GM Inside News Forum banner
1 - 7 of 7 Posts

·
Registered
Joined
·
374 Posts
Discussion Starter · #1 ·
I actually think the idea of GM and Chrysler linking up with other car makers is a good idea, but both companies are talking to the wrong people.

GM should look for a struggling European or Asian car company it can buy on the cheap. A logical partner would have been MG Rover group a few years back. The beauty of buying a struggling foreign brand in a big market is actually quite simple.

In brands like Pontiac GM has an interesting range of cars but a range which is restricted to US sales only. But by buying a company like MG Rover they could have cunningly bought a large European distribution network, marketing and sales team, R&D operations and car production facilities very cheap (probably for just $1). MGR would have been ideal in many ways. GM could have probably got a subsidy off the UK taxpayer to take it on. They would only have had to take on 1 factory and a greatly reduced workforce. They could have robbed some engines off Opel, whacked them in Pontiac, used the local UK team at MGR to Europeanise the interiors and get the cars to meet European legislation.

The MG brand would have gone perfectly on things like the Solstace and they would even have got the Rover brand to stick on Buicks at a later date. Sales would have shot up in all likelyhood by at least 200,000 units, without spending much on development.

A business like MGR would have made a lot off sense. So rather than hook up with Chrysler, GM should go shopping for someone like Ssangyong. Chrysler should do exactly the same thing. GM doesn't need more US brands, it needs more foreign brands to sell US cars.
 

·
Registered
Joined
·
8,341 Posts
This is all working along the lines that GM is using cash to purchase Chrysler, which is not exactly what is the plan.

Cerberus gets GMAC, stake in GM.
GM gets liquidity, increase in market share, additional vehicles, employees,...

Restructuring the two businesses together will be a must.
 

·
Registered
Joined
·
1,787 Posts
testing, sorry to interrupt.
 

·
Registered
Joined
·
5,411 Posts
Nope.

I do not see any good coming from this possible "merger".
I doubt there is much if any synergy between the 2 companies where both will equally benefit.
 
1 - 7 of 7 Posts
Top