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

[adplusone]

This is all about GMAC and the pending Fed Bailout money (remember that DiTech Dot Com is owned by GMAC....and they are at the top of the list for home equity, graduated interested and hi risk loans - remember that with Di Tech GMAC has been a massive money loser - THAT IS WHY GM SOLD OFF HALF OF IT).

The product line marriage (plus dealers) does not make any business case sense at all. Chrysler minivan - great product BUT A DEAD CATEGORY. Jeep - the only product worth saving.

This merger is only about money - it has nothing to do with PRODUCT.

[adplusone]

QUOTE OF THE DAY ABOUT THIS "DEAL"

"GM is in trouble having eight brands and too many dealers, why would they want three more brands and 3,000 more dealers?" Keller said.

Great article at

http://www.detroitnews.com/apps/pbcs...810110426/1148

[The Law]

Not good....
Would not be good for GM-Chrysler as they are both cutting fat.plus the workers end jobs would be lost all the way around and would lead to greater job cuts and greater exports.

GM has a ok thing going with PBG, Saab & Caddy.They just need to play with Chevy,Saturn and Hummer.Introduce new models throughout all brands.

[njtex]

Doesn't Chrysler still own the main battle tank contract? I wonder if ths would help with cash flow if it is transitioned to GM ownership. Didn't GM try to bid on that contract about 15 years ago but lost out to Chrysler?

[awalbert88]

This deal makes no sense for GM. But lets forget that for a moment. Why would Cerberus want to own GMAC in its entirety? Do they know something we don't? Isn't GMAC hemorrhaging money right now?

[njtex]

Originally Posted by awalbert88

This deal makes no sense for GM. But lets forget that for a moment. Why would Cerberus want to own GMAC in its entirety? Do they know something we don't? Isn't GMAC hemorrhaging money right now?

Maybe GMAC avoided sub-prime and the associated toxic paper? Now there's also government support for banks/finance companies to consider too.

Once GMAC also digs out from it's lease portfolio issues it should then be in a much stronger state too.

[Uzzy]

Originally Posted by Caleb02

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.

Chevy becomes GMC, and you kill Cadillac in favour of Saab?

Why do I bother reading any of your posts?

[Uzzy]

Originally Posted by adplusone

QUOTE OF THE DAY ABOUT THIS "DEAL"

"GM is in trouble having eight brands and too many dealers, why would they want three more brands and 3,000 more dealers?" Keller said.

Great article at

http://www.detroitnews.com/apps/pbcs...810110426/1148

That sums it up perfectly. Basically what I was trying to say in my post at the beginning.

[BigThreeForever]

I can't tell you just how sickening I find this prospect. I absolutely loathe the prospect of losing any more of our great American names.

I am 100% in favour of GM, Ford and Chrysler setting up a "Joint Assistance Office" . . . a think tank or skunkworks type of operation to consider and review any and all scenarios where joint action would be mutually beneficial, and then, once identified, fast track them to production.

But mergers . . . no.

[Caleb02]

Originally Posted by Uzzy

Chevy becomes GMC, and you kill Cadillac in favour of Saab?

Why do I bother reading any of your posts?

because i dare say what others are thinking. Just think about this, Honda has a division called Honda that sells a full line of autos, Toyota has toyota that sells a full line of autos, BMW has BMW, VW has VW, GM needs GMC to be its mass market division. I really dont see what you have against renaming Chevy into GMC and we could use the bowtie logo if it makes you happy. And as you know Saab is a Euro brand and would see better then Caddy in other parts of the world so keep saab axe caddy.

[Firebird00]

This merger thing is just a bad idea on all fronts. GM can't afford to fix their own problems, let alone Chryslers. They sure as hell can't fix both at once. The notion of acquiring Chrysler is nuts. The only thing of value I can see is Jeep and the Cummins diesel. I think a Cummins w/ the Allison transmission in a Silverado would make a great combination.

[montrealvue]

(__________________________________) <<<<< nothing, both would be bankrupt in a couple of years, together they would just get there faster!

[gardnet1]

IF it were done, then GM should buy GMAC Automotive and Chrysler Financial outright. That is where the savings are. Let the fugly 3 headed devil dog have GMAC Mortgage.

Chrysler cars would have to go period. The only sellers are the 300 and the Town & Country. I would send the T&C with new grill to Saturn.

Durango buh bye. I wouldn't get rid of GMC but I would relegate them to Denali trim trucks and SUVs.

Dealerships...a mess!

Interim:

Chevy-Jeep

B-P-G

Saturn-Dodge

Cadillac-Saab

Hummer Buh Bye!

Long Term: B-P-G & Saturn-Dodge might have to consolidate. Saab might have to be euthanised. Maybe Cadillac-Buick and P-S-D.

GM would get to remain #1 globally for a couple of years and much longer if they restructure correctly.

All in all the risk is very, very high and I can't see it happening without the loan that GM is negotiating with the Federal Reserve Bank.

uaw hq is about 6 inches deep in excrement after this bombshell hit which could result in tens of thousands of layoffs, about a dozen more plant closures and such. Not a good time to be white collar Chrysler employee either unless you have one of those golden parachutes.

[bone]

The only benefit accruing to GM would be Jeep and the Minivans. At one time I would say the 'Hemi" moniker but today it's more a liability than an asset.

[tripowergto]

I believe the initial merger talks in early 07 exposed the worst problems in a possible GM-Chrysler merger. Since then both GM and Cerberus(more so Cerberus) have been slowly aligning synergies behind the scenes as much as possible for an eventual merger should hard times arrive(This is why there is no GM minivan) Hard times are now here!!

Cerberus has been cutting overlap and aligning their dealerships. Being privitized means they can cut & slash programs like GM never could. Should this merger actually take place Cerberus will do all of the dirty work BEFORE swapping Chrysler for the remaining GMAC ownership. In exchange GM will be guaranteed financing through GMAC at very favorable rates indefinitely and will keep a small stake in GMAC to assure this. Both GM-C and Cerberus get their share of the gov't bailout funds. Essentially the bankers(Cerberus, with private backers) take care of the banking(their strength) and GM takes care of the autos(their strength, supposedly) The two forge forward very much in concert helping each other along as much as reasonably possible within the existing economic climate. GM regains it's true marketshare leadership and gets further economies of scale while living up to its heritage as GENERAL Motors.

Chrysler becomes a slimmed down but full line BPG type dealership network existing solely of the Chrysler 300 & T&C, Dodge Ram variants, Charger & Challenger, Caravan, Journey and the Nissan produced smaller car and Jeep keeps only the Patriot, Wrangler and Grand Cherokee. GM-C keeps the already arranged Nissan deal for small cars and to produce the next Titan to help offset costs of the second truckline near term and long term they platform share with GM's next GM900 truck platform. Extraordinary economic hard times require RADICAL thinking. This could work!
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