GM in talks to acquire Chrysler

[M_TYPE_X]

Yes, the headline is amusing like something you would have found in The Onion.

However, according to the Detroit News, these negotiations are serious.

Turning around quality and product image, GM decides: let's gorge ourselves on the people with the plastic suspensions! :rolleyes:

[Madmaster]

Let's buy the company that just had 3 of the most recalled vehicles last year, and many of them very serious!

What good could it do for GM? Aside from the 300/Charger, GM has a vastly superior product lineup to Chrysler, and the 300 will be answered soon enough with the G8.

Wait a sec. Oh yeah, GM is dumping all its minivans. GM must be buying Chrysler for... the Caravan! dun dun dun

[Sorin]

They can't be serious. Primarily because they need to figure out what to do with what they already have. In fact, they probably have too much as it is. They're going to go break something else (if you can break what's broke) without having fixed themselves yet. Way to go General. Yeah.

[detroadster]

They don't have the cash on hand to pull it off.

[idrive]

They don't have the cash on hand to pull it off.

yeah but i bet they have goood credit!

[ZYAL8R808]

yeah but i bet they have goood credit!

I hear they may get it with 0% financing for 60 months. Hopefully it also comes with a 10 year/100,000 mile warranty. Just in case of catastrophic failure.

[07G35S]

Buy chrysler... get ford half price... ;)

[WhereHaveYouBeen]

They can do this, but a lot more people are going to lose their jobs.

That will create more resentment towards american auto manufacturers.


Unless, they do it by simply acquiring chrysler as a division of GM and completely revamp their product as well as their production. I think this is the way they are going. Also, let chrysler management lay off everybody before you (GM) come in and save the company.

[SouthStar019]

so now it will be the Big two instead of three. i dont understand how they can say NO to nissan but consider this. even tho that was just an allience. oh well. and shoulnt they recover more before this?

[detroadster]

I hear they may get it with 0% financing for 60 months. Hopefully it also comes with a 10 year/100,000 mile warranty. Just in case of catastrophic failure.

Yes sir, buying that Daimler lease return.

[themanthedog]

GM really want's to keep the lead on Toyota.

[Bocatrip]

I don't think it would be a bad idea for GM, Ford, and Chrysler to merge as one so that they can be bought out by Fiat!

[M_TYPE_X]

Wait a sec. Oh yeah, GM is dumping all its minivans. GM must be buying Chrysler for... the Caravan! dun dun dun

:p

[SouthStar019]

I don't think it would be a bad idea for GM, Ford, and Chrysler to merge as one so that they can be bought out by Fiat!


buy 1 get 2 free?

[M_TYPE_X]

buy 1 get 2 free?

:D

[SouthStar019]

http://www.msnbc.msn.com/id/17296228/

looks like no one wants them.

whats the bigg bully mr toyota's position on this?

[07G35S]

http://www.msnbc.msn.com/id/17296228/

looks like no one wants them.

whats the bigg bully mr toyota's position on this?
See thats the difference between GM and those guys, they have the ability to make good decisions. GM doesn't.

[Datsun 120Y]

Could it be that they are buying Chrysler to kill it? It is not unknown for firms to buy out the competition and then shut down its (the competition's) operations. In addtion, at a price of 5-6 billion, they can acquire some real estate to resell in a few years.

Of course, that would require GM to find a way to dump 20B in health liabilities.

[SouthStar019]

what if they just made a new name and carried all the current models over with different names and such. just to get rid of the chrysler image. like a budget line benz brand. i dunno. prolly a waste of money and time. in the short run.

[WhereHaveYouBeen]

Could it be that they are buying Chrysler to kill it? It is not unknown for firms to buy out the competition and then shut down its (the competition's) operations. In addtion, at a price of 5-6 billion, they can acquire some real estate to resell in a few years.

Of course, that would require GM to find a way to dump 20B in health liabilities.

No. That would be a very stupid thing for GM to do, and Damiler would not sell Chrysler as a whole unit if that were the intentions.

If it's going to be broken up, Daimler will only sell it off as parts. They will make more money that way.

GM's intention, if they have any at all, would be to help Chrysler recover. If anything it will be GM taking Damiler Benz's place as a supplier/supporter.

[Datsun 120Y]

No. That would be a very stupid thing for GM to do, and Damiler would not sell Chrysler as a whole unit if that were the intentions.

If it's going to be broken up, Daimler will only sell it off as parts. They will make more money that way.

GM's intention, if they have any at all, would be to help Chrysler recover. If anything it will be GM taking Damiler Benz's place as a supplier/supporter.

I could agree with the last para of your note. But that is only from GM's perspective.

About the first two paras: Why should Daimler care about what happens to Chrysler. Like any business, their intention is to make the most money -- in this case, make the most money from selling Chrysler.

If Daimler believes that they will make the most money by breaking it up and selling it, then that is what they will do regarless of what GM thinks is in their (GM's) best interest.

[222Max]

How do they do this without Daimler having something to say about it?

[Madmaster]

Because Daimler wants to get rid of Chrysler heh.

[Sorin]

Daimler merges with Chrysler to become DaimlerChrysler. Daimler dumps Chrysler. Now what? DaimlerDodge? DaimlerPlymouth? Oh wait, they're gone too. Daimler....Daimler? Or do they still get to be DaimlerChrysler if someone else owns Chrysler, because Chrysler is not just a brand, but a company too? Boggle!

MTX?

[RetAF]

Once upon a time, it was Daimler Benz, IIRC.

[WhereHaveYouBeen]

They would go back to being Daimler Benz.



I could agree with the last para of your note. But that is only from GM's perspective.

About the first two paras: Why should Daimler care about what happens to Chrysler. Like any business, their intention is to make the most money -- in this case, make the most money from selling Chrysler.

If Daimler believes that they will make the most money by breaking it up and selling it, then that is what they will do regarless of what GM thinks is in their (GM's) best interest.


It's not that simple. Think hard about it. You'll figure it out.

[Sorin]

I know it was Daimler Benz before, but I didn't honestly expect them to go back to that unless it's the entire corporation of Chrysler that they're trying to get rid of, rather than the brand. If the former, what a waste of 9 years was that? If the latter, poor bast****. Either way, sucks to be Chrysler.

[M_TYPE_X]

I see Chip_Letzgus is getting ready to post. He'll show us all ... the way to sales salvation. :ubb_smirk:

Chrysler Group can exist as a standalone entity ... if it is backed by a billionaire investor or consortium that are interested in burning money.

[Bumnah]

chevy to buy chrysler
the only reason i can come up with on why the hell they'd want to do this is to make themselves bigger and say "We're still the biggest auto manufacturer in the world!"

It's that type of short sighted vision that got the big 3 into this mess in the first place.

I really can't find any sympahty for the big 3, their automobiles suck!

[ZYAL8R808]

I don't even see how this would pan out. Chrysler's product lineup is all linked to Dodge. So would Chevy dump all of Chrylser's current products and make their own rebadged Chevy's into Chrylser's? Would they team up with Dodge to keep Chrysler alive?

[M_TYPE_X]

I don't even see how this would pan out. Chrysler's product lineup is all linked to Dodge. So would Chevy dump all of Chrylser's current products and make their own rebadged Chevy's into Chrylser's? Would they team up with Dodge to keep Chrysler alive?

What are you talking about? Honestly, you're totally lost in automotive market land. Chrysler and Dodge are just brands. GM could buy Chrysler Group, keep Chrysler as a brand for sedans, Dodge as a brand for trucks and vans, and sell a few Jeep SUVs.

If GM acquired the Chrysler Group, the Viper would likely die. Competition for the Corvette: not wanted here!

[SouthStar019]

http://www.msnbc.msn.com/id/17343586/


sounds interesting. in a way.

[SouthStar019]

http://www.msnbc.msn.com/id/17343586/


sounds interesting. in a way.

[M_TYPE_X]

Jerry Flint in Forbes: http://www.forbes.com/opinions/2007/02/23/chrysler-autos-europe-oped-cz_jf_0223backseat.html

[WhereHaveYouBeen]

Jerry Flint in Forbes: http://www.forbes.com/opinions/2007/02/23/chrysler-autos-europe-oped-cz_jf_0223backseat.html

[quote]
The sad thing is that Chrysler really is not in horrendous shape. OK, a $1.5 billion loss sounds scary, unless you remember the $12 billion loss of Ford last year and the $10 billion loss at GM the year before. The auto industry is a cyclical business. I figure that DaimlerChrysler lost at least $5 billion on its silly little Smart car, and it has yet to bail out of that boondoggle. Remember, too, that as recently as 2005, the Chrysler group reported an operating income of $1.8 billion, excluding the profits of the financing arm, which came largely from American Chrysler.


On a relative basis, Chrysler is not doing that badly. Through Feb. 12, Chrysler group production was 298,714 cars and trucks, which was up 4% from 287,319 the year before. Heck, Honda [/URL]production here is up only 2%, Toyota (http://www.forbes.com/markets/company_news.jhtml?ticker=HMC) production here is up 2% and Nissan is down 9%. What about Chrysler's Detroit rivals? Ford Motor (http://www.forbes.com/markets/company_news.jhtml?ticker=NSANY)is down 17% and General Motors [URL="http://www.forbes.com/markets/company_news.jhtml?ticker=GM"]is down 16%. Chrysler's 4% increase looks darn good by comparison.
Chrysler's sales in the first month of the year (February figures will not come out until early in March) were a nudge ahead of the year before. Excluding Mercedes vehicles, Chrysler posted sales of 156,308 units versus 155,465 the year before. That is better than GM and Ford. Chrysler group's market share was 14.3%, up from 13.6% a year ago.[quote]



This is exactly what I've been telling people. The germans see a loss of 1.5 billion and they go all sauerkraut. Germans are notorious for barging into a company, firing everyone, and at the end of the day when they realize the company is screwed up (due to no fault but their own), they say the company is flawed and they are unable to fix it, and sell it off.



Whomever ends up buying this company would be supremely stupid to break it up and sell off the parts. It's doing better than GM and Ford. With a little product tweaking, they could be stellar. Sure, maybe not one of the Big 3, but profitable.



Like Jerry said, the American Auto Industry is cyclical. Very few people are loyal to specific brands and usually buy a slew of different cars throughout their lives. Not everyone sticks with Audi, or VW for the entire duration of their natural lives. You may buy a 2005 CTS, and maybe the next car you buy will be a E92 M3 or even the new Audi S5.

[detroadster]

Sure, maybe not one of the Big 3, but profitable.

That's the key. I think too many of the auto companies are all about being "#1 in sales", "The biggest", or having the "largest market share", etc. Who cares if you are the biggest when you lose $10B. I'd much rather be running the 10th largest auto manufacturer and make a lot of money for my shareholders doing it.

Figure out who your core customers are, focus your product line, and make a killing. There's a reason Volvo doesn't make pick-up trucks and Porsche doesn't make hybrid sub compacts. Stick with what you are good at and stop trying to be everything to everyone.

[WhereHaveYouBeen]

That's the key. I think too many of the auto companies are all about being "#1 in sales", "The biggest", or having the "largest market share", etc. Who cares if you are the biggest when you lose $10B. I'd much rather be running the 10th largest auto manufacturer and make a lot of money for my shareholders doing it.

Figure out who your core customers are, focus your product line, and make a killing. There's a reason Volvo doesn't make pick-up trucks and Porsche doesn't make hybrid sub compacts. Stick with what you are good at and stop trying to be everything to everyone.

I wish MBA's didn't see everything in theoretical terms. Sure you could make a huge amount of money if you were everything to everybody, but that's just not possible.

MBA's: But what about our synergies?

WHYB: Don't you have emails to send to somebody?

[Jesda]

GM's interest is in strangling the UAW, not in allowing Chrysler to continue its existence.

[WhereHaveYouBeen]

GM's interest is in strangling the UAW, not in allowing Chrysler to continue its existence.

Why not? They've been suffocating the American auto industry for decades.

[AZ_G]

I wonder if the Chinese will buy Chrysler. It would give their products the American image that they have tried to buy in the past. (i.e. Maytag, IBM)

[Jesda]

I agree. The negative is that GM would quickly dissolve the redundant bits of Chrysler, leaving a hole in the US economy.

Why not? They've been suffocating the American auto industry for decades.