Speculation for 2008: Ford and Chrysler to merge?
Chrysler and Ford have been at the top of the headlines all year long for various reasons, with Ford continuing to slim down by selling off its PAG brands, while Chrysler got dumped by Daimler and went private at the hands of Cerberus Capital Management. 2008 looks to be an equally interesting year in the auto industry, and a recent article in Fortune by senior editor Alex Taylor III suggests that a merger between Chrysler and Ford could be in the cards for the coming year. Talk about your haymakers.
Much of the speculation regarding Chrysler surrounds how Cerberus intends to get itself out from under the prolific paperweight that is the Pentastar. Financial types still feel Cerberus is out to make a quick buck, and that long-term ownership is highly unlikely. We're no big business experts, but it looks to us as though the three headed dog has a very limited list of potential buyers out there, so throwing a blind-folded dart that lands on the Blue Oval is as good a guess as any. It's a crazy Chrysler news day anyway, as TTAC is reporting that Cerberus may be preparing to sue Daimler for tricking the investment firm into buying what a thought was an automaker with nowhere to go but up.
Let us know in the comments what you think about the wild speculation of the day.
[Source: Fortune]
Reader Comments (Page 1 of 3)
nick 7:26PM (10/17/2008)
first i hate ford, second dodge people also hate ford, so why would people buy dodge when they are with the worst company ever, ford, ford people won't buy a truck mixed with dodge and dodge people won't buy a truck mixed with the worst truck come on, NO WAY
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TBlueMax 4:43PM (12/27/2007)
Indeed, very wild speculation. Can't think of a single possible good synergy between those two. Maybe someone else with a more creative imagination will come up with something.
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John Johnson 4:51PM (12/27/2007)
Let me first say, I drive a PT Cruiser. Sorry.
Not a big fan of it, but it was modeled after an old Ford. So hey, maybe PT can get a real styling update :).
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Mercury Fan Forever 4:52PM (12/27/2007)
I don't think that it will happen, but I don't think it would be such a bad idea.
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Xcountryflyer 5:02PM (12/27/2007)
Both companies need to get their acts together before anything else. Don't really see what Ford would gain out of Chrysler.
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Mark 5:45PM (12/27/2007)
A Hemi? lol
Dave 8:39PM (12/27/2007)
Access to dual-mode hybrid technology?
wally 5:17PM (12/27/2007)
It would make more sense for GM to merge w/Chrysler!!!
GM could stay #1 FOREVER............................
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Samurai Jack 5:22PM (12/27/2007)
There's absolutely no way this would happen. What's in it for Ford? With the exception of minivans (which seem to be a dying segment of the market) and specialized products (read: Jeep Wrangler) all of their products overlap. With the possible exception of the 300C, Ford has the superior product in those overlapping areas. Ford is already downsizing, so they don't need additional plant capacity. Chrysler's military contracts wouldn't be worth this level of investment.
A Ford - Chrysler merger would result in the elimination of just about every Chrysler product. What could possibly be the point? It's not going to happen. This is just another anal-ysts' wet dream...
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dakota 5:50PM (12/27/2007)
Please, Ford, Superior in what category?
RWD Cars? Not a chance.
Trucks? The underpowered pig called the F-150? Or the ancient Ranger?
Econoline? Not even a match for the Sprinter. And Ford wimped out on the minivans.
The only thing Ford is superior in is recalling all their defects back time and time again, and then stupidly keep using the same product in more vehicles. (See cruise control)
steveo391 8:15PM (12/27/2007)
@dakota
Whats the # 1 selling truck? And what's been the # 1 truck for probably longer than you've been alive?
nuff said
Austin 11:12PM (12/27/2007)
dakota,
Ford trucks are the best selling trucks of all time and who cares about horsepower when ford can out tow and out payload all other trucks. How many people do you know that take their truck to the drag strip.
E-series v. sprinter, give me a brake. You say that a big tub of german lard is better than Ford.
Take a look.
Ford:built in America
Dodge: built in the Motherlardland
Ford:Best selling Utility van for 28 years
Dodge:has a hard time selling 10,000 units a year, why do you think the Ram van isnt built any more
Ford:starts at $26000
Dodge:starts at $33000
Ford: best built utiity van
Dodge:not even in the top 3
And Cher. is the 1st name in quality. The wrangler has had 4 recalls this year. There screwing all of the new Jeep buyers that came for the 4 door model. All Cher, interior look like they came from a Yugo. The Avenger and Sebring are flops so much that they do doing an emergancy facelifts. So if you are comparing Ford v. anything from LLC. get your contacts on.
P.S. that Dakota that you adore so much. Look at its sales. It cant evemn get up to Ranger in sales. Infact it was one of the vehicles considered for the axe by LLC. so go cry a river.
mustang84 10:10AM (12/28/2007)
@dakota
Give me a break...you think the Sebring and Avenger are better than a Fusion, Taurus, Sable, etc? Ford trumps Chrysler in every category for the car segment; Chrysler doesn't even build a true compact car anymore now that the Neon is dead. As for trucks, there's a lot more to a truck than high hp...Ford sells 2x more F-series trucks than gas-guzzling Hemis at Dodge. And what's with the watered-down new Jeeps like the Compass and Commander? Talk about failures. Oh yeah, and the Chrysler Aspen....the answer to the question that nobody asked.
Ford gains nothing from a Chrysler merger because it is in a much healthier state than the boys in Auburn Hills. Unlike Chrysler, results are actually beginning to be seen in the areas of quality and residual values. The outlook for Chrysler's future is much less optimistic.
Keith Griffin 5:22PM (12/27/2007)
I don't believe for a moment that Cerberus could have been duped by Daimler. These guys play rough and are feared in the financial services industry.
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SGV 5:25PM (12/27/2007)
I they both want to ensure going belly up, well yes by all means they should merge.
That is the dumbest idea I have heard in a long time, and keep in mind I read the newspaper everyday.
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Tool 5:28PM (12/27/2007)
Interesting speculation. Doubt that a marriage between Ford and Chrysler would ever happen. But weirder things have occurred.
I find it particularly interesting that Cerberus was somehow "duped" when it acquired Chrysler. If that is truly the case, it makes you wonder how smart these GE guys who are on the Cerberus board really are.
Chrysler is an absolute basket case. Probably in worse shape than even when Iaccoca took over management of Chrysler in the late 1970's.
I doubt even Jim Press--the pied piper of the automotive world--can turn Chrysler around.
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Jeff 5:29PM (12/27/2007)
If you ignore the fact that this merger would be a terrible business decision...
...Think about what this could mean just in terms of auto history. Suddenly, Ford owns Mopar (it would start as a merger, but Ford would probably come out on top). It would really be the end of an era...again.
I'd take pretty much any Dodge over pretty much any Ford, but Chrysler has been kind of irrelevant for 20 years or so. Jeep, however, would be a good acquisition for any company.
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Austin 5:36PM (12/27/2007)
Taht would never happen. With the sale of Jag and LR there is no overlap of product at Ford. They would not want to revert back to that.
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dakota 5:50PM (12/27/2007)
No overlap?
Taurus X, Explorer, and the Flex seem to overlap quite well.
Austin 12:13AM (12/28/2007)
Taurus X is a 3 row mid sized crossover, Flex is a 3 row full sixe crossover( its 5 in. longer and 3 in. wider than X), Exploror is a 2-3 row SUV. They are all in different segments.