Front page new GM Chrysler talk of merger

[wapacz]

http://online.wsj.com/article/SB122367931927624611.html?mod=googlenews_wsj

"General Motors Corp. has recently been in discussions about acquiring Chrysler LLC, according to people familiar with the matter, in a dramatic sign of the pressures mounting on the U.S. auto industry to restructure amid a deep slump in sales."

 

[Buick92]

I read this too, it's all over the internet and on TV, I guess if it happens GM can claim to sell more cars than anyone else, on the other hand combining two companies that are doing bad right now might not be a great idea either.

 

[wapacz]

I really don't see how it would work either. The only way I can think of is if GM got one heck of a deal out of doing it.

 

[SrDriver]

With the all the problems that GM, Ford, and Chrysler are having plus job loses and the economy I don't see how this will solve anything.

Another problem is even though the government is pumping all kinds of money into the banking system - Wall Street, etc., many folks are now in debt up to their eyeballs.

Many people that have found employment are making less than before and with government turning a blind eye to the cost of living in an effort to pump up the economy, many people have less disposable income when it comes to purchasing a new vehicle, etc.

 

[eljefino]

I'm trying to think of Chrysler's "killer app" that would make it worthwhile.... perhaps the styling division; GM could take a lesson especially their ***** minivans.

GM can at least get a lot of motion out of a relative few sips of fuel, with transmissions that grenade somewhat less than average.

GM at least has the volt in their pipelines. I don't know of any Chrysler hybrid/battery tech that's very far along.

GM and Chrysler both have loser Asian friends; GM-Daewoo and Chrysler-Mitsubishi. All four makes make "acceptable" vehicles, sure, but nothing with a fuel-saving "halo" that will envelop even unaffected marques.

 

[Duffman77]

I have seen news recently that GM's cash and credit is so bad right now they are on the verge of bankrupcy, it takes money to buy Chrysler, how is GM going to do it? I dont think the owners of Chrysler are going to trade one sinking ship for anouther on a pure merger.

 

[parimento1]

I guess misery loves company. Usually a successful company takes over a floundering one. But in this case both are floundering. I do not see why they would want to do this, unless Cerebrus is paying them to take Chrysler off their hands.

 

[Bryanccfshr]

Jeep...what's gonna happen to Jeep?

 

[XS650]

Originally Posted By: Bryanccfshr
Jeep...what's gonna happen to Jeep?

Jeep and Hummer will be merged into one line caller the Heep.

 

[Max_Wander]

Originally Posted By: XS650
Originally Posted By: Bryanccfshr
Jeep...what's gonna happen to Jeep?

Jeep and Hummer will be merged into one line caller the Heep.

nice one!


GM and Chrysler is a scary thought, though... what happens when you combine two complete failures?

 

[tom slick]

I've referred to them as heep for years! I'm thinking they could merge Dodge and Hummer together and call it Dummer. Chrysler, Hummer, and Chevy merged could be Chrummy.

 

[Bryanccfshr]

Ouch.. and LOL@!

 

[BearZDefect]

If GM takes over Chrysler, won't that mean the Chrysler will no longer be privately owned (I thought that was the good point of the last Chrysler sale), and thus back under the pinch of manipulators?

 

[ksJoe]

They also approached Ford.

http://online.wsj.com/article/SB122375732762826157.html
General Motors Corp. approached Ford Motor Co. in recent months about a possible merger but Ford called off the talks after the Dearborn, Mich. auto maker concluded it should continue to go it alone, according to a person directly familiar with the talks.

Maybe the Fed told them they're not too big to fail, and they oh yeah, check back in a few weeks.

 

[oilyriser]

Originally Posted By: Max_Wander


GM and Chrysler is a scary thought, though... what happens when you combine two complete failures?


You get a very bailout-worthy company that's "too big to fail".

 

[mstrjon32]

As I read it GM is looking to "trade" their remaining ownership of GMAC to Cerberus for Chrysler. I hope it happens, GM can stick to what it knows how to do, which is build cars.

I'm sure GMAC's balance sheet isn't spectacular with the ongoing credit meltdown.

As for Jeep, I can only hope GM has more sense managing the brand than Chrysler. IMO Jeep has been downhill since they dropped the original Cherokee and they've been trying to make up for it with ridiculous models like the Patriot and Compass that, IMO, are total junk. Jeep should be a two or three vehicle brand: Wrangler, Cherokee, and Grand Cherokee.

 

[harry j]

GFC Motor Corporation, has a ring to it.

 

[benjamming]

Originally Posted By: mstrjon32
[snip] GM can stick to what it knows how to do, which is build cars.[snip]


Assuming you mean attractive, quality cars, what has stopped them for so many years from doing that already? (rhetorical question)

 

[oilyriser]

GMAC was their most profitable arm. Cerberus is probably getting a really good deal with the current credit crunch.

 

[mstrjon32]

Originally Posted By: benjamming
Originally Posted By: mstrjon32
[snip] GM can stick to what it knows how to do, which is build cars.[snip]


Assuming you mean attractive, quality cars, what has stopped them for so many years from doing that already? (rhetorical question)


Beauty is in the eye of the beholder; I think they've built plenty of good cars in recent years and I've been proud to drive them. My last GM went 195K miles and I sold it with everything working.

Give me a GM over any imported junk any day.