talks about a sale-leaseback on its Manhattan headquarters.

“It’s going to be very challenging for them to generate much free cash flow even after this cut,” said Mike Simonton, a credit analyst at Fitch Ratings. “It’s certainly a prudent move to preserve liquidity in light of the difficult credit market and their heavy debt burden.”

From Bloomberg once again. I guess companies at all levels are slashing their advertising budgets, which is bad news for commercial media. It's happening in Canada too:

Leonard Asper is scrambling to secure a financial lifeline for CanWest Global Communications Corp. before the end of the month to prevent his family-run media empire from sliding into bankruptcy protection.

Yet even if he is successful, the price of that lifeline could be steep. Some potential investors - including Fairfax Financial Holdings Ltd.- want to take control of CanWest away from the Asper family in exchange for any cash infusion.

At least one investor weighing a proposal said it would insist that Mr. Asper step aside as chief executive officer and that he and his siblings eliminate the dual-class share structure that gives them control of the company, according to sources familiar with the matter.

Officials at some of CanWest's main creditors believe that if the company cannot find access to hundreds of millions of dollars in new credit within the next few weeks, it could be forced to seek protection from lenders and restructure under the Companies' Creditors Arrangement Act. CanWest, which owes $3.9-billion, and its primary adviser, RBC Dominion Securities, have approached numerous institutional investors to gauge their interest in a deal.

The response from potential backers has been lukewarm, not merely because of CanWest's economic woes brought on by the recession, but because several creditors are jockeying for protection in any restructuring process.

CanWest's borrowing capacity was put on a tighter leash this month when a senior credit facility was cut back to $112-million from $300-million by Bank of Nova Scotia. The new limit is about $20-million above what CanWest has already drawn.

From the Globe and Mail. Can't say I'm shedding too many tears for the Asper family, and in any case I don't think they're going to end up living at the Main Street Project or anything. On the other hand, it would be a shame if Manitoba's second largest city were to lose its only TV station:

Another local Canadian television station has been tossed on the auction block, and could be shut down if a buyer isn't found by next month, signalling major changes in the broadcasting industry.

This time it's CTV Television Inc. that's putting CKX-TV Brandon in western Manitoba up for sale, while warning that it will pull the plug on the station if another broadcaster doesn't fork over the sufficient cash.

The announcement follows a decision by Canwest Global Communications Corp. to place five of its local E! network stations on the market after eroding advertising sales dashed its profits.

"Whether we like it or not, we are seeing the beginning of the end for small market TV stations in Canada," said Kaan Yigit, an media analyst at Solutions Research Group in an e-mail.

"They are costly to run and maintain and were having difficulty providing a decent return on investment even in good times."

From the London Free Press. I'd like to see some local media co-op form and buy the station, but I wouldn't bet on that happening.