GM + Chrysler: What it may look like post-merger

[blkwrxsti]

Originally Posted by spidge

Agreed. What's the point?

I can see keeping Jeep, and selling HUMMER, but having both Dodge AND Chevy around is pointless. It will just mean even more divisions for a company that should be working on reducing the number of divisions.

The Caliber and PT Cruiser are unnecessary with the HHR.

The Avenger and Sebring are unnecessary with the Malibu/Aura/G6.

They should use the LY platform for the STS and Lucerne, and the minivan platform, as another poster said.

I think it goes farther than the products - which others have pointed out could not be combined this way for ~3 years or so. I don't think any dealership coverage issues could be addressed much sooner than this either.

The only benefit I can see is that two companies without vision or courage would have some (contractual) excuse to lose headcount and combine operations (purchasing, engineering, and manufacturing). During the transition however, they would both become less agile, and have some of their brightest minds working on the "assimilation".

Then again, both companies are masters of brand management through badge-engineering, and are fond of bi-yearly reorganizations - so maybe this is a match made in heaven:
There's way too much product overlap for this to make sense, but GM WOULD get a minivan and Chrysler COULD get slightly more global presence. The assimilation SHOULD leave them in a better state that continuing on alone and trying to beat the crap out of each other. Having extra management staff onhand could also free up the attention units needed to make sure that :
1)GM-Chrysler survives the next 6 months
2)small cars receive the funding they need
3)the merged but smaller company is more competitive.

It's sad how far Chrysler has fallen since its "merger of equals" with Daimler, while the 3-pointed star shines as brightly as ever. I'd say Chrysler got used and thrown away (especially since they're now on the verge of being owned by a Company with market cap <$5 billion).

[kenman923]

I think it would make sense, because then GM can merger the Hummer and Jeep lines, eliminate GMC, and give GMC's Terrain and Acadia to Jeep.

I can also see Saturn, Pontiac and Chrysler being eliminated with Buick and Dodge becoming one division.

Cadillac and Saab can also come together.

[jamesd12]

Insanity for a company that already has an excess of overlapping products and under competitive products, especially considering that Chrysler isn't exactly right up to chop at the moment. Imagine the amounts of pissed off costumers from cutting brands, let alone the costs. Maybe if GM was strong, but let's face it, they could disappear soon.

If anything were to happen at all, a technological agreement may make sense. Working together on something like a midsize RWD platform, or subcompact FWD platform would cut costs and get out an exciting product that both companies are in dire need for.

[ByTheLake]

Looking at GM's situation in North America today, and we see too many brands, too many dealers and not enough cash.

A Chrysler acquisition would add brands, add dealers, and require cash that GM doesn't have.

I see no benefit.

[CharlotteFirebird]

Originally Posted by kenman923

I think it would make sense, because then GM can merger the Hummer and Jeep lines, eliminate GMC, and give GMC's Terrain and Acadia to Jeep.

I can also see Saturn, Pontiac and Chrysler being eliminated with Buick and Dodge becoming one division.

Cadillac and Saab can also come together.

Why buy Chrysler just to:

1. Replace Pontiac with Dodge
2. Replace Chrysler with Buick
3. etc...

All they'd be doing would be replacing one brand for another...so their total sales may not be a whole lot better?

[RedVee8]

So who will buy GM+C in a couple of years?
Suzuki? Chery? Tata?

[hotrod1949]

Combining the two would allow GM to actually reduce production capacity. With flex manufacturing, combine products in the most efficient plants, run those plants as close to flat out as possible, and shutter the old,out of date plants. Smaller whiyte collar work force, smaller blue collar work force, equals leaner production.

[johnny smallblock]

Under normal circumstances I'd say there's no way this deal happens. But these are crazy times and I genuinely have no idea how this will turn out. Frankly, I'm kind of excited to see. I'd love to see both companies healthy. I'd love to see all the brands survive. I'd love to see world peace.

I'm hopeful all the core brands survive (Chevy, Pontiac, Buick, Caddy, Dodge, Jeep, Chrysler).

I don't understand keeping Saab but getting rid of Chrysler.

We'd all...well, most of us would rather see Chrysler in GM's hands then a foreign company's. I hope there is somehow a way to make it work.

[vxl]

Originally Posted by RedVee8

So who will buy GM+C in a couple of years?
Suzuki? Chery? Tata?

SAIC

[skylark68]

I think this is the wrong time to consider this merger. Maybe back in 1979 it made a lot of sense since Chrysler was going under and GM was essentially very strong. Now both are weak and if the economy isn't going to push GM under, this merger more than likely can.

[Caleb02]

Originally Posted by LONGHORN

Chrysler cars that SELL (read the 300) will move to Buick.

Minivans to Chevy and Dodge looses theirs.

Dodge will take the place of Pontiac.

Pontiac and GMC gone.

Makes sense to me and may work. The only thing in the way, a year with presidential elections and some pissed off Dealers who just spent some major coin to refurbish or build new Chrysler,Dodge and Jeep dealerships.

so in the end gm kills 2 brands of their, but replace them with 2 other brands from chrysler. That makes no sense. GM needs only three divisions. GMC (all chevy products move to gmc as all parent companies have a full line of products like honda, toyota, etc), Buick, and then Saab. Then kill the rest and dont buy chrysler. Let ford buy them or the chinesse.

[Caleb02]

Originally Posted by RedVee8

So who will buy GM+C in a couple of years?
Suzuki? Chery? Tata?

i will i will offer gm and chrysler $1 for both companies. This would be a bargin after taking into account that i would have to break the uaw, and the pensions which i would unload onto the government in a bankwuptcy. As soon as the ink is try on the purchase I would march down to the bankruptcy court and then file and oust the uaw and move production to china. I would also only have GMC (by renaming Chevy) Buick/Jeep and Saab. Then I would use them world wide and with the overseas oaperation i would either sell them or merge them into gmc buick/jeep and saab.

[tgagneguam]

There is pretty much no benefit to the companies to this merger. It may benefit bankruptcy proceedings when the government only has to deal with one large bankruptcy than dealing with two separate bankruptcies.

GM allegely has little cash for car programs-the investments that ultimately improve their station-yet it will come up with the money to pay investment bankers to polish this merger off? I know this is a far-from-done deal, and I hope it will remain that way. A merger will simply be a major distraction for GM, which needs to focus on cleaning up its business first.

[DonRobbie]

I don't know what GMC is going to use for captive finance after they get rid of GMAC (Chrysler Financial will stay with Cerberus too). Kind of hard to sell cars without financing.

Using the Cummins engines for the trucks would get them out of the diesel engine development business which is probably to the good.

I don't see much other than the Cummins deal, Jeep, and the minivans worth hanging on to (I like the Challenger, I just imagine the aging rear drive platform would be an early casualty). Cerberus has starved the development pipeline, so what you see is mostly what you get. Dodge dealers would probably be happy to get some current cars in the next couple years. GM gets more outlets for rebranded cars.

If GM did decide to keep the 300/Charger/Challenger rear drive platform around we might just see a rear drive Impala just in time for the impending death of the Crown Vic(hopefully they stretch it to give little more backseat room). If GM doesn't succeed in offloading the Medium Truck Business we might see Dodge trucks again.

The parts distribution networks and other dealer support functions could be consolidated which would help cut down on back end costs.

Sadly, for labor, the effect isn't going to be too much different from what would happen if Chrysler went out of business. Not quite as bad on net since some plants (mostly on the GM side) would be adding shifts, but a lot of closures. I'd imagine most of the White Collar Work Force would be gone within a couple years.

[dufus22]

Here is my view of what COULD happen

Pontiac, GMC Saab, Saturn and Hummer would be gone or sold off.

Chevy-keep it the same as it is full line of Cars and truck with emphasis on afforadablity, and vaule

Dodge- The performace division/Truck Division. Have the G8 and Charger Merge into the new Charger. Move The Challenger to The Zeta Platform as a twin to the Camaro. Replace The Durrango with A restyled Arcadia. Keep The journey and move the grand Carvan to Chevy. Replace The Avanger With A new car based on the new Malibu. Give Dodge A facelifed Version Of the Yukon, and Keep The Ram Truck.

Buick/Chyrsler. Keep the buick name in china where it is the strongest, Call The current Buicks Chyrslers In NA. Keep The 300, ditch everything else.

Cadallic leave as is. It's the one divison that has a foucus. Maybe give it a flagship Based on a lengthened LY (300) chassis.

Jeep- Give it the Terrian to replace the Liberty, keep all other products.