G.M. and Chrysler Explore Merger

stormwatcher · 10-10-2008, 10:14 PM

DETROIT — General Motors is in preliminary talks about a possible merger with Chrysler, a deal that could drastically remake the landscape of the auto industry by reducing the Big Three of Detroit automakers to the Big Two.

The talks between G.M. and Cerberus Capital Management, the private equity firm that owns Chrysler, began more than a month ago, and the negotiations are not certain to produce a deal. Two people close to the process said the chances of a merger were “50-50” as of Friday and would most likely still take weeks to work out.

A merger would be a historic event, with two of the most iconic names in American industry coming together to survive in an increasingly difficult environment. Both have roots dating back decades in Detroit and, with Ford, long dominated the auto industry — until Japanese and other foreign car makers began making inroads into the American market.

The meetings between General Motors and Chrysler began more than a month ago, said people familiar with the discussions, and the companies have held several meetings with their most senior executives. Given that both of them are struggling, they may determine a merger may not be in their best interests.

Full article at link:

http://www.nytimes.com/2008/10/11/bu...l?ref=business

civilzues · 10-10-2008, 10:26 PM

Now we can all see why Hummer is up for sale.
They are getting Jeep. This is crazy, I really have no idea what to say other than that.

**mgescuro** · 10-10-2008, 10:28 PM

Kill me.... Kill me Now!!!

Replace Pontiac with Dodge.
Replace Hummer with Jeep.
Merge Buick with Chrysler.

Kill me.

sigma · 10-10-2008, 10:39 PM

Here is what has been on CNBC this far...

-GM needs capital and needs it quickly. They make take Chrysler on to unload the rest of GMAC onto Cerberus.
-GM gets Chrysler for essentially free combined with a nice cash injection.
-Acquisition of the Jeep brand. Say goodbye to Hummer.
-Potential Chrysler insolvency is speeding the deal. If Chrysler collapses it would take key parts of the GM parts supply chain with them.
-Massive platform consolidation.
-The US Government may assist, (i.e. partial nationalization) to speed the deal through.

psece · 10-10-2008, 10:41 PM

Does desperation and stupidity always have to go together? How does adding more dealers, more outdated factories, more brands, more legacy costs and more duplication make sense?

jmlee0695 · 10-10-2008, 10:42 PM

so, im guessing it would be
Chevy/Dodge
Buick/Chrysler
Jeep
GMC
Saturn
Pontiac/Dodge
Saab
Cadillac
?

Pinnacle · 10-10-2008, 10:43 PM

GM could use their Electric Vehicles which are the real deal
http://www.autoblog.com/2008/10/10/a...-john-mcelroy/

other then that

GMforME · 10-10-2008, 10:44 PM

OK
Now that I put my teeth back in!!!!!!!!!!!!!!!!!!!!!!!

Apparently this started a month ago because Cerebus wants out. That don't sound good for Chrysler. I guess I didn't realize that their market share had fallen to 11% last month. Cerberus has to be taking a total financial beating on every front.

Update:10:44
The Journal is reporting due to the melt down in the market this week the talks have been suspended acording to CNBC

doh · 10-10-2008, 10:45 PM

Chrysler to build Nissan's trucks, GM to build Chyslers cars, Hummer to build Jeep Suv's

Umm right "Shoot me Now"

PhishPhood · 10-10-2008, 10:45 PM

I can't see anything that Chrysler has that would be of interest to anyone, either inside the industry or outside.

doh · 10-10-2008, 10:46 PM

Quote:

Originally Posted by GMforME

OK
Now that I put my teeth back in!!!!!!!!!!!!!!!!!!!!!!!

Apparently this started a month ago because Cerebus wants out. That don't sound good for Chrysler. I guess I didn't realize that their market share had fallen to 11% last month. Cerberus has to be taking a total financial beating on every front.

Update:10:44
The Journal is reporting due to the melt down in the market this week the talks have been suspended acording to CNBC

Thats why they want to but Diamlers remain share, to sell off all assests.

GMforME · 10-10-2008, 10:47 PM

Pinnacle why when they could just buy a tesla and put a GM badge on it. Chrysler buys their two mode stuff from GM anyway and the other two vehicles I would bet are a parallel volt technology share to truth be known like two mode was.

doh · 10-10-2008, 10:50 PM

Maybe this works better, Chyrsler/GM Merger, Ford/Nissan Merger

CharlotteFirebird · 10-10-2008, 10:50 PM

If it HAS to happen, I'd much rather see Ford and Chrysler merge.

sigma · 10-10-2008, 10:50 PM

Quote:

Originally Posted by GMforME

OK
Now that I put my teeth back in!!!!!!!!!!!!!!!!!!!!!!!

Apparently this started a month ago because Cerebus wants out. That don't sound good for Chrysler. I guess I didn't realize that their market share had fallen to 11% last month. Cerberus has to be taking a total financial beating on every front.

Update:10:44
The Journal is reporting due to the melt down in the market this week the talks have been suspended acording to CNBC

NYTimes reporter on CNBC contradicts that report unless something has happened in the last 5 minutes that they don't know about. These talks are still going on.

10-10-2008, 10:14 PM	#1 (permalink)
stormwatcher 5.3 Liter Vortec V8 Join Date: Dec 2004 Posts: 1,266	G.M. and Chrysler Explore Merger DETROIT — General Motors is in preliminary talks about a possible merger with Chrysler, a deal that could drastically remake the landscape of the auto industry by reducing the Big Three of Detroit automakers to the Big Two. The talks between G.M. and Cerberus Capital Management, the private equity firm that owns Chrysler, began more than a month ago, and the negotiations are not certain to produce a deal. Two people close to the process said the chances of a merger were “50-50” as of Friday and would most likely still take weeks to work out. A merger would be a historic event, with two of the most iconic names in American industry coming together to survive in an increasingly difficult environment. Both have roots dating back decades in Detroit and, with Ford, long dominated the auto industry — until Japanese and other foreign car makers began making inroads into the American market. The meetings between General Motors and Chrysler began more than a month ago, said people familiar with the discussions, and the companies have held several meetings with their most senior executives. Given that both of them are struggling, they may determine a merger may not be in their best interests. Full article at link: http://www.nytimes.com/2008/10/11/bu...l?ref=business

10-10-2008, 10:26 PM	#2 (permalink)
civilzues 6.0 Liter Vortec V8 Join Date: Mar 2005 Location: Michigan Drives: 2008 Mazda3S Posts: 1,836	Re: G.M. and Chrysler Explore Merger Now we can all see why Hummer is up for sale. They are getting Jeep. This is crazy, I really have no idea what to say other than that. __________________ Wanted: an RWD 'Alpha' Buick, just no corporate radio this coming from a 24 year old!

10-10-2008, 10:28 PM	#3 (permalink)
mgescuro GMI Staff Member Join Date: Jan 2003 Location: San Francisco Bay Area Posts: 24,338	Re: G.M. and Chrysler Explore Merger Kill me.... Kill me Now!!! Replace Pontiac with Dodge. Replace Hummer with Jeep. Merge Buick with Chrysler. Kill me. __________________ 2000 Saab 9-5 Aero 1995 Mercedes C280 1994 Jaguar XJ6 ...when all hope is gone, you know sad songs say so much... My Vision of Cadillac My Vision of Cadillac (REDUX)

10-10-2008, 10:39 PM	#4 (permalink)
sigma 6.2 Liter Vortec V8 Join Date: Sep 2005 Location: In the Galactica CIC Drives: 2005 Chevy Malibu Posts: 2,522	Re: G.M. and Chrysler Explore Merger Here is what has been on CNBC this far... -GM needs capital and needs it quickly. They make take Chrysler on to unload the rest of GMAC onto Cerberus. -GM gets Chrysler for essentially free combined with a nice cash injection. -Acquisition of the Jeep brand. Say goodbye to Hummer. -Potential Chrysler insolvency is speeding the deal. If Chrysler collapses it would take key parts of the GM parts supply chain with them. -Massive platform consolidation. -The US Government may assist, (i.e. partial nationalization) to speed the deal through. __________________ "The best committee is the committee of one" -Bob Lutz

10-10-2008, 10:41 PM	#5 (permalink)
psece 3.9 Liter V6 Join Date: May 2005 Location: Roseville, CA Drives: 2003 Chrysler Town & Country 2005 Chevy Malibu Posts: 837	Re: G.M. and Chrysler Explore Merger Does desperation and stupidity always have to go together? How does adding more dealers, more outdated factories, more brands, more legacy costs and more duplication make sense? __________________ Erik

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10-10-2008, 10:42 PM	#6 (permalink)
jmlee0695 3.8 Liter V6 Join Date: Feb 2008 Posts: 481	Re: G.M. and Chrysler Explore Merger so, im guessing it would be Chevy/Dodge Buick/Chrysler Jeep GMC Saturn Pontiac/Dodge Saab Cadillac ?

10-10-2008, 10:43 PM	#7 (permalink)
Pinnacle 2.0 Liter Supercharged ECOTEC Join Date: Jul 2007 Location: Winnipeg, Canada Posts: 164	Re: G.M. and Chrysler Explore Merger GM could use their Electric Vehicles which are the real deal http://www.autoblog.com/2008/10/10/a...-john-mcelroy/ other then that

10-10-2008, 10:44 PM	#8 (permalink)
GMforME 3.8 Liter V6 Join Date: Dec 2006 Posts: 380	Re: G.M. and Chrysler Explore Merger OK Now that I put my teeth back in!!!!!!!!!!!!!!!!!!!!!!! Apparently this started a month ago because Cerebus wants out. That don't sound good for Chrysler. I guess I didn't realize that their market share had fallen to 11% last month. Cerberus has to be taking a total financial beating on every front. Update:10:44 The Journal is reporting due to the melt down in the market this week the talks have been suspended acording to CNBC

10-10-2008, 10:45 PM	#9 (permalink)
doh 6.0 Liter LS2 V8 Join Date: Sep 2003 Location: N.W.Ontario Posts: 4,761	Re: G.M. and Chrysler Explore Merger Chrysler to build Nissan's trucks, GM to build Chyslers cars, Hummer to build Jeep Suv's Umm right "Shoot me Now"

10-10-2008, 10:45 PM	#10 (permalink)
PhishPhood 6.2 Liter Vortec V8 Join Date: Nov 2006 Location: Further on up the road.. Posts: 2,753	Re: G.M. and Chrysler Explore Merger I can't see anything that Chrysler has that would be of interest to anyone, either inside the industry or outside.

10-10-2008, 10:47 PM	#12 (permalink)
GMforME 3.8 Liter V6 Join Date: Dec 2006 Posts: 380	Re: G.M. and Chrysler Explore Merger Pinnacle why when they could just buy a tesla and put a GM badge on it. Chrysler buys their two mode stuff from GM anyway and the other two vehicles I would bet are a parallel volt technology share to truth be known like two mode was.

10-10-2008, 10:50 PM	#13 (permalink)
doh 6.0 Liter LS2 V8 Join Date: Sep 2003 Location: N.W.Ontario Posts: 4,761	Re: G.M. and Chrysler Explore Merger Maybe this works better, Chyrsler/GM Merger, Ford/Nissan Merger

10-10-2008, 10:50 PM	#14 (permalink)
CharlotteFirebird 3.8 Liter V6 Join Date: Apr 2003 Posts: 413	Re: G.M. and Chrysler Explore Merger If it HAS to happen, I'd much rather see Ford and Chrysler merge. __________________ A list of the foreign countries the USA owes money to: http://www.treas.gov/tic/mfh.txt- Starting with 1. Japan, 2. China, 3. the UK, 4. Brazil, etc. Do you still want to buy a Japanese made/designed Lexus?

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