Quote:
Originally Posted by mgescuro
I just don't understand the coupling of these 2 companies.
Other than giving GM a boost in "market share," there really are ZERO synergies to be had here.
That alone SHOULD preclude this merger/acquisition.
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Nonsense. GM and Chrysler have a ton of synergies. I am surprised Kevin Tynan doesn't recognize that in the article.
For example:
*Chrysler does not have to develop new platforms or technologies by itself anymore
*Chrysler has a ton of assets, like buildings, proving grounds, real estate, etc, that cost Chrysler money to keep operating, that they do not need post-merger
*GM could instantly cut half the workers at Chrysler, since they don't need a Chrysler-only R&D staff anymore, and some jobs can be consolidated, like accounting or payroll or human resources.
*GM could give Chrysler brands competitive small cars and crossovers quickly
The article kind of misses the point. Chrysler has $11B in cash that GM can acquire in a potential deal, and in a merger, some of the synergies, such as selling assets and massive white-collar layoffs, can staunch the bleeding and long-term, make GM extremely profitable again with the massive economies of scale they would have.