Here we go again folks. Another rumor of a possible industry merger between GM and Chrysler. The question is: does this one have legs? With all that's going on in the financial market, does this now make more sense than it did before?
It's well known, or at least suspected, that Cerberus would love to get out of this Chrysler mess. Even so, I cannot for the life of me see what's in it for the General. Redundant models, already a huge problem at GM, would only get worse by including Chrysler models. I suppose the Jeep brand is worth saving, especially since GM is dropping the Trailblazer and its cousins. Beyond that I just don't get it. Maybe their are manufacturing synergies to be gained, or the possible link to both Nissan and Renault have possibilities since Chrysler has a toe in the door there?
Stay tuned folks. This should be interesting.
Full story here and here.
UPDATE: It looks like Cerberus is interested in acquiring all of GMAC. Back in 2006 they bought 51 percent of GM's finance arm, and now it looks like they want the whole kit and kubutle. No further word on possible merger mentioned above.
UPDATE 2: Many analysts are skeptical of such a move--but if it does come to pass, expect major job losses, as there would be a huge amount of job duplication which would need to be eliminated.
billt9 says:
07:35 AM, 10/11/08
Chrysler has no technologies, manufacturing or vehicle engineering to offer GM... This would be a pity heritage buy.
brn says:
12:24 PM, 10/11/08
I think Chrysler is heading down the right road, outsourcing to the likes of Nissan and VW.
Chrysler even makes some pretty good diesels and transmissions. They could sell those products to other companies as well.
Chrysler has a lot to offer to the right company.
iancar says:
05:56 PM, 10/11/08
The name was decided already. It will be called: "the American Leyland Motor Corporation Ltd". It will take 4, instead of 40, years until it will be sold again to a Chinese firm.
dvsutton says:
11:09 PM, 10/12/08
I don't koow if this has legs. GM is coming out wiht the Volt and Chrysler has some pretty good electric cars coming out. The new Cobalt just beat out three imports in Road and Track comparison. The New Ram is heads and tails above the Silverado and F 150. I don't even know if Nissan and Toyota are still building pickups anymore. I haven't seen a new Nissan Titan on the road since they came out. And all of the Toyota Tundra's were breaking camshafts and having reliability problems.
So I think they should still stand alone. They realy don't need each other. If there is any wash out to be had, Mistsubishi should be ready to pull out of the US anytime. And I think that Suzuki is cutting models, Acura sales are tanking more than the industry. Can't blame anyone not buying Acura's new uglyfied electric shaver nose and tail.
I guess if the Big Three played by Japanese and German rules, we would not have this problem. All we have to do is slap import tarrifs on imported cars and parts, the way they do, and protect our home market the way they do.
ateixeira says:
10:32 AM, 10/14/08
Keep in mind GM has no minivan. That and Jeep are the things worth saving.