Okay, how about this rumor to end the old year (or to begin the new year): Ford and Chrysler merging?According to to Fortune's Alex Taylor, that's the latest and hottest rumor that's beginning to circulate. Why even think about such a merger? Apparently there are those who think that Cerberus, the owner of Chrysler, may be in over their head, and are looking for a way to bail. Well, okay, that may be Chrysler's/Cerberus' motivation, but what in it for Ford?
Frankly the thought of this just makes my head spin...
Full story here.
onlygmmatters says:
06:42 AM, 12/28/07
Anything is possible I guess.
What these two companies need to do is analyze GM's success and look at their portfolio and figure out what it takes to build themselves back to greatness.
While I don't think either of them could ever design a car, truck or SUV as well as the General, couldn't they at least try and compete for once?
Maybe they need to buy a few General Motors' products and reverese engineer them. That would certainly help somewhat. And a little but of quality and consistant reliability couldn;t hurt either guys. GM is a leader in those areas and they're just down the road, how come you guys can't get it right?
If this is really happening, then good luck to the both of them. It would be nice to see at least one of our other American carmakers survive in the future. We need somebody to keep GM on their toes and give them some competition!
flicmod says:
07:52 AM, 12/28/07
LOL at comment #1. I just have nothing to say to that... just LOL.
Anyhow... I don't know if I believe that Cerberus is "in over their head" with Chrysler. A management company like that just doesn't buy up companies without knowing exactly what they're getting into. You don't spend millions on a company and then say "we give up".
However, if it IS true, it just proves how beyond repair Chrysler truly is. If a management firm can't turn them around, what's Ford going to do.
If that's how it is, then kill Chrysler. All of it. If I were Ford, I wouldn't even bother with them. Ignore it and work on fixing your own product line. The last thing FoMoCo needs is more crappy vehicles to fix.
LOL @ comment #1... again!
isaacl says:
08:02 AM, 12/28/07
onlygmmatters huh?
ok, hey pal you still subscribing to the fact that "Whats good for GM is good for America?" Please, go post that rhetoric on the CAMARO boards or something. We here that frequent EDMUNDS are an open-minded sort. You sound like a 12-year old just getting into cars whose dad and grandfather only ever bought Chevies or something. Log off the PC, and go outside to play with your new RC Camaro toy. I am annoyed that EVERY time I read this topic, I have to see your post first.
"We need someone to keep GM on thier toes"....l-o-gosh darn-l....
kids these days
As far as the merger? Whatever, I'll believe that when I see it.
ateixeira says:
10:11 AM, 12/28/07
Bring back Iacocca to ask the fed for help! LOL
iskch says:
10:55 AM, 12/28/07
GM SONG... "SOY UN PERDEDOOOR, I'M LOOSER BABY SO WHY DON'T YOU... LETS CU IT" CHECK GM'S CASH FLOW... OOPS RED TAG.
The Cerberus/Chrysler is going to end up like the MG/Rover (phoenix group) fiasco. I hope I'm completly wrong but if story repeats we will see pieces of Chrysler taken by bits and chunks.
The car market is getting smaller and everybody is trying to get a piece.
estreka says:
12:31 PM, 12/28/07
Flicmod - Even Jeep?
A few years ago I would have agreed to this. But I think Ford has too much going on and Chrysler is beyond the point of return to healthy growth.
I still say kill Chrysler now. Make Dodge a pure retro company with a RWD lineup as well as trucks. Use the Sterling name for all heavy duty applications. And keep Jeep the same minus the Compass/Patriot. After a few years, bring Chrysler back, but as a true luxury marquee.
lexiiprep says:
01:11 PM, 12/28/07
lol this would never happen. theres no way ford would ever consider, the big three as a whole are arch rivals.
and as far as the 6th comment goes...why would you kill off chrysler?, it was chrysler that absorbed dodge back in the 20's, if you gonna make retro company make it just chrysler, and before 1998 -the daimler take-over- chrysler was set to be the cadillac fighting luxo marque. its daimler's fault chrysler is shit today.
firstwagon says:
04:32 PM, 12/28/07
It amuses me that people think it would be Ford trying save Chrysler.... IMHO Ford is in worse shape. Chrysler has a number of good products that just need some major engineering work done on them. The idea is good but the execution is poor.
Ford on the other hand has nothing of any great interest. The line-up is bland like Toyota's but without the reliabilty.The only interesting car they have is the Mustang and it will be a distant 3rd place in it's class when the new Camaro and Challenger hit the market.
Cerberus needs to quit worrying about stupid mergers that never work and start listening to the blogs and reviews. Fix the engineering and materials problems and try to keep up with GM.
Ford is a lost cause.
flicmod says:
11:28 AM, 01/ 2/08
lexiiprep,
Who cares who absorbed who 80 years ago? That means nothing today if the consumer doesn't view the brands the same way they did that long ago.
Chrysler is NOT a luxury name anymore. And they haven't been since, IMO, the 60's. I think you're delusional if you think Chrysler would've had a chance of actually competing with Caddy in the 90's. Does the LeBaron ring a bell?
firstwagon,
I would have to disagree that Ford is in worse shape. Look at Fusion sales compared to Avenger sales. The F-150 is still outselling the Ram. The only thing Chrysler has going for it is the LX-platform vehicles. Sure, as soon as the Challenger and Camaro come out, the Mustang will be last, but isn't that what always happens? Go read the latest comparison text (Accord, Malibu, Camry). The Camry just came out last year and now the competition has leapfrogged it.
Besides, the Challenger is only going to be offered as SRT trim the first year (limited quantity as well) and will sell for over $40K. The Camaro won't be out till next year at the earliest. Mustang will soak up sales until then. Especially considering you can get a 300HP GT for 25K.
firstwagon says:
08:04 PM, 01/ 5/08
I guess it depends on where you live. Here in Canada Chrysler has moved ahead of Ford.
http://www.cbc.ca/money/story/2008/01/03/cancarsales.html
Add to that (my opinion here) that they have a lot more potential(better designs that just need polish) thus if I were buying shares it wouldn't be in Ford.
66fastback says:
11:03 AM, 01/ 7/08
Ford has been having too many problems lately with Ford. They have been selling off all their high-end companies like Land Rover, Jaguar and even talked about Volvo. Additionally, they already co-produce with Mazda. With all the problems they have right now, they certainly don't need the additional weight of taking on Chrysler and all of its problems. If Ford can't figure out how to fix Ford, they certainly can't fix Chrysler too.
I believe that Cerberus will sell off Chrysler in the next few years if they can't get things turned around. They're begining to initiate some major changes, and many more are coming soon. My only hope is that they don't do worse damage to Chrysler than Daimler-Benz did in the process.
This is only a rumor, and rumors tend to get even grander as they pass from person to person. A merger between Ford and Chrysler would do nothing more than kill both companies.
dvsutton says:
11:52 PM, 01/ 8/08
I don't believe any of it. Someone with no knowledge of the auto industry is starting this totally untrue rumor to rattle cages. I don't beleive it for a second. Hell, if Mitsubihsi survived with all of its crappy products, Chrysler will survive. It has ten times the talent and products to make it work.