Deal or No Deal? GM/Chrysler merger will be decided in next two weeks
Will the blending of Maximimum Bob and Minimum Bob be like putting matter and anti-matter together? We may find out sooner than expected if what CNBC is reporting is accurate. The possible merger deal between General Motors and Chrysler that hit the web waves recently will reportedly be concluded in the next two weeks one way or the other. Although original reports of talks between the two automakers indicated that they had walked away from the table already, it now appears the negotiations are going hot and heavy. Of course, no one with any actual knowledge of what is happening will discuss the situation on the record, so we are simply left to speculate whether this is really a good idea. While GM certainly has a stronger product lineup right now, Chrysler may actually have a better cash balance. Would GM absorbing Chrysler and then dispensing with a bunch of brands be enough to save the remnants of both? Or would it simply drag both into the muck at the bottom of the lake? There is certainly plenty of redundancy between the two companies. The disposing of excess tech centers, proving grounds, offices and the like could theoretically help raise valuable cash. That theory, however, is predicated on a market where there would be buyers for those assets, something which currently does not necessarily exist, especially in Michigan. We'll just have to watch and wait. Thanks for the tip, Ian!
[Source: CNBC]
Reader Comments (Page 1 of 4)
JT 11:38AM (10/17/2008)
Times are tough.......changes are needed to servive. GM/Chrysler would be one monster company. Good bye Toyota!!!!!!!!!!!!!! I say go for it!
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Eric Liberatore 11:49AM (10/17/2008)
HA HA HA HA HA HA HA HA HA HA. Are you trolling? You can't be serious.
MikeofLA 12:16PM (10/17/2008)
he makes a point... not very well, but a point non-the-less. combined, they'll be bigger the toyota.
Crackberry Addict 2:30PM (10/17/2008)
@ Mikeofla
i agree but there's alot of product overlap.
wren495 2:45PM (10/17/2008)
also buyers seem to prefer Toyota products, which is what brings us to this point to begin with
tragedy 11:41AM (10/17/2008)
GM and Chrysler together? That's like mixing feces and vomit to try and make steak and potatoes.
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JZeke 1:10PM (10/17/2008)
OMG thats the most disgusting comment Ive seen on AB... evah.
Loves it, lol.
Frank 5:42PM (10/17/2008)
Touche, sounds like a recipe for Garbage.
jbl 11:40AM (10/17/2008)
DEAL!!!
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BigMcLargeHuge 11:45AM (10/17/2008)
I don't think she comes with the suitcase :(
Carlos 12:26PM (10/17/2008)
Man that sucks, I would have made a deal if she came with the suit case.
Brent 11:43AM (10/17/2008)
Someone please tell me how this would benefit the consumer.
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henrykrinkle 12:07PM (10/17/2008)
Fewer brands to ignore when shopping ;)
UltimoDragon 12:16PM (10/17/2008)
Mergers and acquisitions almost never mean much except the loss of a competitor. But given that we're having to build superbanks to protect people's money and assets from being lost, there might not be an alternative if the economy gets worse.
Golferal 12:47PM (10/17/2008)
@henrykrinkle - Ziiiing!
Alex 11:42AM (10/17/2008)
Can GM afford to buy Chrysler? I mean if they are so cash-strapped, what do they buy them with?
These transactions are so far above my brain level, they make my head hurt.
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tankd0g 12:18PM (10/17/2008)
You don't need money to buy things, just credit. And GM seems to be backed by the bank roll of the American people.
Julius 11:44AM (10/17/2008)
I wonder if GM has a "Plan B" in mind while doing this...
Plan A is obviously get Chrysler's cash, and maybe split off a money-losing GMAC.
Plan B might be to grow the company so large, that its relevance to the American economy is magnified, and therefore more "deserving" of a bailout a-la the financial industry.
In any case, I can't see the survival of one or more brands under this union - whether or not it's Chrysler as a whole, or individual brands.
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tragedy 11:44AM (10/17/2008)
Goodbye Toyota? Do think before you place your pudgy little fingers on your keyboard? How could they annhilate Toyota when they both need to be each others' crutch? Toyota reigned all by itself, while these two miserable companies need to shut down factories and layoff workers just to stay afloat. I guess I can't take someone seriously when they can't spell a simple word like "survive" correctly.
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geo.stewart 11:46AM (10/17/2008)
it would be better for GM/Chrysler to sell off the assets and shutter the doors. A merger would be an ugly thing. GM has much better product and is focused on its brands as is. mucking that up with chrysler's crap would sound a death knell for all.
GM could improve its position with Chrysler's better plants (from what I hear) but the burden of bad product, overlapping product, and more union would not be in their best interest.
Chrysler does not offer enough advantages to offset its disadvantages.
The reconciliation of Hummer and Jeep would be interesting though... Maybe they could change Buick to Studebaker and revive...
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