Filed under: Chrysler, LLC., Daimler, GM
Automotive News insists GM and DCX talking buyout
Automotive News has filed yet another report that insists DaimlerChrysler is in talks with General Motors about the latter purchasing the Chrysler Group. This time the trade pub claims that sources from Germany, where the rumor originated, and the United States have confirmed that GM is interested in picking up the struggling U.S. division of DCX. The New York Times has already confirmed from inside sources that the two companies are talking, but the topic of conversation is sharing the GMT900 full-size SUV platform.
We've already talked about why GM purchasing the Chrysler Group would be the biggest bone-head move of all time. To recap, the two automakers have many products that compete directly with each other, the Chrysler Group's product portfolio is farther behind GM's with less to be optimistic about in the pipeline, the last thing GM needs is more production capacity in the U.S., and absorbing legacy costs and additional UAW workers would be a nightmare. As a point of fact, automakers talk to each other all the time. It's time media outlets quit screaming "Buy out!" every time Rick Wagoner says hello to someone.
[Source: Automotive News]
Reader Comments (Page 1 of 3)
Realist 4:03PM (2/16/2007)
You mean GM is going to invest all the $110.86 they have in their reserves to purchase DCX?
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rwdmtparkingonly 4:04PM (2/16/2007)
Given the huge similarities I see here I think Chrysler is about to go on a platform sharing rampage:
http://www.flickr.com/photo_zoom.gne?id=392252836&size=o
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A&W 4:05PM (2/16/2007)
The comic bubbles above Bill Ford's head have been funny.
Just like in other news outlets, the rumor mill increases readership. But it is annoying when a story like this eventually falls flat on its' face.
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Steve 4:08PM (2/16/2007)
Would it be possible for someone, not specifally GM to buy Chrysler and then more or less dismantle it?
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A&W 4:13PM (2/16/2007)
Why don't they just bring back Oldsmobile? The end result of this match-up would be about the same.
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Bob-omb 4:18PM (2/16/2007)
The only thing GM would gain from this is the minivan market-share of people who have never been in an Odyssey before.
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Brian 4:27PM (2/16/2007)
The staff of AN is infatuated with every dump someone takes at DCX.. Always has been. Annoying.
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jim 4:38PM (2/16/2007)
It makes no sense, but then we are talking about GM. For DCX getting rid of the cancer makes it worth while.
What assets of value does Chrysler have? Factories? The whole industry is trying to close them or move the production to China. Talented engineering staff? Chrysler is about average. Design staff? Chrysler has been pretty hit or miss but their interiors are better than GMs.
Yeah the mini vans and Jeep, that's about it.
I can see someone being interested in Jeep (shades of American Motors), but the rest? It only makes sense for the Chinese.
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Michael Karesh 4:43PM (2/16/2007)
Maybe they're discussing how much DCX will have to pay GM to take Chrysler off its hands? (This has been suggested to me by a prominent GM critic. I find it hard to believe, but then again BMW did sell Rover for a single pound.)
Only one thing is for certain: all of the executives involved will be well compensated.
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NoNameDenton 4:48PM (2/16/2007)
I think #2 is correct, there are reports that Chrysler is trying to share an SUV platform with GM (The Tahoe, Suburban platform from what I read on Edmund's Inside Line) I also do not think Chrysler being bought by GM would be a good idea, too much overlap
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Dave T. 4:49PM (2/16/2007)
"Only one thing is for certain: all of the executives involved will be well compensated."
HA! Good one.
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JGN 4:51PM (2/16/2007)
The pictures with the captions are comedic genius. Keep up the good work.
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Elliott 4:52PM (2/16/2007)
The speech bubbles in your posts remind me of YouTube sensation Liam A.K.A. Kelly: http://www.betchslap.com/?page_id=38
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A_D_Hominem 4:59PM (2/16/2007)
If the price is right, any acquisition could be made to work. The timing seems wrong, though, as GM management really does not need the distraction midway through their own recovery. Now, if Zetsche can open doors for GM to convince MB that unloading Chrysler for a song is better than the pain of its possible recovery...
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NoNameDenton 5:03PM (2/16/2007)
"Is Daimler ready to sell Chrysler?" the Detroit Free Press breathlessly asks in today's above-the-fold headline. DaimlerChrysler "has hired JPMorgan as a strategic adviser, people with knowledge of the move said," The New York Times reports. Some German media outlets and Automotive News take it a step further, reporting that General Motors is talking to DaimlerChrysler about buying Chrysler (sure – you could position Dodge between Chevy and Pontiac on the GM hierarchy, place Chrysler between Buick and Cadillac, and have Hummer and Jeep share grille suppliers).
It’s hooey, of course. I’m going to rely on a person with knowledge to tell you what’s really going on between Chrysler and GM.
Chrysler is in talks to buy small B-cars, or designs or platforms for the same, from GM’s Daewoo Automotive Technologies. Daewoo is the South Korean affiliate in charge of designing, engineering and building small cars for GM. The Daewoo-designed and built Chevy Aveo could also become a Dodge. Dodge had trotted out a Hornet concept, pictured above, as a potential design for the car.
True, Chrysler has already signed a deal with China’s Chery for potential production of a small, B-Class world car from the Dodge or Chrysler brand, but GM’s South Korean affiliate looks more reliable and has a proven ability to supply technology to an automaker like DaimlerChrysler. Chery basically produces other companies’ designs.
Ironically, GM has accused Chery of copying its Chinese-market Chevrolet Spark, which is a version of the Daewoo Matiz. So a deal could indirectly connect Chery to GM’s Daewoo via Chrysler, a case of strange bedfellows. But it won’t get as strange as a GM-Chrysler hookup.
Chairman Dieter Zetsche said at DaimlerChrysler’s February 14 annual report press conference that the automaker is “looking into further strategic options with partners beyond the business cooperation partners mentioned. In this regard, we do not exclude any option.”
Sure, Daimler would sell Chrysler for the right price. But who would buy it for the right price? You’re likely to see a GM/Daewoo-designed, Chery-built Dodge before you see a viable buyer for Chrysler.
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Ben 5:06PM (2/16/2007)
The more I think about this, the more it could work (if it could work):
Buick and Chrysler have the biggest change, and blend to form a new near lux brand. The line up includes Sebring (next gen moves to Epsilon) 300C (next gen. on Zeta), which would slot above the Lucerne (still fwd), Enclave, a smaller Pacifica (2 rows), a new Crossfire, based on Kappa, but sold in coupe ONLY & a mini van. Give them all a bolder version of the current buck face, but keep the Chrysler name, Buick has an "old" thing attached to it. No “real” SUVs and NO FLEET SALES!
Truck buyers are very picky, so the Ram name has to stay, but should GMC. Ram becomes its own brand, and does ONLY trucks. Only truck brand with the Hemi. GMC goes more upscale and does trucks, but moves focus onto SUVs and crossovers; all are off road capable. GMC gets a version of the new Pacifica and (maybe) the Compass. Hybrids are widely available throughout GMC, not at all on Ram.
Chevy takes in some Dodge products, namely the minivan (not much makes sense with the new RWD platform on its way), and maybe the new Pacifica.
Dodge stick around, only for the charger and high performance versions of the Zeta and Kappa platform cars. They are sold only in limited numbers and at a price higher than platform mates.
Pontiac gets the Nitro (replaces Torrent) and the Caliber (replaces G5/Vibe, but is still called Vibe), so that they aren’t just re-badged Chevys. Also the G8 gets a wagon. All cars get the Pontiac face. “Poor man’s BMW”
Viper goes WAY up market and becomes its own brand, sold only through Caddy dealers. It needs to be a true exotic.
Hummer takes over Jeep and the Grand Cherokee becomes the new H3, Liberty becomes the H4, Wrangler becomes the H5. Play up the Jeep connection.
Caddy gets the Chinese SLS (and kills the DTS), the European BLS, adds a wagon and coupe (coupe convertible?) CTS. The next SRX looks more like an Escalade (and gets a V version). I know this has nothing to do with GM taking over DCX, it is just my wish list for Cadillac
Saturn says just the way it is.
SAABs all get awd, an Aero X face, and maybe a version of either the SRX or the new Pacifica, called the 96. They should sell turbo charged and diesels engines through out the line up.
Perhaps Plymouth is brought back and used ONLY for fleet sales. That way, no consumer brands takes the hit in resale. Almost direct rebadges of needed cars.
All brands should have a “face”, and no shared models should look exactly the same (like the Enclave/Acadia)
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Beebe 5:09PM (2/16/2007)
It seems like all the decent Chrysler management miraculously vanished taking the entire design team with them. The only way for Chrysler Group to be profitable is fire ¾ of its executive staff and let Mercedes folk do the job. Mercedes for management; Mercedes for design. Stop creating Comp-asses and Ass-pens, which are bound for failure. Stop investing money into platforms that will become synonyms to garbage. Instead, strike a deal with Mercedes to recycle their retiring platforms. Take older E-class and covert it to Brand New Dodge Magnum, or C-class to Caliber. And don’t let anyone from N. America near the drawing board. The outcome will be unbelievable.
Cutting 100 evidently useless exec will save as much money as laying off 13,000 true workers (in fact, you will need more worker since there will an increase in demand for your cars). Mercedes design team will make the miracle, eliminating current hideousness of the entire Jeep and 8/10 of the Chrysler-Dodge line. Recycles platforms with save billions of R&D money and provide better results.
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xjn 5:11PM (2/16/2007)
gm may only buy chrysler to buy chrysler. while that may seem stupid at first just think about it for a minute. if chrysler is sold to antother car company...say a car company like chery. chery may be a little poor company in china that is a fraction the size of chrysler but it is a chinese government owned company. if the chinese govenment gave them the money they would jump at the chance at buying chrysler for their engineers and designers. they would also want chrysler for the dealer network. if they bought chrysler out they may be able to get a little presteige from the transaction. if chery bought out chrysler they would continue closing plants in the us and canada so that the chrysler vehicles will be made in china using cheaper labor they could slowly crush all of the other companies.
if renault bought chrysler it would not tip the ballence any because their labor costs are the same as the costs at the other auto makers. but if a chinese car maker bought chrysler that could even cause even the mifghty toyota problems in this country and in others.
some of you may be tinking "the american people and/or congress will stop it" or nobody is going to buy a chinese made chrysler"
people will buy the cars if they are cheap regardless who amakes them and where they are made. just think if a chinese car company like chery bought chrysler they could sell the dodge ram for less than 20k. that could hurt or kill other companies like gm.
if gm buys chrysler they(gm) could get 2 things.. more tech and products like the minivans and jeep as well as suspension pattents,the use of cummins engines, other suspension pattents. the second thiing that they could get is the satisfaction and protection that comes with keeping chrysler out of the hands of a new forign compeditor that may be able to under cut gm. gm could also get the positive publicity that comes with saving chrysler and bringing chrysler ownership back to the us.
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NoNameDenton 5:19PM (2/16/2007)
#16, you do know that the Lucerne and the Caddy DTS are moving to rwd
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jim sanders 5:28PM (2/16/2007)
Damn look at that little dood!
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