GM Inside News Forum - View Single Post - Merger, Who Is It Good For? A Big Al Rant

danwaterloo · 10-12-2008, 07:13 PM

I assume a big part of the rationale for this is the government will lend to a combination of GM/Chrysler to save both from bankruptcy. Chrysler is likely not going to survive by itself, no matter the size of a government bailout. GM just needs to get through to 2010, after which it will survive and thrive because of the quality of its products. If GM takes over Chrysler, it can save it by improving its quality, which means the government won't have to deal with a very messy bankruptcy. But the only way the combination will survive is with a big bailout and a lot of restructuring. If GM/Chrysler gets a bailout and executes the restructuring properly (a lot of layoffs, dealership consolidations, and brand killings), it will thrive in a couple years.

This can make sense but only with a bailout and heaps of restructuring. Otherwise it will drive both companies to rapid bankruptcy.

10-12-2008, 07:13 PM	#8 (permalink)
danwaterloo 1.8 Liter ECOTEC Join Date: Aug 2008 Location: Ontario Drives: 2006 Chevrolet Uplander. Posts: 36	Re: Merger, Who Is It Good For? A Big Al Rant I assume a big part of the rationale for this is the government will lend to a combination of GM/Chrysler to save both from bankruptcy. Chrysler is likely not going to survive by itself, no matter the size of a government bailout. GM just needs to get through to 2010, after which it will survive and thrive because of the quality of its products. If GM takes over Chrysler, it can save it by improving its quality, which means the government won't have to deal with a very messy bankruptcy. But the only way the combination will survive is with a big bailout and a lot of restructuring. If GM/Chrysler gets a bailout and executes the restructuring properly (a lot of layoffs, dealership consolidations, and brand killings), it will thrive in a couple years. This can make sense but only with a bailout and heaps of restructuring. Otherwise it will drive both companies to rapid bankruptcy.