Chrysler/GM to possibly share GMDAT products?

[nadepalma]

SOURCE: http://www.detnews.com/apps/pbcs.dll...02160351/1148/

GM and Chrysler eye partnership
If firms reach deal on making large SUV together, it would be first for U.S. automakers.
Josee Valcourt / The Detroit News

The Chrysler Group is in talks with crosstown competitor General Motors Corp. to jointly produce vehicles, including a large SUV similar in size to the Chevrolet Tahoe.

The maker of Dodge, Chrysler and Jeep cars and trucks has been in talks with GM for more than six months, said a person familiar with the plans, which have been described as advanced but not final.

"It's an example of a strategic partnership," the person said.

More strategic partnerships and joint projects were key ingredients in the restructuring plan that Chrysler CEO Tom LaSorda detailed on Wednesday in response to the automaker's $1.5 loss in 2006.

The Auburn Hills automaker is cutting production and 13,000 jobs.

If a deal is struck between Chrysler and GM, it would be the first joint effort between domestic automakers to build vehicles. There have been alliances with foreign makers. Ford Motor Co. once built Nissan Quest minivans for the Japanese automaker and Chrysler plans to build Volkswagen AG minivans at its plants.

GM and Chrysler also are exploring sharing small cars developed by GM's South Korea-based unit, GM Daewoo Auto & Technology, according to a report by the Wall Street Journal.

A GM spokesman wouldn't confirm Thursday any plans with Chrysler.

"We frequently discuss issues of mutual interest with other companies," GM spokesman Tom Wikinson said. "In many cases these discussions don't lead anywhere."

Though such collaborations help cut development and manufacturing costs, Chrysler's latest endeavor to add a large SUV to its truck-heavy lineup puzzled some analysts.

"I think it's crazy," said Erich Merkle, an analyst with Grand Rapids-based IRN Inc. "The reason why I say that is I don't have a problem with them maybe collaborating on a vehicle or maybe trying to combine some of their product developing resources to work on a common vehicle or common technology, but why a Suburban-type vehicle?

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[nadepalma]

The idea of sharing GMDAT produced small cars instead of sourcing from a Chinese company is certainly interesting. It would have a double edged sword effect for GM and Chrysler both (same idea as the Suburban/Tahoe sharing), but I can just see the UAW putting a curse on the whole thing since they would essentially be bringing in more vehicles from overseas and cut into their turf.

Maybe we'll get the Dodge Hornet afterall....We'll have to see what happens.

[VCDJ]

Do they really think people will be driving Those big suvs 10 years from now. People are becoming smarter, they do not want to drive 10 mpg vehicle, and make oil companies rich.

[69Firebird400]

Thanks for picking up on this, nadepalma. I noticed it in the original WSJ article and mentioned it in the thread about possibly collaborating on the large SUVs, but nobody else mentioned it. I think this has the potential to be just as significant as collaboration on trucks.

Here was the other mention: http://www.gminsidenews.com/forums/s...098#post942098

As for the Hornet, it's much cooler looking than much of what GMDAT is producing right now - it would be pretty sweet if GMDAT were able to build them for Chrysler instead of Chery doing it, but it seems that Chery would still be a much cheaper alternative, and I thought the wheels were already in motion for that. I guess we'll see.

[mbukukanyau]

Yes, one would think GM and DCX would try bring Dodge Hornet to Market instead of those Guzzlers
They never get it

[rueben44]

I say go for it and make GMDaewoo richer and more fuel efficient!

[goatgary]

Originally Posted by VCDJ

Do they really think people will be driving Those big suvs 10 years from now. People are becoming smarter, they do not want to drive 10 mpg vehicle, and make oil companies rich.

Do you really think people will be having families, towing recreational equipment, taking gear on vacation and running small businesses 10 years from now?

[guitarlix]

Does anyone get the feeling that Chrysler/Dodge still hasn't figured out what sells in the US market?

[CrunkedRL]

I'm sorry about I don't see how this will ultimately benefit GM. DCX will benefit from both the Daewoo small car and GMT900 platform. I thought I read awhile ago that DCX was already working a global small car platform of their own which is where the Dodge Hornet concept was derived from. I just don't see the cost or technological benefits for GM and DCX does not have anything to offer GM that they don't already have with the exception of maybe some technology siffened from Mercedes. I don't feel GM should throw DCX a bone.

[91 s-10baja]

[HEVguy]

Originally Posted by nadepalma

GM and Chrysler also are exploring sharing small cars developed by GM's South Korea-based unit, GM Daewoo Auto & Technology, according to a report by the Wall Street Journal.

A Chrysler/GM joint project on smaller cars with GMDAT involvement makes more sense to me. That is a tougher area for any US company to make profit anyway.

I agree with the analyst about the larger SUV. Why?? Although, I guess if Chrysler is going to do this anyway, then GM might as well get something out of Chrysler's effort. However, if Chrysler wouldn't do it without GM, then I think maybe GM should just keep the market to themselves???

[dindak]

I agree with this guy, why look at joint efforts on an SUV market that is in decline? GMDAT output ideas make sense though!

[SonicAerio]

I don't see Chrysler and GM coming to a deal using GMDATS because Chrysler has been trying for a while to become global brand and with both selling essentially the same car would kind of hurt GM in their growing Euro and Asia sales

As for the states, GM would most likely have to get the blessing of Suzuki since this is their market for GMDATS....not to mention with the caliber and next gen PT Cruiser they are tied to closely to Mitsubishi vehicles and are relativly newmaking it harder for any switch.

As for a Hornet - it would have to be a rehashed Aveo which has no Dodge/Chrysler DNA in it....so they would have to wait a couple years and help design the next generation so that they can throw in a couple Dodge Characteristics which could take longer then starting now with a Chinese firm.

Whatever the occasion, whether it be SUVs or GMDATS.....I really don't see anything fruitful out of this for GM....I just see Chrysler/Dodge giving some money to suck off their resources and get better vehicles...Hmm..remonds me of Fiat

[Hurricane]

Originally Posted by 91 s-10baja

Oh, dear lord, nooooooooooooooooooooo!

[VCDJ]

Originally Posted by goatgary

Do you really think people will be having families, towing recreational equipment, taking gear on vacation and running small businesses 10 years from now?

Yes, they can do all of that in Lambadas. And they are much better then uselles taho. If you are using vehicle for towing, that is different but, most people never use it. You only see one person driving Taho and usually it is a female. Look at saturn outlook, it will do many things better then taho.Why do you think people are moving away from big suvs? They are not stupid anymore, thye do not want to drive around town in 10mpg vehicle. Truck base suvs will be history soon. Price of fuel will go up, it is always going up. Taho and rest of those truck base suvs will go into history.