Breaking: GM and CHRYSLER Hold Preliminary Merger Talks

[Kennyboy]

Crazy idea. Sell of GMAC if you must, but please don't merge.

[BigThreeForever]

I am still reeling from this.

I know GM was touted as a prospective buyer of Chrysler during the latter's divorce from Daimler, back in the "good old days" of early 2007, but the timing of this development is just utterly bizarre.

I am really struggling to see the commercial and industrial logic in any of this.

How many vehicle lines would GM-Chrysler have? How many divisions, platforms, engines, transmissions, plants . . . . sorting that out is the stuff of nightmares.

Moreover, both companies appear to be literally bleeding to death, day by day, and carry huge - and unsustainable - financial liabilities.

Moreover, just how much is Chrysler actually worth? Does anybody really know? Even GM is at - or less - $3 billion in market capitilisation, which is a joke in itself.

I just don't get it.

[PA Dweller]

Please let this be false.

[Buick Riviera]

Gm has already sold off part of GMAC, there trying to sell off these rest, that's all.

[Shawn Wuan]

Originally Posted by Buick Riviera

As I said before there will be no merger just , maybe these sell of these rest of GMAC that's all. Gm doesn't need Chrysler's automotive operations period.

I couldnt agrre more bro

[Caleb02]

Originally Posted by Fast1996Impala

If GM buys and kills Dodge and Chrysler, they will make the MOPAR fans upset and lose those customers for good. But Chrysler would sink GM if they bought it. But if GM doesn't buy it Celibrus will find someone worse (Nissan, Tata, Chery....I'm scared)

Our government isn't capible of making good decisions because its an electon year, but while their bailling out everyone why don't they buy Chrysler and place someone else in charge. I wonder if Lee Iacocca would come out of retirment and give some of these idiots a dose of common sense.

lee did it once he could do it again. The first time he got the government to bail them out and lee paid it back early. Lee could be like steve jobs, left the company, came back to save it...

[mikesright]

Originally Posted by tamatt27

I agree. Lutz has cut into Chrysler before and saved it. What might be better would be GM getting Chrysler in exchange for their portion of GMAC. Cerberus paying, in forms of stake in the company, GM to take Chrysler. GM making huge cuts at Chrysler and have a GM-Chrysler relationship similar to Ford-Mazda. Chrysler might be cut down to:
Dodge: trucks, Challenger, Charger
Chrysler: cheapo-Buick (to allow Buick to move up in the range, thus Cadillac as well)
Jeep: cut Commander, Compass, add Wranger SUT

These are long-term plans, ofcourse. Cuts will come first. New product will come once profitability is within sight.

Precisely! However, I believe Chrysler needs to remain managed as a full-line manufacturer, certainly overlap that is being cut already at Chrysler can be cut, but to make this work, Chrysler's volume needs to be high. GM can give new platforms, powertrains, parts, and expertise to Chrysler to do just that.

[jcgable]

Stupid idea. Fin.

[fan]

Chrsyler could actually replace Saturn in selling Opels. It actually is a real brand. Dodge, Pontiac\Cadillac could share RWD stuff. Pontiac could be replaced by Dodge if it proves bothering to revive.
With Jeep, there won't be need for Hummer

So, if GM aquires Chrysler and axes Saturn, Hummer, Saab and Pontiac, they'll actually be left with one less brand - that is 7 brands. Ain't that amasing?

They'll just replace brands like Saturn and Pontiac which are fine and all, but they don't quite sell much if any with more potent brands like Chrysler and Dodge.
If Chrysler would get Opels, I bet sales would take off and sell 3 times more than Saturn. Pontiac is no better than Saturn to sell Opels, but Chrysler is.

And then, there could be a dealer network merger. No need for two full dealer networks . Replace two GM,Chrysler dealers in the same area( Avery likely scenario) with a single more efficient one. Both owners (now co-owners) would win.

[2002 Caddy]

Originally Posted by fan

Chrsyler could actually replace Saturn in selling Opels. It actually is a real brand. Dodge, Pontiac\Cadillac could share RWD stuff. Pontiac could be replaced by Dodge if it proves bothering to revive.
With Jeep, there won't be need for Hummer

So, if GM aquires Chrysler and axes Saturn, Hummer, Saab and Pontiac, they'll actually be left with one less brand - that is 7 brands. Ain't that amasing?

They'll just replace brands like Saturn and Pontiac which are fine and all, but they don't quite sell much if any with more potent brands like Chrysler and Dodge.
If Chrysler would get Opels, I bet sales would take off and sell 3 times more than Saturn. Pontiac is no better than Saturn to sell Opels, but Chrysler is.

Kill Buick N/A too while you are at it... zero sales here too..

[vcs2600]

Originally Posted by fan

So, if GM aquires Chrysler and axes Saturn, Hummer, Saab and Pontiac, they'll actually be left with one less brand - that is 7 brands. Ain't that amasing?

GMC is also dead under this scenario.

Get ready for the Dodge Acadia and the Chrysler LaCrosse.

[drew770]

The only concern I have in this almost plan is what will happen to Ford? This will surely force Ford into a competitor's hands.
Honda which has always been very conservative with mergers will be looking into Ford's pockets. Don't forget Fiat or Volkswagen.
Do we really want Ford in foreign hands? It was bad enough to see Chrysler fall apart under Mercedes.

As much as I am a GM fan I have great loyality to American brands such as Ford. I would hate to see Ford under foreign ownership.

I would rather see our government inject massive capital into Ford and GM so these types of plans ie mergers will not be necessary.

[xjken]

Being a MOPAR FAN I like the idea of Chrysler remaining an AMERICAN company as opposed to Renault/Nissan ownership. For the life of me I do not see how this works, and I have read every post here so far. With the exception of the new Ram possibilly, Dodge trucks don't seem to be any better than the GM truck lineup. While it would be nice to see Chrysler remain a stand alone entity I just do not see how that happens. It seems to me that the last thing GM needs right now is another company to run. The only thing that seems like GM could want is the Jeep brand just because it has a better off-road rep than the Hummer brand.

[adplusone]

The investment boys that bought Chrysler only want GM's share of GMAC.

All that federal bailout money for crapy DiTech Dot COm adjustable rate and home equity loans (remember owned by GMAC) will make their Chrysler deal a money maker.

This has nothing to deal with steel, rubber and glass...it is a 110% financial services play.

[Buick City]

I say merge. Now saying that, I honestly think one of their main reasons is to get out of the RenCen Downtown. They can sell that off, move into Auburn Hills. Other then that, they can pilfer the minivan's and a couple of the Jeep's and kill the rest. The 300c after an update, would'nt look to bad with a Buick badge, as well as the Town & Country. Kill hummer or sell it, would still have whats left of jeep. As for dodge, kill the Ram, you may lose some fans, but after all, you still have gmc and chevy, and full size trucks arent that big anymore. The Dodge caravan could wear a chevy badge, bringing a much needed minivan back to chevy, remember not everyone wants a Lambda. Then you have the charger and challenger left, avenger and caliber will be axed. Either keep the charger and challenger on as a low volume performance oriented brand (dodge), similar to pontiac, or merge pontiac and dodge into one brand. After the dust settles, you get a new HQ, a couple jeep's, minivans, and a whole lot of ticked off dealer's............what a mess