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Should 2 of the Big 3 Americans merge?

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I think its time to see what all you Diehard GM fans think of this potential deal?

No personal opinions from me now, although I'm sure some have seen them expressed in other forums.
 

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GM has too many brands already and I don't understand why they would want to add three more. Considering there isn't really anything highly desirable, in my opinion, in the Chrysler, Dodge and Jeep range. Apart from perhaps the Mercedes and Volkswagen engines...
 

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It would be the merger from hell if GM and Chrysler do decide to merge. The long term consequences of such a deal would be disastrous
 

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I dont know about this one. What does Chrysler have that GM would want? Minivans? Maybe but also maybe GM can make them to go longer than 60,000 miles before self-destructing. Some argue the Dodge trucks are better than the GMs. I dont know about that one. Maybe the RWD platform the 300 and Charger are on could be used for something and actually be made to look good. Hmmmmmmm need to think on this one a little more.
 

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I dont know about this one. What does Chrysler have that GM would want? Minivans? Maybe but also maybe GM can make them to go longer than 60,000 miles before self-destructing.
No they can't. trust me, my dad is on his 5th in the last 13 years. All had over 60,000miles and it's a good thing they were company leases. We bought out a couple of them and the newer they got, the worse they were afterwards. We skipped the last one and my mom got a VUE instead. We will not be buying out his current either. They developed more problems as the platform aged, instead of of working the bugs out. :rolleyes: That is why they are all but dead now.
 

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Nope, they want $11M, not Chrysler. GM has still a lot of corporate fat and inefficiencies to cut and streamline (I bet GM's management cadre costs it a multitude of the $1M cash a month it reportedly burns), without the need to participate in some of the most convulted deals conceived (and people still moan about Fiat...)

There are almost no sensible long-run synergies (both have overcapacity in the US, most models are directly competing, and both are strong and weak in the same segments, brands overlap 100%), and GM basically doesn't seem to have a plan other than to take whatever Cerberus forces them to with those $11M and get rid of it as fast as they could.

I also love the American automotive industry and the "dog eat dog" end of it is absolutely not what I'd wish to see.
 

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I was driving around Chrysler HQ earlier today and things seem to be business as usual over there in terms of projects and testers. No phoinex engine prototypes to report about but I'm starting to see several Fiat 500's out and about which could indicate that Chrysler is still working on producing a small car off of that model and that the project is still alive and well.
 

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I believe that GM cannot downsize their top end anymore than they have. It's inherent. They operate with this structure and its just the way it is. So, with this in mind, what do you do? You buy more cashflows, more profit centers. Today, Chrysler isn't a "cashflow" but adding them to the mix allows the General to spread its management expense across more brands. Right now, that is probably what GM needs, more brands to manage. It will fill them out. Plug some holes. Give them more purchasing power and hopefully lower costs. Chrysler lost about 622 million, in US terms for Q2. If they didn't have to pay Cerebus and Chrysler folks (including Mr. Home Depot killer) to run them, would they have been profitable? Think about taking Dodge, Chrysler and Jeep and carving out that whole top tier of management and a little more then get rid of some of the real estate. I think that this would work. If my assumptions are correct, then GM is buying a "cashflow" and this deal would be accretive.
 

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Some platform and R&D sharing could work well. But I suspect that an actual merger may become unwieldy.

But how could I know? These are two of the most complex, sprawling, legacy-laden, and contract-laden companies around. You would have to be an industry expert, with solid knowledge of their financials and solid knowledge of industrial economics, to really have a defensible position on this one way or another.
 

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You would have to be an industry expert, with solid knowledge of their financials and solid knowledge of industrial economics, to really have a defensible position on this one way or another.
Since when? Arm Chair CEOs are why GMi exists. :rolleyes:
 

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Oh, that is good.
Some of us are in the business community, Doanchaknow!
Ya, so am I and I'd love to head up GM...but how many people on here are CEOs of one of history's largest corporations?
 

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I say yes if they get Chryslers $11 billion piggy bank as well as Chryslers share of the $25 billion government loan. This would give them $23 billion. Of course I do think some brands need to die. They can get rid of Hummer if they have Jeep, get rid of Chrysler, and keep Dodge trucks, mini-vans and cars. They can also continue the venture with Nissan to rebage Rams as Titans.
 

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We could be co-chairpeople.
Of course, anything with two heads is a freak.
I could be a chairpeople. :yup:

But I don't wanna be a two-headed freak. :(
 

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I vote no. GM can't deal with its own debt now, they sure can't deal with Chrysler debt. No Chrysler brand is superior to its potential GM counterpart. Jeep would be the only thing worth getting out of the whole deal and that is if GM has the nads to build real Jeeps (ie: not a Liberty or Compass). With this deal, GM is playing Russian roulette and 5 of the barrels are loaded instead of just 1. If the deal goes through I would not expect GM to make it past next summer.
 
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